On November 22, 2022, the Los Angeles City Council unanimously passed the Fair Work Week Ordinance (“FWWO”). Set to take effect in April 2023, the new law imposes significant requirements on retail employers in the City of Los Angeles with respect to both scheduling and hiring. It follows in the footsteps of similar predictive scheduling laws already on the books in other major cities, including San Francisco, Seattle, New York City, Chicago and Philadelphia.

Although the FWWO is bad news for retailers, its scope is relatively narrow. To be covered, an employer must (1) be identified as a retail business by the North American Industry Classification System and fall within retail trade categories 44 through 45, and (2) have 300 or more employees globally (including employees placed through a temporary service or staffing agency, employees of the employer’s subsidiary, and some franchise employees). Any employee who qualifies for minimum wage and performs at least two hours of work in a workweek in the City is covered by the FWWO.

Some of the FWWO’s more notable provisions include the following:

In addition to the above, the FWWO also imposes notice and recordkeeping requirements, and prohibits employers from retaliating against any employees for exercising rights under the new law. Employers in the retail industry should examine their scheduling practices carefully and consult with counsel before the FWWO takes effect on April 1, 2023.

Source: Proskauer Rose LLP – Philippe A. Lebel and Morgan Peterson

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