Oregon: First State in the Nation to Pass Predictive Scheduling Law

APPLIES TO

All OR Employers of 500+ Employees Worldwide in Retail, Food Service, or Hospitality Industries

EFFECTIVE

July 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Last year, Seattle and New York City both implemented secure scheduling ordinances.  Although this type of employee-friendly legislation appears to be gaining ground, Oregon has become the first state in the nation to do so with the signing of its Fair Work Week Act (the “Act”) on August 8, 2017.  The Act imposes a host of new requirements for employers in the retail, food service, or hospitality industries, with staggered effective dates for certain provisions of the Act.

Who is Covered?  Oregon employers of 500 or more employees worldwide in retail, food service, or hospitality industries.  The Act also applies to employers with collective bargaining agreements.  Franchisees are not covered by the Act unless they employ 500 workers of their own.

Estimated Schedule at Time of Hire.  Employers are required to provide newly-hired employees with a written, good-faith estimate of the employee’s schedule at time of hire.  The estimate must contain the following: the median number of hours the employee can expect to work in a one-month period; information about the “voluntary standby list” (described in further detail below); sets forth an objective standard for when an employee not listed on the voluntary standby list may be expected to be available to work on-call shifts.

Advance Posting of Schedules.  Effective July 1, 2018, schedules must be posted seven days in advance of the shifts being worked.  This is intended to provide workers advance notice of when they need to work.  However, enforcement does not begin until January 1, 2019.  Effective January 1, 2020, schedules must be posted 14 days in advance.

No Back-to-Back Shifts.  Employees may not be scheduled for a second shift within 10 hours of their previous shift.

Changes to Scheduling.  When a change to a posted schedule occurs, employers are required to notify employees of the change.  Employees have the right to decline any work shifts not included in the original posted schedule. However, if the scheduling change arises from an employee’s request that the employer add the employee to a shift, the notice requirements do not apply.

Further, employees have the right to provide their preferences for scheduling times and locations.  Although employers cannot retaliate against employees for expressing such preferences, employers are not required to defer to such preferences.

Additional Compensation for Shift Changes.  Where changes without advance notification occur, employers must pay additional compensation under certain conditions:

  • One hour of additional pay will be granted if:
    • The employer adds more than 30 minutes to an employee’s work shift
    • The employer changes the date or start/end time of the shift, with no change in hours
    • The employee is scheduled for an additional shift or on-call shift
  • Employees must be paid at one-and-a-half times their regular rate of pay for each hour the employee does not work when:
    • The employer subtracts hours from the work shift before or after the employee reports for duty
    • The employer changes the date or start/end time of the shift, resulting in a loss of hours;
    • The employer cancels the work shift;
    • The employer does not ask the employee to perform work when the employee is scheduled for an on-call shift.

These requirements do not apply under very specific circumstances.  Employers should review the Act to determine if additional compensation may not be warranted.

Voluntary Standby List.  Fortunately, employers are allowed to create a list of employees who volunteer to be put to work on short notice. The employee must voluntarily request or agree in writing to be placed on the standby list.  Employers must notify the employees on the list that: inclusion on the list is voluntary and the employee may request to be removed at any time; how the employer will notify standby employees of additional available hours; emphasize that standby employees are not required to accept additional hours offered; and that standby employees are not eligible for bonus compensation in excess of their regular rate of pay for accepting additional hours as a result of being on the list.  Employers may not retaliate against employees who decline to be placed on, or request to be removed from, the list.

Notice and Recordkeeping Requirements.

Notice:  The Commissioner of the Bureau of Labor and Industries (“BOLI”) will publish a template poster describing employee rights under the Act.  Employers must display this poster in the worksite, or where posting is not possible (e.g., employees work remotely or have variable job sites) provide the poster in any physical or electronic format that is reasonably conspicuous and accessible.

Records: Employers must retain records documenting compliance with the Act for three years.

Action Items

  1. Review the text of the Act here.
  2. Have shift supervisors, management, and payroll personnel trained on new scheduling requirements, inclusive of additional pay requirements when shift changes occur.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

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