January 25, 2019
New predictive scheduling laws for restaurant and retail employers are reducing flexibility, increasing costs, and creating an uneven playing field with other industries.
Four cities and Oregon have laws in place, and Philadelphia’s recently enacted ordinance will take effect in 2020. Other cities and states are expected to follow.
Increased costs: If one or two employees quit after a schedule is posted, dozens of shifts need to be picked up through no fault of the employer—yet those shifts may be subject to premium pay unless other workers voluntarily agree to cover them.
Robots don’t take sick days: Increasing minimum wage expenses, rising food costs, and predicative scheduling laws create a significant incentive to automate as many processes as possible.
Outlook: Although federal legislation will be introduced, much of the action will be at the state and local level for at least the next two years.