NEWSFLASH! Employers Will Pay the Price for Unpredictability Under Chicago Fair Workweek Ordinance

By: Audrey E. Gamble, Esquire and Alex W. Norlander, Esquire

Chicago’s new Fair Workweek Ordinance is changing the way employers in certain “covered industries” will manage employee schedules. Beginning July 1, 2020, covered employers must conform to new employment standards which aim to increase schedule and wage predictability. The Ordinance will apply to employees who earn less than $26 per hour (or $50,000 in annual salary) who are employed in building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services. Certain small businesses in covered industries are exempt under the Ordinance.

Significant changes detailed in the Ordinance include the requirements for employers to provide employees with a written estimate of the anticipated work schedule at the start of employment and provide 10 days’ advanced written notice of employees’ work hours.  Depending on the amount of prior notice, an employee may be entitled to payments (predictability pay) based upon their regular rate of pay if an employer changes the work schedule. Additionally, the Ordinance gives employees the right to decline scheduled work hours that begin less than 10 hours after the end of the previous day’s shift, or receive pay at 1.25 times their regular rate if the employee accepts the shift.

The Ordinance could be costly for covered employers that do not comply, as violators can face fines between $300-$500 per violation, per employee. A similar law in New York City went into effect in November 2017, and New York officials are currently pursuing more than $1 million in combined fines and restitution in a lawsuit against a major fast-casual restaurant chain. The lawsuit arose after workers from several locations of the restaurant chain filed complaints with New York’s Department of Consumer and Worker Protection alleging numerous violations. A key difference between the Chicago Ordinance and similar laws in other municipalities is the breadth of coverage.  While other similar laws are limited in the scope of industries covered, Chicago’s Ordinance will apply to a wide array of industries.

For more information, please contact John W. Campbell, Esquire at jcampbell@satclaw.com

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