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Los Angeles County Fair Workweek Ordinance for Unincorporated Areas Passes

03 Jun

Update Applicable to:Effective date
Retail employers with at least 300 or more employees nationwide (including those employed through temporary service firms or staffing agencies and by franchisees) who work in the unincorporated areas of Los Angeles County at least two hours per workweek.  July 1, 2025  

What happened?

The Los Angeles County Board of Supervisors passed the Fair Workweek Ordinance, similar to the ordinance passed by the City of Los Angeles last year.

What are the details?

Covered Employers

The ordinance applies to retail employers who:

  • Are identified as a retail business in the North American Industry Classification System (NAICS) within the retail trade categories and subcategories 44 through 45.
  • Directly, indirectly, or through an agent or any other person, exercises control over the wages, hours, or working conditions of any retail employee.
  • Employ 300 or more employees globally.

Covered Employees

The ordinance applies to retail employees who:

  • In a particular workweek performs at least 2 hours of work within the unincorporated areas of the county for a retail employer.
  • Qualifies as an employee entitled to payment of a minimum wage from a covered employer under the California minimum wage law.
  • Is assigned a primary work location and duties that support retail operations.

Obligations of Covered Employers

Covered employers must:

  • Provide the covered employee with a written good faith estimate of a work schedule before hiring.
  • Provide notice of a covered employee’s schedule at least 14 days before the start of the work period.
  • Not schedule covered employees to work a shift that starts less than 10 hours from the end of their last shift unless they obtain written consent from the employee and pay the employee a premium of time and a half for each hour of the second shift.

Predictability Pay

Covered employers must provide Predictability Pay under certain conditions, such as:

  • Compensate a covered employee with one additional hour of pay at the employee’s regular rate for each change to their work schedule that results in no loss of time to the employee or results in additional work time that exceeds 15 minutes.
  • Compensate a covered employee at one-half the employee’s regular rate of pay for the time the employee does not work for certain reasons if occurring after the advanced notice required under the ordinance.

Notice and Recordkeeping Requirements

Retail employers must:

  • Post notice of the covered employee’s workweek rights which will be published by the Department of Consumer & Business Affairs.
  • Retain all records required under the ordinance for both current and former employees for 3 years.

Business Considerations

  • Workforce Planning: Companies will need to plan their workforce schedules at least 14 days in advance. This may require new planning strategies or tools to ensure compliance.
  • Hiring Practices: Before hiring new employees or using contractors, companies must first offer work to current employees if they are qualified and the additional work hours would not result in the payment of a premium rate under California law.
  • Employee Compensation: Companies will need to adjust their payroll systems to account for the new “Predictability Pay” requirements. This includes additional pay for changes to work schedules and shifts that start less than 10 hours from the end of the last shift.
  • Record Keeping: Companies will need to retain all records required under the ordinance for both current and former employees for 3 years. This may require updates to their record-keeping systems or processes.
  • Employee Communication: Companies will need to provide employees with a written good faith estimate of their work schedule before hiring and post notice of the covered employee’s workweek rights. This will require clear and consistent communication strategies.

Source References


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