San Francisco Expected to Regulate Chain Stores' Hiring and Scheduling Practices

Author: Michael Cardman, XpertHR Legal Editor

UPDATE: The ordinances became law on December 5 because the mayor did not veto them. They take effect 30 days after enactment, on January 4, 2015. However, the ordinances will not be enforced until their operative date 180 days later, on July 3, 2015.

December 3, 2014

New rules governing hiring, scheduling and other employment practices are expected for chain stores operating in San Francisco.

Two new ordinances collectively called the "Retail Workers Bill of Rights" - which were passed by the city's Board of Supervisors last week and now await the mayor's signature - would require certain businesses to:

  • Offer any additional hours of work available to current part-time employees before hiring new employees or using subcontractors or a temporary services or staffing agency to do work;
  • Retain certain employees for at least 90 days in the event of a sale, merger or other transfer;
  • Provide new hires an estimate of their expected minimum number of scheduled shifts per month, and the days and hours of those shifts;
  • Provide employees two weeks' advance notice of their work schedules and seven days' advance notice of any changes to those schedules;
  • Pay employees one hour of pay for any changes in their work schedules made with less than seven days' notice and two to four hours of pay for any schedule changes made with less than 24 hours' notice;
  • Pay employees between two and four hours of pay for each on-call shift for which they were required to be available but were not in fact called in to work;
  • Provide equal treatment to part-time employees regarding starting hourly wages, access to employer-provided time off and eligibility for promotions, subject to certain qualifications; and
  • Fulfill many new recordkeeping and employee notice requirements.

The office of Mayor Ed Lee did not return a request for comment about whether he would sign the ordinances and, if so, when. But even if Lee does not sign the ordinances, the Board (which passed the ordinances unanimously) would have enough votes to override any veto. Once enacted, the ordinances would take effect after 30 days.

The ordinances would apply to formula retail establishments, which are defined as businesses that have at least 20 retail establishments worldwide and maintain at least two of the following:

  • A standardized array of merchandise;
  • A standardized façade;
  • A standardized decor and color scheme;
  • A uniform apparel;
  • Standardized signage; or
  • A trademark or a servicemark.

According to the city's Planning Department, this broad definition covers not only traditional retail outlets but also restaurants, bars, movie theaters and more.

Businesses that do not comply with the new ordinances could be subject to fines ranging from $50 to $500, depending on which provisions are violated.