Formula Retail Protection Ordinances Operative July 3

Last year, the San Francisco Board of Supervisors passed two Formula Retail Protection Ordinances that go operative July 3, 2015. Combined, the Ordinances address scheduling, hours, and retention of employees of Formula Retail Establishments. Since the Ordinances passed last November, a series of amendments have been introduced and passed first reading unanimously at the Board last week. The amendments are as follows:

  • Increase the threshold of covered employers from Formula Retail Establishments with 20 locations worldwide to those with 40 or more.
  • Provide a 3-month period following the July 3 operative date where the Office of Labor Standards Enforcement (OLSE) will only issue warning notices to those who violate the Ordinances.
  • Allow employers to offer additional hours by posting a notice in a conspicuous location in the workplace.
  • Provide employees with up to 3 days to accept any additional hours offered to them.
  • Provide employees scheduled to work an on-call shift with predictability pay if the employer modifies the schedule within 7 days.
  • Allow collective bargaining agreements covering employees of Formula Retail Establishments or employees of property service contractors to waive the protections.

The Formula Retail Protection Ordinances require that Formula Retail Establishments (originally defined as 20 locations with the pending amendment to move to 40) provide a more predictable schedule for part-time employees. Employers must provide new employees an estimate of the employee’s expected hours, and all employees two weeks advance schedules and predictability pay for a schedule change with less than 7 days notice (with several exceptions). Employers must also offer any additional work hours to current, qualified part-time employees before hiring new employees to fill those hours (see above amendment on offering hours). If a Formula Retail Establishment is sold, the successor employer must retain eligible employees for 90 days, who worked for the former employer for at least 6 months prior to the sale. The Ordinances also require that employers provide equal treatment to part-time employees, as compared to full-time employees at their same level with regards to starting hourly wage, paid and unpaid time off, and eligibility for promotions. Janitorial and security contractors of Formula Retail Establishments covered by these ordinances must comply, and Formula Retail Establishments must notify their contractors of the requirements. It is illegal for an employer to take adverse action against any employee exercising his or her rights under the Ordinances. A required posting of the Ordinances’ protections for the workplace will be posted on the OLSE website on July 3, 2015.

More information the Formula Retail Protection Ordinances is available on OLSE’s website. You can download a fact sheet here. If you have any questions, please email Samantha.

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