Predictive Scheduling Laws for Small Businesses

If you’re a small business owner in the restaurant or retail space, chances are you’re already clued in on predictive scheduling. Predictive scheduling is essentially when employers provide workers with their schedule in advance. It’s a great system for employees since it offers folks a way to anticipate their work week, making things like work/life balance, flexibility, and future planning possible. Many small businesses—including those in the restaurant, retail, and hospitality spaces—have an on-call scheduling or “just in time” system, which is the opposite of predictive scheduling. On-call scheduling means an employee gets “on-call shifts” and must contact their workplace several hours before that shift starts to see if they’re needed or not. On-call workers also tend to be the ones sent home first if business slows down and the additional headcount is no longer needed. This makes it nearly impossible for folks to anticipate their pay (as many of these employees are hourly workers), support their family’s needs, or establish any type of routine. It’s a recipe for burnout, stress, low morale, and ultimately turnover. Challenges like this are what prompted several areas of the country to adopt predictive scheduling laws, making it a requirement for employers to notify employees of their work schedules ahead of time. Let’s talk through what you should know about predictive scheduling laws, including how they can benefit employers.

What is Predictive Scheduling?

While an on-call scheduling system is great for business owners because it offers them flexibility with staffing, it’s particularly troublesome for workers—especially those who are part-time, hourly, or minimum-wage workers. It becomes difficult to schedule doctor’s appointments, get children to extracurricular activities, even plan a vacation. The legislation surrounding predictive scheduling was designed to give employees the upper hand, allowing them to view what their upcoming work week(s) will look like. There are laws banning on-call schedules altogether, and others that require an employer to compensate their workers for on-call shifts that wind up unneeded. Nearly every predictive scheduling mandate includes exemptions, for instance if there is a weather-related disaster (an “act of God”) or employees have agreed to switch shifts. Requirements vary state-by-state, with some laws requiring folks get their schedules 10 days in advance, or rest periods of a certain number of hours between shifts (if you’ve ever experienced the dreaded “clo-pen,” you’ll understand the benefit of this).

While there are many states that have legislation actively banning any type of predictive scheduling model, many others are on board with some type of regulation. Oregon is currently the only place with a state-wide requirement of predictive scheduling, while many other cities—including Philadelphia, PA and San Francisco, CA, have local laws.

Why Predictive Scheduling is Good for Business 

Small business owners across the board know the perils of dealing with a “no call no show” employee. It happens all the time, and predictive scheduling can help mitigate this by ensuring employees know exactly when they need to work—and giving them ample time to find someone to fill in as needed. We all know how expensive it is to hire new folks, and a predictable schedule also has the power to increase worker satisfaction—making your staff more loyal to your business and less likely to look for other opportunities.

Not only this, but it’s likely that more of this type of legislation will be enacted as time goes on and workers are seeking more stability and greater work/life balance. What we’re saying is, it might be a good consideration to implement these practices into your business sooner rather than later. If and when the time comes for compliance, you’ll be ready.

Whether it’s a new regulation or a hot marketing trend, the Financial Pantry has your back. Our content is refreshed regularly so there’s always something exciting to explore. And when the time comes for a small business loan, you’ll know where to look: the loan experts at ARF Financial. Our team of consultants prides itself in being by your side through every step of the loan process, offering guidance on which products are right for you plus how you can capitalize on new opportunities without missing a beat. Try out our loan calculator today and see what your small business might qualify for.