Advocacy News – Feb. 23, 2023
Legislation has been introduced in the Michigan House of Representatives to create a “predictive scheduling” mandate on certain employers, including retail, hospitality and/or food services. The Michigan Chamber is voicing its opposition to this unworkable proposal.
The legislation (HB 4035) would require employers to provide new employees with a written good faith estimate of the employee’s work schedule at the time of hire and to give 14 days advance notice of work schedules, including “all work shifts and on-call shifts for the work period.” The legislation would allow employees to decline employer-prompted changes and require time and a half pay when schedule changes are initiated by the employer. The bill would apply to collective bargaining agreements entered into, extended or renewed on or after the effective date of this act.
Our many concerns surrounding this proposal include:
- Unrealistic and impossible. Requiring employers to provide schedules weeks in advance is unrealistic or impossible for many businesses because few businesses in the hospitality industry have predictable staffing needs due ongoing staffing shortages, COVID-19 and other unanticipated illnesses, unexpected slowdowns, and other scheduling changes that are outside the business’ control (e.g., last minute crowds due to college or NFL game times being changed, last minute reservations by large groups, etc.).
- Will force businesses to understaff. This policy change will force employers to rely on gut instinct to schedule their staff and, as a result, will under- versus over-staff, leaving workers with fewer shifts and smaller paychecks.
- Hurts small businesses. Although the law seeks to “carve out” small businesses with the definition of “employer,” many small businesses that employ part-time employees across multiple shifts would be forced to comply.
- Fails workers. Advocates for predictive scheduling claim HB 4035 will lead to more workers landing full-time schedules with regular shifts, but 14-day notice plus a time and a half mandate could result in workers losing shifts and falling from full-time employment to part-time.
- Fails to deliver on promises. Data from a study at the University of Kentucky shows that predictive scheduling mandates on the books in San Francisco, New York City, Seattle and Oregon failed to deliver on the promises of increased full-time employment leaving workers with fewer hours and less money in their pockets.
- One affected employee in Seattle, Washington voiced concern about how the proposal would impact her ability to work events and parties outside her pre-set work hours.
- Employees in San Francisco decried the law’s restriction on allowing them to change their own schedules by picking up last-minute shifts.
- Could be expanded to other industries. While the bill currently targets retail, hospitality and/or food services, it could easily be amended to include other industries relying on hourly workers and other industries that rely on workers with fluctuating hours.
- Adopted by only one state. Although eight cities have passed this type of legislation to date, including Chicago, Philadelphia, Seattle and New York — Oregon is the only state with this type of law (2017).
- It is important to note that none of these laws are as expansive as House Bill 4035.
The Chamber is working to make its concerns known with lawmakers and to determine if and when this bill may be heard by the committee it was referred to, the House Labor Committee.
Please contact Wendy Block with questions at wblock@michamber.com.