Philadelphia's Fair Workweek law: does it apply to your restaurant?

Philadelphia has a predictive scheduling law, the Fair Workweek Employment Standards ordinance, that requires some employers to give workers advance notice of their schedules and extra pay when they change them. Most independent restaurants are not covered, because the law is aimed at large chains. But owners of franchise locations and small groups should check, and every owner should understand the rule, since it shapes what staff in Philadelphia expect from any employer.

Who is covered?

The city's own FAQ, updated in December 2023, sets the thresholds. A covered employer is in retail, hospitality or food service, has at least 250 employees, including full-time, part-time and temporary, and has at least 30 locations worldwide. The employees must work within Philadelphia's boundaries. Franchisees under separate ownership that are part of the same chain are grouped together to meet the thresholds, so a franchisee with two Philadelphia restaurants can be covered if the whole franchise system is big enough. A single-location independent, or a local group of a few restaurants, is outside the law.

Why does the franchise rule matter?

If you run a franchised restaurant, the question is not how many people you employ, but how large the franchise system is. A franchisee with five employees can be covered because the chain meets the thresholds. Ask your franchisor and your attorney whether the ordinance applies, and ask the city's Office of Worker Protections if you are unsure. If you are independent but are thinking of franchising or joining a larger group, count the locations and employees that the law counts.

What must a covered employer do?

Covered employers must give workers a written schedule in advance, and the notice period is set in the ordinance, so read it on the city's Fair Workweek page. Employers must also give new hires a good-faith estimate of their schedule, offer extra hours to existing employees before hiring new staff, and pay extra when they change a posted schedule at short notice. The ordinance also protects workers from retaliation for exercising their rights. We have not listed every requirement, such as the rules on rest between shifts, because the details are in the ordinance and the city's guidance, which you should read in full.

Does the start date matter now?

Sources give different start dates for the ordinance in 2020. For a business that is covered, the point is moot now; for historical questions, such as a complaint about a past schedule, ask the city, and keep your own schedules and payroll records so you can answer.

Why should an independent care?

Three reasons. First, hourly workers in Philadelphia increasingly expect advance schedules, and a restaurant that publishes the schedule two weeks ahead will hire and keep staff more easily than one that posts it the night before. Second, ordinances like this tend to spread: Oregon, New York City and other places have predictive scheduling laws, and a business that grows may cross a threshold. Third, good scheduling cuts turnover, which is the largest hidden cost in many kitchens. Replacing a line cook or a server means advertising, interviewing, training and a period of lower productivity. Reliable schedules are one of the cheapest ways to keep the people you have.

How do you build a predictable schedule?

1. Post the schedule at least two weeks ahead, in an app or on a wall, and tell staff where to find it.
2. Ask for availability in writing and update it each quarter.
3. Keep a short list of staff who want extra shifts, and offer them first.
4. Use a shift swap process that needs a manager's approval but no paperwork.
5. Track changes: write down when and why you changed a posted schedule.
6. Forecast demand by day of week and by season, so you cut or add shifts early and not at the last minute.

What if you are covered and get a complaint?

Keep schedules, payroll and records of changes. The city's Office of Worker Protections enforces the law, and covered employers who violate it may owe back pay or penalties. Respond to inquiries quickly, and consult an attorney with experience in Philadelphia employment law. Do not retaliate against an employee who complains. Train every manager on this point, because the most common way a small mistake becomes a large one is a manager who reacts angrily to a complaint. A calm written response, with the schedule records attached, protects you. Keep a copy of each posted schedule and each change for at least as long as your payroll records, so that you can answer a question about a shift from a year ago.

What should you check each year?

Confirm the current thresholds and notice period on the city's website, because ordinances can be amended. If you add locations, recount. If you join a franchise, ask whether you are covered. For a related topic, see our guide to the tip credit rules in Pennsylvania and the other states we cover. If you hire seasonal or part-time staff, ask them how much notice they need, since students and parents often have fixed commitments that make a predictable rota more valuable than a few extra hours. A short monthly meeting with your managers about coverage and call-offs also reduces last-minute changes.

More guides for your business:

• Philadelphia paid sick leave for restaurants after the POWER Act
• Philadelphia's 15 percent delivery commission cap for restaurants
• Philadelphia wage theft rules: what restaurant owners should know

More in the US guides for food businesses.