What do San Francisco's Formula Retail Employee Rights Ordinances require?
San Francisco's Formula Retail Employee Rights Ordinances cover formula retail businesses, stores, restaurants and financial services among them, with at least 40 establishments worldwide and 20 or more employees in the city45. Their janitorial and security contractors at those stores follow the scheduling, extra-hours and part-time rules too678.
Schedules are posted or sent at least two weeks ahead, on a biweekly schedule2. A change with less than seven days' notice costs 1 to 4 hours of pay at the regular rate, by notice and shift length9.
An on-call shift not called in costs 2 or 4 hours of pay10. The city minimum wage is $19.61 an hour3.
This text does not constitute legal advice. Obligations vary by establishment and change over time. Confirm yours with the San Francisco Office of Labor Standards Enforcement, the California Labor Commissioner's Office or a qualified advisor.
How much is predictability pay in San Francisco?
| What the employer does | Notice to the employee | Shift length | Hours of pay |
|---|---|---|---|
| Moves or cancels a scheduled shift, or adds a shift | Less than seven days, and 24 hours or more9 | Any | 19 |
| Moves or cancels a scheduled shift, or adds a shift | Less than 24 hours9 | 4 hours or less9 | 29 |
| Moves or cancels a scheduled shift, or adds a shift | Less than 24 hours9 | More than 4 hours9 | 49 |
| Does not call in an employee on an on-call shift | Any | 4 hours or less10 | 210 |
| Does not call in an employee on an on-call shift | Any | More than 4 hours10 | 410 |
When the employee is required to come in, this pay is in addition to their regular pay for working the shift9.
What changes in the week in San Francisco?
When you hire
Before employment starts, the employer gives a new employee a written good faith estimate of the expected minimum number of scheduled shifts a month, and their days and hours, on-call shifts included11.
When you build the schedule
When the schedule changes
The employer tells the employee of any change in person, by phone, email, text or other electronic message. Changes the employee asks for, such as sick leave, time off or shift trades, need no notice12.
Predictability pay depends on the notice and the length of the shift, as in the table above9. An on-call shift is one where the employee must check in, or wait to be contacted, less than 24 hours before it starts13.
When you need more hours
Part-time and full-time
When someone calls in sick
Under the Paid Sick Leave Ordinance, employees earn 1 hour for every 30 hours worked from their first day, and may use it from the 90th day15. The city lets employers with 10 or more employees cap the balance at 72 hours, and those with fewer at 4016.
State law also applies: an employer must allow use of at least five days or 40 hours a year, whichever is more17, and may cap accrual at 10 days or 80 hours, whichever is more18. Where both apply, the Labor Commissioner says the employer provides “the provision or benefit that is most generous to the employee”19.
In payroll
The city minimum wage is $19.61 an hour from July 1, 20263.
State minimum wages for some industries can be higher: fast food workers covered by the state law “must be paid at least $20.00 per hour”20, and certain health care workers have their own rates21. When requirements conflict, the Labor Commissioner says the employer follows “the stricter standard”22.
California's daily overtime also applies: past 8 hours in a workday at 1.5 times the regular rate, and past 12 at twice the regular rate23.
When a store changes hands
The successor offers each eligible employee on the retention list, in writing, work at the store under the same job classification, pay and hours, and keeps them for 90 days from the day they start; an employee who declines the offer ends that duty24. If it needs fewer employees, it retains them by seniority from their date of hire, or under an applicable union agreement, and in those 90 days it may not discharge them without cause25. Eligible means employed at the store for at least 90 days before the transfer document is fully executed; managerial, supervisory and confidential employees are not included26.
With a union agreement
Article 42's requirements do not apply to the extent a bona fide collective bargaining agreement waives them expressly, in clear and unambiguous terms27.
Watch for
- No predictability pay or on-call pay when operations cannot begin or continue because of threats, utility failures or an Act of God; when another employee scheduled for the shift is absent without seven days' notice, or did not report or was sent home; when the employer requires overtime; or when the employee trades shifts or asks for the change28.
- Who counts toward 20. Employees at the employer's other formula retail stores in the city under the same trade name count, and nonprofits and government are not employers under the article4.
- Contractors. A property services contractor is a contractor or subcontractor providing janitorial or security services at a covered store29. The Office of Labor Standards Enforcement lists the sections it follows there, offering extra hours, schedule notice and part-time equal treatment, and says the contractor and the store are jointly and severally liable for Article 41 violations30.
What does California add in San Francisco?
State law applies in the city as everywhere in California. Daily overtime starts after 8 hours in a workday, and double time after 12 hours23.
California daily overtime: 8 hours, 12 hours and the seventh day23
The state minimum wage goes to $17.40 on January 1, 2027; where a city's rate is higher, employees are paid the city's3132.
California labor laws: what changes the schedule and the pay
What does an employer have to be able to show?
What do the ordinances leave open?
A contractor's officer who also works other sites. § 42.4(g) applies the scheduling rules to a property services contractor “as to work performed in San Francisco at a Formula Retail Establishment covered by this Article 42”6. The text does not say how notice and predictability pay work for an officer whose week mixes covered stores and other posts. Confirm it with your counsel.
What do the ordinances say exactly?
(b) Two Weeks’ Notice of Work Schedules. An Employer shall provide its Employees with at least two weeks’ notice of their work schedules by doing one of the following at least every 14 days (on a “Biweekly Schedule”): (1) posting the work schedule in a conspicuous place at the workplace that is readily accessible and visible to all Employees, or (2) transmitting the work schedule by electronic means, so long as all Employees are given access to the electronic schedule at the workplace. […] For all Employees, the work schedule shall include any On-Call Shifts, where applicable.
S.F. L.E.C. § 42.4(c)(2) predictability pay
(2) Predictability Pay For Schedule Changes. Subject to the exceptions in subsection (e) of this Section 42.4, an Employer shall provide an Employee with the following compensation per shift for each previously scheduled shift that the Employer moves to another date or time or cancels, or each previously unscheduled shift that the Employer requires the Employee to come into work: (A) With less than seven days’ notice but 24 hours or more notice to the Employee, one hour of pay at the Employee’s regular hourly rate; (B) With less than 24 hours’ notice to the Employee, two hours of pay at the Employee’s regular hourly rate for each shift of four hours or less; and (C) With less than 24 hours’ notice to the Employee, four hours of pay at the Employee’s regular hourly rate for each shift of more than four hours. Where the Employee is required to come into work, the compensation mandated by this subsection (c)(2) shall be in addition to the Employee’s regular pay for working that shift. This subsection (c)(2) shall apply to On-Call Shifts.
S.F. L.E.C. § 42.4(d) on-call shifts
(d) Pay for On-Call Shifts. Subject to the exceptions in subsection (e) of this Section 42.4, an Employer shall provide an Employee with the following compensation for each On-Call Shift for which the Employee is required to be available but is not called in to work: (1) Two hours of pay at the Employee’s regular hourly rate for each On-Call Shift of four hours or less; and (2) Four hours of pay at the Employee’s regular hourly rate for each On-Call Shift of more than four hours. This subsection (d) shall not apply when the Employee is in fact called in for the On-Call Shift.
S.F. L.E.C. § 42.4(e) the seven exceptions
(e) Exceptions. The requirements in subsections (c) and (d) of this Section 42.4 shall not apply under any of the following circumstances: (1) Operations cannot begin or continue due to threats to Employees or property, or when civil authorities recommend that work not begin or continue; (2) Operations cannot begin or continue because public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities, or sewer system; (3) Operations cannot begin or continue due to an Act of God or other cause not within the Employer’s control; (4) Another Employee previously scheduled to work that shift is unable to work due to illness, vacation, or employer-provided paid or unpaid time off where the Employer did not receive at least seven days’ notice of the absence; (5) Another Employee previously scheduled to work that shift has not reported to work on time and/or is fired or sent home or told to stay home as a disciplinary action; (6) The Employer requires the Employee to work overtime (i.e., mandatory overtime); or (7) The Employee trades shifts with another Employee or requests from the Employer a change in shift(s), hours, or work schedule.
S.F. L.E.C. § 42.4(g) janitorial and security contractors
(g) The requirements imposed by this Section 42.4 shall apply to Property Services Contractors as to work performed in San Francisco at a Formula Retail Establishment covered by this Article 42, under a contract with an Employer.
S.F. L.E.C. § 42.3 who is covered
“Employer” shall mean any Person that owns or operates a Formula Retail Establishment with 20 or more Employees in the City, including corporate officers or executives, who directly or indirectly or through an agent or any other person, including through the services of a temporary services or staffing agency or similar entity, employs or exercises control over the wages, hours, or working conditions of any individual. For the purpose of calculating the 20-employee threshold referenced herein, Employees performing work in other Formula Retail Establishments in the City that are owned or operated under the same trade name by the same Employer shall be counted. Notwithstanding the foregoing definition, “Employer” does not include a Nonprofit Corporation or governmental entity. […] “Formula Retail Establishment” shall mean a business located in San Francisco that falls under the Planning Code’s definition of “Formula Retail Use,” as amended from time to time, except that the business must have at least 40 retail sales establishments located worldwide.
S.F. L.E.C. § 42.4(a)(1) the good faith estimate
(1) Prior to the start of employment, an Employer shall provide a new Employee with a good faith estimate in writing of the Employee’s expected minimum number of scheduled shifts per month, and the days and hours of those shifts. This estimate shall include On-Call Shifts.
S.F. L.E.C. § 41.3 offering hours to part-time staff
(a) Subject to the limitations herein, before hiring new Employees or using contractors or a temporary services or staffing agency to perform work in a Formula Retail Establishment, an Employer shall first offer the additional work to existing Part-time Employee(s) if (1) the Part-time Employee(s) are qualified to do the additional work, as reasonably determined by the Employer and (2) the additional work is the same or similar to work the Employee(s) have performed for the Formula Retail Establishment. This Section 41.3 requires Employers to offer to Part-time Employees only the number of hours required to give the Employee 35 hours of work in a week. […] (c) A Part-time Employee may, but is not required to, accept the Employer’s offer of additional work hours under this Section 41.3. The Employee shall have 72 hours to accept the additional hours, after which time the Employer may hire new Employees to work the additional hours. The 72 hours referred to in the previous sentence begins either when the Employee receives the written offer of additional hours or whenever the Employer posts the offer of additional hours described in subsection (d), whichever is later. An Employee who wishes to accept the additional hours must do so in writing.
S.F. L.E.C. § 42.5 equal treatment for part-time employees
(a) Hourly Wage. Employers shall provide Part-Time Employees with the same starting hourly wage as that provided to starting Full-Time Employees who hold jobs that require equal skill, effort, and responsibility, and that are performed under similar working conditions, provided that hourly pay differentials between Part-Time and Full-Time Employees are permissible if such differentials are based on reasons other than the Part-Time status of the Employee, such as a seniority system, merit system, system which measures earnings by quantity or quality of production, performance or responsibilities. […] (b) Access to Time Off. Employers shall provide Part-Time Employees with the same access to Employer-provided paid and unpaid time off as that afforded to Full-Time Employees for the same job classification. […] (c) Eligibility for Promotions. Employers shall provide Part-Time Employees with the same eligibility for promotions as that afforded to Full-Time Employees for the same job classification […] (d) The requirements imposed by this Section 42.5 shall apply to Property Services Contractors as to work performed in San Francisco at a Formula Retail Establishment covered by this Article 42, under a contract with an Employer.
S.F. L.E.C. § 41.2 who is retained after a sale
“Eligible Employee” shall mean any Employee who has been employed by the Incumbent Employer at the Formula Retail Establishment subject to a Change in Control for at least 90 days prior to the date that the Transfer Document is fully executed. “Eligible Employee” does not include a managerial, supervisory, or confidential employee.
OLSE, Paid Sick Leave Ordinance the balance caps
Employers with 10 or more employees may cap an employee's sick time balance at 72 hours. Employers with fewer than 10 employees may cap an employee's sick time balance at 40 hours.
How does a system hold the hour rules?
In San Francisco, California's hour limits land on the same schedule and the same timecard as the city's notice rules. This is how WorkAxle holds the hour limits:
- Daily and weekly hours, consecutive days and rest between shifts are set up as rules, each with its start date.
- While the schedule is built, the platform flags each shift that breaks one of those rules and names the rule. The supervisor decides.
- Each clock-in and clock-out is recorded with its time, and at the close of the period hours come out classified by your rules, ready for your payroll system.
The supervisor keeps the last word.
What can you check this week?
- Count your stores worldwide and your employees in the city the way § 42.3 does4.
- If you staff a covered store as a security or janitorial contractor, list the officers and hours you work there; the scheduling rules apply to that work6.
- List last month's changes made with less than seven days' notice and match each to its row in the table above9.
- Check how many on-call shifts were not called in, and their length10.
Sending it to finance, operations or your counsel? The link opens this page, and the printed brief carries the rules, the dates and the sources.
This text does not constitute legal advice. Obligations vary by establishment and change over time. Confirm yours with the San Francisco Office of Labor Standards Enforcement, the California Labor Commissioner's Office or a qualified advisor.
Frequently asked questions
Who is covered by San Francisco's Formula Retail Employee Rights Ordinances?
Formula retail businesses with at least 40 retail sales establishments worldwide and 20 or more employees in San Francisco4, which can include restaurants, bars and financial services as well as stores5, and their janitorial and security contractors at covered stores67.
How far in advance must schedules be posted in San Francisco?
At least two weeks, by posting or sending the schedule at least every 14 days2.
How much is predictability pay in San Francisco?
1 hour of pay with less than seven days' but 24 hours or more notice; with less than 24 hours, 2 hours for a shift of 4 hours or less and 4 hours for a longer shift, at the regular hourly rate9.
What is on-call pay in San Francisco?
When an employee on an on-call shift is not called in: 2 hours of pay for a shift of 4 hours or less, and 4 hours for a longer one10.
Do San Francisco's scheduling rules apply to security guards?
They apply to security and janitorial contractors as to work performed in San Francisco at a covered formula retail store, under a contract with the store629.
What is the minimum wage in San Francisco?
$19.61 an hour from July 1, 20263. State rates for fast food and certain health care workers can be higher2120.
How much paid sick leave does San Francisco require?
Employees earn 1 hour for every 30 hours worked from their first day and may use it from the 90th day15. The city lets employers with 10 or more employees cap the balance at 72 hours, and smaller ones at 4016. State law also requires use of at least five days or 40 hours a year, whichever is more17, and lets an employer cap accrual at 10 days or 80 hours, whichever is more18; the most generous provision applies19.
https://www.workaxle.com/compliance-center/united-states/california/san-francisco