By Lauren Weber
New York's attorney general is scrutinizing 13 big retailers
over their staffing practices and whether they require workers to
show up or stay home with little notice.
The office of New York Attorney General Eric Schneiderman sent
letters warning Target Corp., Gap Inc. and 11 others that it
believes the chains are using on-call scheduling and that such
practices may violate a New York law.
On-call scheduling systems have made big retailers more nimble,
allowing them to staff stores during busy times and save on payroll
during slow days. The software used by many retailers forecasts
staffing needs based on real-time sales and traffic
information.
Some employers require on-call workers to check in by phone,
email or text shortly before their shift, Mr. Schneiderman's office
said.
If the store is expected to be busy, they must come in; if
things are slow, they are told not to report for work, and aren't
paid. These systems have been criticized by worker advocates, who
say on-call scheduling makes workers' lives and pay
unpredictable.
The attorney general's letter, which was sent Friday, alleges
that on-call systems leave "too little time to make arrangements
for family needs, let alone to find an alternative source of income
to compensate for the lost pay" on days they aren't summoned to
work.
Employers in New York are subject to a rule stating that
staffers who report to work for a scheduled shift are entitled to
at least four hours of pay at minimum wage, even if they are sent
home.
In addition to Target and Gap, the retailers that received the
letters are Abercrombie & Fitch Co.; Ann Inc.; Burlington
Stores Inc.; Crocs Inc.; J.C. Penney Co.; J. Crew Group Inc.; L
Brands Inc.; Sears Holdings Corp.; TJX Cos.; Urban Outfitters Inc.;
and Williams-Sonoma Inc.
Target said it posts worker schedules 10 days before the start
of a work week, which employees can check remotely. A spokeswoman
said its scheduling methods don't include "on-call" shifts where
employees would be required to call in to see if they are working a
given day.
"Gap Inc. is committed to establishing sustainable scheduling
practices, " a spokeswoman said. The retailer is engaged in a
research project with the University of California, Hastings
College of Worklife Law to examine workplace scheduling and
productivity, and expects to receive some data in the fall of 2015.
"In the meantime, each of our brands also has been working to
evaluate and refine their practices to make improvements," the
spokeswoman said.
A Burlington spokeswoman said, "We work hard to ensure our
scheduling practices are fair for all of our employees." The other
companies who received the letter either couldn't be reached for
comment or had no comment.
A number of other states have rules similar to New York's, but
lawmakers elsewhere don't appear to have taken action, said Tsedeye
Gebreselassie, senior staff attorney at the National Employment Law
Project, a research and advocacy organization focused on low-wage
work.
On-call regulations are rarely enforced because workers often
aren't aware of them. Also, in an era when employers can contact
workers on very short notice through email or text messages, the
rules seem out of date, Ms. Gebreselassie said.
An employee "could be headed to work and get a text message from
the boss saying, 'I don't need you to come in,' and that worker has
arranged for child care or changed a class schedule," said Ms.
Gebreselassie. "There are real gaps in the rules for dealing with
that."
Mr. Schneiderman is asking the retailers to provide information
about how they schedule employees, including whether they use
software from vendors such as Kronos and Workplace Systems to
schedule labor hours, or penalize employees who don't follow
on-call procedures. He is also seeking any analysis the firms have
conducted about the impact of the scheduling policies on workers'
well-being. They were told to submit the materials by May 4.
While Mr. Schneiderman's office is only gathering information at
the moment, the requests could be a prelude to a lawsuit filed
under the New York law requiring that workers be paid if they are
sent home from a scheduled shift.
Schedule instability has emerged as a public policy issue in
recent months, highlighted in hourly workers' campaigns for higher
wages. A report last year by researchers at the University of
Chicago examined the prevalence of unpredictable schedules among
young adults, and found that 41% receive their schedules a week or
less in advance, and half have no input into the timing of their
hours.
Suzanne Kapner contributed to this article.
Write to Lauren Weber at lauren.weber@wsj.com
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