Fair Workweek Laws Boost Frontline Worker Retention

Employers struggling with attracting and retaining frontline workers would benefit from the expansion of fair workweek laws, according to a new report from the nonpartisan Illinois Economic Policy Institute (ILEPI) and the University of Illinois at Urbana Champaign’s Project for Middle Class Renewal (PMCR).

Fair workweek laws, also called predictive scheduling laws, protect workers by:

• Providing a set number of days of advance notice of work schedules
• Ensuring that employers offer additional hours to existing employees before hiring new workers
• Compensating employees for last-minute changes or reductions in work schedules
• Protecting employees’ right to request schedule changes without fear of retaliation
• Guaranteeing employees a minimum amount of rest time between shifts.

Seven U.S. municipalities—including Chicago—have fair workweek ordinances. However, Oregon is currently the only U.S. state with such a law. The ILEPI and PMCR found that Oregon’s fair workweek law has resulted in boosted wages, job stability, and employee retention in the hospitality, retail, and food service industries.

After analyzing U.S. Department of Labor and Census Bureau data on employment outcomes during the 30 months before and after Oregon enacted its Fair Workweek Act, the ILEPI and PMCR found that average weekly wages grew 5% faster in industries covered by the ordinance. Additionally, employee turnover was lower and workforce retention rates were higher in the covered industries, relative to national averages, after the law was in effect. 
 
“As we face historically tight labor markets in sectors that require face-to-face work, improving job quality is critical both for workers and employers,” said ILEPI Executive Director and study coauthor Frank Manzo IV. “The data makes clear that Oregon’s Fair Workweek Act is proving to be a win-win for both.”

In 2021, lawmakers introduced a bill in the Illinois General Assembly to implement a state fair workweek law. In analyzing the potential impacts of that legislation, ILEPI and PMCR researchers determined that it could cover as many as 1.6 million workers statewide, benefiting women, people of color, and non-college educated and low-wage workers in essential and frontline industries where employment still lags pre-pandemic levels.