The Real Effects of Fair Workweek Laws on Work Schedules: Evidence from Chicago, Los Angeles, and Philadelphia

Abstract

Fair Workweek Laws (FWLs) aim to improve the predictability and stability of work schedules by penalizing employers for making certain kinds of unilateral changes to work schedules without sufficient advance notice. Despite the increasing adoption of FWLs, little empirical evidence exists on their impact on work schedules. This paper investigates the effects of FWLs on worker schedules in Chicago, Los Angeles, and Philadelphia using administrative data from multiple retailers. Our findings suggest that FWLs significantly increase advance notice for covered employees, consistent with their objective of improving schedule predictability. However, we do not find that FWLs are effective in increasing work schedule stability. Furthermore, our analysis indicates that common concerns about FWLs raised in policy debates, such as reduced work hours, increased turnover, decreased hiring, shift towards part-time employees, reduced operating hours, and difficulties in matching labor to forecasted demand, are not substantiated. Overall, while FWLs effectively increase work schedule predictability with minimal side effects, they do not appear to improve the stability of work schedules, which is a key objective.