08 April 2020 Seattle relaxes the overtime pay requirements for certain retail establishments and restaurants impacted by COVID-19 On April 2, 2020, the City of Seattle, Washington updated its Frequently Asked Questions (FAQs) in connection with COVID-19 to announce a relaxation to the overtime pay rules that apply to certain restaurants under its Secure Scheduling Ordinance. The City's Secure Scheduling Ordinance provides scheduling protections for overtime-eligible employees who work in Seattle for retail or food service employers with 500 or more employees worldwide. To be covered, full-service restaurants must also have 40 or more full-service locations worldwide. In general, under the ordinance, if an employer changes an employee's schedule with less than 14 days before the start of the shift, the employer must pay each worker additional compensation (overtime pay) unless an exception applies. If a restaurant substantially changes its business model such that it is essentially not operating in the way it used to — for example, a restaurant that relies on table service must switch to only providing takeout and delivery services in order to stay open in light of Governor Inslee's March 15, 2020 order — the "operations not begin or continue" exception may apply. Under this condition, changes to the schedules of covered employees that are reasonably necessary to comply with the order, such as shifts that are cut for the duration of the Governor's order for front-of-house employees because the restaurant is not offering table service, fall within the exception and would not incur premium pay. Changes to the schedules of covered employees that are not reasonably necessary to comply with the order, such as back-of-house employees being asked to stay late to help with increased delivery business demands, do not fall within the exception and would incur premium pay. Under Governor Inslee's March 15, 2020 order, the business is not required to pay premium pay to employees provided the grocery store adheres to certain public health guidance, including social distancing and capacity restrictions. If a business cannot begin operations or must close in order to comply with these recommendations, the business is not required to pay premium pay to employees under the Secure Scheduling Ordinance.
Document ID: 2020-0913 | |||||||||||
