Compliance / San Francisco

SF Formula Retail Predictive Scheduling

Chain restaurants (20+ locations globally) with SF locations owe 14-day advance schedules + predictability pay for changes.

What it is

The San Francisco Formula Retail Employee Rights Ordinances (FRERO and FRERO-Predictive Scheduling) require 'formula retail' chains to publish work schedules 14 days in advance and pay 'predictability pay' for schedule changes. Independent SF restaurants are not covered.

Who it applies to

Formula retail establishments, defined as:
• 20+ retail establishments worldwide
• AND with standardized features (look, menu, branding, employee uniforms)
• AND with 20+ employees in SF (city limits)

This covers chains like Chipotle, Starbucks, Sweetgreen, Mendocino Farms, Chick-fil-A. It does NOT cover most independent SF restaurants, regional chains under 20 locations, or non-uniformed concepts.

What compliance looks like

1. Initial estimate of work hours. At hire, provide a written estimate of expected weekly hours and shifts.
2. Schedule 14 days in advance. Post in the workplace AND give a written copy to each worker.
3. Predictability pay for schedule changes:
• Less than 7 days notice: 1–4 hours of pay (depending on length of changed shift)
• Cancellations with less than 24 hours notice: 2–4 hours of pay
4. Right to request scheduling changes without retaliation. The employer must engage in 'good faith' discussion of accommodation requests.
5. Offer hours to part-time staff first. Before hiring new workers, post available shifts internally for 72 hours.
6. Records. Keep 4 years of scheduling + change records.
7. Notice. Post the official FRERO notice in the workplace.

Penalties for non-compliance

Schedule change without predictability pay: back pay + 3× damages.
Failure to provide initial estimate: $500 per employee.
Failure to post notice: $500 per occurrence.
Retaliation: $1,000 per occurrence + reinstatement.

FRERO enforcement is via the SF OLSE. The plaintiff's bar treats FRERO violations as a sub-species of wage claim, and lawsuits are common.

How Panko helps

Panko flags formula-retail SF enforcement actions and any new OLSE guidance the day it's published. Pro Tips for SF Pro members specifically call out when OLSE updates its FRERO interpretive bulletins — last revision was August 2024 on the definition of 'standardized array of services' (used to argue some chains aren't truly 'formula retail').

Sources

Citizen, but for restaurants

Pro members get a push the moment this rule changes — new rate, new guidance, new court ruling. Plus city-specific Pro Tips that flag the compliance windows that matter for your operation.

Pro — $4.99/moMore San Francisco topics

Panko Alerts publishes this as compliance reference, not legal advice. Laws change. Penalties listed are statutory maximums — actual enforcement varies. Consult an employment lawyer or your state DOL before acting on edge cases.