Retailers Face Backlash For On-Call Staffing

(RTTNews) - New York Attorney General Eric Schneiderman is investigating 13 large retailers about their use of 'on-call shifts' and whether these violate New York labor laws. On-call shifts requires hourly workers to call into work just before their shifts to see if they are required to appear for work.

Schneiderman's office has sent letters on April 10 to Gap Inc. (GPS), Sears Holdings Corp. (SHLD), Abercrombie & Fitch Co. (ANF), Target Corp. (TGT), TJX Companies Inc. (TJX) and J. Crew Group Inc., seeking information about the use of on-call shifts by them.

He has also sent letters to retailers L Brands Inc. (LB), Burlington Coat Factory, Urban Outfitters Inc. (URBN), Crocs Inc. (CROX), Ann Inc. (ANN), Williams-Sonoma Inc. (WSM) and J.C. Penney Co. Inc. (JCP).

Schneiderman noted that his office has received reports that a growing number of employees in the retail industry require their hourly workers to work 'on-call' shifts. These employees do not receive pay if their services are not needed.

In addition, such shifts provide too little time to make arrangements for family needs or find an alternative source of income to compensate for the lost pay.

Under New York labor laws, employers are required to pay employees who report for a scheduled shift at least four hours of pay at the basic minimum hourly wage.

Retailers are increasingly relying on software that track the flow of customers and help forecast staffing requirements. Schneiderman's office has questioned the retailers in the letters about whether they used certain computerized scheduling systems.

Schneiderman has given the thirteen retailers until May 4 to provide information on the processes followed by them to schedule on-call shifts.