How to Implement an Alternative Workweek Schedule

Standard workweek in California is 40 hours per week, with any work over 8 hours in a day, or 40 in a week paid at time and a half. There are not a lot of options to get around this, although one option is legal under certain conditions in California. The Alternative Workweek Schedule (AWS) is an option for employers to structure specific workweek schedules including working employees up to 10 hours per day without paying overtime. There are some rules so let’s dig in before we step forward on this.

Who Can Take Advantage of AWS?
California Labor Code section 511 allows employers to implement a specific Alternative Workweek Schedule under which employees may work up to 10 in a day without an entitlement to overtime wages. Alternative Workweeks are available to most employers but there are certain industries that are restricted such as private household occupations and those related to construction, drilling, logging, and mining.

The Basics
Under a properly implemented alternative-workweek, nonexempt employees could work four days a week for 10 hours each day for example, without the employer accruing any overtime liability Another common variation allows employees to work a so-called 9/80, under which employees work a total of 80 hours during nine days of work over a two-week period, again without the employer accruing any overtime liability.

There are strict procedural requirements to make sure the AWS is legitimately structured and that the proper State authorities are notified or you can wind up paying loads of overtime back 3 years.

The Details
All employees who will be affected by an employer’s adoption of an alternative-workweek schedule must have an opportunity to vote on whether such a schedule should be adopted. The following 4 steps and procedures must be implemented:

1. Employees must receive a written notice of the proposed schedule and hold a meeting at least 14 days in advance of a vote to discuss the AWS Schedule and the impact on the business.
2. The employer must propose an AWS or a menu of options that do not exceed 40 hours per week and provide for specific hours on a repeating schedule. Employees must be able to choose their option, and have some flexibility once implemented to change their schedule.
3. Employees whose schedules will be affected must be allowed to participate in a secret-ballot election regarding the proposed schedule. The election must be held at the employer’s expense, during regular working hours, and at the worksite of the affected employees.
4. The election results must be reported to the Department of Labor Standards Enforcement (DLSE) within 30 days after finalizing the results, the report will become a public document.

Failure to Comply with Procedure
If the election procedures are not followed as outlined above, the DLSE may invalidate the election during a wage-hour audit and require the company to comply retroactively with ordinary overtime requirements during the workweeks when employees worked the alternative-work schedule.

Conclusion
Alternative-workweek schedules provide a great opportunity to schedule longer uninterrupted shifts and provide flexibility in managing a staggered workforce. Additionally, they provide employees the flexibility of a longer weekend. But it’s important for employers to proactively address regulatory requirements before implementing.

Get Professional Advice
The above process only includes the basic rules of an AWS. Always check with HR or legal experts as there are far more details to consider an implement an Alternative Workweek Schedule. The experts at Infinium HR can help!