Key Points:

• New York City's Department of Consumer and Worker Protection reached two Fair Workweek Law Settlements. The City claimed a fast food franchisee and a fashion retailer failed to provide advance schedules, among other violations.
• The Mamdani administration is aggressively enforcing predictable scheduling laws. Since the mayor took office, the administration has secured more than $8.5 million in worker restitution.
• Covered employers should audit scheduling practices now. Many fast food chains and retail employers with 20 or more employees in New York City should ensure they are complying with the law.

Mayor Zohran Mamdani and the New York City Department of Consumer and Worker Protection (DCWP) recently announced settlements totaling approximately $1.8 million with two employers to resolve violations of the City's Fair Workweek Law. The settlements underscore the Mamdani Administration's aggressive posture toward enforcing the City’s worker protection laws, particularly the predictable scheduling requirements applicable to fast food and retail employers.

The Settlements

On March 24, 2026, the Mamdani administration announced that a franchisee agreed to pay more than $1.5 million in restitution to more than 760 workers, plus more than $155,000 in civil penalties and costs. DCWP's investigation found violations at 24 locations of the franchisee across Manhattan and Queens. The violations included failure to provide work schedules 14 days in advance, failure to obtain written employee consent for schedule changes and failure to pay required schedule change premiums.

Separately, a fashion retailer agreed to pay more than $277,000 to more than 60 workers, along with more than $21,000 in civil penalties and costs. The retailer’s violations at two Manhattan locations included failure to provide advance work schedules, failure to obtain employee consent for additional hours and failure to provide sufficient notice for shift cancellations.

The Law

As we discussed in a prior alert, New York City's Fair Workweek Law (FWW), which was enacted in 2017, imposes detailed scheduling requirements on certain fast food and retail employers. Fast food employers are covered by the FWW if they:

• have as their primary purpose the serving of food or drink items
• allow patrons to order or select items and pay before eating
• allow such items to be consumed on the premises, taken out or delivered to the customer’s location
• offer limited service
• are part of a chain
• are one of 30 or more establishments nationally (including franchisors and franchisees if they own or operate 30 or more establishments in the aggregate).

Retail employers are covered if they employ 20 or more individuals at one or more stores within New York City and are primarily engaged in the sale of consumer goods.

Among other things, covered fast food employers must provide employees with their schedules at least 14 days in advance and must pay “schedule change premiums” — ranging from $10 to $75 per instance — depending on how much notice of the change the employer provided. For their part, covered retail employers must provide employees with at least 72 hours' notice of schedule changes. The law also restricts "clopenings" — requiring an employee to close a location late at night and then open it early the next morning — unless the employee receives additional compensation and consents to the “clopening” schedule in writing.

The DCWP has authority to impose civil penalties.

The FWW was upheld by the New York Appellate Division, First Department in 2021, as we discussed in a prior alert.

Takeaways

Fast food and retail employers operating in New York City should take note of these settlements. The Mamdani administration has signaled that enforcement of the FWW is a top priority, having secured more than $8.5 million in worker restitution since taking office on January 1, 2026.

Employers covered by the FWW should review their scheduling practices to ensure compliance, including providing the required advance notice, obtaining written consent before making schedule changes, paying applicable premiums and maintaining records for at least three years. Moreover such records must be readily accessible electronically and available for inspection by DCWP upon 14 days’ notice.

Employers should also remember that retaliation against employees who file complaints is illegal. Given the current enforcement climate, New York City employers should work closely with experienced employment counsel to audit their practices and ensure full compliance with the FWW’s requirements.

For more information, please contact Mark Eskenazi at 202.461-3109 or meskenazi@foxrothschild.com, Glenn Grindlinger at 212.905-2305 or ggrindlinger@foxrothschild.com, Carolyn D. Richmond at crichmond@foxrothschild.com or 212.878.7983, or another member of Fox Rothschild's Labor & Employment Department. Listen to Mark's podcast, "Labor Law Lineup," on Apple, Spotify, or wherever you get your podcasts.

This information is intended to inform firm clients and friends about legal developments, including the decisions of courts and administrative bodies. Nothing in this alert should be construed as legal advice or a legal opinion. Readers should not act upon the information contained in this alert without seeking the advice of legal counsel. Views expressed are those of the authors and not necessarily this law firm or its clients.