What Is a Flexible Work Schedule Policy? (+ Free Template)
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Jennifer Soper is an HR Specialist and staff writer for Fit Small Business, with over 15 years of experience in accounting, payroll, and human resources.
A flexible work schedule policy outlines for employees an alternative to the typical 9–5, Monday–Friday workweek. It might allow for different daily start and end times or even a compressed four-day workweek. Employees who can customize their work hours can better manage their time and focus on their tasks. While there are no federal guidelines or restrictions on flexible work schedules, companies should still adhere to all other employment laws.
If you plan on allowing flexible working in your workplace, you need to create a proper flexible work schedule policy to ensure that expectations are clear. Below, we’ll discuss types of flexible work schedules, as well as laws to keep in mind and other considerations.
First, download and customize our free flexible work schedule policy template. Be sure to have your policy reviewed by an employment lawyer to assure compliance with any labor laws.
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Types & Examples of Flexible Work Schedules
One significant benefit of flexible work schedules is that you can create a schedule that works for your company’s needs and your employees’ desires. Ultimately, you want a cost-effective and productivity-inducing flexible schedule for your employees.
Below are a few flexible work schedule policy types and examples. Take note that not all will work for every company, and you may need to take some ideas from one example and some from another to build your company’s policy.
Although these work schedule types can apply to both in-office and remote employees, a flexible work schedule is not the same as remote work or work from home. For more information on those, check out these resources:
How to Hire Remote Employees
Remote Work Statistics
Tips for Engaging Remote Employees
Applicable Laws for Flexible Work Schedules
Generally, what you do for one employee, you want to do for all. However, flexible work schedules may only work for particular roles, which is why defining when and to whom it applies is necessary. Regardless, you must ensure that your company remains compliant, no matter which flexible work option you choose.
Equal Employment Opportunity
When workers are distributed and not in a central location, that can create compliance headaches. Equal employment opportunity laws mandate that employers treat employees the same and not discriminate in wages, hours, and other conditions of employment. When implementing a flexible work policy, your company needs to ensure it is done without discriminating against any protected class.
Because some job duties will require a worker’s physical presence, they may not be eligible for flexible work schedules. Your company should include language in your policy that approval will be on a case-by-case basis. This decision should be made on nondiscriminatory factors, like an employee’s job duties and past performance.
Wage & Hour
Both federal and state wage and hour laws need to be reviewed before rolling out a flexible work schedule policy. If your company is offering a four-day workweek where employees work 10-hour days, that could have implications for overtime, so tracking employee work time is essential. For example, California law requires overtime pay for any hours worked over eight in a given day for eligible employees. So, if you have hourly employees working in California, your company would need to budget for two hours of overtime every single day with a four-day workweek.
This may present a cost-prohibitive situation for your company. Reviewing your state’s regulations will help you catch legal hurdles like this before you get too far along in the process. You can find these laws on your state’s Department of Labor website.
Workers’ Compensation
When employees work in an office or central location, their employer’s workers’ compensation insurance coverage will provide them with benefits if they suffer an on-the-job injury. But if an employee is working from home and gets injured while on the clock, do they get workers’ compensation benefits? Maybe.
Most states’ workers’ compensation laws have not been updated to address this shifting work environment. Your company cannot control the home workspace of your employees but may still be subject to paying out claims if they suffer injuries. Understanding the ramifications and getting the necessary coverage is critical to ensuring your flexible work schedule program is successful.
When a Flexible Work Schedule Is Appropriate
If your company employs workers who do not have to sit at the same desk at the same time every day, then you may be able to offer more flexibility with your scheduling. By providing this benefit to employees, your company gains more loyalty and dedication from your team.
Alternatively, certain jobs may not be suitable for a flexible work schedule. Some duties require people to be available during certain times of the workday, so working off-hours wouldn’t be conducive to company productivity.
Depending on the type of industry in which your company operates, you may have workers whose job duties would make it difficult for them to work anywhere but your location. For these workers, the flexibility you may offer is quite limited, such as with their arrival and departure times.
Pros & Cons of a Flexible Work Schedule Policy
From employee retention to increased morale, there are many advantages to implementing a flexible work policy. However, flexible work schedules also have some disadvantages for employers too. Considering these pros and cons before implementing a policy will help guide you to know what you do and do not want in a policy.
| PROS | CONS |
|---|---|
| Attracts and retains top talent | Lack of accountability |
| Improves employee morale | Can lead to decreased communication and teamwork |
| Reduces the need for special accommodations | Creates liability and security issues |
| Provides clear expectations | Drop in employee engagement for ineligible employees |
Bottom Line
From increased employee productivity to creating a competitive advantage that attracts high-quality employees, workers want flexible work options that ultimately support your company’s success. Create a flexible work schedule policy that suits your company culture and makes your team the most productive.
