Traditional or standard work schedules refer to the requirement that workers must be at work the same days and during the same hours each day. This requirement constrains work-related trip arrivals, and generates morning and afternoon peak hours due to the concentration of work days and/or work hours. Alternative work schedules seek to reschedule work activities away from this traditional requirement. The aim is to flatten the peak hours by spreading the demand (i.e., assigning it to the shoulders of the peak hour), lowering the peak demand. This not only would reduce societal costs but also can help to minimize the physical requirements. In this article, a two-stage optimization model is presented to quantify the effects of staggered work hours under incentive policies. In the first stage, a variation of the generalized quadratic assignment problem is used to represent the firm’s assignment of workers to different work starting times. This is the input of a nonlinear complementarity problem that captures the behavior of the users of the transportation network who are seeking to overcome the constraints imposed by working schedules (arrival times). Two examples are provided to show how the model can be used to (a) quantify the effects and response of the firm to external incentives and (b) evaluate what type of arrangements in starting times are to be made in order to achieve a social optimum.