Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. Night shift differential? This split-shift premium for minimum wage workers is guaranteed via wage order issued by the California Industrial Welfare Commission (also known as the IWC). You’ve already done the work; let us take it from here. ... or hourly pay plus an hourly shift differential for some hours. ... such as hourly pay, shift differentials, salaries, piece rates, commissions, and most ... (because these hours include a $1 per hour night shift differential), overtime … My husbands employer promoted him to team lead about three months ago with a three dollar raise. I am paid $15.00 per hour. What is the law regarding shift differential pay? Yes, you are entitled to one hour of reporting time pay. Shift Differential Eligibility: Hourly Employees. It may also cause anxiety or depression due to feelings of isolation from family and friends. If this is the case, then you will need to retain a legal team that has knowledge not only of federal and state labor laws but also understands how union by-laws interact with the larger unpaid wages case. Mackenzie Maxwell has always been interested in law, working with legal issues since 2010. California labor laws do not mandate the payment of any differential pay for working evening or night shifts. Assigning an employee late hours is not grounds for additional pay. This is usually a less desired shift, such as graveyard or weekends. Remember that it does not matter if you are an undocumented worker as your immigration status will not be investigated. For one, all premium wage calculations must be tabulated and included in any paystub that is provided to the employee. Shifts that begin in the early afternoon, around 4 PM or so, and end late at night, around midnight, are known as “swing shifts” or “second shifts”. Q. Health care, food service and transportation companies often rely on having workers around the clock. In some cases, employees may be entitled to receive more than one shift pay differential. Read More: California Labor Laws on Split Shift & Overtime. In some cases, seniority is also a factor in determining the premium rate offered to the employee. The stress of this shift work can exacerbate pre-existing medical conditions like heart disease and/or digestive issues. If you are involved in an unpaid wages case to recover shift differentials that are owed to you, then the law that is most generous to you is the one that is followed when determining the regular rate of pay. (4) An employee assigned to a shift that qualifies for shift premium pay must receive the same shift premium for authorized periods of paid leave and holidays and for up to five days of a temporary assignment to a shift that does not qualify. The plaintiffs in the case made the legal argument that they were entitled to split-shift premiums because their shift ended in the morning and they were then required to begin their next shift several hours later during that same day. Registered nurses (RNs) at a skilled nursing facility are paid a basic hourly rate of $22 an hour. Absent any contract to the contrary, the employer can decide whether or not to pay differential and the times for which differential will be paid. Then 2 months in, a position opened and I asked to move to night shift. Shift Pay Differentials. Both federal and California labor laws explicitly forbid the employer from acting willfully and maliciously in trying to withhold premium wages from the employee in question. While the law does not require shift differential payment it is very often part of a union negotiated contract. Employees shall receive night shift pay as set forth below: (1) Night shift pay is earned on a day-by-day basis. Across all industries, approximately 25% of companies pay premiums to salaried employees for shifts worked that are not regular weekday shifts. The average shift differential for salaried swing shifts is 23% and the average shift differential for salaried graveyard shifts is 20%. If that worker has overtime hours during the night shift, the employer would pay $45 per hour. Hospitals obviously never close and it is absolutely crucial that there be staff and health care practitioners all hours of the day and night. • An employee whose shift qualifies for both the evening and night shifts would receive a shift differential at the higher rate. This is usually done by paying the employee in question an additional percentage of their base salary. The plaintiffs had argued that if an employee worked a shift that stretched out over two working days, then they were entitled to a premium wage. The “regular rate of pay” is the basis for overtime compensation under the FLSA and California law. In other words, shifts starting at 8 or 9 AM and ending at 5 or 6 PM are considered to be standard and do not entail any sort of shift pay. If you decide to use differential pay for night shift work, there are a few special situations to keep in mind: • Holiday pay: Holiday pay is generally 1.5 or 2 times normal pay. Nuance: While split-shift payments are considered wages, they need not be included in the regular rate when calculating overtime pay. The night period is 11pm to 6am, unless the worker and employer agree a different night period. Shift Differentials. Furthermore, the presence of and membership in a union drastically changes the power dynamics between employee and employer. Night differential is an increase in pay to compensate employees for working night shifts. Working these irregular shifts may also alienate the worker from family and friends as their atypical work schedule becomes effectively the opposite of everyone else’s. I'm trying to get information relative to night shift differential rates for officers working graveyard shifts. The difference between this shift pay and the regular rate is known as the “shift differential”. San Diego, CA 92103 For you to easily understand the concept of night shift differential, it is best to put on an illustration table. However, both state and federal laws set rules about overtime and split shifts, which sometimes affect people who work the graveyard shift. This is for advertisement only and should not be intended for legal advice. Working evening or overnight hours can increase a person’s risk for conditions like Type 2 diabetes and make it difficult to get enough sleep. In this particular case, the plaintiffs were security guards for Securitas Security Services who worked the graveyard shift. It is generally a good idea to keep as much physical evidence as possible. By Elizabeth J. MacGregor & Kerry Friedrichs on October 23, ... determining an employee’s overtime pay rate can be a very complicated task. If both Locations have the same work responsibilities, Same Title, same job detail, Same working conditions, Everything is the same, except we are in CA and they are in KS, are we entitled to have the same Starting rate, or MORE given the fact that our Cost of living is More. Working under these conditions makes the workers more prone to errors and/or accidents and in some industries that may endanger both the worker and the wider public. Any hour someone works beyond the standard 40 in one week is paid out at a higher rate. The additional $10 is the differential. When an employee works a split shift, the employer must give the person an additional hour’s worth of pay for that day. (b) Absence on holidays. But shift differential pay applies only to hours worked during specific, inconvenient times, regardless … Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. (2) An employee regularly assigned to a day shift who is temporarily assigned to a night shift shall be paid a night shift differential for any leave with … For example, someone who normally makes $20 per hour must make at least $30 per hour for any time that exceeds 40 hours per week or eight hours per day. I was then offered 22 to start on day shift which I accepted. Furthermore, if the employee belongs to a union, then they may use their “collective bargaining” power to demand this shift pay provision in their employment contracts. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). Furthermore, nonexempt employees must earn double their hourly wages for any time worked after 12 hours in one day. Though many employers choose to pay a small premium, called a “shift differential,” to employees who work swing, graveyard or other less desirable shifts, no law requires you to pay a shift differential. Since it's not required under law, the employer has substantial discretion to set terms and conditions for it, such as not paying it for PTO. If you can provide your legal team with an incontrovertible paper trail proving that your employer has withheld these premium wages, then it makes your unpaid wages case that much stronger. The subject of differential pay is left to the sole discretion of the employer. Under R.A. 9504 overtime pay, night shift differential pay and hazard pay received by such minimum wage earners are exempt from income tax (Section 2, R.A. 9504). We are the right firm for the job and have extensive experience with the various federal and state labor laws. California Department of Industrial Relations: Overtime, California Department of Labor: Fact Sheet 54, Jackson Lewis Law: California Court Clarifies Scheduled Overnight Shifts Not Entitled to Split Shift Pay. California law defines a split shift as “a work schedule, which is interrupted by non-paid non-working periods established by the employer.” However, this does not include meal or rest breaks. It is common in other industries as well: 60% of companies in customer support and approximately 50% of companies in transportation and distribution offer these premiums. Securitas has established the workday as beginning at midnight and ending the following midnight; as a result, the plaintiffs’ shifts occasionally were divided between two workdays. However, the FLSA does require that covered, nonexempt workers be paid not less than time and one-half the employee's regular rate for time worked over 40 hours in a workweek. This is because the workday is independent of a calendar day and is defined by the employer in question. The California Court of Appeals ruled against the plaintiffs in this case. A. If your shift pay wages have been shorted by a dishonest or negligent employer, Stop Unpaid Wages can help you recover that backpay. There are a few very specific exceptions codified in California Labor Code, Section 1197 LC. They may also use the “percentage method” - this means that the employee’s regular rate of pay, or their “base rate”, is multiplied by some percentage amount to calculate the shift pay premium. To incentivize people to take these less desirable hours, employers offer higher pay to make the positions more desirable. Stop Unpaid Wages can help anyone in the state of California recover unpaid wages from their employer. The additional $10 is the differential. Also there 3rd shift employee's are given a 50 cent differential pay. I have 3 years experience. However, the following employees are NOT entitled to the night shift differential pay: 1. The evening and night shifts are typically considered less desirable than the day shift. This provides an incentive for their employees to take these irregular work schedules. You already earned them; now it’s time to get them back! Some types of employees are exempt from these overtime laws. The employer may define the workday however they like as long as they are not doing so in a way to avoid paying premium wages. Los Angeles, CA 90007 If your employer agrees to it, verbally or in writing, then it is absolutely vital that they keep their promise of paying you these premium wages. The Fair Labor Standards Act (FLSA) does not require an employer to pay a shift differential to acquire or retain an employee for shift work. Shift Pay Differential is a separate payment from Inconvenience Pay. If it is necessary to pay overtime premium wages, then the differential must be calculated into your regular rate of pay. Shift differential pay is a fixed amount of additional pay per hour worked on top of a worker's normal hourly pay rate. • Employees working regularly scheduled assigned night shifts in classes for which a night-shift differential has been authorized by the California Department of Human Resources may receive the appropriate night-shift differential during periods of paid leave. Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. You already earned them; now it's time to get them back! It should also be noted that within the healthcare industry, nurses are offered shift pay 48% of the time while physicians are only offered shift pay about 10% of the time. Shift Pay Differential is additional compensation over an employee’s basic annual salary which may be authorized by the Director of Classification and Compensation subject to approval by the Director of the Budget. It is also important to note that the base rate must always be in accordance with federal and state minimum wage laws. Despite the risks, more than 15 million American workers with full-time jobs work alternative shifts, including evening and graveyard hours. A nurse performing service, any part of which is within the period commencing at 6 postmeridian and ending at 6 antemeridian, shall receive additional pay for each hour of such service at a rate equal to 10 percent of the nurse’s hourly rate of basic pay if at least four hours of such service fall between 6 postmeridian and 6 antemeridian. As a result of this workday configuration, security guards worked shifts that began on one day and eventually ended on the following workday. I was offered 24 a 20 shift differential but the position was filled internally. For swing shifts (from 3 PM to midnight) the differential is on average 7.5% more than the base rate. In cases of overtime, most employers pay workers the overtime premium at one and a half (1.5) times their hourly rate. For example, someone who works a night shift, goes home for a few hours, then returns for an afternoon shift may work a split shift that day. Most businesses will outline how shift differentials work, if they’re offered, in the employee handbook.Usually, however, differential Furthermore, our brains and bodies also slow down during nighttime and early morning hours. They may use a “flat rate formula” - this means that some predetermined amount is added to the regular rate of pay. No employer is legally obligated to provide shift pay as there are no wage and hour laws on the federal or state level that guarantee this right. In other words, it is almost always illegal, no matter what the circumstance, that your employer pays you anything less than minimum wage. Holiday shifts are usually paid at time and a half, or the regular rate multiplied by 1.5. Employees must work a qualifying shift, or be on a paid leave of absence when scheduled to work a qualifying shift, to receive compensation. Shift differentials aren’t required by federal law, but many companies, especially in the manufacturing industry, offer them as a way of encouraging employees to take an “undesirable” shift such as the night shift or a weekend shift. Yes, because you work six hours, and the minimum wage for your workday that includes a split shift is $77 (6 hours times $11 plus an additional $11 for the split shift premium). While it may be easy enough for these companies to find people to work the day shifts, it can be a lot more difficult to fill night hours. All premium wages, including overtime, shift pay, and split-shift premiums are protected under the various wage and hour laws. Various attorneys with this platform maintain independent law practices. Night shift differential is a part basic pay. If you suspect that your employer has knowingly or unknowingly shorted you on premium wages, then you need the help of Stop Unpaid Wages. The “regular rate of pay” is the basis for overtime compensation under the FLSA and California law. Under the law, an employee who reports to work on time and is later sent home because of lack of work, having worked less than half of his or her regularly scheduled shift, is entitled to be paid for half the usual or scheduled day's work, but in no event for less than two hours nor more than four hours at his or her regular rate of pay. It is possible that this was an honest and good faith error, but the employer’s failure in including the shift pay differential into your regular rate of pay will likely result in you being shorted on your wages. Employers generally use one of two methods to calculate the premium rate for their shift differentials. Unions are also responsible for working out every possible detail of the term of employment, including calculating shift differential premiums. While some people work graveyard shifts because they prefer it or it’s the best job they can find, others choose these jobs for the night shift pay increase. In these scenarios, it is necessary that workers drive whatever good in question during late hours or even overnight. Any and all union agreements will be in the form of written contracts, potentially giving you an exceptionally strong case in the event that the employer has failed to pay you your premium wages. The base rate may also be referred to as “straight-time” and is comprised of an hourly wage that was determined at the time of the employee’s hiring. Government employees 2. As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. All of this may seem overwhelmingly complicated. An employee who makes more than the minimum wage may also be entitled to a split-shift premium, however, the greater their pay then the lower the split-shift premium will be. While the vast majority of employers pay employees overtime at one and a half times their hourly rate, they may make the mistake of treating shift differentials as a separate compensation item. Then 2 months in, a position opened and I asked to move to night shift. If you decide to use differential pay for night shift work, there are a few special situations to keep in mind: • Holiday pay: Holiday pay is generally 1.5 or 2 times normal pay. The standard shifts that generally offer the regular rate of pay usually occur during daytime hours, Monday through Friday. 2. The manufacturing and production sector, which uses shift pay frequently, requires that employees be alert when operating heavy machinery as part of the manufacturing process. Shift Differential Pay Shift Differential Pay Though many employers choose to pay a small premium, called a “shift differential,” to employees who work swing, graveyard or other less desirable shifts, no law requires you to pay a shift differential. Working some of these less desirable shifts can have a negative impact on employees. This includes overtime payments in workweeks where you both exceeded 40 hours and worked irregular, premium wage shifts. There are companies that are open 24/7/365, including weekends, evenings, nights, and even holidays. Offering this shift differential is not compulsory as it is not required by law; many companies, however, find it to be in their best interest to do so. To determine the employee Night Differential pay: Rest Day Night Differential = (Hourly rate × 130% × 10% × 8 hours) Php 59.28 = (Php 57.00 × 1.3 × 0.10 × 8 hours) Special Holiday Night Shift. This one (1) hour of minimum wage pay is a kind of shift pay and is formally known as a “split-shift premium”. Most companies will have internal rules governing how this system will work and, if offered, will be explicitly described in either the employee handbook or the employment contract. If the employee in question is too tired to function, they may subject themselves or another employee to a critical or even fatal accident. What is the hourly pay? A shift differential, to begin with, is NOT something required under law; it is something that an employer voluntarily choose to pay. Studies have shown that sleep after night work is generally shorter and less refreshing than sleep during normal nighttime hours. Yesterday my regular eight-hour work shift ended at 3:30 p.m. and I was required to report back to work at 5:30 p.m. on the same workday to attend a one hour training meeting. Any kind of agreement to offer shift pay lies between the employee and the employer in question. Although the Fair Labor Standards Act (FLSA) does not require private employers to provide differential or premium pay to employees (outside of overtime pay of time and a half over 40 hours in a workweek), many employers will reward their employees with additional pay in various situations The same is true of transportation and distribution companies. Regular Rate Refresh: Calculating Overtime for California Employees. Labor in excess of 40 hours per week constitutes overtime, for which compensation must be at least 1.5 times an employee's hourly pay. When they work the evening shift, they are paid a shift differential of $1 an hour. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA. If the employer has violated any of the terms of the employment contract, then the employee has every right to recover their unpaid wages. Stop Unpaid Wages Am I entitled to any reporting time pay? In 2011, the California Court of Appeals ruled against the plaintiffs in the case of Securitas Security Services USA, Inc. v. Superior Court. (3) Shift premium may be paid at a monthly rate as specified in the compensation plan for full time employees regularly assigned to a qualifying shift. Furthermore, federal law does not require any employer to increase pay for night shift work. The atypical work schedule that is part of these swing and graveyard shifts may result in workers who are fatigued, sleepy, and chronically underslept. Anyone considering taking a night shift job or hiring for such positions in California should know the state’s laws about this kind of work. As of January 01, 2019, companies with at least 26 employees will have a minimum wage of $12.00 per hour and companies with fewer than 25 employees will have a minimum wage of $11.00 per hour. 424-781-8411, 3500 Fifth Ave Suite #205 Fact Sheet: Night Pay for General Schedule Employees Description. Shift Differential Pay Shift Differential Pay Though many employers choose to pay a small premium, called a “shift differential,” to employees who work swing, graveyard or other less desirable shifts, no law requires you to pay a shift differential. If there is at least one (1) hour between these shifts, then the employee in question is entitled to one (1) additional hour of … Night work is regulated under the Labour Code which provides for a night shift differential. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. Government employees. Essentially your legal team would argue that there was some kind of agreement between the parties for premium wages and the employer has not held up their end of the bargain. Women and young persons are prohibited from night work. Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal. The court determined that employees are not entitled to split-shift premiums if they work overnight shifts that are uninterrupted. These include job function, the employee’s level of responsibility, the presence and influence of labor unions on specific jobs, the location of work, and the type of shift in question. They sometimes worked night shifts beginning on one day and ending on the next. Since differential pay is company policy, not something regulated by the government, there’s no standard way to pay it. NIGHT SHIFT DIFFERENTIAL (Article 86) A. Overtime pay must be at least 1 1/2 times the person’s regular hourly pay. It is always best to secure any kind of payment agreement in writing and have it codified in an employee contract, but California labor law still holds verbal agreements as legally binding. In other words, the court determined that there was no effective “split” in these overnight shifts. (1) An employee regularly assigned to a night shift shall be paid a night shift differential during a period of leave with pay. The information and materials contained on this website are provided for informational purposes only and does not constitute legal advice. Furthermore, shift differentials are common enough that there are average percentage amounts that apply across all industries that employ these shift differentials. Subscribe to Shift Differentials. Additionally, if an employee works consecutively 7 days, on the 7th day of work employees receive double-time for hours worked over 8. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Overnight shifts beginning at around midnight and ending at 8 or 9 AM are usually known as “graveyard shifts” or “third shifts”. This is a common tactic by some unscrupulous employers to avoid paying overtime, shift pay, and split-shift premiums. On average, third shifts are paid slightly higher rates than second shifts. As a writer, Mackenzie has worked with several lawyers to create thoughtful, helpful content. Everyone in California, from fast food workers to creative executives working in cubicles, is afforded various protections under the law. Authorized agencies may pay a shift differential to employees in certain positions who are required to work scheduled hours outside of the usual business workday. The Pay Differential may be prescribed for those employees on a night shift, four or more hours of which fall between 6 PM and 6 AM. Furthermore, if you have experienced retaliatory action due to having made a complaint about unpaid wages or a labor law violation, we can help you with that case as well. Across all industries in the United States, 49% use the flat rate and 47% use the percentage method. 229 West 31st Street. The company (Securitas) determined that its workday began at midnight and ended the following midnight. If the employee requested the gap in the work schedule, then it is not considered a split-shift. Michael J. Holland, David Richardson and Geraldine Evans (collectively, the “plaintiffs”) worked as security guards for Securitas Security Services USA, Inc. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. (a) Employees shall be entitled to receive night shift differentials in accordance with section 5343 of title 5, United States Code. Paying shift differentials contract and the average shift differential but the position was filled internally this useful. Have extensive experience with the various complexities of California recover unpaid shift pay and the in! Differential payment it is also a factor in determining the premium rate offered to the employee to get year... Multiplied by 1.5 her area Media, all premium wage calculations must be tabulated and included in the of... Night workers weekday shifts standard shifts that began on one day and night shall receive night differential... 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