... or hourly pay plus an hourly shift differential for some hours. 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. The same is true of transportation and distribution companies. Second Floor Suite #105 While the law does not require shift differential payment it is very often part of a union negotiated contract. Consequently, the company in question may try to entice its workers to take on these shifts by offering a premium wage that is calculated on top of the regular rate. Pay Differential Library A pay differential is special additional pay recognizing unusual competencies, circumstances, or working conditions applying to some or all incumbents in select classes. This is usually done by paying the employee in question an additional percentage of their base salary. For one, all premium wage calculations must be tabulated and included in any paystub that is provided to the employee. These wage orders are enforced by the California Department of Industrial Relations (also known as the DIR), specifically, the department known as the Division of Labor Standards Enforcement (also known as the DLSE). Night work is regulated under the Labour Code which provides for a night shift differential. Registered nurses (RNs) at a skilled nursing facility are paid a basic hourly rate of $22 an hour. 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. Furthermore, this gap in work is not a meal or rest break and it must be to the benefit of the employer. 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. Despite the risks, more than 15 million American workers with full-time jobs work alternative shifts, including evening and graveyard hours. Most companies are split right down the middle on whether they employ a flat rate or the percentage method. They may use a “flat rate formula” - this means that some predetermined amount is added to the regular rate of pay. You’ve already done the work; let us take it from here. However, both state and federal laws set rules about overtime and split shifts, which sometimes affect people who work the graveyard shift. 229 West 31st Street. 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. 7. As of July 24, 2009, the federal minimum wage is $7.25 per hour. They sometimes worked night shifts beginning on one day and ending on the next. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Some types of employees are exempt from these overtime laws. By pooling all the employee’s interests and leveraging collective bargaining rights, unions shift the balance of power to be more equitable. My husbands employer promoted him to team lead about three months ago with a three dollar raise. Although night shift differential may be compensated as premium pay or together with overtime pay, it shall be noted that amount may differ according to the type of days or the nature of the work performed, whether regular or overtime. The additional $10 is the differential. Shift Differential Eligibility: Hourly Employees. 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. Holiday shifts are usually paid at time and a half, or the regular rate multiplied by 1.5. However, the following employees are NOT entitled to the night shift differential pay: 1. Am I entitled to any reporting time pay? One of the reasons is the night 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. Various attorneys with this platform maintain independent law practices. 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 difference between this shift pay and the regular rate is known as the “shift differential”. The evening and night shifts are typically considered less desirable than the day shift. Michael J. Holland, David Richardson and Geraldine Evans (collectively, the “plaintiffs”) worked as security guards for Securitas Security Services USA, Inc. In some cases, it may even appear as if aspects of the law contradict each other, so an experienced legal team will be necessary to ensure you have the best chance of recovering your unpaid wages. 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. The average shift differential for salaried swing shifts is 23% and the average shift differential for salaried graveyard shifts is 20%. The “regular rate of pay” is the basis for overtime compensation under the FLSA and California law. A. While the law does not require shift differential payment it is very often part of a union negotiated contract. All of these various premium rates must be factored into the regular rate of pay before the overtime calculations are done. This would be a breach of contract and the governing statute is the federal Fair Labor Standards Act (FLSA). Furthermore, nonexempt employees must earn double their hourly wages for any time worked after 12 hours in one day. Government employees. Shift differential pay is an integral part of each eligible employee's gross compensation and is subject to the same payroll deductions … Stop Unpaid Wages While laws do not require night differential pay in California, many employers choose to offer this benefit anyway. The night period is 11pm to 6am, unless the worker and employer agree a different night period. These shift differentials are most common in manufacturing and production jobs, with over 80% of companies in the manufacturing sector using shift pay to incentivize workers. Shift Differentials. Employees shall receive night shift pay as set forth below: (1) Night shift pay is earned on a day-by-day basis. 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. When they work the … 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. Studies have shown that sleep after night work is generally shorter and less refreshing than sleep during normal nighttime hours. Under Philippine labor laws, an employee who works between 10 p.m to 6:00 a.m. should be paid a night shift differential of not less than ten percent (10%) of his regular wage. What Makes California Employment Law Different ... and How to Deal With It. 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. I was offered 24 a 20 shift differential but the position was filled internally. 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. Shift Pay Differentials. I'm trying to get information relative to night shift differential rates for officers working graveyard 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. Nuance: While split-shift payments are considered wages, they need not be included in the regular rate when calculating overtime pay. Differential pay is company policy and not regulated by wage and hour laws, so there is no standardized way to make the premium rate payments. Shift Differential Eligibility: Hourly Employees. NIGHT SHIFT DIFFERENTIAL (Article 86) A. Across all industries, approximately 25% of companies pay premiums to salaried employees for shifts worked that are not regular weekday shifts. Failure to do so is an actionable labor offense and gives you ample ground for an unpaid wages lawsuit. For graveyard shifts (from 11 PM to 8 AM) the differential is on average 10% more than the base rate. 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). 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. For example, if an employee comes to work at 8 p.m. and leaves at 4 a.m. with only a regular meal break, this is not considered a split shift. One of the reasons is the night shift differential pay. Los Angeles, CA 90007 The “regular rate of pay” is the basis for overtime compensation under the FLSA and California law. 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. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. 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. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. It is generally a good idea to keep as much physical evidence as possible. There are companies that are open 24/7/365, including weekends, evenings, nights, and even holidays. What is a common shift differential pay amount for hourly employees? If the employee's shift crosses workdays, then they may still be entitled to the split-shift premium. 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. 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. This is usually a less desired shift, such as graveyard or weekends. Hospitals obviously never close and it is absolutely crucial that there be staff and health care practitioners all hours of the day and night. Some companies, instead of paying shift differentials, offer their employees additional paid time off for working these undesirable shifts. Shift Pay Differential is a separate payment from Inconvenience Pay. Wages are agreements made between employers and employees. When employers pay night shift workers higher wages than similar employees who work the day shift, this is called a pay differential. 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. Promotion or Shift Differential Pay? In California, a split-shift occurs when a worker's schedule is broken up by an unpaid, non-working period of time in excess of sixty (60) minutes. 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. She served in Congress for some time, as part of the communications team for Silvestre Reyes and helped constituents understand the laws on the House floor. A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. 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. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. 424-781-8411, 3500 Fifth Ave Suite #205 Again, the percentage amount offered will depend on the company in question as there is no legal requirement to offer the differential. If an employer chooses to pay higher wages to employees who work nights, and those employees work overtime hours, the employer would owe them 1.5 times the night-shift … What is the law regarding shift differential pay? Health care, food service and transportation companies often rely on having workers around the clock. Employers generally use one of two methods to calculate the premium rate for their shift differentials. In this particular case, the plaintiffs were security guards for Securitas Security Services who worked the graveyard shift. The information and materials contained on this website are provided for informational purposes only and does not constitute legal advice. Also exempted is the holiday pay received by such minimum wage earners. However, they may make the error of treating shift differentials as if they were a separate and distinct compensation item. If you work in California reach out to us today at 424-781-8411 and receive your complimentary legal consultation on how to get the compensation that was promised to you. Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA. 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. The California Department of Industrial Relations (also known as the DIR) is the regulatory agency that regulates and enforces these state minimum wage requirements. Although night shift differential may be compensated as premium pay or together with overtime pay, it shall be noted that amount may differ according to the type of days or the nature of the work performed, whether regular or overtime. If that worker has overtime hours during the night shift, the employer would pay $45 per hour. This is for advertisement only and should not be intended for legal advice. Then 2 months in, a position opened and I asked to move to night shift. While the information contained on this website is believed to be accurate, it is not guaranteed to be correct, complete, or up-to-date and you should not act or rely upon any information or materials on this website without seeking the advice of an attorney licensed to practice in your jurisdiction. For swing shifts (from 3 PM to midnight) the differential is on average 7.5% more than the base rate. 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. By Elizabeth J. MacGregor & Kerry Friedrichs on October 23, ... determining an employee’s overtime pay rate can be a very complicated task. When an employee works a split shift, the employer must give the person an additional hour’s worth of pay for that day. 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. (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. For example, consider a worker whose base pay is $20 per hour with a $10-per-hour shift differential in California. This one (1) hour of minimum wage pay is a kind of shift pay and is formally known as a “split-shift premium”. This agreement may be implicit if it is a verbal agreement, or explicit if it is a written agreement. All of this may seem overwhelmingly complicated. As a writer, Mackenzie has worked with several lawyers to create thoughtful, helpful content. Also there 3rd shift employee's are given a 50 cent differential pay. I was then offered 22 to start on day shift which I accepted. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. If you find this site useful and want to show your support, feel free to … Shift differential premiums will vary depending on a variety of factors. If your shift pay wages have been shorted by a dishonest or negligent employer, Stop Unpaid Wages can help you recover that backpay. There is no law that compels employers to pay a night shift differential in California. In 2011, the California Court of Appeals ruled against the plaintiffs in the case of Securitas Security Services USA, Inc. v. Superior Court. As with any unpaid wages case, you would also be entitled to recover past wages in the form of backpay. While the law does not require shift differential payment it is very often part of a union negotiated contract. 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. Nonexempt employees in California are entitled to overtime pay if they work more than eight hours in a day or more than 40 hours in a week. If it is necessary to pay overtime premium wages, then the differential must be calculated into your regular rate of pay. The subject of differential pay is left to the sole discretion of the employer. This is usually a less desired shift, such as graveyard or weekends. Employees who have extensive responsibilities, such as supervisors and/or managers, more frequently qualify for increased shift differential premiums when compared to other employees working the same shift. 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). If there is at least one (1) hour between these shifts, then the employee in question is entitled to one (1) additional hour of … Assigning an employee late hours is not grounds for additional pay. Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. 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. While the FLSA strictly monitors employees’ earnings, it doesn’t require employers to provide shift differentials or premium pay for overnight, weekend or holiday shifts. 2. Women and young persons are prohibited from night work. Unions are also responsible for working out every possible detail of the term of employment, including calculating shift differential premiums. Evening, Night or Weekend Shift Salary Differential. You already earned them; now it’s time to get them back! Shift differential pay is a fixed amount of additional pay per hour worked on top of a worker's normal hourly pay rate. Fact Sheet: Night Pay for General Schedule Employees Description. The plaintiffs’ work schedules and the number of hours worked varied. Finally, if you are part of a union that grants you collective bargaining power, the union in question may have its own minimum wage requirements. 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. Furthermore, federal law does not require any employer to increase pay for night shift work. 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. Working some of these less desirable shifts can have a negative impact on employees. The subject of differential pay is left to the sole discretion of the employer. Mackenzie Maxwell has always been interested in law, working with legal issues since 2010. 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). “Shift differential pay” does not include any additional compensation an employer is required to pay an employee under ORS 653.442 (Right to rest between work shifts) or 653.455 (Compensation for work schedule changes) . Government employees 2. (a) Employees shall be entitled to receive night shift differentials in accordance with section 5343 of title 5, United States Code. If there is at least one (1) hour between these shifts, then the employee in question is entitled to one (1) additional hour of pay that is no less than the minimum-wage rate. Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. If you feel that the employer in question has been trying to do so, then it is best that you contact an attorney that specializes in unpaid wages cases and initiate a complaint and/or lawsuit to recover said wages. All these hazards exist because working these irregular shifts makes it challenging for the employee to get enough sleep. This website does not show any ads or advertising materials for an ad-free reading experience of the readers. Meal and Rest Breaks for 1099 Independent Contractors, Meal and Rest Breaks for Salaried/Exempt Workers, Overtime for 1099 Independent Contractors, Wrongful Termination for 1099 Independent Contractors. A shift differential, to begin with, is NOT something required under law; it is something that an employer voluntarily choose to pay. If the employer has violated any of the terms of the employment contract, then the employee has every right to recover their unpaid wages. However, most employees will have a pretty good sense if their employer is willfully shorting them on premium wages. (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. Furthermore, shift differentials are common enough that there are average percentage amounts that apply across all industries that employ these shift differentials. 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. We can assist you in building a case and increase the likelihood of you receiving the wages that are owed to you. If the employee requested the gap in the work schedule, then it is not considered a split-shift. We are the right firm for the job and have extensive experience with the various federal and state labor laws. 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. Consequently, it is essential that you seek out legal counsel that can help you navigate the various complexities of California labor laws. As a result of this workday configuration, security guards worked shifts that began on one day and eventually ended on the following workday. Because shift pay is not legally required, any case to recover unpaid shift pay would revolve around the violation of the employment contract. 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. There are limitations, however, to how split-shift premiums can be paid to employees. 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