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. The plaintiff… In cases of overtime, most employers pay workers the overtime premium at one and a half (1.5) times their hourly rate. California labor laws do not mandate the payment of any differential pay for working evening or night shifts. Across all industries in the United States, 49% use the flat rate and 47% use the percentage method. To understand why, it’s important to consider which kinds of industries typically offer night shifts. This website does not show any ads or advertising materials for an ad-free reading experience of the readers. “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) . It may also cause anxiety or depression due to feelings of isolation from family and friends. 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. Night shift differential is a part basic pay. 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. Nuance: While split-shift payments are considered wages, they need not be included in the regular rate when calculating overtime pay. San Diego, CA 92103 The difference between this shift pay and the regular rate is known as the “shift differential”. Shift Pay Differential is a separate payment from Inconvenience Pay. 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. 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. If your employer failed to include the differentials in your regular rate, this would violate the Fair Labor Standards Act (FLSA) and would result in financial penalties imposed on your employer by the Department of Labor (DOL). There is no law that compels employers to pay a night shift differential in California. Various attorneys with this platform maintain independent law practices. The standard shifts that generally offer the regular rate of pay usually occur during daytime hours, Monday through Friday. I was offered 24 a 20 shift differential but the position was filled internally. While laws do not require night differential pay in California, many employers choose to offer this benefit anyway. Night shift differential? However, the following employees are NOT entitled to the night shift differential pay: 1. Finally, as of January 01, 2019, companies with at least 26 employees in the county of Los Angeles must pay a minimum wage of $14.25 per hour and companies with fewer than 25 employees must pay a minimum wage of $13.25 per hour. 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. 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. Shift differential premiums will vary depending on a variety of factors. Your use of this website does not establish an attorney-client relationship between you and our attorneys. For one, all premium wage calculations must be tabulated and included in any paystub that is provided to the employee. 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. What is the law regarding shift differential pay? While the law does not require shift differential payment it is very often part of a union negotiated contract. 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. As a writer, Mackenzie has worked with several lawyers to create thoughtful, helpful content. To incentivize people to take these less desirable hours, employers offer higher pay to make the positions more desirable. NIGHT SHIFT DIFFERENTIAL (Article 86) A. While California’s state law does not entitle employees to more compensation for working the night shift, California’s nonexempt workers do earn double-time pay for working over 12 hours in one shift. 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. For example, consider a worker whose base pay is $20 per hour with a $10-per-hour shift differential in California. There are companies that are open 24/7/365, including weekends, evenings, nights, and even holidays. Some types of employees are exempt from these overtime laws. Furthermore, federal law does not require any employer to increase pay for night shift work. Staff who regularly work at least 3 hours during the ‘night period’ are night workers. The subject of differential pay is left to the sole discretion of the employer. When they work the … This includes overtime payments in workweeks where you both exceeded 40 hours and worked irregular, premium wage shifts. (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 … I was then offered 22 to start on day shift which I accepted. 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. Employers can offer workers additional pay, called shift differential pay, for working at undesirable hours. Relationship to Other Premium Pay Night shift differential is included in the rates of basic pay for prevailing rate employees and is used as a basis for computing overtime pay, Sunday pay, holiday pay, and amounts of deductions for … This is usually a less desired shift, such as graveyard or weekends. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). 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. 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. The authorization is for a particular position and may be within a specific geographical area. • 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. Q. She stayed active in local politics to understand the laws that govern her area. 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. While the law does not require shift differential payment it is very often part of a union negotiated contract. 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. All premium wages, including overtime, shift pay, and split-shift premiums are protected under the various wage and hour laws. These agencies determine which employees in the following categories are eligible for the salary differential. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). They sometimes worked night shifts beginning on one day and ending on the next. I am paid $15.00 per hour. Also exempted is the holiday pay received by such minimum wage earners. You already earned them; now it's time to get them back! 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. It is generally a good idea to keep as much physical evidence as possible. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. Michael J. Holland, David Richardson and Geraldine Evans (collectively, the “plaintiffs”) worked as security guards for Securitas Security Services USA, Inc. Furthermore, if the employee in question resides at the place of work then they are also exempt from the split-shift premium. These practitioners must always stay alert in order to provide effective and proper medical care to patients of the hospital. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. What is a common shift differential pay amount for hourly employees? For example, a hospital may pay night shift nurses $10 more per hour to work overnight. 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. As a result of this workday configuration, security guards worked shifts that began on one day and eventually ended on the following workday. In 2011, the California Court of Appeals ruled against the plaintiffs in the case of Securitas Security Services USA, Inc. v. Superior Court. 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. 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. 2. If it is necessary to pay overtime premium wages, then the differential must be calculated into your regular rate of pay. California Labor Laws on Split Shift & Overtime, California Labor Law Regarding Minimum Work Hours Per Day, California Labor Laws on Lunch Area Requirements, California Labor Laws Relating to Breaks & Meal Periods, Medical News Today: The impact of shift work on health, California Chamber of Commerce: Shift Differential Pay. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. 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. The court determined that employees are not entitled to split-shift premiums if they work overnight shifts that are uninterrupted. There are limitations, however, to how split-shift premiums can be paid to employees. 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. By Elizabeth J. MacGregor & Kerry Friedrichs on October 23, ... determining an employee’s overtime pay rate can be a very complicated task. Am I entitled to any reporting time 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. The same is true of transportation and distribution companies. The evening and night shifts are typically considered less desirable than the day shift. In some cases, employees may be entitled to receive more than one shift pay differential. In addition to federal and state laws, there is also the possibility of municipal or county statutes that set minimum wage requirements. 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. This is officially known as “shift pay”. In some cases, seniority is also a factor in determining the premium rate offered to the employee. 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. Fingercheck: Do Employees Make More Working Night Shifts? Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. A. The DOL website provides additional guidance for two different differentials. 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). In this particular case, the plaintiffs were security guards for Securitas Security Services who worked the graveyard shift. Health care, food service and transportation companies often rely on having workers around the clock. 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. 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. Despite the risks, more than 15 million American workers with full-time jobs work alternative shifts, including evening and graveyard hours. Then 2 months in, a position opened and I asked to move to night shift. The subject of differential pay is left to the sole discretion of the employer. I have 3 years experience. Employees must work a qualifying shift, or be on a paid leave of absence when scheduled to work a qualifying shift, to receive compensation. Stop Unpaid Wages 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. On average, third shifts are paid slightly higher rates than second shifts. While the law does not require shift differential payment it is very often part of a union negotiated contract. 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. 619-790-4251, Copyright © 2019 Stop Unpaid Wages - All Rights Reserved. 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. The plaintiffs’ work schedules and the number of hours worked varied. Shift Differential 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. 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. A strange split-shift issue can arise if an employee’s work crosses the defined workday. This one (1) hour of minimum wage pay is a kind of shift pay and is formally known as a “split-shift premium”. • An employee whose shift qualifies for both the evening and night shifts would receive a shift differential at the higher rate. Holiday shifts are usually paid at time and a half, or the regular rate multiplied by 1.5. All of this may seem overwhelmingly complicated. The “regular rate of pay” is the basis for overtime compensation under the FLSA and California law. 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. I have recently applied for a third shift position with a new company. 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