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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. For example, consider a worker whose base pay is $20 per hour with a $10-per-hour shift differential in California. You’ve already done the work; let us take it from here. Across all industries in the United States, 49% use the flat rate and 47% use the percentage method. Various attorneys with this platform maintain independent law practices. 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. 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. Employers can offer workers additional pay, called shift differential pay, for working at undesirable hours. To incentivize people to take these less desirable hours, employers offer higher pay to make the positions more desirable. It is also possible for salaried employees to be eligible for shift differentials. What is the law regarding shift differential pay? Consequently, it is essential that you seek out legal counsel that can help you navigate the various complexities of California labor laws. 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. Shift Pay Differentials. 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. 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. 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. Registered nurses (RNs) at a skilled nursing facility are paid a basic hourly rate of $22 an hour. On average, third shifts are paid slightly higher rates than second shifts. The DOL website provides additional guidance for two different differentials. Although this may be an honest error, failure to include the differential into the employee’s regular rate will result in improper overtime payment in workweeks where an employee exceeds 40 hours. The Fair Labor Standards Act (FLSA) does not require extra pay for night work. If you suspect that your employer has knowingly or unknowingly shorted you on premium wages, then you need the help of Stop Unpaid Wages. 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. 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 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. A shift differential is an extra bump in pay that some workers make for working outside of normal business hours. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). (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. Health care, food service and transportation companies often rely on having workers around the clock. This is usually done by paying the employee in question an additional percentage of their base salary. 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. 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. 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. Please note that shift differential pay is not the same thing as overtime pay. I was then offered 22 to start on day shift which I accepted. Employers generally use one of two methods to calculate the premium rate for their shift differentials. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. 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. Let us figure out what exceptions may apply or not apply in your case. There are companies that are open 24/7/365, including weekends, evenings, nights, and even holidays. Furthermore, the presence of and membership in a union drastically changes the power dynamics between employee and employer. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. California labor laws do not mandate the payment of any differential pay for working evening or night shifts. In other words, the court determined that there was no effective “split” in these overnight shifts. 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. However, the following employees are NOT entitled to the night shift differential pay: 1. 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. The night-shift differential Shift Differential Pay. 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. 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). The company (Securitas) determined that its workday began at midnight and ended the following midnight. It is computed as a percentage of the employee's rate of basic pay (including any applicable locality payment or special rate supplement). 619-790-4251, Copyright © 2019 Stop Unpaid Wages - All Rights Reserved. Shift differential pay is an integral part of each eligible employee's gross compensation and is subject to the same payroll deductions … You already earned them; now it’s time to get them back! This is true of nurses in the health care sector as well. 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. 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. Read More: California Labor Laws on Split Shift & Overtime. California labor laws do not mandate the payment of any differential pay for working evening or night shifts. Some companies, instead of paying shift differentials, offer their employees additional paid time off for working these undesirable shifts. 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. Remember that it does not matter if you are an undocumented worker as your immigration status will not be investigated. If you find this site useful and want to show your support, feel free to … Shift Differential Eligibility: Hourly Employees. 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 was then offered 22 to start on day shift which I accepted. Shift differential pay is a fixed amount of additional pay per hour worked on top of a worker's normal hourly pay rate. There are limitations, however, to how split-shift premiums can be paid to employees. Promotion or Shift Differential 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. 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. The atypical work schedule that is part of these swing and graveyard shifts may result in workers who are fatigued, sleepy, and chronically underslept. 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. (9) “Shift differential pay” means a pay differential meant to compensate an employee for work performed under differing conditions, such as for working at night. 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 website does not show any ads or advertising materials for an ad-free reading experience of the readers. This one (1) hour of minimum wage pay is a kind of shift pay and is formally known as a “split-shift premium”. 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 … Also exempted is the holiday pay received by such minimum wage earners. 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. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. However, they may make the error of treating shift differentials as if they were a separate and distinct compensation item. The difference between this shift pay and the regular rate is known as the “shift differential”. If the employee's shift crosses workdays, then they may still be entitled to the split-shift premium. The standard shifts that generally offer the regular rate of pay usually occur during daytime hours, Monday through Friday. ... We gave up our shift differential, holiday pay, call in, seniority pay 5 years ago to get 20 year retirement. This is usually a less desired shift, such as graveyard or weekends. The subject of differential pay is left to the sole discretion of the employer. 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. Second Floor Suite #105 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. While laws do not require night differential pay in California, many employers choose to offer this benefit anyway. Everyone in California, from fast food workers to creative executives working in cubicles, is afforded various protections under the law. We can assist you in building a case and increase the likelihood of you receiving the wages that are owed to you. Because shift pay is not legally required, any case to recover unpaid shift pay would revolve around the violation of the employment contract. It is also important to note that the base rate must always be in accordance with federal and state minimum wage laws. The information and materials contained on this website are provided for informational purposes only and does not constitute legal advice. Night work is regulated under the Labour Code which provides for a night shift differential. All of these various premium rates must be factored into the regular rate of pay before the overtime calculations are done. The authorization is for a particular position and may be within a specific geographical area. Studies have shown that sleep after night work is generally shorter and less refreshing than sleep during normal nighttime hours. Any kind of agreement to offer shift pay lies between the employee and the employer in question. Then 2 months in, a position opened and I asked to move to night shift. Swing shifts is 23 % and the employer in question resides at the higher rate the workday is of! 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