Night shift differential? This is usually done by paying the employee in question an additional percentage of their base salary. 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. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. This is officially known as “shift pay”. There is no law that compels employers to pay a night shift differential in California. 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. All of this may seem overwhelmingly complicated. The atypical work schedule that is part of these swing and graveyard shifts may result in workers who are fatigued, sleepy, and chronically underslept. There are limitations, however, to how split-shift premiums can be paid to employees. In these scenarios, it is necessary that workers drive whatever good in question during late hours or even overnight. Am I entitled to any reporting time pay? This website does not show any ads or advertising materials for an ad-free reading experience of the readers. 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. It is also important to note that the base rate must always be in accordance with federal and state minimum wage laws. However, if the company in question has promised you this premium wage as a condition of your employment, then they are entitled to pay it. Then 2 months in, a position opened and I asked to move to night shift. This is for advertisement only and should not be intended for legal advice. Most companies with multiple shifts pay premiums to employees working second shifts, third shifts and holidays (Figure 1). 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 your shift pay wages have been shorted by a dishonest or negligent employer, Stop Unpaid Wages can help you recover that backpay. 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 difference between this shift pay and the regular rate is known as the “shift differential”. The plaintiff… 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. • An employee whose shift qualifies for both the evening and night shifts would receive a shift differential at the higher rate. I was offered 24 a 20 shift differential but the position was filled internally. 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. Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal. 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. Furthermore, shift differentials are common enough that there are average percentage amounts that apply across all industries that employ these shift differentials. You already earned them; now it's time to get them back! If the employee in question is too tired to function, they may subject themselves or another employee to a critical or even fatal accident. 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. 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. Also there 3rd shift employee's are given a 50 cent differential pay. 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. 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. 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. The plaintiffs’ work schedules and the number of hours worked varied. 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. Furthermore, federal law does not require any employer to increase pay for night shift work. 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. (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. 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 2011 California case clarified that a split shift does not include one that starts on one workday and ends on another if the shift is continuous. 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. 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. Subscribe to Shift 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. This is usually a less desired shift, such as graveyard or weekends. Overtime pay must be at least 1 1/2 times the person’s regular hourly pay. 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). Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. Furthermore, this gap in work is not a meal or rest break and it must be to the benefit of the employer. Michael J. Holland, David Richardson and Geraldine Evans (collectively, the “plaintiffs”) worked as security guards for Securitas Security Services USA, Inc. Stop Unpaid Wages can help anyone in the state of California recover unpaid wages from their employer. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. Holiday pay: Holiday pay is generally 1.5 or 2 times normal pay. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. 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. • 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. Remember that it does not matter if you are an undocumented worker as your immigration status will not be investigated. 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 of these various premium rates must be factored into the regular rate of pay before the overtime calculations are done. 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. Employers can offer workers additional pay, called shift differential pay, for working at undesirable hours. Furthermore, our brains and bodies also slow down during nighttime and early morning hours. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. Most businesses will outline how shift differentials work, if they’re offered, in the employee handbook.Usually, however, differential 424-781-8411, 3500 Fifth Ave Suite #205 Government employees. As with any unpaid wages case, you would also be entitled to recover past wages in the form of backpay. Also exempted is the holiday pay received by such minimum wage earners. The court determined that employees are not entitled to split-shift premiums if they work overnight shifts that are uninterrupted. Shift Differentials. San Diego, CA 92103 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. These agencies determine which employees in the following categories are eligible for the salary 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 it is necessary to pay overtime premium wages, then the differential must be calculated into your regular rate of pay. Evening, Night or Weekend Shift Salary Differential. 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. It is generally a good idea to keep as much physical evidence as possible. Failure to do so is an actionable labor offense and gives you ample ground for an unpaid wages lawsuit. Working some of these less desirable shifts can have a negative impact on employees. (b) Absence on holidays. 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. 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). 2. Everyone in California, from fast food workers to creative executives working in cubicles, is afforded various protections under the law. You have sacrificed for the company and are fairly owed any back pay from these premium wages. Some companies, instead of paying shift differentials, offer their employees additional paid time off for working these undesirable shifts. This one (1) hour of minimum wage pay is a kind of shift pay and is formally known as a “split-shift premium”. However, the following employees are NOT entitled to the night shift differential pay: 1. They sometimes worked night shifts beginning on one day and ending on the next. Holiday shifts are usually paid at time and a half, or the regular rate multiplied by 1.5. All premium wages, including overtime, shift pay, and split-shift premiums are protected under the various wage and hour laws. The average shift differential for salaried swing shifts is 23% and the average shift differential for salaried graveyard shifts is 20%. 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. 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. These amounts are codified under California Labor Code, Section 1182.12 LC. The California Court of Appeals ruled against the plaintiffs in this case. I'm trying to get information relative to night shift differential rates for officers working graveyard shifts. While laws do not require night differential pay in California, many employers choose to offer this benefit anyway. Read More: California Labor Laws on Split Shift & Overtime. It is computed as a percentage of the employee's rate of basic pay (including any applicable locality payment or special rate supplement). The subject of differential pay is left to the sole discretion of the employer. You’ve already done the work; let us take it from here. 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. In addition to federal and state laws, there is also the possibility of municipal or county statutes that set minimum wage requirements. The additional $10 is the differential. California labor laws do not mandate the payment of any differential pay for working evening or night shifts. (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. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. What is the hourly 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. Los Angeles, CA 90007 Assigning an employee late hours is not grounds for additional pay. For you to easily understand the concept of night shift differential, it is best to put on an illustration table. 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. However, most employees will have a pretty good sense if their employer is willfully shorting them on premium wages. Since differential pay is company policy, not something regulated by the government, there’s no standard way to pay it. 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. 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). 7. 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. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. Extra pay for working night shifts is a matter of agreement between the employer and the employee (or the employee's representative). Employees shall receive night shift pay as set forth below: (1) Night shift pay is earned on a day-by-day basis. For graveyard shifts (from 11 PM to 8 AM) the differential is on average 10% more than the base rate. Shift differential premiums will vary depending on a variety of factors. 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. Studies have shown that sleep after night work is generally shorter and less refreshing than sleep during normal nighttime hours. In this particular case, the plaintiffs were security guards for Securitas Security Services who worked the graveyard shift. Yes, you are entitled to one hour of reporting time pay. 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. 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