Understanding the Pros and Cons of Split Shifts

Are you thinking of reducing labor costs by having hourly (non-exempt) employees clock out during non-peak hours? While a split-shift may be one way to cut expenses, other factors such as the employee’s rate of pay, the number of hours they work in a day, and whether a split shift pay premium is due may not actually result in any savings. Be sure you understand  California’s split-shift pay requirements before creating that next work schedule.

What is a Split Shift?

A “split shift” is a work schedule where the workday is interrupted by a non-paid and non-working time period that is longer than a bona fide meal period. The break between shifts cannot be a meal or rest break.

• Example: A fitness instructor who is scheduled by the employer to work from 6 am to 8 am, and then again from 5 pm to 7 pm is working a split shift.

The schedule must be to the benefit of the employer and established by the employer. There are some exceptions:

• If an employee requests the break for their own convenience, then it is not a split shift.
• An employee who volunteers to work a second shift is not working a “split shift.”
• There is also an exception for employees who reside at their place of employment.

What are the Consequences of Having a Split Shift?

Employees who work split shifts may be entitled to a split shift premium for each day a split shift occurs. The premium is one hour of pay at the state minimum wage (currently $16.50/hour) or the local minimum wage if that is higher.

A Higher Hourly Rate can Reduce or Eliminate the Split Shift Premium

Money earned for the workday in excess of the state or local minimum wage (whichever is higher) is credited towards the split shift premium. This means that employees making more than the minimum wage per hour will be entitled to smaller split shift payment, or maybe no split shift payment at all.

• Example: Assume the fitness instructor above earns $20/hour and there is no local minimum wage.
  • Because she worked four hours in a workday that included a split shift, the minimum wage for her workday is $82.50 (4 hours worked times $16.50 plus an additional $16.50 for the split shift premium).
  • The employee earns $80 for her 4 hours worked at $20/hour. After credit for this payment at her hourly rate, the split shift premium due is $2.50 ($82.50 - $80).
  • The $2.50 split shift premium must be itemized on her paystub.

As the example illustrates, the amount of split shift due, if any, depends on the applicable minimum wage, the employee’s hourly wage and the number of hours they work in the day. Members can use CEA’s Split Shift Compensation Table to help with calculations.

Additional Scheduling-Related Requirements

In addition to split shifts, California employers need to be aware of other scheduling relating requirements for non-exempt employees, such as “Reporting Time Pay” and, of course, meal and rest breaks. Local predictive scheduling ordinances can also apply.

California’s Wage and Hour rules can be tricky. CEA members with questions can call our experienced HR advisors for assistance.