Am I entitled to any reporting time pay? 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 Most companies with multiple shifts pay premiums to employees working second shifts, third shifts and holidays (Figure 1). All premium wages, including overtime, shift pay, and split-shift premiums are protected under the various wage and hour laws. Holiday shifts are usually paid at time and a half, or the regular rate multiplied by 1.5. Consequently, it is essential that you seek out legal counsel that can help you navigate the various complexities of California labor laws. 7. When they work the … NIGHT SHIFT DIFFERENTIAL (Article 86) A. Night shift differential is a part basic pay. For example, consider a worker whose base pay is $20 per hour with a $10-per-hour shift differential in California. California employees will usually be entitled to calculate their regular pay under California law because it is more favorable to employees than federal law.↥ Labor Code, § 515, subd. We are the right firm for the job and have extensive experience with the various federal and state labor laws. For example, a hospital may pay night shift nurses $10 more per hour to work overnight. What is the hourly pay? 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. The same is true of transportation and distribution companies. Night pay is a 10 percent differential paid to an employee for regularly scheduled work performed at night. 424-781-8411, 3500 Fifth Ave Suite #205 If you find this site useful and want to show your support, feel free to make a donation for its maintenance. Shift differential pay is a fixed amount of additional pay per hour worked on top of a worker's normal hourly pay rate. What Makes California Employment Law Different ... and How to Deal With It. You already earned them; now it’s time to get them back! 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. 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. 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. By pooling all the employee’s interests and leveraging collective bargaining rights, unions shift the balance of power to be more equitable. If you find this site useful and want to show your support, feel free to … 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. 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. Staff who regularly work at least 3 hours during the ‘night period’ are night workers. What is the law regarding shift differential pay? It is computed as a percentage of the employee's rate of basic pay (including any applicable locality payment or special rate supplement). ... or hourly pay plus an hourly shift differential for some hours. 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. 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. My husbands employer promoted him to team lead about three months ago with a three dollar raise. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). In these scenarios, it is necessary that workers drive whatever good in question during late hours or even overnight. The information and materials contained on this website are provided for informational purposes only and does not constitute legal advice. Furthermore, the presence of and membership in a union drastically changes the power dynamics between employee and employer. Studies have shown that sleep after night work is generally shorter and less refreshing than sleep during normal nighttime hours. Yes, you are entitled to one hour of reporting time pay. It is also possible for salaried employees to be eligible for shift differentials. This is true in the county of Los Angeles, which currently has a higher minimum wage than the state of California. To understand why, it’s important to consider which kinds of industries typically offer night shifts. 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. If the worker in question falls asleep at the wheel or is not able to maintain their concentration, they potentially pose a serious risk to themselves and everyone else on the road. While the law does not require shift differential payment it is very often part of a union negotiated contract. There is no law that compels employers to pay a night shift differential in California. Working some of these less desirable shifts can have a negative impact on employees. This split-shift premium for minimum wage workers is guaranteed via wage order issued by the California Industrial Welfare Commission (also known as the IWC). 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. 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. The California Court of Appeals ruled against the plaintiffs in this case. ... We gave up our shift differential, holiday pay, call in, seniority pay 5 years ago to get 20 year retirement. In other words, it is almost always illegal, no matter what the circumstance, that your employer pays you anything less than minimum wage. Shift Differentials. Everyone in California, from fast food workers to creative executives working in cubicles, is afforded various protections under the law. Most companies are split right down the middle on whether they employ a flat rate or the percentage method. 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. 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 the FLSA strictly monitors employees’ earnings, it doesn’t require employers to provide shift differentials or premium pay for overnight, weekend or holiday shifts. (b) Absence on holidays. Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. Pay Differentials are typically initiated through the collective bargaining process but may also be the result of a classification proposal. In cases of overtime, most employers pay workers the overtime premium at one and a half (1.5) times their hourly rate. Some companies, instead of paying shift differentials, offer their employees additional paid time off for working these undesirable shifts. Stop Unpaid Wages By Elizabeth J. MacGregor & Kerry Friedrichs on October 23, ... determining an employee’s overtime pay rate can be a very complicated task. Furthermore, if the employee in question resides at the place of work then they are also exempt from the split-shift premium. Night Shift Pay in California When employers pay night shift workers higher wages than similar employees who work the day shift, this is called a pay differential. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Shift Differential Eligibility: Hourly Employees. Remember that the minimum wage requirement that is most generous to the employee is the one that will be applied. As of July 24, 2009, the federal minimum wage is $7.25 per hour. I have recently applied for a third shift position with a new company. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. Hospitals obviously never close and it is absolutely crucial that there be staff and health care practitioners all hours of the day and night. 2. 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. Assigning an employee late hours is not grounds for additional pay. 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. 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. Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. 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. Please call us at 424-781-8411 today and start the process of recovering your lost wages today. Night work is regulated under the Labour Code which provides for a night shift differential. Promotion or Shift Differential Pay? Reviewed by: Michelle Seidel, B.Sc., LL.B., MBA. This is because the workday is independent of a calendar day and is defined by the employer in question. 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