📝 Overview
New York labor law includes specific protections for employees who work split shifts or extended workdays. This article explains both requirements, how premiums are calculated, and who is eligible.
⛏️ What Is a Split Shift?
A split shift occurs when an employee works two or more separate work periods during the same workday, with a break longer than one hour between each period (excluding standard meal breaks).
🧠 Example: An employee works 6:00 AM to 10:00 AM, takes a 2-hour break, then returns from 12:00 PM to 3:00 PM. This qualifies as a split shift because the gap between shifts exceeds one hour.
💰 Split Shift Premium Requirement
When an employee works a split shift, New York requires employers to ensure the employee's total daily compensation meets or exceeds:
(Minimum wage × total hours worked) + 1 additional hour at minimum wage
How the premium works:
Click the arrow to learn how the premium works
Click the arrow to learn how the premium works
Calculate what the employee actually earned for the day (including all wages, tips, bonuses, etc.)
Calculate the required minimum using the formula above
Compare the two amounts:
If actual earnings ≥ required minimum: no premium is owed
If actual earnings < required minimum: pay the difference as the premium (required minimum minus actual earnings)
⚠️ Important rules for the premium payment:
It does not represent hours worked
It cannot exceed the value of one hour of minimum wage
It must appear on the pay stub as a separate earnings line (flat dollar amount)
It is calculated based on the highest applicable minimum wage rate (federal, state, county, or city) for the employee's work location
🕐 What Is Spread of Hours?
Spread of hours refers to the total time from the start of an employee's first work period to the end of their last work period in a single workday, including all breaks, unpaid time, and gaps in between.
🧠 Example: An employee starts work at 8:00 AM and finishes at 7:00 PM. Even if only 8 hours are worked during that time, the spread of hours is 11 hours.
⏱️ Spread of Hours Premium Requirement
When the spread of hours exceeds 10 hours in a single workday, New York requires the same premium calculation as split shifts:
(Minimum wage × total hours worked) + 1 additional hour at minimum wage
The premium works identically to split shifts: you pay only the difference between actual earnings and the required minimum, and the same payment rules apply.
👥 Who Is Eligible?
Not all employees are covered by these requirements. Eligibility depends on three key factors:
Work Location
The work must be performed in New York State.
Applicable Wage Order / Job Duties
Coverage is determined by the duties performed during the shift, not the employee's job title. Covered wage orders include:
Miscellaneous Industries (e.g., hair salons, nail salons, home care providers) wage order
Hospitality Industry (e.g., restaurants, hotels, and food service businesses) wage order
Worker Classification
Eligible: Non-exempt employees
Not eligible: Exempt employees and independent contractors
🛠️ Setup
Split shift and spread of hours are pay types that must be added to your account and then to each eligible employee's profile so premiums can be calculated correctly. Be sure this is configured before processing payroll for any affected employees.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
Can an employee qualify for both split shift and spread of hours premiums on the same day?
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Click the arrow to see the answer
While an employee might meet both conditions on the same day, they only receive one premium payment, not two. The calculation formula is identical for both provisions, so premiums do not stack.
Are meal breaks included in the spread of hours calculation?
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Click the arrow to see the answer
Yes. The spread of hours includes all time between when an employee starts and ends work, including meal breaks and gaps between shifts.
Do tips, bonuses, and commissions count toward the daily minimum?
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Click the arrow to see the answer
Yes. All taxable compensation earned during the workday counts toward meeting the minimum threshold, including hourly wages, tips, bonuses, stipends, commissions, and other earnings. If the total meets or exceeds the required minimum, no premium is owed.
What if the calculated premium would be more than one hour of minimum wage?
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Click the arrow to see the answer
The premium is capped at one hour of minimum wage. Even if the mathematical difference is larger, you only pay up to that maximum amount.
What if an employee works multiple split shifts in one week?
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Click the arrow to see the answer
Each workday is evaluated independently. If the spread of hours exceeds 10 hours on multiple days, the employee receives the additional pay for each applicable day.
How will this appear on the employee's pay stub?
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Click the arrow to see the answer
Both split shift and spread of hours payments appear as a separate pay type item on the pay stub, clearly labeled for transparency.
Does the system automatically calculate this, or is manual tracking required?
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Click the arrow to see the answer
Once configured, the system automatically tracks work periods and calculates premiums when applicable. No manual tracking is required.
What happens if the required pay types are not set up?
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The system will not be able to properly compensate employees for either pay type. Complete the setup before processing payroll for any affected employees.
What should I do if the system calculates a premium incorrectly?
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Click the arrow to see the answer
Contact Support with the employee details and payroll period information so the issue can be investigated and corrected before finalizing payroll.