What effect does California’s new minimum wage of $10.00 have on employees who work split shifts?
Many employers (such as restaurants) have employees who work a morning shift (e.g. 9am-noon) and then an afternoon shift (4pm-9pm). California regulations require employers to pay a split shift premium of one hour’s pay if their employees only make the minimum wage. Under the old $9 an hour rate, if an employee was paid $9 an hour and worked 9am-noon and 4pm-9pm, the employee must be paid at least $81 or an effective hourly rate of $10.13. Under the new $10 minimum wage, if an employee is paid $10 an hour and works 9am-noon and 4pm-9pm, the employee must be paid at least $90 or an effective hourly rate of $11.25. Therefore, the increase in the minimum wage also effects whether an employee receives a split shift premium.
If an employer already pays its employees at least $11.25 an hour, it will not have to pay any premium for having them work a split shift.
Many wage and hour regulations are tricky and non-intuitive. Make sure to consult with an employment law attorney if you have any concerns regarding whether your practices and procedures comply with California’s myriad of requirements.
