New York Employer Refresher: Spread of Hours Pay
Employers must always keep up with all wage laws. The purpose of this blog is a refresher for employers on the discrete issue of Spread of Hours Pay. Let’s begin with what this is…
SPREAD OF HOURS PAY…WHAT IS IT?
New York state law requires that an employee shall receive 1 hour of pay at the basic minimum hourly wage rate, for any day where the following scenarios occur:
The Spread of Hours exceeds 10 hours
There is a Split Shift
Both #1 and #2 occur.
So let’s break down the phrases above and define them….
BASIC MINIMUM HOURLY WAGE
It is crucial for employers to understand the minimum wage. In New York City, the minimum wage is $16.50. For more information on the minimum wage, check this out.
SPREAD OF HOURS
The New York Labor Regulations define a Spread of Hours as the interval between the beginning and end of an employee’s workday. This includes: (1) working time, AND (2) time off for meals, AND (3) off-duty intervals.
SPLIT SHIFT
The New York regulations define a Split Shift is a schedule of daily hours in which the working hours required or permitted are not consecutive. (NOTE: Meals periods less than 1 hour are not considered an interruption of consecutive hours.)
BOTTOM LINE
Employers need to track when an employee’s day begins and ends. Let’s play out some scenarios…
SCENARIO #1
Sally begins her first shift of the day at 7:00 am and it ends at 11:00 am. That first shift is 5 hours. She then has a second shift that starts at 3:00 pm and goes until 7:00 pm. Sally works a total of 8 hours. The Spread of her Hours is 12 hours. It follows that she is owed one hour paid at the rate that is at least the minimum wage.
SCENARIO #2
Sam begins their shift at 6:00 am and ends at 4:30 pm. He works a 10.5 hour shift. Sam is owed one hour of pay at the minimum wage (at least).
WHAT ABOUT IF AN EMPLOYEE IS PAID MORE THAN MINIMUM WAGE?
Generally, if an employee is paid more than the minimum wage, then employers do not have to pay the Spread of Hours pay. With that being said, employees working in hospitality (restaurants and hotels), must be paid Spread of Hours pay regardless of their wage. Employers should consult with counsel to understand (1) whether they are technically “hospitality” under the law and (2) whether they must pay Spread of Hours pay.
WHAT ABOUT OVERTIME?
The regulations are clear that the Spread of Hours Pay is not included in the calculation for overtime pay.
Employers should seek counsel to ensure that they are paying their employees correctly.