Special Wage Laws in New York

Oct 30, 2018

special wage laws in new yorkProblems arise when employers fail to recognize and count certain hours worked as compensable time. Under federal law, “hours worked” may include time spent by the employee on-call, waiting for work to perform while on duty, or attending lectures, meetings, or training programs. Many states have laws that grant employees expanded or additional rights above the federal requirements. In addition to specific requirements relating to hours worked, these rights may include additional pay in certain instances (such as when an employee works a split shift or is sent home early), as well as other rights. Special wage laws in New York include split shifts and spread of hours.

A split shift is a schedule of daily hours in which the working hours required or permitted are not consecutive. The spread of hours is the interval between the beginning and end of an employee’s workday. The spread of hours for any day includes working time plus time off for meals plus intervals off duty.

General Requirements for Employers

Employers are generally required to pay employees one hour’s additional pay at the basic minimum hourly wage rate for any day in which:

  • An employee works a spread of hours that exceeds 10 hours;
  • An employee works a split shift; or
  • Both situations occur.

Note: A meal period of one hour or less does not interrupt the counting of consecutive hours.

Exceptions

Employees in most industries are entitled to additional pay for split shifts and spreads of hours under the Minimum Wage Order for Miscellaneous Industries and Occupations. Workers not covered by the requirement include:

  • Employees who are covered by minimum wage standards in any other minimum wage order (such as those in the building service industry or farm workers);
  • Employees of a non-profit making institution which has elected to be exempt from coverage; and
  • Any person who does not meet the definition of “employee” as provided in the Minimum Wage Order.

Special Rules for Employers in the Hospitality Industry

Under the Hospitality Industry Minimum Wage Order, an employee of a restaurant or all-year hotel must receive one additional hour of pay at the basic minimum hourly rate for each day on which the spread of hours exceeds 10.

  • The additional hour of pay is not offset by credits for meals or lodging.
  • Additional pay for the spread of hours is not considered payment for time worked or work performed and need not be included in the employee’s regular rate for the purpose of calculating overtime pay.

Worried about being compliant with applicable wage and labor laws? GTM clients can rest easy. Get a free quote on our HCM services or call (518) 373-4111 to learn more.

 

Source: “Split Shifts & Spread of Hours in New York (NY)” by Zywave

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