Spread of hours pay is a specific type of premium wage compensation required when an employee’s workday spans a long duration. This obligation is typically mandated at the state or local level, as it is not a standard federal requirement under the Fair Labor Standards Act. This regulation provides additional financial protection for employees who face extended non-working time within their workday, such as during split shifts. The extra compensation recognizes the inconvenience and disruption caused by a long period between the employee’s first and last work task of the day.
Defining Spread of Hours Pay
The legal basis for this rule is generally found in specific state labor regulations, with New York State being the most prominent example of this requirement. The intent is to compensate non-exempt employees for the burden of a workday that is stretched out by significant non-working intervals, such as long breaks or split shifts. This compensation is separate from payment for actual hours worked and is meant to address the lost personal time caused by the extended presence in the workplace.
The “spread” is defined as the total time elapsed from the moment an employee first begins work until they finish their last task for the day. This span includes all working time, non-working periods like meal breaks, and any other off-duty intervals that occur between the start and end of the workday. This rule most often applies in industries like hospitality, where employees may work a morning shift and then return for an evening shift, creating a long gap in the middle of the day.
How the 10-Hour Spread is Calculated
The calculation of the 10-hour trigger focuses exclusively on the overall duration of the employee’s presence, not the number of productive hours. The time is measured precisely from the employee’s first clock-in of the day until their final clock-out, regardless of any lengthy breaks taken in between. This measurement must include all periods of time, whether the employee is working, on a scheduled meal break, or taking a long, unpaid break during a split shift. If this total elapsed time exceeds ten hours, the spread of hours pay requirement is met.
For example, an employee who starts work at 9:00 a.m. and finishes their last task at 8:00 p.m. has a total spread of 11 hours, which triggers the premium pay. This remains true even if the employee worked only seven hours total, with a four-hour break in the middle of the day. The rule is designed to capture the burden of a day that is primarily consumed by the work schedule, even if the actual labor time is short. This calculation is a distinct measurement from daily or weekly hours worked, which are used to determine overtime eligibility.
Determining the Required Premium Pay
When the 10-hour spread rule is met, the financial consequence is the requirement to pay the employee an extra hour of compensation. This payment is specifically calculated at the applicable minimum wage rate for the employee’s location, not at the employee’s regular hourly rate. If an employee earns more than the minimum wage, the premium pay is still based on the minimum wage, which varies across regions within New York State.
This required payment is separate from and must be paid in addition to all other wages the employee has earned, including their regular pay for hours worked and any overtime pay owed. The premium hour is not considered payment for actual work performed, meaning it does not count toward the total hours worked when calculating daily or weekly overtime. The purpose is strictly to compensate for the extended time commitment imposed by the schedule.
The specific minimum wage rate used for this calculation can be tied to industry-specific wage orders. For tipped employees, this payment must be made at the full minimum wage rate, without applying any tip credits that might normally reduce the employer’s obligation for the employee’s regular wages.
Who is Covered and Who is Exempt?
The spread of hours rule generally applies to non-exempt employees, who are those eligible for overtime pay under federal and state wage laws. This typically includes most hourly workers and many salaried employees who do not meet the tests for executive, administrative, or professional exemptions. The rule’s application is tied to the concept of minimum wage and generally covers all employees who fall under the protection of the state’s minimum wage orders.
Certain categories of employees may be exempt from this requirement. Salaried workers who meet the specific high-level duties and salary thresholds for executive, administrative, or professional exemptions are generally not covered. Workers in some highly regulated or specialized industries, such as specific transportation workers or those covered under certain building service industry wage orders, may also have different rules or exemptions applied to them.
Employer Compliance and Recordkeeping Requirements
Employers must accurately track and record the start and end time of the employee’s entire workday, which is the total spread, not just the hours actually worked. This includes documenting the exact time of the first clock-in and the final clock-out for the day, along with any breaks or off-duty intervals in between. Maintaining these precise records is necessary to demonstrate compliance and prove whether the 10-hour threshold was met on any given day.
When the premium pay is due, it must be clearly itemized on the employee’s payroll records, separate from their regular wages and any overtime pay. Separating the “Spread of Hours” premium pay as a distinct line item allows employers to show that the additional compensation was correctly calculated and paid. Proper recordkeeping is a legal duty and is necessary for demonstrating that the employer has met all obligations under the state’s wage laws.