Split Shift Compensation Details

 

Example

An employee earns a wage of 7.25 per hour, and worked the following shifts: 10:00 to 14:00, and 17:00 to 21:00.

The Labor Rules are defined as follows:

  • Maximum Elapsed Hours between Shifts: 2
  • Split Shift Differential Hours: 1
  • Split Shift Offset Base Wage: $6.75

The gap between the shifts is 3 hours. Therefore the employee is entitled to split shift compensation of 1 hour at the Split Shift Offset Base Wage.

But the application must verify that none of the employee's regular compensation offsets the entitlement:

  • Split Shift Offset value = (Total Hours for the Shifts) x (Employee Regular Pay Rate - Split Shift Offset Base Wage); this calculates as (8) x (7.25 - 6.75) = 4.00.
  • Split Shift Compensation = Split Shift Offset Base Wage - Split Shift Offset value; this calculates as (1 x 6.75) - 4 = 2.75
  • In this case, the employee's split shift compensation will be $ 2.75.

 

When Split Shift Compensation is a negative value:

  • If the employee's hourly wage is > the Split Shift Offset Base Wage, the rate applied will be $0.00.
  • If the employee's hourly wage is < the Split Shift Offset Base Wage, the rate applied will be the Split Shift Offset Base Wage.