The IWC Wage Orders state that the split shift premium is paid at minimum wage. However, in an FAQ, the California Labor Commissioner states that the split shift premium owed is one hour at the state minimum wage, or the applicable local minimum wage, whichever is greater.

Employers whose employees are covered by local minimum wage ordinances that are higher than the statewide rates may want to consult legal counsel regarding the appropriate rate to use when paying split shift premiums.

Any money earned over and above the minimum wage will be credited towards the employer's obligation to pay the split shift premium. In addition, the split shift premium is not counted as hours worked for overtime purposes because it is not compensation for hours actually worked.

No split shift premium pay is owed when the employee requests that a shift be split for their own convenience, such as an employee who requests to adjust their schedule to be able to pick a child up from school each day and then return to work. For the premium to apply, the split shift must be required by the employer.2

All the examples that follow assume the employer is covered only by the state minimum wage, and that no local minimum wage ordinances apply.

One Hour Split Shift Due

In this example, a restaurant employee earning minimum wage worked the lunch and dinner shifts:

Though the employee was paid for nine hours, the employer wouldn’t owe overtime because the employee only worked eight hours in the day.

Split Shift Partially Offset by Hourly Wage

If the employee in the example above was paid more than the minimum wage, the split shift requirement would be either fully or partially offset by the amount they earned over the minimum wage:I

Split Shift Completely Offset by Hourly Wage

A California court has clarified that when a split shift is worked, an employee is properly compensated if total pay for the day is at least minimum wage for all hours worked plus an additional hour at minimum wage. The court held that if an employee receives at least minimum wage for all hours worked plus an additional hour of pay at the minimum wage rate, no additional or “split shift pay” is owed.3

The court gave the following example:

• Employee worked eight hours. Employee made $10.58 an hour and was paid a total of $84.64 (8 x $10.58). Minimum wage at the time was $6.75 so a minimum wage employee working a split shift would make $54 (8 x $6.75), plus one hour of split shift pay at minimum wage for a total of $60.75 ($54 +$6.75). Since the employee actually made $84.64 this day, which is more than the $60.75, the employee was not entitled to extra pay.

Consecutive Overnight Shifts

California law defines a split shift as a work schedule that is interrupted by non-paid working periods set by the employer, other than meal and rest periods. For example, a restaurant server works lunch and dinner shifts on Monday from 11:00 a.m. to 2:00 p.m. and then reports again from 4:00 p.m. to 9:00 p.m.

A California Court of Appeal clarified that employees who work consecutive overnight shifts do not work a split shift as defined in the IWC Wage Orders, and aren’t entitled to split shift pay, even if the shift happens to begin during one “workday” and end in another. As the court explained, “the fact that a single continuous shift happens to begin during one 'workday' and end in another doesn't result in a 'split shift.'”4

1. IWC Wage Orders sec. 4(C)