Shift Work Laws: Compliance Guide for Small Businesses

Managing shift workers is a lot different than running a 9-to-5 team. You're juggling servers who close at midnight then open at 6am, retail staff swapping shifts through group texts, and that one employee who somehow always hits 41 hours when you're not watching. Welcome to life as a shift work manager.

Shift work laws go deeper than basic overtime rules. The Fair Labor Standards Act sets federal requirements, but your state likely adds its own rules about rest between shifts, schedule posting, and last-minute changes. Miss these details and you'll lose your best bartender to the restaurant that posts schedules two weeks out. Or discover California requires overtime after 8 hours in a single day, not just 40 per week. 

This guide breaks down exactly which laws apply to your hourly teams and how to stay compliant without the headaches.

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What is shift work? 

Shift work is any work schedule that falls outside the traditional 9am to 5pm workday. This includes employees who work evenings, nights, early mornings, weekends, or rotating schedules that change from week to week. Unlike standard business hours where everyone works the same schedule, shift work involves organizing your team into different time blocks to cover extended operating hours. Federal and state labor laws treat shift workers differently than 9-to-5 employees, particularly regarding overtime pay, scheduling requirements, and rest periods between shifts.

Your business likely uses shift work if you schedule:

• Evening shifts after 5pm
• Early morning shifts before 9am
• Split shifts (lunch and dinner rushes with a break between)
• Rotating shifts (your assistant manager works mornings this week, evenings next week)
• Weekend shifts
• Part-time schedules that vary week to week

Which federal shift work laws apply to your business?

The Fair Labor Standards Act (FLSA) is the federal law that governs how you pay and track your shift workers. Think of it as the baseline rules every business must follow, though your state probably adds extra requirements on top.

Four things the FLSA requires for your shift workers:

1. Minimum wage compliance: You must pay at least $7.25 per hour federally, though your state minimum is likely higher. Tipped employees like servers can earn a base of $2.13 per hour, but tips must bring them to at least $7.25. If your server has a slow Tuesday lunch and only makes $4 in tips for that hour, you cover the difference.
2. Overtime pay: Any hourly employee who works more than 40 hours in a workweek gets overtime. The math is straightforward: regular rate × 1.5 × overtime hours. So your $15/hour line cook who works 45 hours gets $337.50 in overtime pay on top of their regular wages. No averaging across pay periods, no comp time instead of overtime pay.
3. Tracking compensable time: "Hours worked" includes more than just scheduled shifts. That server waiting for a late delivery? Paid. Your retail associate attending mandatory training? Paid. The barista who arrives 15 minutes early because you asked them to help with opening prep? Also paid. If they're required to be there, you pay them.
4. Record keeping: Keep detailed records of hours worked, wages paid, and overtime calculations for at least three years. This includes schedules, time cards, and payroll records. When the Department of Labor comes knocking, these documents are your proof of compliance.

What federal law doesn't cover (but your state might):

• How long a shift can be
• Mandatory breaks or meal periods
• Time required between shifts
• How far in advance you post schedules
• Premium pay for nights or weekends

This is where things get tricky. While federal law says you can schedule someone for a 16-hour shift with no breaks, California requires meal breaks every 5 hours. Oregon mandates 10 hours between shifts. New York City requires 72-hour advance scheduling notice.

What are OSHA's guidelines for shift work safety? 

While OSHA doesn't set specific shift length limits, they can cite your business under the General Duty Clause if worker fatigue creates safety hazards. And their research shows exactly when shifts become dangerous.

OSHA's fatigue findings

The data is sobering for any business owner:

• Performance drops 25% during night shifts
• Accident risk doubles after 12 consecutive hours
• Injury rates increase 30% for workers on rotating shifts
• 13% of workplace injuries are fatigue-related

These aren't just statistics. They're workers' comp claims, OSHA investigations, and liability lawsuits waiting to happen.

When OSHA gets involved

OSHA typically investigates shift work schedules after:

• Fatigue-related accidents or near-misses
• Employee complaints about unsafe scheduling
• Industry-specific violations (like truckers exceeding DOT hours)
• Patterns of injuries during extended shifts

Under the General Duty Clause, you have to provide a workplace "free from recognized hazards." Courts have ruled this includes preventing dangerous fatigue through reasonable scheduling.

How many hours is overtime for shift workers?

Here's the question that trips up most small business owners: when exactly does overtime kick in? The answer depends entirely on where your business operates.

The federal rule is simple: overtime applies after 40 hours in a workweek. Your employee works 38 hours one week and 42 the next? You only pay overtime for those 2 hours in the second week. No averaging between weeks, no monthly calculations. Each workweek stands alone.

But several states say overtime can start after 8 hours in a single day. This changes everything about how you schedule. In California, if your cashier works a 10-hour shift covering a sick coworker, those last 2 hours are overtime. Even if they only work 30 hours that week total.

State overtime rules that surprise business owners

California:

• Over 8 hours in a day = overtime
• Over 12 hours in a day = double time
• 7th consecutive day worked = overtime all day

Colorado:

• Over 12 hours in a day = overtime
• Over 40 hours in a week = overtime

Alaska:

• Over 8 hours in a day = overtime
• Over 40 hours in a week = overtime

Nevada:

• Over 8 hours in a day IF employee makes less than 1.5x minimum wage
• Over 40 hours in a week for everyone

How to calculate overtime for different scenarios

Standard weekly overtime:

Your $20/hour server works 45 hours

• Regular pay: 40 hours × $20 = $800
• Overtime pay: 5 hours × $30 (time-and-a-half) = $150
• Total: $950

Daily overtime (California):

Your $20/hour cook works four 10-hour shifts

• Regular pay: 32 hours × $20 = $640
• Daily overtime: 8 hours × $30 = $240
• Total: $880 (even though they only worked 40 hours that week)

Rotating shifts: Your employee works different shifts each week

• Track by workweek, not schedule rotation
• If they work Sunday night through Thursday night one week (40 hours), then Tuesday night through Saturday night the next week (40 hours), check where your workweek starts
• Hours worked on Sunday might split between two workweeks

Common overtime mistakes that cost businesses

Even experienced business owners make these costly errors when calculating overtime for shift workers. The Department of Labor doesn't care if mistakes were honest. You're still liable for back wages plus penalties.

1. Forgetting about unauthorized overtime: Your eager employee stays late to finish closing tasks without asking? You still owe overtime. "I didn't approve it" won't fly with the Department of Labor.
2. Missing training and meeting time: That mandatory Monday meeting before the restaurant opens? Those count toward the 40-hour threshold.
3. Miscalculating for tipped employees: Overtime is based on full minimum wage, not the tipped minimum. If your state minimum is $15/hour, overtime is $22.50/hour, regardless of the $2.13 tipped base rate.
4. Assuming all salaried employees are exempt: Your "salaried" assistant manager making $35,000 and spending most time running the register? They might qualify for overtime.

What is the longest shift employees can legally work? 

Here's what surprises most business owners: federal law doesn't limit how long a shift can be. You could technically schedule someone for 24 hours straight and face no federal penalties. But before you start planning those marathon shifts, know that states, OSHA guidelines, and common sense all have something to say about it.

Where predictive scheduling laws exist now

Seven major jurisdictions have already passed these laws:

• Oregon leads as the only statewide law
• Seattle and San Francisco require 14 days advance notice
• New York City mandates 72 hours notice
• Chicago, Philadelphia, and Emeryville range from 10-14 days
• All charge "predictability pay" of $10-100 for last-minute changes

These laws also require you to offer additional hours to your current team before hiring new people, and to give realistic hour estimates when you hire someone. No more promising full-time hours during interviews then scheduling 15 hours a week.

How predictive scheduling works

Beyond just posting schedules early, these laws create new obligations. You'll need to track schedule changes and document employee consent for any modifications. That text message asking someone to come in early? Now it needs written confirmation and might trigger premium pay.

Good faith estimates become legally binding ranges. Tell someone they'll work 20-30 hours weekly, and you'd better deliver. Some jurisdictions require you to compensate workers if actual hours fall significantly below estimates.

How to create compliant shift work schedules

Building compliant schedules doesn't require a law degree. Follow these steps and you'll avoid most problems:

1. Know your requirements: Check federal, state, and local laws. California has daily overtime, Oregon requires rest periods, your city might mandate advance notice.
2. Set clear policies: Document your scheduling rules. When do schedules post? How do employees request changes? What's your overtime approval process?
3. Track everything: Every minute worked counts. Include pre-shift prep, training meetings, and that time your server waited for the delivery truck.
4. Calculate correctly: Use actual hours worked, not scheduled hours. Apply the right overtime rules for your state. Remember tipped employee calculations differ.
5. Keep records: Three years minimum for federal requirements. Include schedules, time cards, and payroll records. Digital systems make this automatic.

The easiest path? Use scheduling software like Homebase that knows your local laws and flags compliance issues before they become expensive problems. 

Make shift work compliance easier with the right tools

Shift work compliance isn't just about avoiding penalties. It's about building a business where your best employees want to stay. When you post schedules two weeks out, calculate overtime correctly, and respect rest requirements, you create stability your team can count on.

The investment in proper tools pays for itself. Manual scheduling errors, overtime miscalculations, and compliance violations cost far more than modern scheduling software. Plus, your managers save hours each week not juggling paper schedules and text message shift swaps.

Start with the basics: know your state's laws, track hours accurately, and give your team predictable schedules. Tools like Homebase automate the complex parts, flagging overtime, ensuring compliance, and keeping records. Try it free today and see how easy managing shift workers can be.

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Shift work laws FAQs

How many hours can you legally work in a day?

Federal law doesn't limit daily work hours for most adult employees. You could technically work 24 hours straight under federal rules. However, some states impose limits: California healthcare workers face a 12-hour cap, and Illinois prohibits mandatory nursing overtime beyond scheduled hours. Always check your state's specific requirements, especially for safety-sensitive positions.

Is overtime after 8 hours or 40 hours a week?

It depends on your state. Federal law requires overtime pay after 40 hours in a workweek. But California, Alaska, and Nevada require daily overtime after 8 hours worked in a single day. Colorado kicks in daily overtime after 12 hours. This means in California, four 10-hour shifts trigger 8 hours of overtime pay, even though the employee only worked 40 hours that week.

What's the minimum time required between shifts?

Federal law doesn't require any rest between shifts. However, several jurisdictions mandate minimum rest periods: Oregon requires 10 hours between shifts for large retail and food service employers, San Francisco requires 11 hours unless employees consent to less in writing, and New York requires 8 hours for utility workers. Violating these rules means paying time-and-a-half for hours worked during the rest period.

Can my employer change my schedule without notice?

Under federal law, yes. Employers can change schedules without notice or consent. However, predictive scheduling laws in Oregon, Seattle, San Francisco, New York City, Philadelphia, Chicago, and Emeryville require 7-14 days advance notice. Last-minute changes in these jurisdictions trigger "predictability pay" ranging from $10-100 per change. Even without legal requirements, frequent schedule changes increase turnover and hurt team morale.

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