This article is part of the Scheduling Module training. Click here for more information on the Scheduling Module.
This feature allows companies to track Break Penalties and Split Shift Violations owed to Employees. A Break Penalty is money owed to an Employee who didn't take a break soon enough or didn't take a long enough break. A Split Shift Premium is money owed to an Employee because they worked multiple shifts in a day and were forced to take too much time off in between shifts.
Detailed rules about these labor penalties differ between states, so the system has a number of fields where you can setup the rules for each specific Location.
In many states, Employees can sign a waiver so that they do not have to take breaks as often (every 6 hours instead of 5, for example). You can enter which Employees have a waiver on file by opening the Employee record and checking the box for 'Break Waiver'. You can also upload the waiver file or an image of the signed waiver to store on their Employee record.
Reporting on Break Penalties and Split Shift Premiums
There are multiple places in the system to review these penalties:
- Daily Sales Summary - 'Labor' tab
- On the 'Labor' tab of the DSS form, there are columns for Break Penalty and Split Shift Premium that will have a value if the Employee incurred a penalty that day
- Labor Break and Split Report
- This report shows a count of Break Penalties and Split Shift Premiums at each Location over a selected date range so Locations that incur the most penalties can be further analyzed
- Labor by Employee by Job Report
- This report shows all Labor entries for Employees by Job over a selected date range; this includes rows for Break Penalties and Split Shift Premiums
Location Settings for Break Penalties and Split Shift Premiums
The main values used to calculate break penalties and split shift premiums are stored on each Location record on the 'Breaks & Split' tab.
1) Break After (no waiver) - Maximum number of minutes an Employee can work without a waiver on file before they must take a break
2) Break After (waiver) - Maximum number of minutes an Employee can work with a waiver on file before they must take a break
3) Break Minutes - Minimum number of minutes required for a break. If Break Minutes is set to 30 minutes and an Employee takes a 20 minute break, then a break penalty still applies
4) Minimum Wage - Minimum wage in the state of this Location
5) Break Penalty Minutes - The number of minutes that must be paid to an Employee as result of a break penalty (60 minutes = 1 hour of pay)
6) Break Penalty Rate - The rate used to pay the Employee. This is usually either Regular, which is the Employee's regular rate, or Minimum Wage
7) Break Penalties Per Day - Maximum number of break penalties an Employee can incur in 1 day
8) Split Minutes - Maximum number of minutes allowed before a Split Shift Premium is owed. For example, if an Employee Clocks In and Out twice in a day and the split is set to 120 minutes, which is 2 hours, then they are owed a Split Shift Premium if the time between their first Clock Out and their next Clock in is more than 2 hours
9) Split Penalty Minutes - Number of minutes that must be paid to an Employee as result of a Split Shift Premium (60 minutes = 1 hour of pay)
10) Split Penalty Rate - The rate used to pay the Employee. Select one of 3 options:
- Regular - The Employee's regular pay rate
- Minimum Wage - Minimum wage at this Location, as defined in the Minimum Wage field on this tab
- Minimum vs Regular Difference - The premium gets paid at minimum wage but only if the Employee hasn't made more on the day at their regular rate than they would have at minimum wage and the premium. For example, if minimum wage is $10/hour and the employee gets paid $12/hour and they worked 8 hours but are owed a split shift premium then this would be the calculation:
- Actual Pay = $96 (12*8)
- Minimum Wage Pay = $80 (10*8)
- Split Premium = $10 (split penalty is 1 hour of minimum wage)
- Minimum + Premium = $90 ($80 + $10)
- Premium Owed = $0 (because actual pay of $96 is greater than what they would earn at minimum wage with premium of $90 then no premium is owed)
11) 2nd Shift Minimum Minutes - Minimum number of minutes an Employee will need to work for their second shift