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 which causes them a hardship.


Detailed rules about these Labor Penalties differ between States, therefore R365 has customizable settings where Location (State) specific rules can be entered and saved.



Employee Waiver


In many States Employees can sign a Waiver so that they don't 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 (located in the Operations Module, Labor sub-section, Employees list) and checking the box for Break Waiver, as shown below.  You can also upload the Waiver file or an image of the signed Waiver to store on their Employee record.



Location Settings for Break Penalties and Split Shift Premiums


The settings used to calculate Break Penalties and Split Shift Premiums are stored on each Location record on the Breaks & Split tab.  The following fields are available for you to define that will be used to calculate these penalties:



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 because 20 minutes wouldn't qualify as a break

4) Minimum Wage - minimum wage in the state of this location

5) Break Penalty Minutes - 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 - rate used to pay the Employee 

  • Usually either 'Regular' (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 

  • If an Employee clocks in and out twice in a day and the split is set to 120 minutes which is 2 hours the if the time between their first clock out and their next clock in is more than 2 hours, they are owed a split shift premium

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 - rate used to pay the Employee.  Options include:

  • Regular - 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- this means 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) Second Shift Minimum Minutes - Enter the minimum minutes of the Employees Second Shift 



Reporting on Break Penalties and Split Shift Premiums


There are multiple places in R365 to review these penalties:


  1. 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.
  2. Labor Break and Split Report
    • This report shows a count of break penalties and split shift premiums at each location over a specified date range so you can analyze which locations and incurring the most penalties
  3. Labor by Employee by Job Report
    • This report shows all labor entries for employees by job over a specified date range and this includes rows for break penalties and split shift premiums