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Spread of Hours Guidelines

What is Spread of Hours (SOH)?

According to New York Department of Labor (Title 12 NYCRR 142) "an employee shall receive one hour's pay at the basic minimum hourly wage rate, in addition to the minimum wage for any day in which the "spread of hours" exceeds 10 hours, or there is a 'split shift'." 

Spread of Hours (SoH) is defined as "the interval between the beginning and end of an employee's workday, including working time plus time off for meals plus intervals off duty." A split shift is defined as "a schedule of daily hours in which the working hours required or permitted are not consecutive," while no meal period of one hour or less shall be considered an interruption of consecutive hours.

For example, an employee who works from 8:00am to 12:00pm and then again from 3:00pm to 7:00pm may be subject to an extra hour of pay at the minimum wage rate. However, in many cases, any pay the employee receives above minimum wage except for overtime can be used to offset the spread of hours and split shift liability.

How does Empeon handle Spread of Hours?

Empeon's solution for calculating Spread of Hours performs the following:

  • Determines Spread of Hours liabilities.
  • Offsets Spread of Hours liabilities with pay the employee received above the minimum wage.
  • Calculates Spread of Hours liabilities and offsets based on the county in which the visit was performed (the NY minimum wage can vary by county).
  • Calculates Spread of Hours liabilities and offsets for late timesheets (prior periods).

Empeon System Calculation for Spread of Hours

For any day which the spread between the first punch of the day and the last punch of the day is greater than 10 hours, the system will add a liability of one Spread of Hours (usually using earning code SoH) hour. The hourly rate for the SoH liability will be based on the minimum rate of the location in which the work was performed. If an employee worked in a few counties that day, (with different minimum wages), the system will calculate a weighted rate.

The system calculates the SoH final liability for each week separately. It will calculate any SoH offset amounts (wages paid above minimum wage) and will post the total SOH liability for each week separately. The system will base the week start day on the payroll calendar period begin day. For example, if the current calendar period begin date is 8/21/17, then the week is from Monday to Sunday.

The recorded week is based upon the record begin date. For example, week starts 8/21/17, employee works from 8/20/17 at 8:00PM to 8/21/17 at 8:00AM, that record will be calculated for the week of 8/14/17, for the date of 8/20/17. If there is a record for a prior week (late batch), the system will recalculate that week in the current check and will post a positive or negative adjustment as needed.

The system will add one SoH record for each week needed, with a begin date of the first date of that week and an end date of the last date of that week. The record will have the total SoH dollars and hours within one line item. 

Spread of Hours Liability Offset

Wages paid above the minimum rate in the county worked will be used to offset the SOH liability. Overtime premium pay can’t be used to offset the SOH liability. However, the straight time portion of the OT paid above minimum wage can be used to reduce the SOH liability. If there is a negative SOH (the offset is more than the amount), it will not be posted. 

System Requirements for Spread of Hours Calculation

For assistance in setting up Empeon's Spread of Hours solution for the first time, submit the Custom Service Request Form.

Earning codes that are subject to Spread of Hours need to be identified in an assigned Code Group. Only earning codes marked within this code group will be included in the SoH calculation. There are a few optional features available with the solution as well, such as support for Weighted Overtime and a 15 minute rounding rule.

Pay records must include the following information in order for Empeon Workforce to perform the Spread of Hours calculation:

  • Hours
  • Amount (most likely calculated on the bottom of pay entry screen from the Rate & Hours inputted)
  • Record Begin Date & Time
  • Record End Date & Time

For any additional questions about Empeon's Spread of Hours solution, contact Empeon Client Services for assistance.