Introduction:
Long days and double shifts are common in the restaurant business. As a New York restaurant owner, it’s crucial to understand the “spread of hours” rule – a unique state requirement that can catch employers off guard. This rule mandates extra pay for employees whose workdays are especially long, regardless of whether those hours are worked in one continuous shift or split shifts. Failing to comply can lead to wage claims and penalties. In this guide, we’ll explain what spread of hours pay is, when you must provide it, common mistakes to avoid, and best practices to ensure your payroll is compliant.

What is the Spread of Hours Rule in New York?

The spread of hours is defined as the interval from an employee’s starting time to ending time on a given workday, including all breaks, meals, and off-duty intervals in between. In New York’s hospitality industry (which includes restaurants), the law requires that on any day when an employee’s spread of hours exceeds 10, the employee must receive one additional hour of pay at the basic minimum hourly wage rate. In simpler terms, if a restaurant employee’s workday — from the clock-in at the start of the first shift to the clock-out at the end of the last shift — spans more than 10 hours, you owe them one extra hour’s pay at minimum wage for that day. This is often called “spread of hours pay.”

Key points of the spread of hours rule:

• Threshold: More than 10 hours between the start and end of the workday triggers the extra pay. It doesn’t matter if the employee only worked, say, 6 or 8 hours of actual labor within that period – it’s the total span of the day that counts, including breaks.
• Amount: The additional compensation is one hour at New York’s basic minimum wage, not at the employee’s regular pay rate (if their normal rate is higher). For example, if the minimum wage is $16.50/hour and a server’s day exceeds 10 hours, they get an extra $16.50 that day, on top of their earnings for hours worked.

  Note, however, if the employee received a tipped wage, the spread of hours pay owed for the day that exceeds 10  hours is still the full minimum wage rate and not the tipped wage rate.

  Conversely, if the employee’s hourly rate is above the minimum wage, the spread of hours pay owed is also the full minimum wage rate and not the employee’s above-minimum wage rate.

• Who is covered: All restaurant employees are entitled to spread of hours pay when applicable – it applies regardless of the employee’s regular pay rate or tipped status. Even a well-paid chef or a salaried non-exempt manager must get the extra hour at minimum wage if their day’s span goes over 10 hours. Tipped employees get it in addition to their tips and tip credit make-up pay.
• Not a bonus or overtime: This extra hour is not considered hours “worked,” so it does not count toward overtime calculations and is not included in the regular rate for overtime purposes. It’s a special pay requirement to compensate the employee for the long day, separate from overtime.
• No offsets: You cannot offset or reduce the required spread of hours pay by claiming a meal credit or lodging credit. The law explicitly forbids using any credits (for meals, housing, etc.) to negate the additional hour of pay. It must be paid on top of all other wages owed.

Example: Imagine a line cook works from 10:00 a.m. to 2:00 p.m., then returns for a dinner shift from 6:00 p.m. to 9:30 p.m. That’s a total of 7.5 hours worked, but the day’s spread is 11.5 hours (10:00 a.m. to 9:30 p.m.). Since the spread exceeds 10 hours, the cook is entitled to one extra hour of pay at the minimum wage. They’d be paid for their hours worked plus an additional hour at minimum wage for that day.

When Are You Required to Provide Spread of Hours Pay?

You’re required to add a spread of hours pay premium whenever an employee’s workday spans over 10 hours from start to finish. Some scenarios that commonly trigger this in restaurants include:

• Double shifts or split shifts: As in the example above, employees who work a lunch shift and come back for a dinner shift often have a long break in the afternoon. If the time from the start of their first shift to the end of their last shift exceeds 10 hours, it triggers spread of hours pay.
• Opening to closing: If a worker opens the restaurant in the morning and stays into the evening (even with breaks), you likely hit the 10+ hour span. For instance, a worker from 9 a.m. to 7 p.m. (even with a break) has a 10-hour spread; if they stay past 7 p.m., you owe the extra hour.
• “Clopenings” (close then open): In the hospitality industry, an employee might close the restaurant late and return early next morning. If, say, they work until midnight and are back at 9 a.m. the next day, the spread resets overnight – it’s calculated per workday, not across multiple days. Only the same day’s span counts.
• Extended shifts: Though less common in restaurants, if someone works a continuous 11-hour shift, that obviously exceeds 10 hours and earns spread pay too.

In practice, any day a non-exempt employee works that begins in the morning and ends late in the evening will likely require spread of hours pay. New York’s Hospitality Wage Order makes no exceptions for high-paying jobs or salaried kitchen staff – if they are covered by the wage order as non-exempt employees, the rule applies. (Truly exempt salaried managers might be outside the wage order, but if you’re taking a tip credit or paying by the hour/salary under the wage order, assume it applies.)

Make sure you know the current minimum wage for your location, since the extra hour must be paid at that rate. For example, in New York City, Long Island and Westchester the basic minimum wage as of January 1, 2025, is $16.50, while the rest of New York State is $15.50. Use the correct rate for the extra hour.

Common Compliance Mistakes (and How to Avoid Them)

Even well-intentioned restaurant owners can slip up on spread of hours compliance. Here are common mistakes and how to prevent them:

• Focusing only on hours worked: It’s easy to track how many hours an employee clocks in, but forgetting to consider the total span of their day is a pitfall. An employee might only work 8 hours, so you may not think of overtime, but if those hours are split with a long gap (e.g. split shift), spread pay could still be required.
  
  Avoidance tip: Train managers and payroll staff that any schedule with a long gap or double shift needs a quick spread check. Modern timekeeping software can flag days that exceed a 10-hour interval. Consider setting an alert in your scheduling or POS system for shifts that start early and end late.

   

• Assuming it doesn’t apply to tipped or higher-paid employees: Some owners mistakenly think spread of hours pay is only for minimum-wage earners or can be ignored for tipped staff since they earn tips. In truth, the law applies across the board in hospitality. A waiter earning tips still must get an extra hour at full minimum wage (not the lower tipped wage) if their day’s span is over 10 hours. A line cook making above minimum wage is still owed the extra hour at the basic minimum rate.

  Avoidance tip: Apply the rule uniformly to all non-exempt employees, regardless of their base pay. It’s a flat requirement – if >10 hours, add a minimum wage hour, period.

• Not recording break times or gaps accurately: Incomplete time records can cause you to miss a spread calculation. If employees forget to clock out/in during breaks or between shifts, you might not realize their start-to-end span.

  Avoidance tip: Use accurate time tracking that captures exact clock-in and clock-out times, and require employees to clock in/out for breaks or when leaving and returning. Review timecards for any very early clock-ins or late clock-outs that might indicate a long day. Keeping detailed records will also protect you in case of any audit.

• Missing the extra pay on payroll: Perhaps you know the rule, but manual payroll processing is busy and you overlook adding that extra hour on a qualifying day. Over time, those missed payments can lead to claims.

  Avoidance tip: Automate where possible. Many payroll systems allow custom rules – configure a rule to automatically add spread of hours pay when the 10-hour threshold hits. If your system can’t do that, institute a weekly manual check: run a report of any shifts with over 10 hours from first in to last out. It’s worth the extra review to catch these.

• Improperly applying credits or overtime: Another error is attempting to offset the extra hour because, for example, you provide a free staff meal or housing stipend. This is not allowed. Also, don’t count the extra hour as “work” for overtime to try to avoid paying it separately – it’s always extra.

  Avoidance tip: Treat spread pay as its own line item on the paycheck, distinct from regular wages and overtime. This transparency helps ensure it’s handled correctly and signals to employees that you are following the law.

By understanding these pitfalls, you can put checkpoints in place to avoid them. The cost of one extra hour’s pay is minor compared to potential fines and lawsuits that can arise if you systematically ignore this rule.

Best Practices for Managing Spread of Hours Pay

Maintaining compliance with the spread of hours requirement is manageable with some proactive strategies:

1. Proactive Scheduling: Try to schedule shifts to minimize excessively long workdays. For instance, if possible, avoid scheduling the same employee for open and close on the same day. Not only does that help avoid spread pay, it also prevents employee burnout. Of course, in restaurants, double shifts are sometimes unavoidable – but use them judiciously.
2. Use Timekeeping Technology: Leverage your POS or time clock system to flag long spreads. As mentioned, many systems can be set up with alerts. If an employee clocks out and back in, the system should note the total time from the initial clock-in. Configure a notification for managers or payroll when any daily span goes over 10 hours. This serves as a safety net so nothing slips through.
3. Educate Management: Ensure your managers and shift supervisors understand the spread of hours rule. They are on the ground creating schedules and approving time cards. A short training or memo can explain that any split shift or long shift day will incur an extra hour’s pay. When they know this, they can both schedule smarter (to control costs) and also remind you when it needs to be paid. Making it part of the culture (“if you schedule a double, note the spread hour in the log”) will help compliance.
4. Payroll Integration: If you outsource payroll or use software, talk to your provider about New York-specific settings. Many payroll providers familiar with NY labor law will automatically add spread of hours pay for hospitality employees if configured correctly. Double-check that your payroll software is set to New York hospitality industry rules. This way, if an employee’s daily time summary shows, say, “Spread of Hours Premium – 1.0 hr @ $16.50,” you know the system is handling it. If your payroll doesn’t support an automatic solution, implement a manual review process as described earlier.
5. Document and Communicate: It’s good practice to show the spread of hours pay on the employee’s pay stub as a separate line (e.g., “Spread of Hours Pay – 1 hour”). New York law requires detailed pay stubs, and while spread pay may not be explicitly mandated to be broken out, doing so provides clarity. It shows the employee that you’ve compensated them for that extra hour, which can prevent confusion or complaints. Keep a record of all such payments. If ever questioned by the Department of Labor or in a lawsuit, being able to produce clear records that show you consistently paid spread-of-hours premiums will be invaluable.
6. Monitor and Audit: Periodically audit a sample of your time records versus payroll. Especially focus on employees who frequently work doubles or long shifts (like kitchen staff during peak season). Verify that whenever their span exceeded 10 hours, the extra hour pay was given. Internal audits can catch any oversight early, before it becomes a bigger issue. As labor laws update, stay informed – although the spread of hours threshold has been 10 hours for years, the minimum wage rates change, which affects the dollar amount you must pay.
   
   By following these practices, you’ll not only stay compliant with New York’s spread of hours rule, but also foster goodwill with your staff. Employees notice when employers respect wage and hour laws. Paying that extra hour when required is a sign that you’re running a fair operation, which can improve employee retention. Plus, you avoid the risk of DOL investigations or lawsuits for unpaid wages.
   
   In summary: keep an eye on those long days – if they go over 10 hours, do the right thing and pay the extra hour. It’s a small step that goes a long way in protecting your business and your employees.