The Problem With Using 12-Hour Labor Shifts As a California Employer
If you own a business in California with employees, the following will come as no surprise: a study published by insurance company Hiscox found that California ranks among the top states for employee lawsuit risk in the U.S. The risk of litigation here is 40% higher than the national average, and small to mid-sized businesses lose an average of $125,000 every time an employee sues.
If your employees work shifts, you are especially exposed. The labor laws around alternative workweek schedules in California are more complex than most employers realize, and an innocent mistake can cost you significantly.
Labor Laws for 8, 10, and 12-Hour Shifts (Alternative Workweek Schedules) in California
California law requires employers to pay overtime if employees work more than 8 hours in a day or 40 hours in a week. There is one exception: if your business is authorized to operate on an Alternative Workweek Schedule (AWS).
An AWS is a special scheduling arrangement that allows employees to work pre-scheduled shifts longer than 8 hours without triggering daily overtime. Because of this, many California employers wonder whether they can schedule 12-hour shifts without paying overtime. Broadly, the answer is no.
In most industries, 12-hour shifts without overtime pay are not permitted in California.
The regulations on AWS are complicated and vary by industry. Generally, under AWS rules, an employee can work up to 10 hours per day within a 40-hour workweek without overtime pay. Beyond that:
All work performed during a scheduled daily shift of 10 to 12 hours, or beyond 40 hours per week, must be paid at 1.5 times the employee's regular rate.
All work performed during a scheduled daily shift exceeding 12 hours must be paid at double the employee's regular rate.
There is an additional layer.
An AWS agreement cannot be put in place unilaterally. It must be accepted by employees through a formal election procedure regulated by law. You cannot simply schedule an AWS whenever you want. The election must happen first. Once it has been properly completed, you can legally schedule employees for up to 10-hour shifts without overtime, or up to 12-hour shifts paying only 2 hours of overtime.
That said, a range of problems can arise if you are not careful.
Problem 1: Are You Paying Your Employees Enough?
An AWS agreement requires overtime pay for hours worked beyond 10 hours per day or 40 hours per week.
If employees work beyond 40 hours in a week but never more than 10 in a single day, you must pay 1.5 times their regular rate for each additional weekly hour. If employees work more than 12 hours in a single day, you must pay double their regular rate for each hour beyond 12.
What many California employers do not realize is that AWS rules go further than this.
For example, what happens if you need an employee to work a 9-hour shift that was not previously scheduled under the AWS? In that case, you are required to pay 1.5 times the employee's regular rate for every hour worked beyond 8, even if the employee does not exceed 40 hours that week.
AWS agreements also allow you to substitute regular 8-hour shifts for the standard 10-hour shifts during slower periods. The catch: if you schedule an employee for an 8-hour shift but they end up working 10 hours, you must pay 1.5 times their regular rate for the 2 extra hours.
These rules interact in ways that catch employers off guard. Having a qualified employer defense attorney, like DefendMyBiz, on call before a problem develops is far less costly than dealing with a wage claim after the fact.
Problem 2: Are You Allowing Your Employees Enough Meal Breaks?
Employees who work standard 8-hour shifts must be granted a 30-minute meal break. Employees who work more than 10-hour shifts are entitled to a second meal break, unless all three of the following conditions are met:
The employee's shift for the day does not exceed 12 hours
Both the employer and the employee agree in writing to waive the second meal break
The employee's first meal break was not waived
If an employee misses the second meal break and those three conditions are not met, you owe the employee an additional hour of pay at their regular rate. Missing meal breaks across multiple employees over multiple pay periods is one of the fastest ways a wage claim compounds into serious liability.
For a full breakdown of California's meal and rest break rules and what documenting compliance actually looks like, see our guide on California meal and rest break rules for employers.
Problem 3: Are You Allowing Your Employees Enough Rest Time?
Employees who work 10-hour shifts must receive at least two 10-minute paid rest breaks. Employees who work 12-hour shifts must receive three 10-minute paid rest breaks. If an employee misses even one of those breaks, you owe an additional hour of pay.
If an employee misses both a meal break and a rest break, your liability increases further. If an employee misses both meals and a rest break in the same shift, you may be looking at a lawsuit, especially if the pattern repeats across multiple employees.
These are not edge cases. Meal and rest break claims are among the most common wage claims filed against California employers, and they are closely examined when wage-and-hour defense situations escalate into litigation.
The Problems Above Are Just the Beginning
The issues outlined here represent only the most common pitfalls. California's alternative workweek schedule laws cover a wide spectrum of potential compliance failures, any of which could affect your business.
Review your Employment Law Compliance Guide to determine whether your current scheduling practices comply with California's requirements. The sooner you identify gaps, the less expensive they are to fix.
Concerned about your current shift scheduling setup? DefendMyBiz represents California employers exclusively, from compliance reviews to full wage claim defense. Contact us today for a free consultation.
FAQs
Can California employers schedule 12-hour shifts without paying overtime?
What is an Alternative Workweek Schedule in California?
What happens if I schedule a non-AWS shift that runs longer than 8 hours?
How many meal breaks are employees on 12-hour shifts entitled to?
How many rest breaks are required for employees working 12-hour shifts?
Disclaimer: The above content is for informational purposes only. This is not legal or tax advice. Laws, IRS guidance, and withholding requirements can change, and outcomes depend on specific facts. You are advised to contact a qualified attorney for any legal advice.
