A comprehensive guide to understanding and customizing the default labor law rules in the system, including minimum wage, overtime, break requirements, scheduling rules, and minor work regulations across federal, state, and city jurisdictions.

This article should be updated annually to reflect current minimum wage rates and labor law changes. Key sections to update include the wage amounts in the tables and any major legislative changes to overtime, breaks, or scheduling requirements.

Labor Law Rules: Understanding and Customizing Compliance Settings

Overview

Labor law rules in the Shifts system allow you to ensure your business complies with various labor regulations across different jurisdictions. The system comes pre-loaded with common labor laws at federal, state, and city levels, organized by rule type.

This article covers:

• What labor law rules are included by default
• How to view and manage labor law rules
• How to customize rules for your business
• Best practices for compliance

Default Labor Law Rules

When your account is first set up, the system automatically loads these labor law categories:

1. Wage Rules

Jurisdiction Level Example Rules Federal • Federal minimum wage ($7.25)
• Federal tipped minimum wage ($2.13)
• Federal contractor minimum wage ($17.20) State • California minimum wage ($16.00)
• New York minimum wage ($15.00)
• Washington minimum wage ($16.28)
Plus 28 other state-specific minimum wages City • Seattle ($18.69)
• San Francisco ($18.07)
• Los Angeles ($16.78)
• New York City ($16.00)
• Chicago ($15.80)
Plus 6 other city-specific minimum wages

2. Overtime Rules

Jurisdiction Level Example Rules Federal • Overtime pay required after 40 hours in a workweek State • California: Daily overtime after 8 hours
• Alaska: Daily overtime after 8 hours
• Colorado: Daily overtime after 12 hours
• Nevada: Daily overtime after 8 hours
• Kentucky: Special rules for 7th consecutive day

3. Meal and Rest Break Rules

Jurisdiction Meal Break Requirement Rest Break Requirement California After 5 hours (30 min) Every 4 hours (10 min) Colorado After 5 hours (30 min) Every 4 hours (10 min) Kentucky After 5 hours (30 min) Every 4 hours (10 min) Maine After 6 hours (30 min) Not required by state law Massachusetts After 6 hours (30 min) Not required by state law Nevada After 8 hours (30 min) Every 4 hours (10 min) New York After 6 hours (30 min) Not required by state law Oregon After 6 hours (30 min) Every 4 hours (10 min) Washington After 5 hours (30 min) Every 4 hours (10 min)

4. Predictive Scheduling Rules

Jurisdiction Schedule Notice Requirement Seattle, WA 14 days advance notice San Francisco, CA 14 days advance notice New York City, NY 14 days advance notice Oregon (state) 14 days advance notice Philadelphia, PA 14 days advance notice

5. Minor/Youth Work Rules

Jurisdiction Work End Time Maximum Daily Hours Federal 7:00 PM (school days) 3 hours (school days) California 7:00 PM (school days) 4 hours (school days) Massachusetts 10:00 PM (non-school days) 9 hours (non-school days) New York 7:00 PM (school days) 4 hours (school days)

How Labor Law Rules Work

Labor law rules operate in a hierarchical system:

1. Jurisdiction Levels: Rules follow a hierarchy from federal (lowest specificity) to state to city (highest specificity)
2. Priority: Higher priority rules (with higher numerical values) take precedence over lower priority rules
3. Rule Types: Each rule type (wage, overtime, etc.) is evaluated independently
4. Effective Dates: Only rules with effective dates that include the current date apply

When the system needs to determine which rules apply to a shift or employee:

1. It identifies all jurisdictions applicable to the location (city, its parent state, and the country)
2. Groups all active rules by type
3. For each rule type, determines the most specific, highest-priority applicable rule
4. Applies those rules to the relevant calculations (pay, breaks, etc.)

Viewing Labor Law Rules

To view the labor law rules for your business:

1. Navigate to Admin > Labor Law Rules
2. Use the filters at the top to narrow down by:
   • Jurisdiction (country, state, city)
   • Rule Type (wage, overtime, break, schedule, minor)
3. Click on any rule to view its details

Customizing Labor Law Rules

Adding a New Rule

1. Navigate to Admin > Labor Law Rules
2. Click the Add Rule button
3. Select the jurisdiction from the dropdown
4. Select the rule type
5. Fill in the appropriate fields for that rule type:
   • For wage rules: minimum wage amount
   • For overtime rules: daily and/or weekly thresholds
   • For break rules: meal and rest break timing and duration
   • For schedule rules: required notice period
   • For minor work rules: work hour restrictions
6. Set the priority (higher number = higher priority)
7. Set the effective date (when the rule takes effect)
8. Optionally, set an expiration date
9. Click Save

Modifying Existing Rules

Instead of editing existing rules, best practice is to:

1. Set an expiration date on the current rule
2. Create a new rule with the updated parameters and a newer effective date
3. This maintains a historical record of rule changes

Creating Rule Exceptions

For special cases where rules need to be modified for specific groups:

1. Navigate to the details page of the rule you want to create an exception for
2. Click Add Exception
3. Select the exception type:
   • By department
   • By role
   • By employee type
   • By location attribute
4. Specify the value(s) to match (e.g., “Restaurant Staff”, “Manager”)
5. Define the modified rule parameters for this exception
6. Set a priority for the exception
7. Click Save Exception

Best Practices for Labor Law Compliance

1. Regular Audits

• Review your labor law rules quarterly
• Check for updates to labor laws in your jurisdictions
• Verify that rules are correctly assigned to locations

2. Documentation

• Document the source and justification for each rule
• Keep records of when rule changes were made and why
• Document any exceptions and their business justification

3. Testing

• Periodically test your rules by creating sample shifts
• Verify that the correct overtime, breaks, and wage rules apply
• Test boundary conditions (e.g., shifts spanning midnight, multi-location shifts)

4. Employee Communication

• Clearly communicate applicable labor laws to employees
• Post required notices in all work locations
• Provide training on break requirements and time tracking

Updating Rules for Jurisdiction Changes

When laws change in your jurisdiction:

1. Navigate to Admin > Labor Law Rules
2. Find the existing rule that needs updating
3. Set an expiration date on the current rule (the day before the new law takes effect)
4. Click Add Rule to create a new version
5. Copy the details from the previous rule
6. Update the parameters to match the new legal requirements
7. Set the effective date to match when the new law takes effect
8. Set the priority to be the same or higher than the previous rule
9. Click Save

Additional Resources

For detailed information on current labor laws:

• Department of Labor
• State Labor Offices Directory

Remember that while our system helps you manage compliance, it’s important to consult with legal counsel for definitive guidance on labor law requirements specific to your business.

Related Articles

• Managing Location Jurisdictions
• Setting Up Payroll Rules
• Compliance Reporting Guide