Ready to ‘fall back’? The extra hour of sleep may be nice, but for businesses with hourly shift workers, Daylight Saving Time means more than just adjusting alarm clocks—it means rethinking payroll for the week.
As we approach the fall time change, here’s how to handle the payroll nuances that come with it.
In 2025, daylight saving time starts on Sunday, March 9 at 2 a.m. when the clocks move forward one hour and most Americans lose one hour of sleep. Daylight saving time ends on Sunday, November 2 at 2 a.m.
Daylight saving time is not observed in Hawaii, Puerto Rico, the U.S. Virgin Islands, American Samoa and most of Arizona.
In 2026, daylight saving time starts on Sunday, March 8, 2025, at 2 a.m., when the clocks jump forward by one hour, giving us more evening daylight but costing us an hour of sleep.
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Did you know about 3 million Americans work the overnight graveyard shift, according to the Bureau of Labor Statistics?
These workers might feel the biggest impact from Daylight Saving Time (DST) changes, whether it’s losing an hour of work (and sleep) in the spring or gaining an extra hour in the fall. But what exactly is the "graveyard shift"?
This shift typically refers to overnight work hours, though exact times vary by industry and employer. Most graveyard shifts run from around midnight to 8 a.m., but some can start as early as 10 p.m. or end as late as 9 a.m. This time change directly impacts industries where overnight work is critical.
Some of the key industries that operate through the night include:
Doctors, nurses, paramedics, and support staff keep hospitals running 24/7.
Police officers, security guards, and others work overnight to keep communities safe.
Many factories operate around the clock, with workers in assembly, machine operation and quality control.
From truck drivers to airline staff, night shifts are essential in keeping goods and people moving.
Hotels need night staff to handle front desk operations, maintenance and security.
Many big-box retailers and 24-hour stores require overnight staff, including cashiers and stock clerks.
Some radio and TV stations broadcast around the clock, requiring on-air personalities, producers and technicians.
Power plants and utility services rely on night shifts for continuous operations.
Firefighters, emergency dispatchers and utility response teams often work through the night.
With the surge in e-commerce, many distribution centers run 24/7 to meet demand.
Fast-food chains and late-night restaurants rely on overnight staff to serve customers.
IT professionals, especially those in charge of maintenance, updates, or cybersecurity, may need to work during off-peak hours to ensure minimal disruption.
While these industries commonly have night shifts, not every worker in these fields will necessarily work the graveyard shift. The need for overnight staffing varies by job role, location and employer.
As DST approaches, employers in these industries should prepare for how the time change will affect their payroll, especially for hourly workers who may gain or lose an hour during their shifts.
The Society for Human Resource Management (SHRM) describes a few payroll problems employers deal with when it comes to daylight saving time if they have hourly employees working graveyard or overnight shifts.
It may result in an extra hour of work if employees are at work at 2 a.m. when the autumn time change occurs and an hour is gained, and this may push the total week’s work hours to over 40 resulting in an overtime pay obligation.
It may result in employees losing a payroll hour for actual time worked when the springtime change occurs and an hour is lost.
These hours gained and lost create a payroll processing problem for employers because the Fair Labor Standards Act (FLSA) requires employers to credit employees for hours actually worked.
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The future of daylight saving time (DST) remains uncertain, as there is no official end date for the practice. While the Sunshine Protection Act, which aimed to make DST permanent, passed the Senate unanimously in 2022, it never became law. Now, with President Donald Trump back in office, he has expressed support for ending daylight saving time, though it is unclear whether that means eliminating the clock changes entirely or making DST permanent.
Public opinion is divided—an informal poll on X (formerly Twitter) found that more people preferred staying on daylight saving time year-round rather than returning to standard time permanently.
As of now, daylight saving time continues, and no legislation has been enacted to end it permanently.
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At Axcet HR Solutions, we don't just manage payroll—we ensure it’s handled with precision by a team of IRS-certified PEO professionals and certified payroll professionals. Our award-winning team is committed to delivering accurate, compliant payroll services, even during challenges like Daylight Saving Time changes.
With our risk management and payroll teams on your side, you can trust that safety and compliance are always top priorities. Meet our experienced, certified team today and discover how we can streamline your payroll processes for maximum efficiency.
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