Daylight Saving Time 2024: Payroll Considerations

By Jo McClure, CPP on Mar 07, 2024
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daylight saving time and shift worker payroll

Daylight saving time (DST) was conceived by Benjamin Franklin in 1784 and established throughout the U.S. in 1966. Its purpose is to save electricity by extending daylight hours for eight months of the year. While daylight saving time may help save on electricity use and cost, it may cause a payroll headache for companies with shift workers.

When Is Daylight Saving Time in 2024?

In 2024, daylight saving time starts on Sunday, March 10 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 3 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.  

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Night Shift During Daylight Saving Time: Workers & Businesses Affected

According to the Bureau of Labor Statistics, 3 million Americans work the overnight graveyard shift. But what exactly is the "graveyard shift"? 

The graveyard shift typically refers to the overnight work hours, although the exact hours can vary by industry and employer. Commonly, this shift starts late in the evening and ends early in the morning. In many cases, the graveyard shift might run from about midnight to 8 a.m., but there's variation, with some starting as early as 10 p.m. and ending as late as 9 a.m.

Workers in the following industries commonly have graveyard shifts and could have workers impacted by Daylight Saving Time changes:

  • Healthcare

    Many hospitals and some clinics operate 24/7. This includes doctors, nurses, paramedics, and other support staff.

  • Law Enforcement and Security 

    Police officers, security guards and related positions often work overnight to ensure safety.

  • Manufacturing

    Some factories and manufacturing plants operate around the clock to maximize production. Workers in these facilities might be involved in assembly, machine operation and quality control.

  • Transportation

    This includes truck drivers, certain airline staff, and workers in public transportation, especially in big cities where public transport operates 24/7.

  • Hospitality

    Hotels often have front desk clerks, maintenance and security staff on duty overnight.

  • Retail and Convenience Stores

    Some retail stores, especially big-box retailers and 24-hour convenience stores, remain open overnight and thus require cashiers, stock clerks and other staff.

  • Media

    Some radio and television stations broadcast around the clock, requiring on-air personalities, producers and technical staff to work overnight.

  • Utilities and Energy

    Those who work in power plants or utility services might have overnight shifts to ensure continuous operation and service.

  • Emergency Services

    Firefighters, emergency dispatch operators, and certain utility emergency response teams.

  • Warehousing and Distribution

    With the rise of e-commerce and the need for fast shipping, many distribution centers operate 24/7.

  • Food Services

    Some restaurants, especially fast-food chains, stay open late or 24/7, requiring chefs, cashiers and other staff to work overnight.

  • Information Technology

    IT professionals, especially those in charge of maintenance, updates, or cybersecurity, may need to work during off-peak hours to ensure minimal disruption.

It's worth noting that while many of these industries have overnight shifts, not all workers within these sectors will necessarily work the graveyard shift. The need for overnight staffing varies greatly by specific job, location, and employer.

 When There's an Extra Pay Period

Daylight Saving Time and Payroll

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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Do Night Shift Workers Get Paid for Daylight Saving?

  • Because the FLSA requires employers to pay non-exempt employees for all hours actually worked, employers must pay employees who work the graveyard shift during the daylight-saving time change accordingly.

  • Employers who have employees on the clock when DST ends in the fall should pay an additional hour and review total hours to see if the DST hour puts them over 40 hours. If so, that hour must be paid as overtime.

  • Per the FLSA, employers who have employees on the clock when DST starts in the spring could pay an hour less or pay the regular number of hours, but not include the DST hour in the regular rate of pay to calculate overtime. Employers could also allow the employee to use an hour of paid time off.

  • Another option is to modify employee schedules to reflect the time change. For example, an employee regularly scheduled to work 11 p.m. to 7 a.m. could start after the DST time change, or leave before the time change.

  • SHRM reminds employers that state law and employment contracts should also be reviewed in advance of DST to schedule employees, edit time, and process payroll compliantly.

    peo outsourced payroll processing

Sunshine Protection Act: What Employers Need to Know

At this time, the Sunshine Protection Act still has not been signed into law. With the time change ahead of us, Senator Marco Rubio has renewed his push to pass the Sunshine Protection Act. If passed, we would "spring forward" this Sunday and not "fall back" in November. 

Introduced in 2021, and passed unanimously by the Senate on March 15, 2022, the Sunshine Protection Act would make Daylight Saving Time the permanent time and would end Standard Time. With most issues, there are competing interests at hand. To become law, the Act must be passed by Congress and signed into law by the President.

The Sunshine Protection Act does more than simply give us more daylight in the afternoon and evening hours. It also impacts the workplace. Research shows by permanently adhering to Daylight Savings Time, workplaces would likely see fewer workplace injuries and car accidents. According to a 2020 study, in the week following the semi-annual "clock-switching" event, fatal car accidents rose by 6% and workplace injuries and medical errors also increased slightly. 

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Some industries have been more vocal in their support for the Sunshine Protection Act. The construction industry is one such industry. Changing the clocks back in the fall requires contractors to light jobs differently, reset schedules, alert work teams and cause additional hazards, according to Hurd Construction Director Brandon Hurd, who was interviewed by the Orlando Sentinel.

Hurd went on to express the safety hazards inherent to the construction industry when changing the clocks. He said, " ... the body's natural circadian rhythm is immediately out of sync during those first several days after you're forced to speed up the clock. This change in sleep habit means your body may have to adjust to this change, and this adjustment period increases the opportunity for injuries and accidents in the field."

In addition to the construction industry, retailers and recreational sports suppliers have also expressed their support for the Act. 

RELATED: Key Benefits of Outsourcing Your Business' Payroll >>

About Axcet HR Solutions

At Axcet HR Solutions, our risk management and payroll teams work tirelessly to help ensure safety is a top priority and payroll flows accurately and efficiently, even through challenging times. Meet our award-winning team today >>PEO Payroll Services

Written by Jo McClure, CPP

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