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 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.
Already looking forward to those longer days? We'll spring ahead on Sunday, March 9, 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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At this time, the Sunshine Protection Act still has not been signed into law.
Earlier this year, Senator Marco Rubio renewed his push to pass the Sunshine Protection Act, however, nothing more has happened with it despite being passed unanimously by the Senate.
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.
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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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