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What Is “Spread of Hours” Pay in New York Retail?: When You Owe an Extra Hour of Wages
New York’s “spread of hours” rule can require dispensaries to pay an extra hour of wages when a workday spans more than 10 hours. This guide explains the 10-hour trigger, how it’s calculated, how it overlaps with overtime, and the payroll mistakes that lead to six years of back pay liability.
What this page covers
• The 10-hour spread rule in New York
• How “spread of hours” is calculated
• How it overlaps with overtime
• When dispensaries trigger it without realizing
• Common payroll errors
• Back pay and penalty exposure
The 10-hour rule every NY dispensary must understand
New York requires certain employers, including retail businesses, to pay an additional hour of wages when an employee’s workday spans more than 10 hours.
The spread of hours is the total time between the start of the first shift and the end of the last shift in a single day.
It includes:
• Unpaid meal breaks
• Split shifts
• Gaps between shifts
• Compliance meetings before opening
• Closing procedures after clock-out if time is not properly recorded
It does not matter how many hours were actually worked.
If the total span exceeds 10 hours, the extra hour may be required.
What counts as “spread of hours”
Spread of hours measures the length of the day, not just paid time.
Example 1: Long continuous shift
Employee works 8:30 a.m. to 7:00 p.m. with a 30-minute unpaid break.
The spread is 10.5 hours.
Even though only 10 hours were worked, the span exceeds 10 hours.
An extra hour of pay may be owed.
Example 2: Split shift
Employee works 9:00 a.m. to 1:00 p.m.
Returns 4:00 p.m. to 8:30 p.m.
The spread runs from 9:00 a.m. to 8:30 p.m.
That is 11.5 hours.
Even though the employee worked 8.5 hours total, the spread exceeds 10 hours.
The extra hour rule may apply.
Does this apply to dispensaries?
Yes. Retail cannabis businesses in New York are generally covered under the state minimum wage order applicable to retail and miscellaneous industries.
Most budtenders, front-of-house staff, and non-exempt managers fall within this coverage.
If they are hourly and not truly exempt under wage law, the rule likely applies.
How the extra hour is paid
When triggered, the employee receives one additional hour of pay at the applicable minimum wage rate.
Important:
• It is paid at minimum wage, not the employee’s regular rate
• It is separate from overtime
• An employee can receive overtime and spread of hours pay in the same week
The calculations do not cancel each other out.
Salary does not automatically fix this
Paying a budtender a salary does not eliminate spread of hours risk.
If the employee is non-exempt under New York wage law, spread of hours can still apply.
Most retail dispensary employees do not qualify for executive or administrative exemptions.
Misclassifying staff to avoid overtime or spread of hours creates larger exposure.
Common ways dispensaries accidentally trigger it
• Extended grand opening hours
• Holiday coverage schedules
• Compliance or inventory days
• Split shifts to manage peak traffic
• Scheduling early training plus late closing
Many operators track weekly overtime but never review the 10-hour daily span.
That is where violations occur.
What happens if you get it wrong
New York allows wage claims going back six years.
If spread of hours pay was missed:
• Back wages may be owed
• Liquidated damages may double the amount
• Interest can apply
• Attorney’s fees may be added
Spread of hours claims are often bundled into overtime lawsuits.
Once an audit starts, payroll is reviewed broadly.
What to do now
• Review daily schedules, not just weekly totals
• Confirm your payroll system flags 10-hour spans
• Train managers on the 10-hour trigger
• Audit prior pay periods if unsure
• Do not assume higher hourly wages eliminate the rule
Daily scheduling decisions create long-term liability if not monitored.
Go Here Next
- Can you 1099 Budtenders in NYS?
- Can You Pay Budtenders Salary Instead of Overtime in NY?
- How Long Must NY Dispensaries Keep Payroll Records?
- Firing an Employee in aNYSDispensary (At-Will Limits)
