2-2-3 Work Schedule: How the Panama Rotation Works

A 2-2-3 work schedule is a 24/7 shift pattern where employees work 12-hour shifts in a 14-day cycle: 2 days on, 2 off, 3 on, 2 off, 2 on, 3 off. Four crews cover every hour of the day, and each employee averages 42 hours a week with every other weekend off. It is also called the Panama schedule. Below: a four-crew example calendar, the staffing math, how the workweek start changes overtime cost, and what HR should settle before launch.

How the 2-2-3 schedule works

2-2-3 work schedule (Panama schedule): a rotating 12-hour shift pattern in which each crew works 7 of every 14 days in the sequence 2 on, 2 off, 3 on, 2 off, 2 on, 3 off. Four crews provide continuous coverage.

Two crews share the day shift and two share the night shift. On any given day, one day crew and one night crew are working. The partner crew on the same shift works exactly the opposite days, so the two together cover all 14 days.

Laid over a calendar starting on Monday, one crew works Monday, Tuesday, Friday, Saturday and Sunday in week one, then Wednesday and Thursday in week two. That gives every crew a three-day weekend every other week.

Example: four crews over 14 days

W = working a 12-hour shift. Every column has exactly one day crew and one night crew on duty. After 14 days the pattern repeats.

2-2-3 schedule example: January 2026

Starting crew A's cycle on Monday, January 5, 2026, the two day crews work these dates in January. The night crews C and D follow the same dates as A and B.

A 31-day month holds 15 or 16 shifts, so monthly hours vary even though the 14-day cycle never changes. That is one reason the schedule pairs best with biweekly pay.

Fixed or rotating day and night crews

In the fixed version, crews A and B always work days and C and D always work nights. In the rotating version, the day and night crews swap every two or four weeks, so everyone shares nights. The fixed version is easier on sleep. The rotating version spreads the unpopular shifts evenly. Some writers reserve the name Panama for the rotating version and Pitman for the fixed one, but usage varies; see our Pitman schedule guide.

How many employees you need

Each position that must be staffed 24/7 needs four people, one per crew. A post needs 8,760 hours of coverage a year, and a 2-2-3 employee is scheduled for about 2,190 hours (42 × 52), so 8,760 ÷ 2,190 = 4.

Four is the floor. Vacation, sick days, training and open requisitions all create gaps, and on a four-person rotation each gap is filled by overtime or by a float pool. Size your relief from your own absence data before setting headcount.

Who uses the 2-2-3 schedule

About 15% of U.S. wage and salary workers usually worked a non-daytime schedule in 2024-25, and 1.9% worked rotating shifts, according to the Bureau of Labor Statistics (BLS, Job Flexibilities and Work Schedules 2024-2025). The 2-2-3 is common among them in:

• Hospitals and residential care (nursing, respiratory therapy, security)
• Police, fire and 911 dispatch
• Manufacturing plants running continuous lines
• Warehouses and distribution centers with overnight shipping
• Utilities, water treatment and data centers

Pros and cons of the 2-2-3 schedule

The three-shift run and the length of each shift are the main health concerns. A NIOSH analysis of national survey data found that night-shift workers reported insomnia at more than twice the rate of day workers (18.5% vs 8.4%) (NIOSH Science Blog, Shift Work and Sleep), and NIOSH training material, citing published research, estimates that accident and error risk is about 28% higher on 12-hour shifts than on 8-hour shifts, and about 28% higher on night shifts than on day shifts (NIOSH, Shift Work and Long Hours training for nurses). If your roles are safety-critical, schedule breaks, limit overtime on top of 12-hour shifts, and watch incident data on the third shift of each run.

2-2-3 compared with other shift patterns

See our guides to the DuPont schedule, the 4-10 work schedule and the 9/80 work schedule.

Overtime: why the workweek start day matters

The FLSA requires overtime for hours over 40 in a fixed, recurring seven-day workweek (DOL Fact Sheet #23), and hours cannot be averaged across two weeks (29 CFR 778.104). On a 2-2-3, where the workweek starts changes the bill:

The employer sets the workweek, and it may choose one that fits the schedule, but the workweek has to stay fixed. Changing it back and forth to avoid overtime is not allowed. Five of the seven possible start days give the 36/48 split; only two give 60/24. Partner crews work the opposite days, so a start day that suits one crew suits its partner too.

Illustrative cost at $25 an hour: 20 overtime hours per 14 days is $250 of overtime premium (the extra half-time) per employee per cycle; 8 hours is $100. Over 26 cycles a year that is $6,500 against $2,600 per person, before any California daily overtime. The overtime pay calculator works out the weekly figure for any rate.

California adds daily overtime for hours over 8, and double time over 12 (California Labor Commissioner overtime FAQ). A 12-hour shift there carries 4 hours of daily overtime unless the employer adopts an alternative workweek schedule under California Labor Code §511. Most alternative workweeks allow up to 10 regular hours a day; health care employers can go to 12.

Pay periods and PTO

A 14-day cycle fits a biweekly pay period cleanly: each paycheck covers one full cycle, so gross pay stays the same every period (overtime aside). On semi-monthly pay the number of shifts per paycheck varies. Set PTO in hours, not days, so a day off equals 12 hours of leave.

Related shift schedules

• DuPont schedule: 28-day, four-crew 12-hour rotation with a 7-day break
• Pitman schedule: the 2-3-2 version of the same 14-day pattern, common in policing
• Rotating shift schedule: how all the 24/7 patterns compare, including the 8-hour continental
• 4-10 work schedule: four 10-hour days, three days off every week
• 9/80 work schedule: nine-day fortnight with every other Friday off
• Model the cost of any pattern with the overtime pay calculator, and build the roster in the shift schedule template.

What to settle before launch

1. 1Pick the workweek start and model overtime for each crew under federal and any state daily overtime rules.
2. 2Decide between fixed and rotating day/night crews, and ask employees which they prefer.
3. 3Set headcount above four per post based on your absence rates.
4. 4Write the shift-swap, call-out and overtime approval rules.
5. 5Convert PTO and holiday policies to 12-hour days.
6. 6Load the pattern into your workforce management software and publish the calendar at least two cycles ahead.
7. 7Review at 90 days: overtime per crew, call-outs on the third shift of each run, and turnover.

Frequently asked questions about the 2-2-3 schedule