This condition can only be applied to a shield, weapon, implement, or the occasional item or creature specifically designated as a valid target for the Shatter effect by Wheelhouse; it can never be applied to a person or a piece of garb or armor.
The item suffering from this condition cannot be used until it is Repaired, usually with the Word Of Repair spell, an Oil Of Arachne potion, or the Circle of Reconstruction ritual. All of its passive effects are also suspended while it suffers from the Shattered condition.
Creatures that are subject to the Shattered condition have their own special rules for what happens when it is applied to them.