The rheological behavior and microstructure of branched, cationic wormlike micellar (WLM) solutions of 40 mM erucyl bis(hydroxyethyl)methylammonium chloride (EHAC) are studied as a function of added salt (sodium salicylate) concentration, temperature, and shear rate via Rheosmall-angle light scattering (Rheo-SALS). These WLM solutions exhibit shear-enhanced concentration fluctuations leading to shear-induced phase separation (SIPS), manifested as visual turbidity under shear and the appearance of a characteristic “butterfly” scattering pattern in Rheo-SALS experiments. Flow kinematics measurements in a Couette geometry are used to determine the relationship between SIPS and shear banding, i.e., the splitting of the flow into shear bands with different local shear rates. Modeling using the Giesekus constitutive equation aids in discrimination between banding and nonbanding solutions. The combination of Rheo-SALS, dynamic rheology, velocimetry, and constitutive equation modeling allows detailed exploration of the relationship between SIPS, shear banding, fluid microstructure, and the equilibrium phase behavior.