4.15 Shift Differential Pay. Shift differential refers to the extra, or premium, pay that certain employees receive for working outside normal business hours. © 2019 www.azcentral.com. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). For example in a 2 week period where Dwayne works 90 hours and 32 of those hours he earns an extra $1 in shift differential. If you decide to use differential pay for night shift work, there are a few special situations to keep in mind: Holiday pay: Holiday pay is generally 1.5 or 2 times normal pay. lcr000. Shift differential pay is extra compensation for employees who work a less desirable shift, such as evening or midnight shifts. Job titles included and hourly rates • An employee working a fractional month or less than a full shift would receive a shift differential payment at the hourly rate for the entire shift worked. All salary or wages. While there may be other employees working the same shift without extra pay, it is not necessarily due to a discriminatory intent. Because of this, employers are free to establish policies on shift differentials as needed, as long as they meet minimum wage and overtime law. For example, if normal business hours run from 8 a.m. to 5 p.m., shift differential would apply to hours worked between 5 p.m. and 8 a.m. When an employer offers workers a shift differential, that rate of pay must be used to determine the employee’s overtime earnings if she works more than 40 hours in a workweek as required by the FLSA. It is also possible for salaried employees to be eligible for shift differentials. Since differential pay is company policy, not something regulated by the government, there’s no standard way to pay it. I was then offered 22 to start on day shift which I accepted. This has to be taken into consideration when calculating overtime as well. As you can see, the laws can become very complex. Then 2 months in, a position opened and I asked to move to night shift. Shift differential shall not be paid on any hours for which an Employee receives overtime compensation. When they work the evening shift, they are paid a shift differential of $1 an hour. The additional compensation may be designated as a percentage of the basic salary or a fixed dollar amount. Employees eligible for shift differential must work 4 or more hours on the evening shift (B shift) or night shift (C shift). an employer and employee (or employee's representative). The shift differential shall be established at 15% … An employee is provided with additional compensation of 5% of the employee's base rate of pay if working a scheduled workday of at least eight hours of regular time, exclusive of overtime, of which at least four fall between the hours of 6 p.m. and 7 a.m. Title IV of the Civil Rights Act of 1964 requires that employers don’t discriminate on the basis of race, sex, color, religion or national origin. What is the law regarding shift differential pay? Nope, there isn't a mandatory shift differential law in any state. Employees who earn shift differential must also have their “regular rate of pay” adjusted to reflect the shift differential. • An employee whose shift qualifies for both the evening and night shifts would receive a shift differential at the higher rate. The following apply to shift differential: The differential rate and the work hours during which the differential applies vary with In addition, employers can’t create a situation in which scheduling for shifts that receive a pay differential is determined by race, sex, religion, color or national origin. This code applies to classified employees eligible for overtime pay. This website does not show any ads or advertising materials for an ad-free reading experience of the readers. Night pay is paid for regularly scheduled work performed at night. The differential is not a part of the employee’s basic annual salary and does not affect … Title IV of the Civil Rights Act of 1964 requires that employers don’t discriminate on the basis of race, sex, color, religion or national origin. 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