Is shift differential required by law?

No, under the FLSA, shift differential is a matter of agreement between the employer and employee.

Does shift differential count towards overtime?

Yes, the regular rate used to calculate overtime pay must include shift differentials.

Payroll

What is Shift Differential?

Shift differential is a premium pay rate added to an employee's base hourly wage for working shifts that are considered less desirable, such as evening, night, or weekend shifts.

Calculating Shift Differentials

1Define shift windows (e.g., Third Shift: 11 PM - 7 AM).
2Assign a premium amount (e.g., +$1.50/hr or +10%).
3Payroll software automatically applies the rate to hours worked during those windows.

Incentivizing Coverage

While not federally mandated in the US, shift differentials are a standard industry practice to ensure staffing coverage for 24/7 operations in healthcare, manufacturing, and logistics.

Automated Shift Rules

ClockIt supports complex shift differential rules, ensuring that employees are automatically paid the correct rates based on when they clock in.

Get Started with ClockIt

Frequently Asked Questions

Is shift differential required by law?: No, under the FLSA, shift differential is a matter of agreement between the employer and employee.
Does shift differential count towards overtime?: Yes, the regular rate used to calculate overtime pay must include shift differentials.

Related Terms

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