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A few months into starting your own business, you must Running a business is an arduous task thatĭemands the proper distribution of responsibilities, along with strategic This is not intended as legal advice for more information, please click here.Benefits and other FAQs on fulfillment services This article was updated from its original publication date of. An employee who makes $10 per hour will receive $15 per hour for holiday pay if they are paid time and a half ($10 x 1.5 = $15).Īdd the shift differential pay to the base rate before calculating overtime. Department of Labor website for more examples on calculating shift differentials for health care workers.Įmployees working holiday shifts may receive time and a half. Add the extra $100 to regular wages as a shift differential. For example, a caretaker working third shift may get paid an additional $100 per shift. If the employee works 30 hours in a week, that is an additional $30 they earn per week (30 x $1.00).Īn employee paid a salary may get a lump sum shift differential along with their regular wages. Let’s say a customer support employee works third shift.
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With a 10% shift differential, the employee would be paid $22 per hour, with $2 per hour being the shift differential ($20 x 0.10 = $2).Įmployees can also receive flat rate shift differentials. Let’s say an employee gets $20 per hour on the regular shift. Salaried employees are usually offered shift differentials as a percentage.įor example, an employee who works the “graveyard” shift may receive a pay differential of 10%. For hourly employees, a shift differential may be a percentage of the employee’s base rate or an extra flat amount per hour. salary when determining a percentage or amount for shift differentials.Ĭalculating shift differentials manually is pretty straightforward. Consider the responsibilities, experience, hours, and whether the employee is hourly vs. Typically, employers set the shift differential as a percentage of wages. Working midnight shifts is not always appealing to potential employees. For example, an emergency care clinic could pay a doctor an additional $200 per night to work second shift instead of first shift.Ī security position generally requires shifts with later hours. Due to the level of responsibility, they may receive a shift differential that is much higher than someone in a non-managerial role working the same shift.Įmployees in the healthcare field (e.g., nurses and doctors) may get paid an extra amount or percentage of their regular pay to work a second or third shift. They take on difficult customer concerns in addition to working later shifts. Managers in customer support roles have a wide range of responsibilities. Shift type, level of responsibility, and experience can influence shift differential rates. Shift differentials are common for customer support, security, healthcare, and manufacturing jobs. Employers may choose to pay all employees weekend shift differentials versus only paying second or third shift employees the weekend shift differential. In addition to night shift differential, employers may offer weekend differential pay. Instead of paying shift differentials, employers may choose to compensate employees with additional paid time off (PTO).Įmployees working third shift are likely paid higher premiums than second shift. The law does not require you to offer additional compensation, but it can help retain employees. The employer decides a shift differential rate and can negotiate this amount with an employee. Shift differential pay is extra compensation for employees who work a less desirable shift, such as evening or midnight shifts. Learn more about what is differential pay, who receives differential rates, and common shift differentials below. Paying employees a shift differential is an effective way to overcome staffing challenges. However, it can be difficult to recruit employees for these undesirable hours. Businesses operating day and night need employees who are willing to work evening or late shifts. Many employers find themselves extending their hours of operation to keep up with customer demands.