Shift Differential

A shift differential is additional pay provided to employees who work certain shifts, such as nights, weekends, or other less desirable hours.

Employers can use shift differentials to help staff schedules that are harder to fill. The additional amount may be a flat dollar amount or a percentage of the employee’s regular pay. For nonexempt employees, shift differential pay may affect the regular rate used to calculate overtime, so payroll should account for it correctly.