Shift Differential

paycheck

Also known as: shift differential, night shift premium, shift pay

Updated · Written and reviewed by Konstantin Iakovlev

Detailed explanation

Common in healthcare (nurse night-shift +$3-5/hr), manufacturing (2nd shift +5%, 3rd shift +10%), 24/7 customer service. Holiday pay (1.5x or 2x base for working a recognized holiday) is also unilaterally optional under federal law — only required by state law in Massachusetts and Rhode Island for certain retail. Shift differential is included in the regular rate of pay used to calculate FLSA overtime — meaning OT must be calculated on the bumped rate, not base. Often paid as flat hourly add-on rather than percentage. Union contracts typically codify exact differentials; non-union employers can change them with notice.

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