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My question is regarding shift differential. Shift differential refers to extra pay received by employees for working a less-than desirable shift (i.e., late nights, evenings). The differential is not a part of the employee’s basic annual salary and does not affect other provisions of the law concerning salary determination. Employees shall qualify for a swing shift pay differential of $1.00 per hour when four or more hours of the regularly scheduled work shift fall between 1800 and Even under CA's strict labor laws, shift differential and premium pay for holidays is up to the discretion of the employer or up to any union contract the employee may have. If you find this site useful and want to show your support, feel free to … Employees must work a qualifying shift, or be on a paid leave of absence when scheduled to work a qualifying shift, to receive compensation. (a) Employees shall be entitled to receive night shift differentials in accordance with section 5343 of title 5, United States Code. For example, a company increases the pay of anyone working on its graveyard shift by 10%, or an emergency care clinic pays its doctors an extra $300 to work the second shift. This website does not show any ads or advertising materials for an ad-free reading experience of the readers. The characteristics of these types of shift are set out below Double day/Two shift - Usually comprise two successive shifts (typically 6am-2pm followed by 2pm-10pm) – often known as “earlies” and “lates.” Shifts are frequently alternated weekly or over longer intervals. What is the law regarding shift differential pay? Differential pay is a benefit given to those employees that are required to work odd hours. Since it's not required under law, the employer has substantial discretion to set terms and conditions for it. Shift differentials are common in the healthcare industry. Rather, differential pay is a benefit left to your employer to negotiate with you and your coworkers. Shift Pay Differential is a separate payment from Inconvenience Pay. Also, when you leave a job, are they required to pay out the sick and vacation time you've accrued? I was offered 24 a 20 shift differential but the position was filled internally. In other words, it is something that an employer can voluntarily choose to pay - or not. (2) Employees shall qualify for a swing shift pay differential of $1.00 per hour when (b) Absence on holidays. The following examples provide guidance on how to calculate overtime for employees who receive shift differential pay. Shift Differentials . However, if an employer does offer it, can they be selective as to which group of employees get it? The simplest formula to compute the night shift differential is: NSD = (Hourly rate * 10%) * number of hours worked from 10PM to 6AM It is to be emphasized that the Labor Code only provides the minimum required payments. Employees shall receive night shift pay as set forth below: (1) Night shift pay is earned on a day-by-day basis. The fact is that shift differential pay is not required by law; it is a discretionary benefit. Employment law questions? But some employers may not realize that the differential must be calculated into the “regular rate” of pay, which is not exactly the same thing as the hourly rate. When you have a job that pays an hourly wage, your employer may boost the rate paid if you work a shift outside the standard Monday-through-Friday, 9-to-5 workweek. There is no law that compels employers to pay a night shift differential in California. 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