Definition
A shift differential is extra pay for working a less desirable shift, such as overnight, weekend, holiday or split shifts. It can be a flat amount per hour or a percentage on top of the base rate. Federal law does not require it, but it is common because it helps fill hard shifts. When a differential applies, the bill rate for that shift usually rises too. Under the FLSA, a shift differential is generally included in the regular rate used to calculate overtime.
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This definition is general information, not legal, tax or financial advice. Rules vary by state and change over time.