Scroll Down For Instructions. Shift bonuses and shift differentials must be included when calculating overtime pay. PTO for shift differential. Related Courses The Pay Differential may be prescribed for those employees on a night shift, four or more hours of which fall between 6 PM and 6 AM. Salaried employees are usually offered shift differentials as a percentage. Since differential pay is company policy, not something regulated by the government, there’s no standard way to pay it. Shift differential is paid to affected hospital employees for all hours worked between 2:30 p.m. and 8:00 a.m. the following day. How Businesses Calculate Overtime; Labor Laws for Small Private Companies; Is It Illegal to Not Get a Break? For example, if normal business hours run from 8 a.m. to 5 p.m., shift differential would apply to hours worked between 5 p.m. and 8 a.m. A shift differential is a premium rate paid to an employee as extra compensation for working a less desirable shift. Even though the hours do not meet the required 4+ hours after 5 p.m. and before 11 for SDF or 4+ hours after 11 p.m. and before 8 a.m., shift differential is being calculated for ALL of the hours worked on those affected days. Column D7 is the start time and E7 is the end time, with the shift diff tabulating in K7. Day shift is from 07-1500, evening is 15-2300, and night shift is from 23-0700. The difference in her pay rates based on the shift she works is called shift differential. Copyright © The Regents of the University of California, Davis campus. The exact terms of a shift differential arrangement will be stated in an employer’s employee handbook. It is computed as a percentage of the employee's rate of basic pay. Shift differential refers to the extra, or premium, pay that certain employees receive for working outside normal business hours. If you had worked this shift you would have 14 hours of shift differential. Sometimes I see expressions like tan^2xsec^3x: this will be parsed as `tan^(2*3)(x sec(x))`. In the most fundamental terms, shift differential is extra pay for working a shift that isn’t quite so desirable for the bulk of employees. When they work the evening shift, they are paid a shift differential of $1 an hour. Shift Differential Pay Calculation Shift Differential Rate x Hours. The night shift includes a $1 per hour premium to her base pay. Night Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. In general, you can skip the multiplication sign, so `5x` is equivalent to `5*x`. 785-864-4385 . The Pay Differential may be prescribed for those employees on a night shift, four or more hours of which fall between 6 PM and 6 AM. =IF(E5=”Night”,IF(A5