How Much Is The Average Shift Differential Pay? If they establish a rate of pay, then this must be applied to all employees who do the work. However, this doesn’t mean that employers can pick and choose who receives shift differential pay. Salaried workers may be offered shift differential pay if they are working irregular hours on a frequent basis.Īccording to the Fair Labor Standards Act (known as the FLSA), shift differential pay is not a legal requirement, meaning that it is up to the employer whether they want to add the payment and how much to pay. This is because salaried employees tend to have more benefits and perks, meaning that working extra hours can be deemed part of the job and balances this out. So, why do businesses use shift differential pay? And is it something that you should consider? If your business runs 24/7 and requires employees to work public holidays or overnight shifts, then shift differential pay is definitely something that you need to consider.Īpproximately 92% of companies will offer to shift differential pay to employees who have hourly pay, however, only 36% of companies also extend shift differential pay to salaried employees. Why Do Businesses Use Shift Differential Pay? If your business runs 24/7, then it is likely that there is a shift differential scheme in place.Īlso read: How To Advertise Your Business? However, there are many other industries that use shift differentials. Some of the industries that shift differentials are used include: Some employees work second and third shifts as well, which can also provide shift differentials Not only are shift differentials applied to those working the night shift, but they are also applied to those working on public holidays.Īpproximately 4% of American employees work overnight, while 12% work on a rota schedule which can include overnight shifts. Shift differentials exist because they encourage employees to work undesirable hours with a financial incentive. Is Shift Differential Pay Different From Overtime Pay?. ![]() ![]() How Much Is The Average Shift Differential Pay?.Why Do Businesses Use Shift Differential Pay?.
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