Question: During a particular workweek, an employee worked 40 hours on the first shift and eight hours on the second shift. The employer pays a shift differential for work performed on the second shift. How does the shift differential affect the regular rate of pay for the workweek?
Answer: A shift differential is extra pay for working during less-desirable hours. Because it is paid for something other than working overtime, it is included in the regular rate of pay for purposes of the overtime pay computation.
A shift differential also does not fall under any of the other statutory exemptions, such as additional pay for work performed on holidays or regular days of rest.
Generally, the regular rate of pay is computed by dividing the sum of all compensation paid for work performed during the workweek by the number of hours the employee worked during the workweek. Amounts of compensation that are excluded by statute from the regular rate of pay are not included in the computation.
For example, assume the employee’s first shift rate is $20 per hour and the shift differential for work performed during the second shift is $3 per hour. During the specified workweek, the employee worked 40 hours at $20 per hour and eight hours at $23 per hour. The employee’s regular pay for the workweek is $984. Under the general rule, the regular rate of pay is...
IDAHO — A woman previously ordered to pay $10 million in damages for making false claims about a professor’s role in the 2022 killings of four students at the University of Idaho has filed an appe...