Are differentials required?
Shift differentials are generally not required by law. Employers can agree with their employees as to the amount of the differential, under what conditions it will be paid or if a differential will be paid at all. Similarly, an employer can pay differentials to one group of employees but not another, so long as the policy is clearly stated as to which employees are eligible for a differential and all applicable employment discrimination laws are obeyed. It would be unlawful to base differentials as such protected characteristics as race or sex. How are differentials calculated? The differential is usually compensation paid in addition to base hourly pay that would normally be paid for a job without the inconvenient schedule. Shift differentials can be a flat cents per hour figure added to a base rate, or it can be computed on the basis of a percentage of the base hourly rate paid for the same kind of work during normal working hours or under more desirable conditions. Once it is decide
