Does shift differential pay have to be included in the calculation of overtime?
Yes, all shift differential pay must be included in the calculation of the regular rate of pay used to compute an employee’s overtime rate. The regular rate of pay is calculated by determining the staff member’s total pay for the workweek, including base rate, shift differential pay, etc. and dividing by the total number of hours worked. The staff member is paid one and one-half times the regular rate of pay for all hours worked over forty in the workweek. Example: A non-exempt weekly-paid employee works Monday through Friday, 3 p.m. to 12:00 midnight (40 hours) and Saturday from 8:00 a.m. to 5:00 p.m. (8 hours). His base hourly wage is $10.00 per hour, and he receives a shift differential of 10% ($1.00 per hour).
Related Questions
- Where do I enter Shift Differential, Overtime, or Holiday pay for a staff or technical service employee on the Workflow Termination Form?
- Why is the calculation of the Premium Portion of Overtime pay not simply 1 times the Straight Time rate?
- When is overtime included in the normal weekly earnings calculation?
