SHIFT DIFFERENTIAL PLUS

As an employer, you may find the added labor costs that come with offering a shift differential are justified by the increase in revenue youвЂ™re able to realize by expanding your hours of operation. The same is true for other seasonal industries, such as food processing, event management, landscaping and snow removal and, in some markets, construction. For example, if you operate a retail business and youвЂ™ve decided to expand your hours during the holiday season, providing a shift premium may help you attract employees who are willing to work longer hours in exchange for better compensation. This approach can be an effective way to meet temporary or seasonal staffing needs. Responding to seasonal staffing needs with shift premiumsДЄnother way to utilize shift differential pay to meet operational requirements is by implementing a shift differential on a seasonal basis. This simple step can give your business the competitive edge thatвЂ™s needed to attract job seekers.Д®xpand operations with shift differentialsДЄnother way you can use shift differential rates to overcome staffing challenges is to offer a premium pay rate when adding a second or third shift to your staff schedule.ДЇor many companies, the ability to scale up operations often hinges on the availability of quality employees who are willing and able to sign on to work evening, overnight and weekend shifts.ДЄdopting shift differential rates may enable your business to build on your successes and increase your market share. Finding candidates willing to work evenings, nights and on weekends has long been a challenge, particularly in locations with relatively low unemployment rates.Д¬onsider listing your shift differential pay rates in your job descriptions, or if you arenвЂ™t comfortable disclosing your rates, at least mentioning that shift differential pay is available.

Offering an attractive shift differential or shift premium is a common recruiting strategy among employers who need staff coverage outside of regular business hours. Using a shift differential as a recruiting tool Workers in these industries have come to expect theyвЂ™ll be paid a higher hourly rate in exchange for working the second or third shift. Health care, hospitality, manufacturing, security and transportation are among the industries where shift differentials have become the norm. While shift differential pay rates arenвЂ™t required by law, the practice of paying a higher hourly rate to employees who work evenings, overnights and weekends is common. How a shift differential can help you overcome staffing challenges Outside of a unionized environment, as an employer, the decision to offer a shift differential is entirely up to you.

The exception to this may be in unionized workplaces, since itвЂ™s common for labor unions to request shift premiums when negotiating collective agreements.

SHIFT DIFFERENTIAL PLUS

This means that an employee who earns $18 per hour, plus a $2 per hour shift differential, would be entitled to receive a rate of $30 per hour for time-and-a-half overtime. WhatвЂ™s important to note is that by law, the shift differential pay rate is considered to be the regular rate for purposes of calculating overtime pay. Shift differential pay isnвЂ™t required under the Fair Labor Standards Act. Some businesses also offer a shift differential for split shifts, even if they occur during the daytime.ДЄre businesses required to offer shift differential pay? Non-regular hours include evening, overnight and weekend shifts, as well as shifts booked on holidays. Bureau of Labor Statistics, over two-thirds of hourly and salaried workers typically work on weekdays, while just 9% work on the weekends. Shift differential pay is a premium pay rate provided to employees who work shifts scheduled outside of regular business hours, which are widely accepted to be 8am to 5pm on weekdays.