Shift Differential Policy

Purpose

The shift differential policy allows for extra compensation to nonexempt employees who are scheduled on a regular, rotating or sporadic basis to work during evening or night shifts.

Procedure

Evening hours begin at 6:00 p.m. and end at 12:00 a.m. and night hours begin at 12:01 a.m. and end at 6:00 a.m. Employees are eligible for differential pay only for the actual hours worked within these defined evening/night hours.

For example, an employee scheduled noon to 8:00 p.m. will be paid for two hours at the evening differential rate and six hours at the regular rate. Employees scheduled 4:00 a.m. to noon will be paid the night differential rate from 4 a.m. to 6 a.m. and the regular rate from 6:01 a.m. to noon.

Evening hours will be compensated at an additional [amount] per hour, and night hours will be compensated at an additional [amount] per hour. Shift differentials will be included when determining the rate of pay for overtime hours.

Compensation During Leave

If the employee has a permanent evening or night schedule, paid vacation and sick and personal leave taken will be paid at an average of the employee's regular rate and differentials. The specific rate will be shown on the leave approval form provided to the employee.

Employees who are on a rotation or sporadic shift schedule will be paid the regular rate when taking paid leave.

Holiday Pay

Holiday pay will be paid at the regular rate. Shift differentials will not be added to holiday pay.

Other Paid Leave

There may be times when the company may close due to unexpected situations such as inclement weather or other reasons beyond [Company name]'s control. [Company name] may choose to provide paid administrative leave during these times. Company administrative leave will be paid at the employee's regular rate. Shift differentials will not be added to [Company name] administrative leave. Administrative leave will not be included as hours worked in overtime calculations.