Can an employer have different rules for different employees?
Under federal law (which is enforced by the Equal Employment Opportunity Commission, or EEOC), an employer can’t treat employees differently due to their race, national origin, color, sex, age 40 or over, disability, or religion.
What is the law on shift differential?
The law considers shift differential pay to be part of an employee’s regular pay rate, so it must be added to the regular hourly salary before an employer figures “time and a half.” For example, someone who makes $9 an hour plus $1 per hour shift differential pay would make $15 per hour when working overtime.
What qualifies for shift differential?
If an employee works outside normal business hours but does not work more than 40 hours for the week, you can pay him or her shift differential. However, under the FLSA, you do not owe him or her overtime.
How does differential pay work?
Differential pay is a financial term that refers to extra money earned by an employee for working a certain shift. For example, if a worker earns $20 an hour, and the differential for the night shift is 10 percent: 20 x 0.10 = 2 Therefore, the differential pay would be $2 per hour.
Do employers have to pay shift differential?
Though many employers choose to pay a small premium, called a “shift differential,” to employees who work swing, graveyard or other less desirable shifts, no law requires you to pay a shift differential.
Can an employer take away shift differential?
Assuming that your employment is not covered by an employment or collective-bargaining agreement that would prohibit a change to the rate of pay, your employer can eliminate the shift differential.
Who gets shift differential?
For hourly employees, a shift differential may be a percentage of the employee’s base rate or an extra flat amount per hour. Salaried employees are usually offered shift differentials as a percentage. For example, an employee who works the “graveyard” shift may receive a pay differential of 10%.
Is shift differential required by law?
What is differential overtime?
When you work hours in excess of the standard work period, you are due additional pay for working overtime. The difference between your regular rate of pay and your overtime rate of pay is called a differential.
How is salary differential calculated?
Here are the steps on how to compute salary differential:
- Compute the total maternity benefits. For monthly wages.
- Deduct the actual amount of SSS maternity benefits received by the female employee.
- Deduct the total mandatory government contributions of the female employee for the entire maternity period.
