$5.58 x 3 overtime hours = $16.74 (overtime pay due) $480.00 + $16.74 = $496.74. Their regular rate of pay for the week is $17.21 per hour (($769.23 salary + $40 shift differential) / 47 hours). When an employee is paid on an hourly basis only, the overtime premium is calculated as 1.5 times that hourly rate of pay. Employers decide what amounts to offer. Calculating shift differentials. Therefore, the overtime rate for that week is $25.82 per hour. Consider the responsibilities, experience, hours, and whether the employee is hourly vs. salary when determining a percentage or amount for shift differentials. As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. Determine your overtime rate. Shift differentials are separate from your regular rate of pay in several ways: *Any SD pay is separate from regular base pay and only for shifts other than normal Monday – Friday shifts. That one is easy! Some California employers pay what is called a shift differential to those employees who are willing to work certain shifts. *It is your job to know what, if any, shift differential is owed to you. Women and young persons are prohibited from night work. But don’t relax just yet; it gets harder. Typically, employers set the shift differential as a percentage of wages. For example, if your regular pay rate is $10.42 and your overtime differential is 1-1/2, multiply $10.42 by 1.5. Calculating shift differentials is simple. 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. According to the Fair Labor Standards Act (FLSA), nonexempt employees must receive overtime pay — at one-and-one-half times their regular rate — for work hours exceeding 40 for the week. Multiply your regular pay rate by the overtime differential. For example, the employee is paid $10.00 per hour plus a $2.00 per hour shift differential for the night shift. (total due) Example B: Shift differential plus nondiscretionary bonus. 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. Note: Prevailing rate (wage) employees are covered by a separate night shift differential authority. (5 CFR 532.505(e)(4)) 10 Rate of basic pay Night Pay differential is in addition to overtime, Sunday, or holiday pay, and it is not included in the rate of basic pay used to compute overtime, Sunday, or This is usually a less desired shift, such as graveyard or weekends. Because she earns overtime on the 10 hours worked on Sunday, her employer must include the additional $.50 per hour for that shift. Typically, employers pay shift differential at a percentage of the employee’s regular hourly rate. *There are currently no laws which REQUIRE the payment of a shift differential. For example, a worker who earns $10 per hour and an additional $0.50 per hour for a weekend shift differential, works three 10-hour shifts on Wednesday, Thursday and Friday, and two more on Saturday and Sunday. and dividing by the total number of hours worked. 5343.) The employee worked 7 hours of total overtime, equaling an additional $180.74 in overtime for the week, which gets added to the salary and the shift differential. This generally means work scheduled before the beginning of the administrative workweek. A non-exempt employee is paid $15.00 per hour plus an evening shift differential of $1.00 per hour for all hours worked during an evening shift. Night Shift Differential during leave with pay if the employee received a Night Shift Differential for the last shift worked before leave began. However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. Night work is regulated under the Labour Code which provides for a night shift differential. Night pay is paid for regularly scheduled work performed at night. (See 5 U.S.C. This extra pay needs to be added into the Regular Rate to make the overtime rate bigger. Hourly Rates / Hourly Shift Differentials. 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