What are the requirements for shift differentials?
Shift differentials are pay differentials that employers must provide to employees who work shifts outside of regular business hours. In California, shift differentials must be at least 10 percent of an employee’s regular rate of pay. Furthermore, these differentials must be greater than any allowances or credits an employer gives as an incentive to work that shift. In some industries, such as health care, shift differentials must be greater than 10 percent. For example, if an employee works between 10:00PM and 6:00AM in the health care industry, the shift differential must be at least 15 percent of the regular rate of pay. If the shift lasts more than 8 hours, the shift differential must be at least 15 percent of the regular rate of pay for the entire shift. In California, employers must also provide shift differentials for employees who work holiday shifts. The shift differential for working on a holiday must be at least 50 percent of the regular rate of pay for all hours worked on the holiday. Furthermore, in California, shift differentials must be included in any employee’s regular rate of pay. This means that any overtime pay must be calculated with the shift differential already included in the rate of pay. In California, employers must follow these requirements when providing shift differentials in order to comply with wage and hour law. Failure to do so can result in penalties from the California Department of Industrial Relations. Therefore, it is important for employers to be aware of the requirements when providing shift differentials.
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