What are the requirements for shift differentials?
Shift differentials are premium payments for working nontraditional hours. In Maryland, the wage and hour law regulates the payment of shift differentials. Generally, employers must pay employees a minimum of one and one-half times their regular wage for any time worked during a shift designated by the employer as a “shift differential.” This means that if an employee’s normal rate of pay is $15.00 per hour, then he or she must be paid at least $22.50 per hour for any shift which requires shift differential pay. In addition to requiring shift differential pay for nontraditional hours, the wage and hour law also puts some limitations on situations where employers are allowed to provide shift differential pay. For example, employers are not allowed to pay shift differentials to employees who work the same hours as someone who is not receiving shift differentials. Also, employers are not allowed to provide shift differentials for work performed on holidays, unless the employer has agreed to do so in a written agreement with the employee. Finally, employers must clearly communicate to their employees exactly when workers are eligible for shift differential payments, and provide written notice at least one week in advance. This rule is in place to ensure that employees can plan ahead for any shift differentials they may receive. By adhering to the wage and hour law, employers in Maryland can ensure that their workers are appropriately compensated for any shift differentials they may be eligible for.
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