What are the requirements for shift differentials?

Shift differentials are additional pay premiums given to employees who work undesirable shifts. In North Dakota, employers are required to provide shift differential pay to employees who work certain shifts if specified by their employment contracts or collective bargaining agreements, or if the employer has adopted a shift differential pay policy. Shift differentials are typically paid out at a higher rate than the employee’s usual hourly wage. The extra pay compensates the employee for working irregular hours and for accepting different hours from the traditional 9 to 5 schedule. The amount of shift differential pay varies according to the individual employer’s policy and what is listed in the employee’s employment contract or collective bargaining agreement. In North Dakota, employers must pay their employees at least the state minimum wage or any applicable higher rate that may be specified in the employee’s contract or collective bargaining agreement. For employees who are paid an hourly wage, the minimum wage rate must include any shift differential pay. According to North Dakota state law, employers are not required to pay employees for overtime if they are already receiving a shift differential.

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