What are Shift Differentials?
Shift Differentials pay a premium for certain shifts or certain days. Say your employees work $10 an hour during the day. If you want to encourage employees to work 2nd shift (4pm to 11pm) then you could pay them a shift differential for 2nd shfit of $2.00, meaning they would be paid $12.00 an hour. If the “graveyard” shift from 11pm to 7am is the toughest to schedule, then you could have a $6.00 differential for graveyard which would pay the employee $16.00 per hour. Q: How do I figure out my Payroll Frequency? A: That depends on your employee population. Are they Exempt or Non-exempt? Exempt and Non-exempt are classifications that the Department of Labor has divided the US workforce into. Exempt employees are essentially salaried employees. They can be paid weekly, bi-weekly, semi-monthly and even monthly. However, with Non-exempt employees (hourly) there are some rules concerning frequency.
