Shift Differential Definition

A shift differential is a payment made to employees in addition to the standard wages to compensate for the inconvenience of working unpopular shifts (e.g., evening and midnight shifts).

Shift Differential Extended Definition
A shift differential is additional pay offered as an incentive for working outside usual daytime or weekday shifts. Such arrangements are common in sectors like health care, retail, manufacturing, and other establishments that operate 24/7.

Employers may offer a shift differential to employees who work:

• Second or third shift
• Holidays
• Weekends

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Last Updated By

Rachel Blakely-Gray | Jun 15, 2023