Shift Differential Calculator
- Base pay
- Shift differential
- Overtime premium
The FLSA requires the differential to be in the regular rate: $1,016.00 ÷ 44 h = $23.09. Using the base rate alone would underpay overtime by $2.18.
How the shift differential calculation works
Shift rate = base rate + differential
A $2 night differential on $22 makes $24 an hour. A 10% differential would be $2.20.
Differential pay = differential × qualifying hours
24 night hours × $2 is $48 extra for the week, or $2,496 a year.
Overtime uses the blended regular rate
Divide straight-time pay by all hours: $1,016 ÷ 44 = $23.09. The FLSA does not allow overtime on the base rate alone.
Add half the regular rate for each overtime hour
4 overtime hours × half of $23.09 adds $46.18, for $1,062.18 in total.
Worked example. At $22 an hour with a $2 night differential, 24 night hours and 20 other hours (44 total) pay $968 base plus $48 differential. The regular rate is $23.09, so 4 overtime hours add $46.18, for $1,062.18.
Shift Differential FAQ
What is a shift differential?
Extra pay for working a less popular shift, such as evenings, nights, weekends or rotating shifts. It is added on top of the base hourly rate, either as a fixed amount per hour (for example $2) or as a percent of the base rate (for example 10%).
How do I calculate a shift differential?
Multiply the differential by the hours that qualify. A $1.50 night differential over 36 night hours is $54 extra.
Is a shift differential required by law?
Not under federal law. The US Department of Labor says the FLSA does not require extra pay for night work; it is a matter of agreement between employer and employee. The amount is set by the employer, a union contract or, in some cases, state or public-sector rules, so check your own policy.
Does shift differential count toward overtime?
Yes. 29 CFR 778.207(b) says night shift differentials, whether a percent of the base rate or cents per hour, must be included in the regular rate. Overtime is then 1.5 times that blended rate, not the base rate. In the default example, using the base rate alone would underpay overtime by $2.18.
How do I convert a percentage differential to dollars?
Multiply the base rate by the percentage. A 10% differential on $25 is $2.50 an hour.
Is shift differential taxed?
Yes, it is regular wages for income tax, Social Security and Medicare.
Sources: US Department of Labor: Fact Sheet #56A, regular rate under the FLSA · US Department of Labor: Overtime pay · 29 CFR 778.207: Other types of contract premium pay distinguished (eCFR) · US Department of Labor: Night work