Many employers pay extra for night, evening or weekend shifts. Enter your base rate, the differential and your hours for the week to see your pay — including overtime figured on a regular rate that counts the differential, which is how the FLSA requires it.
$1,014.09 gross pay for the week
- Differential rate
- $22.00
- Regular rate for overtime
- $20.70
- Overtime hours
- 6
| Pay | Hours | Rate | Amount |
|---|---|---|---|
| Base-rate hours | 30 | $20.00 | $600.00 |
| Differential hours | 16 | $22.00 | $352.00 |
| Overtime premium (½ × regular rate) | 6 | $10.35 | $62.09 |
| Gross pay | 46 | $1,014.09 |
Counting the differential in the regular rate adds $2.09 compared with overtime figured on the base rate alone.
How it’s calculated
Differential rate = base rate + differential (a flat amount per hour, or base rate × percent).
Overtime: shift differentials are part of the regular rate (29 CFR 778.207(b)). Regular rate = all straight-time pay ÷ all hours worked; each hour over 40 adds half the regular rate on top of the straight-time pay already counted.
Worked example with your numbers
- Differential rate: $20.00 + $2.00 = $22.00 an hour.
- Straight-time pay: 30 h × $20.00 + 16 h × $22.00 = $952.00.
- Regular rate: $952.00 ÷ 46 hours = $20.70 (20.6957).
- Overtime premium: 6 hours over 40 × ½ × $20.70 = $62.09.
- Gross pay: $952.00 + $62.09 = $1,014.09.
Federal law does not require shift differentials; when an employer pays one, it must be included in the overtime rate. Some states add daily overtime rules.
Shift differentials and overtime
A shift differential is part of the regular rate of pay (29 CFR 778.207(b)). When a week includes differential hours and more than 40 hours in total, the overtime premium is based on the weighted average of all the rates worked — not on the base rate alone. Paying overtime only on the base rate underpays the employee.
Frequently asked questions
What is a shift differential?
Extra pay for working a less desirable shift — nights, evenings, weekends or holidays — either a flat amount per hour (for example $2) or a percentage of the base rate (for example 10%).
Is a shift differential required by law?
Federal law does not require it; it depends on the employer’s policy or a union contract. When it is paid, it must be included in the regular rate used for overtime.
How is overtime calculated with a shift differential?
Add all straight-time pay for the week (base hours × base rate + differential hours × differential rate), divide by all hours worked to get the regular rate, then add half the regular rate for each hour over 40.