---
title: "Shift Differentials Must Be Included in the Employee’s Regular Rate of Pay!"
description: "Employers must include shift differential pay when determining an employee’s regular rate of pay. Here’s an example: A personal care assistant at an assisted living facility is paid $8 an hour and ove..."
url: https://www.dashrconsulting.com/shift-differentials-must-included-employees-regular-rate-pay/
date: 2014-03-10
modified: 2014-04-29
author: "Dr. Di Ann Sanchez"
image: https://www.dashrconsulting.com/wp-content/uploads/paycheck_calculation.jpg
categories: ["Human Resources", "Talent Management"]
type: post
lang: en
---

# Shift Differentials Must Be Included in the Employee’s Regular Rate of Pay!

## Employers must include shift differential pay when determining an employee’s regular rate of pay. Here’s an example:

![paycheck_calculation](https://www.dashrconsulting.com/wp-content/uploads/paycheck_calculation.jpg)A personal care assistant at an assisted living facility is paid $8 an hour and overtime on the basis of the 40 hour workweek standard. She works three 8-hour day shifts at $8 an hour and three 8-hour evening shifts. The assistant is paid $1 shift differential for each hour worked on the evening shift. How much should she be paid for her 8 hours of overtime?

The additional half-time must be computed based on the regular rate of pay. The regular rate is defined as the total remuneration divided by the total hours worked. The assistant earned a total of $408 for the 48 hours that she worked ($8 an hour times 24 hours plus $9 an hour times 24 hours). Her regular rate equaled $8.50 and her half-time premium is $4.25. Her total earnings for the 8 hours of overtime are $102.

| ***Straight-time computation*** |
| --- |
| 3 days x 8 hours/day x $8/hour | $192 |
| 3 evenings x 8 hours/evening x $8/hour | $192 |
| 3 evenings x 8 hours/evening x $1/hour (shift differential) | $ 24 |
| **Total ST earnings ** | **$408 ** |
| ***Regular rate and half-time premium computation*** |
| $408 (total ST compensation) ÷ 48 (total hours worked) = | $ 8.50 (regular rate) |
| $ 8.50 (regular rate) x ½ = | $ 4.25 (half-time premium) |
| $ 8.50 (regular rate) + $ 4.25 (half-time premium) = | $12.75 (overtime rate) |
| ***Total compensation calculation*** |
| 40 hours x $ 8.50 (regular rate) = | $340 (straight time earnings) |
| 8 overtime hours x $12.75 (overtime rate) = | $102 (overtime earnings) |
| ***Total earnings *** | ***$442 *** |

*Reference: OT with Multiple Rates? Weighted Rate OR Agreement HR Daily 10/13/2014.*