Shift differential labor rules define how additional pay is applied to employees who work specific days, times, or qualifying shifts. These rules support multiple calculation methods, allowing organizations to compensate labor based on time worked, a percentage of pay, or fixed shift criteria.
Use shift differential rules to:
Compensate employees for overnight or late-night shifts.
Add premium pay for weekend or holiday coverage.
Apply consistent pay adjustments for qualifying shifts across locations.
Shift Differential Calculation Methods
Method | How pay is applied | Best used when | Key behavior |
|---|---|---|---|
Dollar amount per hour | Adds a fixed dollar amount to each qualifying hour | Extra pay applies only during specific hours | Pay applies only within the defined time range |
Percentage of hourly rate | Adds a percentage of the employee’s hourly rate | Base pay varies by job or role | Automatically scales with hourly pay |
Fixed amount per shift (Dollar) | Adds a flat dollar amount per qualifying shift | The entire shift should trigger premium pay | Amount does not change based on hours worked |
Fixed amount per shift (Hour) | Adds paid hours at the job’s pay rate | Employees should receive extra paid time | Added hours use the job’s regular rate |
Security
Users with the following permission will be able to create shift differential rules:
Labor → Labor Rules → Shift Differential Rules → Create Shift Differential Rules
Users with the following permission will be able to edit shift differential rules:
Labor → Labor Rules → Shift Differential Rules → Edit Shift Differential Rules
These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.
Open a shift differential rule
Select Admin from the left navigation rail.
Expand Workforce.
Select Labor Rules.
Select the rule to open its record.
Tip:
Find the rule Type in the Type column. In this example, Break type is selected.
Shift Differential rules
Configuring a shift differential includes three main steps. Each step is explained in detail in the sections below.
Open a shift differential rule — Access the rule you want to create or update.
Configure the rule settings — Define when the differential applies and how it calculates pay.
Save the rule — Save the configuration to apply the shift differential to eligible shifts.
Open a shift differential rule
All configuration steps in this article start from an existing rule record. Open the desired rule to edit before continuing:
Select Admin from the left navigation rail.
Expand Workforce.
Select Labor Rules.
Select the Shift Differential tab.
Click the row for the rule to edit.
Shift Differential Configurations
Change locations assigned to a shift differential rule
Follow these steps when a location opens, closes, or moves to a different rule:
Click steps to expand for additional information and images.
1) Select the dropdown arrow by Locations.
2) Check additional locations and/or click the ‘X’ to remove locations.
Configure Dollar amount per hour
Use this option to add a fixed dollar amount to each qualifying hour worked within a defined time range.
Choose this method when additional pay should apply only during specific hours, such as overnight or late-night shifts.
Click steps to expand for additional information and images.
1) Navigate to the Shift differential pay section.
2) Select one or more days to apply differential pay.
At least one day is required to save the rule.
3) Select the Dollar amount per hour from the calculation method dropdown.
4) Set the Start time and End time.
5) Enter the dollar amount to apply per hour.
Configure Percentage of hour rate
Use this option to calculate differential pay as a percentage of the employee’s hourly rate.
Choose this method when base pay varies by job or role and the differential should scale automatically with hourly wages.
Click steps to expand for additional information and images.
1) Navigate to the Shift differential pay section.
2) Select one or more days to apply differential pay.
At least one day is required to save the rule.
3) Select the Percentage of hourly rate from the calculation method dropdown.
Percentage calculations automatically scale with the employee’s hourly rate.
4) Set the Start time and End time.
5) Enter the percentage to apply.
Configure Fixed amount per shift (Dollar amount)
Use this option to add a flat dollar amount to each qualifying shift.
Choose this method when the entire shift should trigger additional pay, regardless of the number of hours worked.
The differential applies only when the shift meets the defined start time and minimum length requirements.
Click steps to expand for additional information and images.
1) Navigate to the Shift differential pay section.
2) Select one or more days to apply differential pay.
At least one day is required to save the rule.
3) Select the Fixed amount per shift from the calculation method dropdown.
If the shift start time or minimum shift length does not meet the defined criteria, the differential is not applied.
4) Select Dollars from the amount type dropdown.
5) Enable AM Shift, PM Shift, or both.
AM and PM shifts are evaluated independently.
Enabling both requires validating parameters for each shift to prevent unexpected coverage.
6) Enter Shift starts before and Minimum shift length values.
7) Enter the fixed dollar amount.
Configure Fixed amount per shift (Hour amount)
Use this option to add paid hours at the job’s regular pay rate to each qualifying shift.
Choose this method when employees should receive additional paid time, rather than a flat dollar amount, for meeting shift criteria.
The differential applies only when the shift meets the defined start time and minimum length requirements.
Click steps to expand for additional information and images.
1) Navigate to the Shift differential pay section.
2) Select one or more days to apply differential pay.
At least one day is required to save the rule.
3) Select the Fixed amount per shift from the calculation method dropdown.
If the shift start time or minimum shift length does not meet the defined criteria, the differential is not applied.
4) Select Hours from the amount type dropdown.
5) Enable AM Shift, PM Shift, or both.
AM and PM shifts are evaluated independently.
Enabling both requires validating parameters for each shift to prevent unexpected coverage.
6) Enter Shift starts before and Minimum shift length values.
7) Enter the number of hours to add.
Save the rule
Confirm and review all fields in:
Name & locations
Shift differential pay
Click Save.
FAQ
Why don’t I see shift differential pay on a paycheck?
Shift differential pay applies only when all rule conditions are met. To confirm eligibility, check that:
The shift meets the required time and length criteria
The employee and location are assigned to the rule
The rule is active for the worked date
Reviewing these settings usually resolves the issue.
What happens if a shift meets more than one shift differential rule?
When a shift qualifies for multiple rules, all applicable differentials apply.
Reviewing overlapping rules helps ensure pay aligns with expectations and prevents unintended premiums.
Does the shift start time or the entire shift determine eligibility?
Eligibility is based on the defined shift start time and minimum shift length. When both conditions are met, the differential applies as configured.
Can I use more than one calculation method in the same rule?
Each shift differential rule uses one calculation method. If multiple methods are needed, creating separate rules keeps configurations clear and predictable.