Shift differential rules define additional pay for employees who work specific days, times, or shifts. These rules allow organizations to compensate employees differently based on when they work, such as overnight or weekend shifts.
Use shift differential rules to:
Apply extra pay to qualifying hours
Configure pay as a dollar amount, percentage, or fixed amount
Assign rules to specific locations and days of the week
Security
Users must have the following permission to access Shift Differential rules:
Labor → Labor Rules → Shift Differential Rules → View 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.
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Navigation Menu
Select Admin from the left navigation rail.
Expand the Workforce category.
Select Labor Rules.
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Enter all or part of the page name in the R365 global search bar.
Select the page from the results list.
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Shift Differential Buttons and Fields
Name & locations, Shift differential pay
Button/Field | Description | |
|---|---|---|
1 | New shift differential rule | Displays the screen for creating a new shift differential rule within Labor rules. |
2 | Cancel | Closes the screen without saving changes. |
3 | Create | Saves the rule and creates the shift differential configuration. |
4 | Close | Exits the screen without completing the action. |
5 | Section navigation | Indicates the currently displayed section. Click to navigate to the desired section. |
6 | Name | Defines the name of the shift differential rule. |
7 | Locations | Selects the locations where the rule applies. |
8 | Days of week selector | Allows selection of one or more days when the shift differential pay applies, with at least one day required. |
9 | Calculation method | Selects how shift differential pay is calculated. Options include:
|
Dollar amount per hour calculation
Button/Field | Description | |
|---|---|---|
1 | Start time | Defines the beginning time used to calculate qualifying hours for the dollar amount. |
2 | End time | Defines the ending time used to calculate qualifying hours for the dollar amount. |
3 | Dollar amount | Specifies the dollar amount applied to each qualifying hour worked. |
Percentage of hourly rate calculation
Button / Field | Description | |
|---|---|---|
1 | Start time | Specifies the start time for the shift differential calculation window. |
2 | End time | Specifies the end time for the shift differential calculation window. |
3 | % of hourly rate | Defines the percentage of the employee’s hourly rate used to calculate the shift differential. |
Fixed amount per shift calculation
Use this option to add a fixed amount or fixed hours to each qualifying shift.
Choose how the fixed shift differential is applied:
Dollars: Adds a flat dollar amount
Hours: Adds paid hours at the job’s pay rate
Button/Field | Description | |
|---|---|---|
1 | Select amount type | Sets whether the fixed shift differential is calculated as hours at the job’s pay rate or as a fixed dollar amount. |
2 | AM Shift | Enables shift rules for shifts that start between 12:00 am and 11:59 am. |
3 | AM Shift parameters | Defines the start time threshold, minimum shift length, and fixed dollar amount applied to qualifying AM shifts. |
4 | PM Shift | Enables shift rules for shifts that start between 12:00 pm and 11:59 pm. |
5 | PM Shift parameters | Defines the start time threshold, minimum shift length, and fixed dollar amount applied to qualifying PM shifts. |