Reference tool for payroll scenarios.

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Shift Differential Calculator

Calculate the FLSA regular rate of pay when shift differentials are involved, and determine the correct overtime premium.

Shift Details

Shift rate: $22.00/hr

Hours Worked

8 overtime hours this week

Total Gross Pay

$1,074.67

48 total hours (8 OT)

Base Pay (32 hrs × $20.00)$640.00
Diff Pay (16 hrs × $22.00)$352.00
OT Premium (8 hrs × $10.33)$82.67
Total Gross$1,074.67
FLSA REGULAR RATE
$20.67/hr

Weighted average of all hours

CORRECT OT RATE
$31.00/hr

1.5 × regular rate

⚠️
Potential Underpayment: $2.67

Using the base rate alone ($20.00/hr) for OT instead of the FLSA regular rate ($20.67/hr) would underpay by $2.67 this week.

FLSA Regular Rate & Shift Differentials

Under the Fair Labor Standards Act, shift differentials must be included in the "regular rate of pay" calculation for overtime purposes. The regular rate is computed as Total Straight-Time Compensation / Total Hours Worked. The overtime premium is then 0.5× the regular rate for each OT hour (the straight-time portion is already paid).

A common mistake is to calculate overtime using only the base hourly rate, ignoring the differential. This results in underpayment and potential FLSA liability.

Base Rate
$20.00
Shift Rate
$22.00
Regular Rate
$20.67

Disclaimer: For estimates only. Some states have additional overtime requirements (e.g., daily overtime in California). This tool calculates the federal FLSA regular rate only. Consult a payroll professional for compliance decisions.