Shift Differential

306.1 POLICY

Shift differential refers to the extra compensation a staff member receives for hours worked that are outside the hours of 8:00 a.m. to 5:00 p.m., Monday through Sunday.

A typical shift differential schedule would consist of hours worked between 5:00 p.m. and 8:00 a.m., Monday through Sunday. If six or more of a staff member's scheduled hours in a work day occur between the shift differential eligible hours of 5:00 p.m. and 8:00 a.m., the staff member qualifies for the differential. If less than six of the staff member's scheduled hours occur between the shift differential eligible hours, the staff member is not eligible to receive the shift differential. Weekend hours worked between 8:00 and 5:00 p.m. typically are not eligible for shift differential pay. However, under special circumstances, shift differential may be allowed between the hours of 8:00 a.m. and 5:00 p.m. on weekends with approval by the Compensation Office in the Division of Human Resources.

The shift differential is typically 10% of the staff member's regular hourly rate, but the amount may vary based on industry standards and according to job family. The amount must be approved by the Compensation Office in the Division of Human Resources.

306.2 PROCEDURE

The Administrative Unit Head or designee recommends the utilization of the shift differential, which must be equitably applied throughout the school/center, department, or unit. A letter must be submitted to the Compensation Office in the Division of Human Resources to establish or request any changes to the shift differential.

It is the responsibility of the supervisor to maintain all appropriate records, which identify and track schedules and hours that are eligible for shift differential.

Shift differential hours worked by regular full-time weekly-paid (non-exempt) and regular part-time staff members should be documented and approved by the staff member's supervisor and Administrative Unit Head or designee. The differential is recorded in PennWorks.

In accordance with current industry standards, full-time and part-time monthly-paid (exempt) staff members in certain job families may be eligible for shift differentials. The PennWorks Additional Pay Module is used to process shift differentials for monthly-paid (exempt) staff members. This module can be found online here. To be processed, approval documentation from the supervisor, Administrative Unit Head or designee must be attached.

306.3 INCLUSION IN REGULAR RATE OF PAY FOR OVERTIME

Shift differential pay must be included in the regular rate of pay for the calculation of overtime pay for weekly-paid (non-exempt) staff members. The regular rate of pay is calculated by determining the staff member's total pay for the workweek, including base rate, shift differential pay, etc. and dividing by the total number of hours worked. The staff member is paid one and one-half times the regular rate of pay for all hours worked over forty in the workweek.

306.4 PAID TIME OFF (PTO), HOLIDAY, AND SICK TIME

To receive the shift differential for PTO, Holiday, and Sick Time, a staff member must work on a shift differential eligible shift both the day before and the day after his/her day off.

306.5 UNIVERSITY STAFF WHO ARE COVERED BY COLLECTIVE BARGAINING AGREEMENTS

University employees covered by collective bargaining agreements should refer to the appropriate article in their contract.




Policy Number: 306
Effective Date: 08/11/2016
Supersedes Policy Number(s): 306 (09/01/1992, 04/21/2005)
Applicability: All Regular Staff Members
Cross-reference: Policy 302, Policy 605, Policy 607, Policy 612


Policy Manual Disclaimer