Shift Differential Pay: A Worked Example

Pay · Updated October 8, 2026

By Work Hours Desk editorial team. This guide is an educational calculation example, not a legal determination.

Suppose a worker has 30 daytime hours at $20 and 10 night hours with a $2 differential. Straight-time earnings are 30 × $20 + 10 × $22 = $820. Dividing $820 by 40 worked hours gives a $20.50 weighted average for this simple example.

Why overtime gets more complex

If overtime is also worked, the federal regular rate may include differentials and other nondiscretionary compensation. A single-rate calculator cannot determine every adjustment. See the DOL regular-rate fact sheet and compare the employer's payroll method.

Example at a glance

Entered time or pay	Adjustment	Result
30 h × $20 + 10 h × $22	40 hours worked	$820 straight-time pay

Try your own values

Use the related calculator and compare the result with your original time and pay records.

Common questions

Can I use this number for payroll?

Treat it as a check, then verify the relevant pay policy and official records.

Does this replace legal guidance?

No. The linked official agency provides the rule; this page explains an example.

Estimates are for reference only, not payroll or legal advice. Check your records and applicable rules.