Page 1 of 2 1 2 LastLast
Results 1 to 10 of 11
  1. #1
    Join Date
    Apr 2020
    Posts
    3

    Default Overtime Pay for Shift Differentials

    My question involves labor and employment law for the state of: Louisiana. I have a clinical position in a hospital, but my department (laboratory) is contracted out so that I am not a hospital employee. My question is that since I am not technically an employee of the hospital, is my employer still required to use my differential pay to determine my "regular pay rate"?

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,393

    Default Re: Overtime Pay for Shift Differentials

    As far as the law is concerned, your employer is never required to provide a shift differential at all.

    What does your contract say?

  3. #3
    Join Date
    Apr 2020
    Posts
    3

    Default Re: Overtime Pay for Shift Differentials

    I am paid shift differentials every time I work. I understand my employer is not required to do so. That is not my question. I'll try to be more specific. I am paid OT (1.5x) for any hours over 40 in a workweek. Let's say I make $25/hr plus $7 differential for every hour I work. I work 60 hours. I will be paid 20 hours OT. What I want to know is what is my regular rate of pay from which the 1.5x (OT) is calculated? Is it $25 or $32 per hour? If $25, then my OT would be $37.50/hr. But if it's $32, then my OT rate is $48/hr. I do not have a work contract specifying anything about OT pay. There is a contract between my employer and the hospital, but it does not affect my pay.

  4. #4
    Join Date
    Feb 2014
    Location
    RTR/WDE
    Posts
    1,724

    Default Re: Overtime Pay for Shift Differentials

    What did the HR department of your employer (not the hospital) say when you asked them your question?
    Don't make me quote Monty Python at you.

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,393

    Default Re: Overtime Pay for Shift Differentials

    What shift do you regularly work?

  6. #6
    Join Date
    Feb 2008
    Posts
    1,173

    Default Re: Overtime Pay for Shift Differentials

    FLSA defines the regular rate of pay when shift differentials effect overtime. It doesn't matter what shift it is, etc, but rather all regular pay for all hours worked must be taken into account. Here you go directly https://www.dol.gov/agencies/whd/fac...hcare-overtime

    "The “regular rate” includes an employee’s hourly rate plus the value of some other types of compensation such as bonuses and shift differentials. The only remuneration excluded from the regular rate under the FLSA are certain specified types of payments like discretionary bonuses, gifts, contributions to certain welfare plans, payments made to certain profit-sharing and savings plans, and pay for foregoing holidays and vacations. A common error in calculating overtime pay by health care employers involve the failure to include bonuses, shift differentials and other types of compensation in the regular rate of pay. Errors are also common in the health care industry in calculating the regular rate when an employee works two or more different jobs in a single workweek."

  7. #7
    Join Date
    Oct 2016
    Posts
    4,001

    Default Re: Overtime Pay for Shift Differentials

    If you worked directly with the hospital the answer would be an almost certain yes.

    https://www.dol.gov/agencies/whd/fac...hcare-overtime
    Employers also must include shift differential pay when determining an employee’s regular rate of pay. See Regulations 29 CFR 778.207(b). The following examples provide guidance on how to calculate overtime for employees who receive shift differential pay.
    There is some chance that because you work for a contractor that isn't the case but I doubt that the DOL would provide such a large loophole for health care facilities to use.

  8. #8
    Join Date
    Feb 2008
    Posts
    1,173

    Default Re: Overtime Pay for Shift Differentials

    jinx on payrolguy....we were obviously thinking the very same thing at the same time! I too doubt there would be a ioophole for agencies, because shift diff is also considered for other industries (but i didn't go that far in my research). I would suggest the OP take our link back to HR and ask directly why it doesn't count and see what they say! I know a lot of HR/payroll depts that would sadly get this wrong!

  9. #9
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,393

    Default Re: Overtime Pay for Shift Differentials

    My reason for asking the shift was that if he works 3rd shift and the OT hours fell into what would normally be the day shift, that might be why his HR/Payroll is not including the shift differential. I agree that the differential should be included in the OT.

  10. #10
    Join Date
    Apr 2020
    Posts
    3

    Default Re: Overtime Pay for Shift Differentials

    Thanks everyone! All of my hours are either night or evening shift, so I get differentials every time I work. I will decide how to take it up with HR.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Compensation and Overtime: Calculation of Overtime When Paid a Flat Rate Per Shift
    By AJJ in forum Employment and Labor
    Replies: 5
    Last Post: 12-31-2017, 10:34 AM
  2. Compensation and Overtime: Mileage from Start Shift Location to Second End Shift Location
    By kenelwen in forum Employment and Labor
    Replies: 3
    Last Post: 01-31-2013, 07:05 PM
  3. Compensation and Overtime: Whan Are Shift Premiums Due for Shift Work
    By Beauchamp355 in forum Employment and Labor
    Replies: 9
    Last Post: 10-29-2012, 06:27 PM
  4. Compensation and Overtime: Shift Differentials
    By rorojen in forum Employment and Labor
    Replies: 4
    Last Post: 07-19-2009, 07:56 AM
  5. Compensation and Overtime: Third Shift Premium
    By jeanand55 in forum Employment and Labor
    Replies: 2
    Last Post: 05-19-2008, 05:35 PM
 
 
Sponsored Links

Legal Help, Information and Resources