Shift Differential

Shift Differential is additional compensation that is paid to employees (including temporary or part-time) who work specific, designated hours.  Shift differential pay is required for eligible employees who meet the established regulations.  (For more information, visit the IDHR Web site.)
 
There are two options regarding shift differential:
1. Agency Specific Shift Differential - An agency may choose to develop and define their shift structure.  Shift differential compensation shall be paid to eligible employees (applicable to each shift) at a rate of 1%, up to 25%.
 
2. Non-Agency Specific Shift Differential - Employees become eligible for shift differential compensation when fifty percent (50%) or more of an employee's assigned hours in a work week occur between 6:00 p.m. and 7:00 a.m. Shift differential compensation shall be paid to eligible employees at a rate of 5% (Shift Code 'Y').
 
All employees have a shift differential indicator on their personnel record.  (Refer to Shift Indicator List)  The shift indicator on all new hires will default to an 'N' (Not Eligible).  If an employee is eligible for an extended period, the indicator can be updated appropriately on the employee's record.  If an employee occasionally meets shift pay eligibility, the time sheet can be updated to override the shift differential indicator for a particular week or weeks.  When the time sheet has an override to the shift indicator, the employee's personnel record will not change and the shift pay is calculated at 5%.  Shift differential compensation will be paid at the percentage rate coded on the employee's personnel record.  When an employee is eligible for the shift premium, the hours will be automatically calculated and generated by the payroll system with Earnings Code 'SFT'.
 
Refer to the Earnings Codes (ERN), Leave Accruals for which earnings codes are included in shift calculation. 
 
 
Other pertinent information on shift differential:
 
If there is a rate change during the pay period, the hours worked after the change will have a corresponding shift (SFT) earnings generated for the new rate.
 
An agency also has the option to pay additional shift pay on an 'Other Earnings' action using earnings code Shift Pay Other (SFO).  Shift pay is not calculated for hours entered on a 'Special Payment' action.  Earnings Code SFT cannot be coded on a 'Special Payment' action.
 
When a Covered Comp Time Payoff (CPP), Vacation Payoff (VCP) or Regular Hours Held Payoff (RHP) is submitted, the hours will not be included in calculating the shift pay.  Any generated payoff, when the employee terminates or transfers to another agency (ZVP, ZCP, ZEP, etc.) or payoff of the prior 6-month comp time (GCP) will not be included in calculating shift pay.
 
Use SFT when overrides to expenditure distribution on shift hours are required, or if paying shift hours for a prior pay period.  When the SFT code is used on the time sheet, all shift hours for the current pay period must be coded in addition to any prior pay period SFT hours.  In order to pay SFT hours on the time sheet, the shift indicator must be 'Y' on the employee's record or a shift override of '3' must be entered on the time sheet to make the employee eligible for shift pay.  When coding 'SFT' on a time sheet, only those hours will be paid at the shift percentage rate, regardless of the 'Overtime' indicator on the employee’s personnel record.
 
Employees who have positions with an FLSA code = 'B', 'D', 'E', 'J', 'N' or 'Q' are not eligible for shift differential pay.  If an IPOPS Personnel Change is submitted with a shift indicator other than 'N' and the employee's FLSA indicator is 'B', 'D', 'E', 'J', 'N' or 'Q', the IPOPS Personnel Change will be rejected.  If the shift override indicator entered on a time sheet is a 1, 2 or 3, and the FLSA code for that position is equal to 'B', 'D', 'E', 'J', 'N' or 'Q', the transaction will be rejected.
 
If FLSA code is 'E' or 'N', shift and overtime overrides cannot be changed on the time sheet.
 
If an employee's FLSA code is anything other than 'B', 'D', 'E', 'J', 'N' or 'Q' and the Time sheet Required Switch is 'N' with no hours coded, shift hours will not be generated.  Hours (ACT/REG, etc.) will need to be coded in order for the shift hours to be generated.
 
If the employee's shift indicator is set to anything other than 'N', Wage and Salary will use the appropriate percentage to calculate the shift pay for the budgeted salary and benefits at Fiscal Year End.
 
 
Regular Biweekly Employees
An employee can be set as eligible for shift pay on their personnel record or through payroll (I-TIME) using the shift override indicator.  For covered employees, (who are eligible for shift) overtime hours will be calculated at (time and one-half (1.5)).  For exempt employees, (who are eligible for shift) overtime hours will be calculated at (straight time (1.0)).  Shift hours will be paid on the full amount of overtime (including the extended hours for covered employees).  See examples below.
 
Example:
Week One ACT hours = 44
Week Two ACT hours = 44
Shift override of 1 (Pay Shift - week 1, No for week 2)
 
Results for Covered Employee
Week One
Employee Paid
REG hours - 40.0
Overtime hours - 6.0 (4 x 1.5)
Shift hours - 46.0
 
Week Two
Employee Paid
REG hours - 40.0
Overtime hours - 6.0 (4 x 1.5)
Shift hours - 0.0
 
Results for Exempt Employee
Week One
Employee Paid:
REG hours - 40.0
Overtime hours - 4.0 (4 x 1.00)
Shift hours - 44.0
 
Week Two
Employee Paid:
REG hours - 40.0
Overtime hours - 4.0 (4 x 1.00)
Shift hours - 0.0
 
 
28 Day Cycle Employees
An employee can be set as eligible for shift pay on their personnel record or through payroll (I-TIME) using the shift override indicator.  If a 28-day cycle employee is eligible for shift pay at any time during the 4-week cycle, shift pay will be paid on the extended overtime hours.
 
Example:
First Cycle
Week One ACT hours = 44
Week Two ACT hours = 40
Shift override of 1 (Pay Shift - week 1, No for week 2)
 
Second Cycle
Week One ACT hours = 44
Week Two ACT hours = 44
No Shift override
 
Results for 28 Day Cycle (Employee accrues overtime and RHH)
1st Cycle
Employee Paid:
Regular 80.0 hours
Regular Hours Held 4.0 hours accrued
Shift 44.0 hours
 
2nd Cycle
Employee Paid:
Regular (88 ACT - 12 overtime) 76.0 hours
GRT (bring hours paid to 80.0) 4.0
Overtime (total hours worked 172.0 - 160.0 = 12.0) = 18.0 hours (12 x 1.5)
SFT (18 - 12) 6.0 extended overtime