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What is shift differential?
Shift differential is when an employee who works a less desirable shift (such as late-night closing or early morning opening shifts) is given extra compensation. This compensation is most common in the form of extra pay or additional paid time off.
Why is shift differential needed?
It is not required by law to offer shift differential, but a business owner or manager may choose to do so in order to improve schedule management and employee retention. If a shift does not get picked up, it is better for workplace culture and employee satisfaction for the manager to offer an incentive rather than forcing an individual employee to take it.
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