The Shift Differentials Policy feature provides the ability to set up a Shift Policy that when worked by an employee will modify the rate of pay for the time worked. For example, if there is a shift that is set up for the middle of the night and the employees get paid more for working that shift then Shift Differential Policy can be used to accomplish the modification of pay. The shift differential will adjust the employee’s usual pay rate either by changing the paycode or by adjusting the modifier of their current hourly gross pay rate.
Any user with permissions to Add/Update Policies will be able to create Shift Differential Policies.
- Go to the Policy Tab of your account.
- Click on Create Policy next to the Shift Differential Policies section.
- Enter the Shift Differential Policy name, this name will be used as the main policy name.
- Enter as many Rules as needed to set up different modification rules for different times and days by clicking on Add a New Differential Rule on the bottom right of the section.
- Enter the Name of the Rule.
- Set the Start Time and End Time for the Differential Rule.
- Set the Minimum Time to be Worked for the policy to apply.
Note: All Differential Rules which run into a Second Day, must be applied to the day the first IN clocking is made.
See the Table, over to the right, for an example:
- Select a Pay Code for the Differential Rule, or enter a custom Pay Code by selecting Add New Pay Code.
Note: If you selected to add a custom Pay Code, in the modal, enter the Pay Code Description and the Pay Code and click Save or Cancel.
- Enter the Modifier to be applied to the pay rate if different from the default value of 1.5.
- Select the days for the Differential Rule to be applied. Each Differential Rule may have different days.
- Select the Allow Override option to allow Differential Modifiers to override any Overtime Rules that overlap with the Differential Rules.
- Once all the Differential Rules have been added to the Shift Differential Policy you can click on Save.
- Go to the department or to the individual user to apply the Policy’s created. As policies can be applied to Departments or to individuals, create the necessary Shift Differential Policies for Departments or for individuals.