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What Is a Shift Differential? [+ Free Policy Template]

Shift differential is non-mandatory premium pay offered by a company to eligible employees. Neither the Fair Labor Standards Act (FLSA) nor any state laws require shift differential. However, some businesses offer this premium pay to employees in various situations as an added benefit for working under certain conditions such as overnight or holiday shifts. We offer tips on creating your own shift differential policy below, along with a free template you can use.

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