What is Shift Differential?

A shift differential is additional compensation for working outside normal business hours. Common differentials: Evening shift (typically $1-$3/hr extra), Night shift ($2-$5/hr extra), Weekend shift ($1-$4/hr extra), Holiday ($5-$10/hr extra or double-time). Shift differentials are common in healthcare (nurses), manufacturing, security, and hospitality. They're fully taxable as regular wages and are included in overtime calculations.