What does your shift differential really pay?

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Why the differential belongs in your overtime rate

The FLSA says overtime is 1.5 times your regular rate, not your base rate. The regular rate is all pay for the week (base plus shift premiums plus most bonuses) divided by all hours worked. So a $20 base with a $2 night premium on every hour has a $22 regular rate, and overtime is paid at $33, not $30.

When only some hours carry the premium, the regular rate is a blend, which is why this tool asks how many hours were on the differential shift. The last line in the result shows what you would be shorted if payroll computed overtime from base pay alone. Over a year of regular overtime that line is real money.

Percent vs dollar differentials

Manufacturing tends to use a flat dollar amount ($1 to $3 an hour is common for second and third shift). Healthcare and hospitality lean toward percentages (10% to 15% is typical for nights). Neither is required by law; it is whatever the employer's policy or the union contract says. Once it is policy, it is wages, and the overtime math above applies.

What this does not cover

Daily overtime (California, Alaska, Nevada, Colorado), double time, weighted averages across two different jobs at one employer, and premiums that are paid as a fixed weekly amount rather than per hour. Those all change the regular-rate math.