What are Night Hours (night shift) in Payroll and how do they work?
Night hours refer to the period of time during which, according to labor laws, an employer must pay employees at a higher rate for work performed at night.
How the Calculation Works
In Clockster, you can set:
The time range considered as night hours (for example, 10:00 PM – 6:00 AM)
The night shift pay multiplier (for example, 1.5 or 2.0)
Example
Let’s say:
Employee schedule: 6:00 PM – 12:00 AM
Hourly rate: $10
Night shift multiplier: 2.0
Night period: 10:00 PM – 6:00 AM
In this case:
From 6:00 PM – 10:00 PM, each hour is paid at the normal rate — $10/hour
From 10:00 PM – 12:00 AM, each hour is paid at the higher rate — $10 × 2 = $20/hour
Important Notes
If the employee does not work during the night period, the higher rate does not apply.
The multiplier can be adjusted according to your company’s policy.
Night hours are displayed separately in payroll calculations and included in payroll reports.
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