During an interview with a potential employee, the nurse manager tells the individual that an additional 10 percent of the hourly rate will be paid for working the 11:00 P.M.-7:00 A.M. shift. This increase in the hourly rate is known as:
1. Overtime.
2. Shift differential.
3. Premium.
4. Cost-of-living.
2
Explanation: 1. Most facilities use a set percentage to be paid to personnel who work evenings, nights,
weekends, and holidays, which is known as a shift differential. Overtime is paid to personnel
who work more than 40 hours per week. Historically, overtime is calculated by multiplying the
amount of overtime worked by 1.5 times the hourly rate. Premiums are fixed dollar amounts
added to the base rate of an employee who has earned a certification or has some advanced
clinical achievement. Cost-of-living raises are factored into budget projections and are not
related to shift work.
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