Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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What is the extra pay called that Tony receives for working on the third shift?

Differential pay
Hazard pay
Premium pay
Equity pay

The correct answer is: Premium pay

The extra pay Tony receives for working on the third shift is referred to as premium pay. This type of compensation is typically provided to employees who work less desirable hours, such as night shifts or weekends, which are often viewed as less favorable compared to regular daytime hours. Premium pay serves as an incentive for employees to accept these shifts, recognizing the potential inconvenience and disruption to their normal routines. In contrast, differential pay is often associated with variations in hourly rates for different types of work or additional job responsibilities rather than specific shifts. Hazard pay, on the other hand, pertains to additional compensation for work in dangerous or high-risk environments. Equity pay deals with compensation fairness among employees performing similar roles or with comparable qualifications. The context of working a third shift makes premium pay the most appropriate term for this situation.