Weekend premium: Overview, definition, and example
What is a weekend premium?
A weekend premium is additional compensation paid to employees for working during weekends, typically when their regular work schedule falls on weekdays. This premium is often offered as an incentive to encourage employees to work outside of regular business hours, especially in industries where weekend work is necessary, such as retail, hospitality, healthcare, or manufacturing. The premium may be calculated as a percentage of the regular hourly rate or as a fixed amount added to the employee’s wages for the hours worked on the weekend.
For example, an employee who normally earns $15 per hour may receive a weekend premium of 1.5 times their regular hourly rate for hours worked on Saturday or Sunday, bringing their pay to $22.50 per hour for those shifts.
Why is a weekend premium important?
A weekend premium is important because it helps compensate employees for working during non-traditional hours, which may interfere with their personal time, such as family commitments or recreational activities. It acts as an incentive for employees to work during weekends when staffing needs are higher but workers may be less inclined to work due to personal or social reasons. For employers, offering a weekend premium can help ensure adequate staffing, maintain productivity, and attract or retain workers willing to work outside the standard workweek.
For businesses, especially those that operate around the clock, weekend premiums can be a valuable tool in ensuring that operations continue smoothly without compromising employee morale.
Understanding weekend premium through an example
Imagine a retail store that operates every day of the week. The store manager offers a weekend premium to employees who work on Saturdays and Sundays to ensure the store is fully staffed during peak shopping times. Employees who normally earn $12 per hour receive a 1.5x weekend premium, bringing their hourly pay to $18 for shifts on the weekend. This encourages staff to take weekend shifts and helps the store maintain adequate staffing levels.
In another example, a hospital offers a weekend premium to nurses working the weekend night shift. Nurses typically earn $30 per hour, but with the weekend premium, they receive $45 per hour for shifts worked on Saturday and Sunday nights, which incentivizes them to take on these shifts and ensure the hospital is properly staffed during critical times.
An example of a weekend premium clause
Here’s how a weekend premium clause might appear in an employee agreement:
“Employees who work on Saturdays and Sundays will receive a weekend premium of 1.5 times their regular hourly rate for all hours worked on these days. This premium is applicable to all employees covered by this Agreement who are scheduled to work on the weekend.”
Conclusion
A weekend premium is an important benefit that compensates employees for working outside of regular business hours. By offering extra pay for weekend shifts, employers can motivate employees to take on these shifts, maintain operational efficiency, and improve employee satisfaction. It is especially valuable in industries that require weekend coverage and helps ensure that businesses can meet their staffing needs while compensating employees for their time.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.