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MU Health Care Premium Pay Changes
Effective date:
July 5, 2026 (All Hours Premium phase I); September 6, 2026 (Extra Shift Incentive ends); January 3, 2027 (All Hours Premium phase II)
Who does this impact?
All Hours Premium: This change applies to non-union MU Health Care employees who currently receive the All Hours Premium.
Extra Shift Incentive: This change applies to all MU Health Care employees who currently receive the Extra Shift Incentive.
What is changing?
MU Health Care is reducing two pandemic-era premium pay programs through a phased process. These programs were introduced as temporary measures early in the pandemic and are not part of base compensation.
All Hours Premium
- The All Hours Premium is an additional pay supplement added on top of your base hourly rate.
- It will be reduced in two phases, calculated from your current rate as of June 1, 2026:
- July 5, 2026: Reduced by 25%
- Jan 3, 2027: Reduced by 75%
- Example: if your All Hours Premium rate as of June 1, 2026 is $10.00/hour, it will change to:
- $7.50 on July 5
- $2.50 on January 3
- Continuation of the All Hours Premium will be evaluated March 1, 2027.
Extra Shift Incentive
- The Extra Shift Incentive is a pay supplement for picking up additional shifts.
- It will be reduced in two phases, calculated from your current rate as of June 1, 2026:
- July 5, 2026: Reduced by 25%
- September 6, 2026: Program ends
Summary of Changes
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Program
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Phase I
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Phase II
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Example (if current rate = $10.00/hr)
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All Hours Premium
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Reduced by 25%
July 5, 2026
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Reduced by 75%
January 3, 2026
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July 5: $7.50/hr
Jan. 3: $2.50/hr
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Extra Shift Incentive
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Reduced by 25%
July 5, 2026
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Program ends
Sept. 6, 2026
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July 5: $7.50/hr
Sept. 6: Ends
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Why is premium pay changing?
- These premium pay programs were introduced during a unique and highly volatile period in health care — they were always intended as a temporary, emergency measure, not a permanent component of compensation
- The conditions that drove them —pandemic-era staffing shortages, heightened operational demands and risks — no longer exist at the same scale
- As those conditions have stabilized, continuing these premium pay programs indefinitely is no longer financially sustainable or aligned with their original purpose
- This decision is consistent with what peer organizations across the country have done as conditions have normalized
Frequently Asked Questions
What is the All Hours Premium and how is it changing?
The All Hours Premium is a pay supplement added on top of your base hourly rate. It is being reduced in two steps. On July 5, 2026, it will be reduced by 25% of today's rate. On January 3, 2027, it will be reduced by 75% of today's rate – a cumulative 75% reduction.
Example: If your All Hours Premium is $10.00 per hour today, on July 5 your rate becomes $7.50 per hour. On January 3, your rate becomes $2.50 per hour.
The All Hours Premium program will be evaluated for continuation on March 1, 2027.
What is the Extra Shift Incentive and how is it changing?
The Extra Shift Incentive is a pay supplement for picking up additional shifts. It is being reduced by 25% on July 5, 2026, and will end completely on September 6, 2026.
Example: If your Extra Shift Incentive is $10.00 per hour today, on July 5 your rate becomes $7.50 per hour. On September 6, the incentive ends.
Is my base pay being reduced?
No. Base pay rates are not being reduced as part of this change. Premium pay is separate from base compensation.
Why are these changes being phased in rather than implemented all at once?
The phased approach is intentional — it gives employees time to see the changes coming and plan accordingly rather than absorbing the full impact at once.
Why are premium pay programs changing?
These programs were introduced during the pandemic to respond to emergency conditions that no longer exist at the same scale. Continuing them as is and indefinitely is not financially sustainable and is no longer aligned with their original purpose.
Are benefits or differentials changing?
Benefits changes are part of the broader financial recovery effort and are addressed separately.
Differentials are not changing.
How does this compare to other health care organizations?
Many health care organizations across the country have already eliminated or are in the process of eliminating pandemic-related premium pay as conditions normalize.
When will premium pay end?
Extra Shift Incentive will conclude on September 6; the full 75% reduction in All Hours Premium pay will be completed by January 3, 2027 and will be evaluated for continuation on March 1, 2027.
Why can’t we keep premium pay and cut costs elsewhere?
Premium pay programs were implemented to address a temporary condition that has normalized and was never intended to be permanent. Reducing or eliminating temporary pay programs helps preserve long-term investments in patient care and general wage increases, merit and market adjustments.
What support is available if this change impacts me financially?
Employees are encouraged to speak with their leader or HR partner, review financial wellness resources, and explore available benefits and support programs.