A differential assembly includes a side gear configured to receive torque and a wedge clutch. The wedge clutch includes a hub configured to connect with a shaft and a wedge element radially disposed between the hub and the side gear. The wedge element has an inner surface seated on the hub and an outer surface engageable with the side gear. The wedge element is radially expandable and has a rested state in which the side gear and the hub are rotatable relative to each other and an expanded state in which the side gear and hub are rotationally locked to each other.