Double Time Pay
Double time pay is the payment of a worker at twice their normal hourly rate. Under Federal law, double time is not guaranteed by statute; however, it may exist under a state’s wage laws, employer’s policies, or agreements with labor unions (collective bargaining agreements). Generally speaking, double time will only be applicable to hours that exceed certain defined limits, including:
- Hours worked in a day exceed an established limit (i.e., 8 hours);
- Hours worked in a week exceed an established limit (i.e., 40 hours); and/or
- Hours worked on designated holidays/rest days as required by law/employer policy.
Holiday Pay and Federal Law
If an employee works on a federal holiday, they do not automatically qualify for overtime pay or double time pay because day of work is not considered as a public holiday under the Fair Labor Standards Act (FLSA). The fair labor Standards Act (FLSA) treats holidays as regular working days, while working on a public holiday does not automatically qualify employees for overtime or double time pay.
Employer Holiday Pay Policies
All federal level employees who receive holiday premium payments, as a result of working on a federal holiday, must be provided in writing by their employer in the following manner,
- What all holidays are recognized by the employer,
- What employees will be required to work on each of the recognized holidays,
- Which employees will be entitled to paid holiday leave,
- What are the premium payment rates (time and one-half; or, double-time) for working on each recognized holiday,
- What will constitute a day-off or compensatory time for working on each recognized holiday.
Documentation is vital for compliance and preventing conflicts.
When Double Time May Apply
While federal law does not mandate double time, certain states impose additional requirements. For example, California requires:
- Time and a half for hours worked over 8 in a workday
- Double time for hours worked over 12 in a workday
- Double time for hours worked beyond 8 on the seventh consecutive day of work in a workweek
Other states may follow different or no daily overtime standards.
Calculating Premium Pay
Single Hourly Rate
An employee earns $20 per hour and works 50 hours in a week.
- Regular pay: 40 × $20 = $800
- Overtime pay: 10 × ($20 × 1.5) = $300
Total compensation: $1,100
(Double time would apply only if required by state law or policy.)
Multiple Hourly Rates
An employee works two roles for the same employer:
- 20 hours at $20/hour
- 30 hours at $30/hour
Total straight-time earnings: $1,300
Total hours worked: 50
Regular rate: $1,300 ÷ 50 = $26
Overtime premium:
10 × ($26 × 1.5) = $390
Total compensation: $1,690