Double-time pay is the highest rate of premium compensation an employee can earn, calculated as twice the regular hourly rate (2x). This rate is significantly higher than the standard “time-and-a-half” overtime rate (1.5x). Double time is not a federal requirement and only applies in specific circumstances mandated by state law or established through a company’s policy or contract. Employees must look to state-specific labor laws to determine their eligibility.
The Federal Wage and Hour Baseline
The Fair Labor Standards Act (FLSA) establishes the fundamental wage and hour regulations for most of the American workforce. Under the FLSA, nonexempt employees must be paid overtime at a rate of at least one and one-half times their regular rate of pay (time-and-a-half) for all hours worked over 40 in a single workweek. The federal standard focuses exclusively on the total number of hours worked during the seven-day workweek period.
The FLSA does not require employers to pay a premium rate for hours worked beyond eight in a single day, nor does it mandate a higher rate for work performed on weekends or holidays. Any requirement for a pay rate of two times the regular wage is established entirely by state or local law, or by an employer’s own voluntary policy.
Which States Mandate Double Time Pay
Only a few states require double-time pay, with California having the most comprehensive and well-known requirements. California mandates the payment of two times the regular rate of pay when a nonexempt employee works an excessive number of hours in a single day or works late into a consecutive workweek.
Working More Than 12 Hours in a Single Day
In California, double-time pay is required for all hours worked beyond 12 in any single workday. After the first eight hours are compensated at the regular rate, the next four hours (hours nine through twelve) must be paid at the time-and-a-half rate. Once an employee crosses the 12-hour threshold, every subsequent hour worked in that 24-hour period must be compensated at two times their regular pay rate.
Working a Seventh Consecutive Day in a Work Week
The second trigger for double-time pay relates to consecutive workdays within a single workweek. If a nonexempt employee works a seventh consecutive day, the first eight hours worked on that day must be paid at the time-and-a-half rate. Any hours worked beyond the eighth hour on that seventh consecutive day must be compensated at the full double-time rate.
How to Calculate Double Time Wages
Calculating the double-time wage is a straightforward mathematical process that involves multiplying the employee’s regular rate of pay by two. For instance, if a nonexempt employee’s regular hourly rate is $25.00 per hour, their double-time rate would be $50.00 per hour. If this employee works 14 hours in a single day, their pay would be calculated based on three different rates.
The first eight hours are paid at the regular rate ($25.00 per hour). The next four hours (hours 9 through 12) are paid at the time-and-a-half rate ($37.50 per hour). The final two hours (hours 13 and 14) are paid at the double-time rate ($50.00 per hour). Employers must ensure all components that make up the regular rate, such as certain bonuses or commissions, are included before calculating the premium rate.
Common Exemptions to Overtime Rules
Many employees are excluded from receiving both standard overtime and double-time pay because of exemptions established under the FLSA. The most common are the “white collar” exemptions, which apply to executive, administrative, and professional employees. To qualify as exempt, these employees must meet specific tests related to their salary level, be paid on a salary basis, and primarily perform certain job duties.
Executive Exemption
Executive employees must have a primary duty of managing the enterprise and customarily direct the work of at least two or more full-time employees.
Administrative and Professional Exemptions
Administrative employees must perform office or nonmanual work directly related to the management or general business operations of the employer. The professional exemption applies to employees whose primary duty requires advanced knowledge in a field of science or learning, or involves work in a recognized artistic field. Other exemptions also exist for outside sales employees and for highly compensated employees.
Daily Overtime Rules That Are Not Double Time
While some states require double time for excessive hours, other states mandate daily overtime at only the time-and-a-half rate. These laws require employers to pay 1.5 times the regular rate for hours worked over a specific daily limit. States like Alaska and Nevada require overtime pay after eight hours worked in a single day for many nonexempt employees.
In Alaska, nonexempt employees must receive time-and-a-half for all hours worked over eight in a day or 40 in a workweek. Nevada also mandates daily overtime at the time-and-a-half rate after eight hours, though this rule generally only applies to covered employees earning less than one and one-half times the state minimum wage.