Double Time Pay

The Ins and Outs of Double Time Pay

Getting paid double time is a nice perk for employees, but not all jobs offer it. So what exactly is double time pay, and when are employees entitled to it? Let’s break it down.

What is Double Time Pay?

Double time pay refers to getting paid twice your normal hourly wage. For example, if you usually make $20 per hour, you would get $40 per hour when working double time hours. It’s a way for employees to earn extra money for working longer days or undesirable shifts.

Common Situations for Double Time Pay

Some of the most common situations where employees can earn double time wages include:

• Working more than 8 hours in a day (overtime hours)
• Working weekends or holidays
• Working overnight shifts or very early morning shifts (such as midnight to 8am)

So if you normally make $15 per hour and pick up an overnight double time shift, you would make $30 per hour instead.

Is Overtime Pay the Same as Double Time?

Overtime pay and double time pay sound similar, but they aren’t the same. Overtime pay refers to working more than 40 hours per week and getting paid 1.5 times your normal wages for those extra hours. Double time means getting paid twice your normal hourly rate, often for working holidays, overnight shifts or after a certain threshold of overtime hours.

For example: If you make $18 per hour normally:

• Overtime pay would be $27 per hour (1.5 times $18)
• Double time pay would be $36 per hour (2 times $18)

So double time gives you more bang for your buck! But not all jobs offer it – overtime pay is much more common.

Who Qualifies for Double Time Pay?

There’s no federal U.S. law requiring double time pay. Eligibility depends a lot on your state laws, as well as your employer’s policies.

Union employees often have double time provisions built into their contracts. For example, construction workers, electricians, plumbers and factory workers may get double time for working Sundays, holidays or excessive overtime hours.

Some common employee groups who qualify for double time include:

• Union workers
• First responders (firefighters, paramedics, police officers)
• Hospital employees (doctors, nurses, medical technicians)
• Transportation workers (truck drivers, railroad employees, flight crews)
• Manufacturing and factory workers
• Electrical workers
• Construction workers

State laws may also require double time pay for certain industries. And some generous employers offer it even without a legal mandate.

Exempt vs. Non-exempt Employees

Most employees entitled to overtime pay and double time are “non-exempt.” This means they are hourly workers, eligible for overtime under the Fair Labor Standards Act (FLSA).

Exempt salaried employees in executive, administrative or professional roles don’t qualify for overtime or double time. Their fixed salary is intended to cover all the hours they work.

What Are an Employer’s Obligations for Double Time Pay?

For union employees, double time provisions should be spelled out in the collective bargaining agreement. So the employer must abide by what they agreed to.

For non-union workers, state laws and company policies will determine eligibility. Some states like California, Oregon and Nevada require double time for certain workers or situations.

If an employer doesn’t pay proper overtime or double time wages, employees may file wage claims or lawsuits to recover unpaid earnings. Big penalties, fines, attorney’s fees and liquidated damages may also apply against non-compliant employers.

Exempt Employees

For exempt salaried employees, who don’t qualify for overtime or double time, an exception exists. If the employer improperly classifies them as “exempt” when they should be non-exempt, legal action can be taken to claim owed wages.

For example, some employers misclassify lower level workers as managers just to avoid paying overtime. This violates state and federal wage laws. Consulting an attorney is wise if exempt classification seems questionable.

How is Double Time Pay Calculated?

Figuring regular rates of pay for overtime and double time can get tricky. Different rules apply depending on whether someone is paid:

• Hourly
• Salary
• Shift rates
• Commissions
• Piece work rates

The DOL’s guidance helps explain the nuances. But let’s walk through some basic double time examples.

Hourly Employees

For hourly workers, figuring double time is straightforward: You take the regular hourly pay rate and multiply it by 2. For example:

• Regular pay: $22/hour
• Double time rate: $22 x 2 = $44/hour

So whenever the hourly employee works in a double time situation, they would earn $44 for each of those hours, instead of the regular $22 per hour.

Salaried Employees

For salaried employees who work overtime, their adjusted hourly rate must be calculated before figuring overtime and double time rates. The steps are:

1. Take annual salary and divide it by 52 weeks per year = weekly salary
2. Divide weekly salary by number of hours the salary was intended to cover (often 40 hours for full-time employees)
3. This gives the regular “hourly rate of pay” to use for calculating overtime and double time

Let’s walk through an example:

• Annual Salary: $52,000
• Weekly Salary: $52,000/52 = $1,000
• Regular Hourly Rate: $1,000/40 = $25 per hour
• Overtime Rate: $25 x 1.5 = $37.50 per overtime hour
• Double Time Rate: $25 x 2 = $50 per double time hour

So this salaried employee would earn $50 per hour when working approved double time hours.

Questions to Ask About Double Time Pay

To understand if and when you qualify for double time wages at your job, here are key things to find out from your employer:

1. Does my employer pay double time rates for any hours worked? If yes, what are the specifics?
2. Am I eligible for double time pay? Or does it only apply to certain roles or seniority levels?
3. What hours or situations qualify for double time at my company? Overtime hours? Weekends? Holidays? Shift work?
4. How is my double time rate calculated if I’m paid hourly, salary, commissions, etc?
5. Does my employer follow any state or local laws requiring double time pay?
6. Is double time pay addressed in my union contract or employee handbook?

Knowing policies up front prevents confusion and ensures you get paid properly for all hours worked. A bit of upfront research goes a long way.

The Bottom Line on Double Time Pay

Getting double time wages is a nice perk for employees willing and able to work less desirable hours. Before expecting extra pay, though, be clear on your employer’s policies and obligations. And understand exactly which hours or situations qualify in your particular job.