HR Glossary | 4 minute read

Double Time Pay

Double time pay is wages at two times an employee's regular rate of pay for certain hours. A worker with a regular rate of $20 an hour earns $40 for each double-time hour. A state law, a union contract or an employer policy creates the obligation.

Many employers assume federal law requires double time. It does not. The Fair Labor Standards Act (FLSA) sets time and a half as its overtime premium, so double time is a higher tier that other rules add on top.

Does federal law require double time?

No. The Department of Labor's overtime page says covered nonexempt employees must receive at least one and one-half times their regular rate for hours over 40 in a workweek. The page does not mention double time.

The same page says the FLSA does not require extra pay for work on Saturdays, Sundays, holidays or regular days of rest, unless the hours are overtime hours. Any holiday or weekend premium you pay above that comes from state law, a contract or your own policy.

When does double time apply?

Three sources create it. The table shows how each one works, using California as the best-known state example.

Source	Typical trigger	Rate
Federal law (FLSA)	Hours over 40 in a workweek	1.5 times regular rate, no double time
California daily rule	Hours over 12 in a workday	2 times regular rate
California seventh-day rule	Hours over 8 on the seventh consecutive day of a workweek	2 times regular rate
Union contract or employer policy	Whatever the agreement states, such as holidays or extra shifts	Often 2 times, but set by the document

California's Division of Labor Standards Enforcement overtime FAQ lists these triggers. It also notes that exemptions and exceptions exist, so check the rule for your own workers.

Other states write their own overtime rules, so confirm yours with your state labor department.

How do you calculate double time pay?

Start with the regular rate, then multiply it by two for the double-time hours. Pay earlier hours at their own rates. Say a California nurse has a regular rate of $20 and works 13 hours in one day.

Hours 1 to 8 at $20: 8 x $20 = $160
Hours 9 to 12 at time and a half ($30): 4 x $30 = $120
Hour 13 at double time ($40): 1 x $40 = $40
Total for the day: $320

Compare a federal-only worker with the same $20 rate who works 50 hours in a week. That worker earns 40 x $20 plus 10 x $30, or $1,100. No hour reaches double time.

What mistakes do employers make with double time?

The most common error is watching only the weekly total. Daily triggers need a timekeeping setup that flags hours as they pile up in a single shift. HR Cloud's guide to time tracking compliance for hourly workers covers California's daily overtime rule and how to audit your records.

Other slips include doubling a base rate when the regular rate is higher, and forgetting that a union contract can add its own triggers. For a refresher on how straight time and premium hours differ, read the glossary entry on straight time vs. overtime pay.

Write every trigger into the handbook or agreement, and test your payroll setup with a sample shift before a holiday or busy season.

How should you write a double time policy?

If you offer double time beyond what the law requires, spell it out in writing. State the trigger, who qualifies, how hours are counted and whether it replaces or sits alongside other premiums. A vague promise invites disputes the first time a holiday shift runs long.

Once you promise it, the policy becomes what you owe. Ask your payroll provider to match the earning code, the multiplier and the cutoff to the wording. Review it each year, and tell the managers who approve extra shifts what those shifts will cost.

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Frequently Asked Questions

Q: Is double time the same as overtime?

A: Not quite. Overtime means premium pay for hours beyond a threshold, and time and a half is the usual rate. Double time is a higher premium that applies only when a state rule, contract or policy calls for it.

Q: Do salaried exempt employees get double time?

A: Employees who are exempt from overtime are generally not owed overtime or double time under wage law. A contract or policy can still promise it, so check the written terms.

Q: Is double time required on holidays?

A: Federal law does not require extra pay for holiday work. Holiday premiums usually come from employer policy or a union contract, so follow what your own documents promise and check your state's rules.

Q: How do you find the double time hourly rate?

A: Multiply the regular rate by two. If the regular rate is $18.50, double time is $37.00 an hour. Use the regular rate, not the posted base wage, when bonuses or differentials raise it.

Q: How does California's seventh-day rule work?

A: On the seventh consecutive day worked in a workweek, the first eight hours are paid at time and a half and any hours beyond eight at double time, according to the state's overtime FAQ.

Q: Does a double-time premium raise the regular rate?

A: DOL Fact Sheet #56A says premium pay for hours beyond eight in a day or 40 in a week can be left out of the regular rate. Confirm treatment with your payroll provider or counsel.