What is Double Time Pay?
Double-time pay is a pay rate that is twice the employee’s normal pay rate. Employees who work overtime may be allowed to double pay or holiday pay if they are working on federal.
Double time pay is only given for hours worked past a certain threshold, such as
- Working more than 8 hours per day.
- Working on holidays or weekends.
- Working more than a specified number of hours per week.
Is Holiday Pay Double Time?
A holiday is not specifically excluded from overtime pay under federal law, nor is working on a holiday considered overtime. Holidays are treated like any other business day under federal law.
Make a policy for holiday pay
- If workers must work a predetermined number of holidays each year.
- Whether paid vacation time is available.
- premium pay rate for holidays.
- Days off that apply.
How Much is Double-Time Pay?
Overtime pay eligibility might be difficult to calculate. Accordingly, if workers clock in more than 40 hours during the week of a typical paid holiday, such as,
- Good Friday
- New Year’s Day
Additionally, there is a daily overtime standard in California and a few other states. Employees are entitled to “time and a half” for each hour worked on any day they put in more than eight hours.
How to Calculate Double-Time Pay?
Since it will be the starting point after that calculation, we need to determine the employee’s regular hourly pay rate before accurately calculating overtime pay.
One hourly rate
A worker makes $20 per hour and puts in 50 hours weekly. They receive compensation for overtime.
$20 times 1.5 (overtime rate) times 10 (overtime) hours equals $300.
$800 + $300 = $1100 (total)
Multiple hourly rates
An employee works two jobs at two different rates for the same employer. They put in 20 hours at $20 per hour and 30 hours at $30 per week. with overtime pay calculated.
$20 for 20 hours and $30 for 30 hours equals $1300.
$1300 / 50 hours = $26
10 hours at the overtime rate of 1.5 times the regular rate of $26 equals $390.
$1300 + $390 = $1690 (total)