Double time pay is compensation at twice an employee's regular hourly rate. Federal law does not require itâ€â€the FLSA mandates only time and a half over 40 hours in a workweekâ€â€so double time comes from state law, union contracts, or an employer's own policy.
California is the best-known source of a statutory requirement, mandating double time after 12 hours in a workday and after eight hours on the seventh consecutive day worked in a workweek. A small number of other jurisdictions have specific rules, and many collective bargaining agreements provide double time for holidays, Sundays, extended shifts, or call-outs. Absent one of those sources, an employer that pays double time is doing so voluntarily, in the same way that premium pay for work on a federal holiday is a policy choice rather than a federal requirement.
Once promised, though, it becomes an enforceable term of the pay arrangement, and state wage payment laws treat unpaid promised premium pay like unpaid wages. That is why the policy language matters: define exactly which hours qualify, whether holiday and PTO hours count toward the trigger, and how double time interacts with overtime so the same hour is not paid twice under two rules.
A related mechanical point is the regular rate. Overtime and double time must be computed on the regular rate of pay, which as the DOL fact sheet on the regular rate explains includes nondiscretionary bonuses, shift differentials, and commissions, not just the base hourly rate. Employers that pay double time on base rate alone while also paying a production bonus can still owe additional overtime. Note as well that federal proposals and recent legislation affecting the taxation of overtime pay change how certain premium wages are taxed, not whether they must be paid; the underlying obligation still comes from the FLSA, state law, or your policy.
No. The FLSA requires overtime at one and one-half times the regular rate after 40 hours in a workweek and says nothing about double time. Double time comes from state law, a collective bargaining agreement, or the employer's own policy. California is the best known state source of a statutory requirement.
You can change the policy going forward, but you cannot skip amounts already earned under it. Once promised, double time becomes an enforceable term of the pay arrangement, and unpaid promised premium pay is treated like unpaid wages under state wage payment laws. Announce changes prospectively and in writing.
Carefully, and your policy should say so. The same hour should not be paid twice under two different rules, so define which hours trigger double time and how they count toward the overtime calculation. Both premiums are computed on the regular rate, which includes nondiscretionary bonuses, shift differentials, and commissions.