Double Time Pay Explained: When It's Required and How to Calculate It

Managing hourly employees who work long shifts or weekends? Understanding double time pay could save you thousands in labor costs—or keep you compliant if you're in California. Double time means paying employees twice their regular rate, which is significantly more expensive than standard overtime at 1.5x.

This guide explains when double time is required by law, how to calculate it correctly (including the bonus trap most businesses miss) when running payroll, and practical strategies to avoid triggering unnecessary double time hours. Whether you're legally required to pay it or considering it as a voluntary benefit, here's everything you need to know.

What is double time pay?

Double time pay means paying employees twice their regular hourly rate for qualifying hours. For example, it typically applies to non-exempt (hourly) employees who work extremely long hours, work on holidays, or meet specific state requirements in California.

Quick reference: How much is double time?

• $15/hour → $30/hour double time
• $17/hour → $34/hour double time
• $20/hour → $40/hour double time
• $25/hour → $50/hour double time

Here's what catches most business owners off guard: double time is NOT required by federal law. The Fair Labor Standards Act (FLSA) mandates overtime at 1.5x after 40 hours per week, but it doesn't require double time under any circumstances.

What about "double overtime"? You might hear this term, but it's not official. Most people just mean double time (2x pay rate). Don't confuse it with regular overtime, which is 1.5x your regular rate.

When does double time apply? Federal law vs. state requirements

Figuring out when you're legally required to pay double time versus when it's optional can save you from expensive compliance mistakes—or help you avoid paying more than necessary. Here’s what you need to pay attention to.

Federal Law (FLSA)

The Fair Labor Standards Act does NOT require double time pay under any circumstances. Weekend work, holiday shifts, and long hours don't automatically trigger double time federally—employers can offer it voluntarily through company policy or union contracts, but it's not mandated.

California—The Only State Requiring Double Time

California is the only state that mandates double time by law. So when does double time kick in in California? In these two situations:

1. After 12 hours in a single workday: If a non-exempt employee works more than 12 hours in one day, all hours beyond 12 must be paid at double time.
2. After 8 hours on the 7th consecutive workday: If an employee works seven consecutive days in a workweek, any hours beyond 8 on that seventh day must be paid at double time.

Alternative workweek schedules: If you use 4x10 shifts or other alternative schedules, double time still applies after 12 hours in a day. For days worked beyond your scheduled workweek, double time applies after 8 hours (not 12). These schedules require a two-thirds secret ballot vote by affected employees and must be reported to the state.

Washington State

Washington requires double time only for workers on certain public works projects. Most Washington businesses follow standard 1.5x overtime rules.

Other States & Voluntary Policies

All other states have no legal requirement for double time. Many employers choose to offer it voluntarily for:

• Federal holidays
• Weekend or overnight shifts
• Extreme overtime (50+ hours per week)
• Employee retention during busy seasons

Union contracts may also require double time in specific industries, regardless of state law.

Double time vs. overtime vs. time-and-a-half: What's the difference?

Is overtime double pay? No—and understanding this distinction could save you thousands. Overtime refers to premium pay at 1.5 times your regular rate, required by federal law after 40 hours per week. Double time is much rarer and more expensive—it's 2 times your regular rate, and it's only required in California under specific conditions.

Here's how the rates actually compare:

Regular pay is your standard hourly rate for the first 40 hours per week (or first 8 hours per day in California). Someone earning $20/hour gets paid $20 per hour at the regular rate.

Overtime (time-and-a-half) pays 1.5× your regular rate. It kicks in after 40 hours per week federally, or after 8 hours in a day in California. At $20/hour, overtime becomes $30/hour.

Double time pays 2× your regular rate, but isn't required federally. Only California mandates it after 12 hours in a day or 8+ hours on the 7th consecutive day. At $20/hour, double time is $40/hour.

So, for example, here's how rates stack in a 14-hour California workday:

• First 8 hours: $20/hr (regular) = $160
• Next 4 hours: $30/hr (overtime) = $120
• Final 2 hours: $40/hr (double time) = $80

Total for 14 hours: $360

In California, you might pay all three rates in the same workweek. They're calculated separately based on when the hours were worked.

Who is eligible for double time pay?

Not every employee on your team is eligible for double time pay. Understanding who qualifies—and who doesn't—protects you from compliance violations and unnecessary labor costs.

Non-exempt (hourly) employees are eligible for double time where state law requires it (California), where company policy offers it voluntarily, or where union contracts mandate it. This includes most workers paid by the hour who perform manual labor, administrative support, or customer service.

Exempt (salaried) employees generally aren't eligible for double time under any state law. Exempt status specifically means exclusion from overtime and double time protections. However, a company policy could voluntarily offer double time to exempt employees—though this is extremely rare.

Is your employee eligible for double time?

• Non-exempt employee (hourly or low-salary, non-managerial work)? → Can be eligible
• In California: worked 12+ hours/day OR 8+ hours on 7th day? → Required by law
• Your policy or union contract offers it for holidays/weekends/OT? → Required by agreement

But be mindful of employee classifications! Misclassifying non-exempt employees as exempt can avoid double time and create major liability—back wages, penalties, and potential lawsuits.

As Cambria Wallace, Project Lead II, Payroll Operations @ Homebase suggests: "Keep up with timecards daily so you are not surprised by the numbers of hours worked and OT amounts on payroll day."

The real cost impact of double time for hourly teams

One 14-hour shift instead of two 7-hour shifts costs you an extra $80. Do that weekly across three key positions? You've just added $12,480 to your annual labor costs—money that comes straight out of your bottom line.

Here's exactly how double time impacts your business, and why preventing it matters more than paying it.

Scenario: Restaurant scheduling Saturday dinner rush

You're scheduling for your busiest night of the week. Your experienced closer can handle the whole Saturday dinner rush—open to close, 2pm to midnight. It's tempting to just put one person on it and be done. 

But let's look at what that "simple" schedule actually costs you:

Option A: One employee works 14-hour shift

• 8 hours regular ($20/hr) = $160
• 4 hours overtime ($30/hr) = $120
• 2 hours double time ($40/hr) = $80
• Total: $360 for 14 hours
• Hourly average: $25.71

Option B: Two employees split coverage (7 hours each)

• 14 hours at regular rate ($20/hr)
• Total: $280 for 14 hours
• Hourly average: $20
• Savings: $80 (22% reduction)

The compound effect:

• Weekly: $80 savings
• Annually: $4,160 savings
• Across 3 positions: $12,480 annual savings

When labor costs typically run 25-35% of revenue in restaurants and retail, double time hours directly impact your profit margins. Double time should be your last resort, not your default scheduling strategy.

How to calculate double time pay (step-by-step with examples)

Calculating double time doesn't require special software or a math degree—just the right formula. Whether you're figuring out what you owe for a holiday shift or a 14-hour day in California, here's how to get it right every time.

Basic Double Time Calculation in 5 Steps

For straightforward hourly employees with no bonuses or commissions, follow these five steps:

1. Determine when double time applies (check your policy or state law)
2. Verify the employee's regular hourly rate
3. Count eligible double time hours
4. Calculate double time pay: Regular rate × 2 × eligible hours
5. Add to regular and overtime pay for total compensation

Let's see how this works in practice. Say your employee Lila earns $20/hour, and your company offers double time for holiday shifts. If Lila works 8 double-time hours on the Fourth of July:

• Double time rate: $20 × 2 = $40/hour
• Double time pay: $40 × 8 hours = $320
• Her 32 regular hours: $640
• Total pay: $960

What to Keep in Mind: Double Time with Bonuses or Commissions

Mayday! If employees receive bonuses or commissions, you must recalculate the "regular rate" before you can accurately calculate double time. 

Say a retail employee works 50 hours at $20/hour and earns $200 in sales commissions that week. Their regular rate isn't $20/hour—it's $24/hour ($1,200 total compensation ÷ 50 hours). That means double time is $48/hour, not $40/hour. Underpaying by $8/hour compounds into serious compliance violations.

So what counts when recalculating the regular rate?

This is what you should include in the  regular rate calculation:

• Non-discretionary bonuses (performance, attendance, production)
• Commissions
• Shift differentials
• Piece-rate pay

And this is what you can exclude from the regular rate:

• Discretionary bonuses (unexpected gifts)
• PTO/vacation pay
• Expense reimbursements

The bottom line: Using the base hourly rate when bonuses or commissions are involved is one of the most common—and costly—payroll mistakes small businesses make.

Strategy 1: Cap individual shifts at 10 hours maximum
Instead of one employee working 8am-10pm (14 hours = guaranteed double time in California), you can use overlapping shifts. Schedule one manager 8am-4pm, another 2pm-10pm. It's the same coverage at a significantly lower cost.

Strategy 2: Track consecutive workdays carefully
The California 7th-day rule catches many businesses off guard, but you can use scheduling software to flag when employees approach 6 consecutive days. Give them a day off instead of hitting that expensive seventh day!

Strategy 3: Hire seasonal staff for busy periods Tons of small businesses need all hands on deck during the holiday season or peak times of year, but bringing on part-timers is often cheaper than paying core team double time. Even with training costs, you'll save money.

Strategy 4: Require manager approval for extended hours Set authorization requirements before employees can work into double-time territory. Require manager approval for any shift extending past 11 hours. This prevents both accidental overtime and unauthorized extended shifts.

Strategy 5: Use scheduling tools with double time alerts Most scheduling tools will automatically flag when employees near double time thresholds. Homebase alerts you when someone approaches 12 hours or their 7th consecutive day, letting you adjust schedules before expensive hours hit. Features like schedule templates and shift limits can also prevent accidental double time!

Let's look at an example. Imagine a café that schedules one manager for 8am-10pm Saturdays—14 hours that trigger double time. Splitting that into two overlapping 8-hour shifts would save $80 every Saturday, or over $4,160 annually.

How to implement and communicate double time pay policies

Even if you're not in California, having a written double time policy prevents confusion and ensures you're treating employees fairly and consistently.

1. Decide Your Policy
Determine when you'll offer double time—holidays, seventh consecutive days, or shifts over 12 hours—and document the specific triggers. Apply them consistently across your team, because you can't pick and choose who gets premium pay.

2. Put It in Writing
Add your policy to employee handbooks and offer letters, being as specific as possible. "Double time applies after 12 hours worked in a single day" is much clearer than vague language about "extended shifts." If your state requires workplace notices, post them prominently.

3. Configure Your Systems
Set up your payroll software to calculate double time correctly, including the bonus adjustments we covered earlier. Configure time clocks to flag when employees approach thresholds, and make sure managers know when their approval is required before someone works into double-time territory.

4. Communicate Clearly
Tell employees about your policy upfront and show them what it means with specific examples. Walk them through what a paycheck looks like with double time included. Frame it positively: "We value your time—that's why we pay premium rates for extended shifts."

5. Audit Regularly
Run quarterly payroll reviews to catch errors before they compound into bigger problems. Check for misclassification issues, verify that bonuses and commissions are being included in rate calculations, and document everything for potential audits.

Common double time calculation mistakes (and how to avoid them)

Even experienced payroll teams make these errors, and they're expensive. Here's what to watch for and how to prevent each mistake from costing you.

Mistake #1: Forgetting bonuses and commissions
When you use the base hourly rate instead of the recalculated regular rate, you can underpay employees. That could compound into serious compliance violations.
The  Fix: Always recalculate the regular rate whenever any non-discretionary pay is added to an employee's compensation.

Mistake #2: Misclassifying employees as exempt
Misclassifying non-exempt workers as salaried employees—even accidentally—creates massive liability in the form of back wages, penalties, and potential lawsuits.
The Fix: Run regular classification audits throughout the year, and when in doubt, treat employees as non-exempt.

Mistake #3: Confusing overtime with double time
If you pay 1.5x when 2x is required, you're underpaying by 25% on those hours—and that error shows up on every affected paycheck.
The  Fix: Use clear written documentation and automated payroll calculations to prevent confusion between the two rates.

Mistake #4: Not tracking the 7th consecutive day in California
California's 7th-day trigger is easy to miss when you're juggling schedules manually, especially during busy periods when you need all hands on deck.
The  Fix: Use scheduling software that automatically counts consecutive workdays and alerts you before someone hits that seventh day.

Mistake #5: Ignoring shift differentials in calculations
Forgetting to include shift premiums when calculating the regular rate leads to systematic underpayment across all overtime and double time hours.
The  Fix: Train your payroll staff on every component that must be included in the "regular rate" calculation, not just the base hourly wage.

The stakes: In California, penalties can exceed $1,000 per violation, plus back wages, interest, and legal fees. A single misclassified employee over three years could cost your business $50,000 or more—making prevention far cheaper than paying for mistakes after the fact.

Stop double time before it hits your payroll

You can't avoid every long shift or busy weekend, but you can avoid the expensive surprises that come with them. Homebase was built specifically to help small businesses with hourly teams stay ahead of costly premium pay.

Here's how we help you prevent double time:

• Real-time alerts when employees approach 12 hours or their 7th consecutive day—so you can adjust before expensive hours kick in
• Smart schedule templates that cap shift lengths and spread coverage across multiple employees automatically
• Integrated time tracking and payroll that calculates complex rates (including bonuses and commissions) correctly every time

You don't need to watch your schedule like a hawk–Homebase can monitor your shifts and alert you only when action is needed. 

You can try Homebase free in 10 minutes or less. No credit card required!

Frequently Asked Questions

Is double time required by law?
Double time is not required by federal law. California is the only state that requires double time by law in specific situations—after 12 hours in a single workday or after 8+ hours on the 7th consecutive day of work.

How do you calculate double time pay?
You calculate double time pay by multiplying the regular hourly rate by 2. Important: If bonuses or commissions were paid that week, you must first recalculate the regular rate by dividing total compensation by total hours worked.

What's the difference between overtime and double time?
The difference between overtime and double time is the pay rate. Overtime pays 1.5× your regular rate (typically after 40 hours per week), while double time pays 2× your regular rate and is much rarer.

Can salaried employees get double time?
Salaried employees usually cannot get double time. Exempt salaried employees don't qualify for double time under any state law, though a company could voluntarily offer it as a rare benefit.

Do I have to pay double time on holidays?
You don't have to pay double time on holidays under federal law. Many employers offer it voluntarily as a benefit, but it's not legally required unless your state law or company policy mandates it.

Does double time apply to part-time employees?
Double time does apply to part-time employees if they meet the triggering conditions. Part-time status doesn't exempt employers from double time requirements when employees work qualifying hours.

What happens if I don't pay required double time?
If you don't pay required double time in California, penalties start at $100 per violation and compound quickly. You'll owe back wages, interest, wage statement violations (up to $4,000), waiting time penalties (up to 30 days of wages), and face potential lawsuits.

After how many hours do you get double time?
You get double time after 12 hours in a single workday in California. Federally, there's no automatic hour threshold for double time—it's only required if your state law or company policy says so.

When does double time kick in after 40 hours?
Double time doesn't kick in after 40 hours under federal law. This is a common misconception—after 40 hours per week, federal law requires 1.5× overtime pay, not double time. Only California requires double time, and it's based on daily hours (12+) or the 7th consecutive day.

What is double time pay for $15 an hour?
Double time pay for $15 an hour is $30 an hour. You calculate this by multiplying your hourly rate by 2 ($15 × 2 = $30). If you work 4 hours at double time, you'd earn $120 for those hours.

What is double time pay for $20 an hour?
Double time pay for $20 an hour is $40 an hour. Take your regular hourly rate and multiply it by 2 ($20 × 2 = $40). For example, 3 hours at double time would equal $120 in premium pay.

What is double time for $30 an hour?
Double time for $30 an hour is $60 an hour. The calculation is your hourly rate multiplied by 2 ($30 × 2 = $60). An employee earning $30/hour who works 2 hours at double time would make $120 for those hours.

What is an example of double time pay?
An example of double time pay is an employee earning $20/hour working a 14-hour shift in California. The first 8 hours are paid at regular rate ($160), the next 4 hours at overtime rate of $30/hour ($120), and the final 2 hours at double time rate of $40/hour ($80), for a total of $360.