How is double overtime calculated

For example, if an employee worked 10 hours in a single workday, you just pay them the overtime rate for two of those hours. Things can be a bit more complicated if they work both weekly overtime and daily overtime.

To do this properly, calculate how many overtime hours they worked for the week. If they worked 50 hours, it means they worked 10 hours of overtime. Then calculate how many daily overtime hours they worked. Instead of adding these together which would equal 16 , you would pay for the daily over time hours first, then subtract that number from the weekly overtime hours they worked Basically, you would owe 6 daily overtime hours and 4 weekly overtime hours. In California, the standard workday is 8 hours.

The standard workweek is 40 hours, which is the same as that established by the FLSA. Any hours worked in excess of 12 hours within a single workday is considered double time. Any hours worked in excess of 8 hours on the 7th consecutive day an employee works in a single workweek is considered double time. Hours for which you have to pay a regular overtime rate based on the California Labor Code:. Any hours worked exceeding the standard 8 hour work day is considered overtime work.

Any hours worked exceeding the standard 40 hour workweek is considered overtime work. Any hours worked on the 7th consecutive day an employee works within a single workweek is considered overtime work.

Exempt employees are employees you are not legally required to pay overtime to. These types of employees are typically paid a yearly salary instead of an hourly wage. They are often executive, administrative, or professional employees. Many exempt employees do not keep track of the hours that they work as they are expected to work on the same schedule every week. If you want to pay your exempt employees overtime pay, make sure they track their hours carefully.

You will also need to determine what their hourly wage rate is since they are likely being paid salary. You can do this by taking their yearly salary and dividing it by the number of hours in a standard full time year. However, remember that you will have to take into account other compensation paid to the employee during the week for which you are paying overtime such as bonuses or commissions.

The best way to determine whether you should pay exempt employees double time is to observe what is a standard practice within your industry. For example, some employers may not follow the same double time laws for exempt employees but will pay double time for any hours worked on legal holidays. You are required to pay non-exempt employees overtime and double time rates when they work hours defined by the state as overtime or double time hours. If you do not pay the overtime or double time rate that your employees are owed, you could be fined in addition to being forced to pay what you owe.

If, for example, they worked an eight-hour shift on a national holiday, then their eligible hours are eight. Step 4 - Calculate the pay rate. It's time to get out your calculator! Step 5 - Do the final tally up.

Add the remainder of the working week at the standard pay rate to the day with double time. Double-check your figures before you submit the paycheck. Check with your accountant if you're not sure. Paying your employees can be a complex undertaking, especially if everyone is on different pay rates, and you have to factor in double time, overtime, part-time work, and full-time work. Still, by being on top of the double time pay calculation process, you can reduce the risk of making incorrect payments to your team that can cost you more down the line.

Double time pay may seem complicated, it but doesn't have to be. If your staff member is working beyond their scheduled hours or on a federal holiday, then they may be eligible for double time pay.

Do your homework to avoid confusion- Union members are eligible for double time pay. Double time pay involves paying a staff member double their wages for working beyond scheduled hours and on federal holidays.

Double time pay is different from overtime and is not regulated by the FLSA. Familiarizing yourself with how double time works can ensure you don't underpay or overpay your staff members. Employee Time Clock. Business Intelligence. Cash Management. Sales Forecast. Human Resources Management.

Demand Forecasting. Business Communication. Food Supply Chain. Time Tracking Software. Company reviews. Find salaries. Upload your resume. Sign in. What is double time? When is double-time used?

More than 12 hours in a single workday: California-based employees earn double their normal pay rate for any time they spend working after the hour mark. It's important to note that the employee has already begun earning overtime after working eight hours in a single workday. Seven days in a row within a single pay period: After working eight hours on the seventh day, the employee begins earning double-time pay.

How to calculate double-time. Find out when the double-time pay rate applies. Before you can calculate your double-time pay, you need to determine when you are eligible for it.

Examine your union contract or employee handbook to learn more about the applicable overtime pay rates. Figure out your hourly rate. If you make hourly wages, then you already have this information, but those who earn a salary must convert their annual pay into an hourly rate before they can calculate their double-time pay. To find this number, just divide your salary by the number of weeks in a year 52 and then again by the number of hours in a standard, full-time workweek Determine the eligible hours.

Next, you must figure out how many of the hours you worked are eligible for the double-time pay rate. For example, if your company pays double time for hours worked on a national holiday, you need to determine exactly how many hours you worked on that day.

Calculate your pay rates. Once you know the number of hours you worked that qualify for double time, you can calculate your pay by doubling your normal hourly rate and multiplying that by the number of double-time hours you worked.