When Should Employers Offer Double-Time Pay
Filed under: Payroll
Payroll processing can get complicated, especially when your employees aren’t working regular shifts each week. In many situations, you can’t calculate the hours with a single rate of pay. The hourly rate changes depending on the time that the employee works and how many hours are put in each day and week. It is important to know the rules so that you can pay time-and-a-half as well as double-pay when needed.
When Do Employees Qualify for Double Pay?
Mark Rowley, Owner
RandR Payroll Services
The rules vary depending on location and the employee classification. Double-time pay is when the employee is paid twice the normal hourly rate. According to the Fair Labor Standards Act (FLSA), double-time wages are not required for nonexempt employees. It is important to note that California double-time pay laws also need to be considered in addition to the federal regulations.
Also, there are times when union contracts or company policies require double pay. Keep in mind that there are exceptions that might need to be addressed for certain employee classifications.
Examples of Circumstances that Require Double-Pay
Even though this federal law is in place, the rules change for each state. According to California law, employees will need to receive time and a half for hours worked beyond eight hours, and under twelve hours.
The state of California requires that employees earn double pay if they work more than 12 hours in a single workday. If someone works seven consecutive days, then double-pay should be provided on the seventh day for all hours more than eight hours worked.
Here are a few other examples of when double-pay might be provided to employees:
- Hours worked on a holiday
- Overtime hours
- Irregular hours
- Long shifts
The best thing that you can do is consult with an experienced payroll team to ensure that you are following the law for your employees. Payroll can be stressful and confusing, which is why it is important to lean on the experience of a good team. Outsourcing these services will reduce the risk of payroll errors. At the same time, your schedule will be freed up so that you can focus on other business responsibilities.
We are here to help with your payroll calculations. For more information, contact R&R Payroll & Bookkeeping Services: (951) 296-0412.
