What is the difference between double time and overtime?
Nonexempt employees in California have the right to overtime pay if they work in excess of a standard work-day or week. The regular overtime rate is 1 1/2 times the individual’s hourly pay rate. However, California workers also have the right to double time pay, which is two times their regular rate of pay. This arrangement kicks in when an employee works:
- In excess of 12 hours during a work-day
- In excess of eight hours on the 7th day of work in a row
In general, the rules may be defined thus:
Time-and-a-half pay
Time and a half refers to an increased rate of pay typically reserved for hours worked overtime or those that exceed the 40-hour work week.
- in excess of eight hours and no more than 12 hours in a day
- in excess of 40 hours in a week
- in excess of 6 days in a row, and an individual works 8 hours or less on the 7th day
Learn how to calculate time and a half.
Double-time pay
- in excess of 12 hours in a day
- in excess of eight hours on the 7th day in a week
What are the overtime pay laws in California?
In California, labor laws mandate that employers pay nonexempt workers a minimum of 1 1/2 times their regular pay for working beyond 8 hours in a single day, 40 hours in a week, or six days in a week.
Independent contractors and exempt employees are not bound by these rules. These guidelines also do not apply to nonexempt workers who have signed an agreement to work in alternative work week schedule. For this kind of schedule to be implemented, a minimum of 2/3 of employees must agree.
An alternative work week schedule may require employees to work for as many as ten hours each day without the benefit of overtime. However, workers on such schedules may still accumulate overtime if they work more than the quantity of hours on the schedule, or work in excess of 40 hours in a single week. Business owners should contact our California employer lawyer for more information to overtime pay laws in California.
Union contracts or collective bargaining agreements between employees and employers may also create exceptions to overtime rules.
When does a worker earn double time?
A nonexempt worker makes double time, as opposed to simple overtime pay, when they work in excess of 12 hours in a single day or in excess of eight hours on the 7th consecutive day.
Example: Phyllis is an interior designer. She is a full time, nonexempt employee. Phyllis earns $20 per hour. To meet a tight deadline, Phyllis’ boss adds hours to her schedule. In the course of a single week, Phyllis works seven 14-hour days, not including rest or meal breaks. In total, her work time comes out to 98 hours.
As well as her normal-time pay, Phyllis has the right to time and a half overtime compensation at a rate of $30 per hour. This rate applies to the 9th through 12th hours she worked during the first six days. She should also get overtime premium, otherwise known as double time work pay, at a rate of $40 per hour period this should cover the 13th and 14th hours she worked during those six days, in addition to the 14 hours she worked on the 7th day.
If an employee in California works overtime by their own volition and without the authorization of their employer, he or she should still receive overtime pay. This applies as long as the employer was aware the employee was still on the clock.
However, while employees may be entitled to collect overtime wages without the permission of their employer, they can still be disciplined for this action. Many companies have policies in their workplace that prohibits workers from performing overtime hours without authorization. By not following these policies, an employee can be disciplined or terminated.
Can exempt employees earn double-time pay in California?
According to California law, Employers are neither required ignore prohibited from paying exempt workers act 1 1/2 times their normal rate of pay for extra work. If they would like to, employers are even allowed to pay salaried employees double-time.
That said, not many employers do so. The employers that decide to pay exempt employees overtime do this to improve worker morale, incentivize hard work, or build loyalty among employees.
Calculating overtime is more complex for exempt employees as opposed to nonexempt workers. In this situation, an employer needs to consider other kinds of pay, such as commission payments and bonuses. These can affect an exempt worker’s regular pay rate. When it comes to nonexempt workers, double time and overtime can simply be added onto the normal hours of work in the work week.
What is the difference between a nonexempt employee and an exempt employee?
A nonexempt employee is a worker who is protected under California’s wage and hour laws as well as federal laws such as the FLSA, or the United States fair Labor Standards act. By contrast, exempt employees do not receive these protections in the workplace.
Nonexempt workers are protected by employment laws concerning the following:
- meal and rest breaks
- minimum wage laws
- overtime laws
exempt employees are excluded from the above protections. That said, California workers have the right to a minimum weekly salary. This should be at least twice the minimum hourly wage for full-time labor.
The biggest group of exempt employees is white collar workers. These are administrative, professional, and executive employees who use their own independent judgment and discretion in their work. Since these individuals are exempt, they do not often receive overtime or double-time.
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