Double Time Explained: Your Guide to CA Laws, Calculations, and More (2025)

Double-time pay means earning twice your regular hourly rate, whether you’re clocking overtime hours, working on holidays, or meeting specific state labor requirements.

California sets the gold standard for double-time pay laws, requiring employers to pay double time under specific conditions, such as working over 12 hours in a day. 

In this guide, we’ll explore what double-time pay is, how it’s calculated, when it applies, and how it impacts both workers and businesses across the U.S.

Double Time Pay Definition and Statutes

DEFINITION

What Is Double Time Pay?

Double time pay is exactly what it sounds like—earning twice your regular hourly rate for the hours you work under specific conditions. 

For example, if you normally make $20 an hour, your double time rate would be $40 an hour. It’s often used as a way to fairly compensate employees for long hours, holiday shifts, or other situations where their time is considered extra valuable.

Double Time Pay vs. Overtime Pay

It’s easy to confuse double time with overtime, but they’re not the same. Overtime pay, required under federal law, kicks in when nonexempt employees work more than 40 hours in a week. It’s typically calculated as 1.5 times the regular hourly rate, also known as “time and a half.”

Double time, on the other hand, goes a step further and doubles the hourly rate.

Here’s an example to break it down:

Scenario: Lila works a job where she earns $20 per hour.

• Regular Pay: For her first 40 hours in a week, she’s paid $20/hour.
• Overtime Pay: If she works 8 extra hours, she’s paid 1.5x her hourly rate ($30/hour), adding $240.
• Double Time Pay: If she works another 4 hours on a holiday, she’s paid 2x her hourly rate ($40/hour), adding $160.

In this case, Lila’s paycheck reflects all three types of pay based on when and how she worked those hours.

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Federal Laws on Double Time Pay

Double time pay isn’t federally required.

The Fair Labor Standards Act (FLSA) governs overtime pay for nonexempt employees, requiring employers to pay time and a half (1.5x the regular hourly rate) for all hours worked beyond 40 hours in a workweek. However, the FLSA doesn’t require employers to pay double time, even for long shifts, weekend work, or holidays.

Employers can voluntarily offer double time as part of their policies or collective bargaining agreements, but federal law leaves the specifics to state regulations and employer discretion.

California (CA)

States with Double Time Pay Law

California has the most well-known double time laws, designed to protect workers putting in long hours or extended shifts.

Under California labor law:

• More than 12 hours in a single workday: Employees are entitled to double their regular hourly rate for any hours worked beyond 12 in a day.
• 7th consecutive workday in a workweek: Double time applies after 8 hours of work on the seventh consecutive workday in a workweek.

Meanwhile, in Washington, double time pay may be required for workers on specific public works projects. While the state doesn’t have broad double time laws, this regulation ensures fair compensation for employees working under government contracts.

Other States: Union Agreements and Industry Norms

In many states, double time pay isn’t mandated by law but is often included in union contracts or offered as a benefit in industries with high demands, such as healthcare, construction, or manufacturing. For example:

• Unionized workplaces may require double time for holiday shifts or hours exceeding a weekly threshold (e.g., 55 hours).
• Companies in industries like retail or hospitality sometimes offer double time as an incentive to staff hard-to-fill shifts.

CA LAB § 510

The Main Double Time Pay Statute in California

California Labor Code § 510 ensures non-exempt employees are compensated fairly for long hours, with overtime paid at 1.5 times the regular hourly rate and double time at twice the regular rate.

The statute reads:

“510. (a) Eight hours of labor constitutes a day’s work. Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek and the first eight hours worked on the seventh day of work in any one workweek shall be compensated at the rate of no less than one and one–half times the regular rate of pay for an employee. Any work in excess of 12 hours in one day shall be compensated at the rate of no less than twice the regular rate of pay for an employee. In addition, any work in excess of eight hours on any seventh day of a workweek shall be compensated at the rate of no less than twice the regular rate of pay of an employee.”

Here’s a quick breakdown of what the law covers:

• Overtime Pay: Applies after 8 hours in a day, 40 hours in a week, or the first 8 hours on the 7th consecutive workday.
• Double Time Pay: Applies after 12 hours in a single workday or beyond 8 hours on the 7th consecutive workday in a week.
• Exemptions: Workers on approved alternative schedules (e.g., four 10-hour days) and those commuting in employer-provided rideshare vehicles.

Example: A construction worker in California who earns $25 per hour works 14 hours in one day. The first 8 hours are paid at the regular rate, the next 4 hours at 1.5x ($37.50/hour), and the final 2 hours at 2x ($50/hour).

How to Calculate Double-Time Pay in California

Here’s how to ensure employees are fairly compensated for their hard work under double time conditions:

1. Determine When Double Time Applies

• Check the employee’s hours worked to identify if they meet the criteria for double time.
• Examples: Over 12 hours in a day, working on a 7th consecutive day in California, or holiday shifts per company policy.

2. Verify the Employee’s Hourly Rate

• Use the employee’s regular hourly rate as the base for your calculations.
• Example: If an employee earns $20/hour, this will be their regular rate.

3. Calculate Hours Eligible for Double Time

• Identify the total number of hours worked that qualify for double time pay.
• Example: If an employee works 14 hours in a day, 2 hours qualify for double time under California law (after the first 12 hours).

4. Multiply the Hourly Rate by Two

1. Double the regular hourly rate to determine the double time rate.
2. Example: For an employee earning $20/hour, the double time rate is $40/hour.

5. Add Double Time Pay to Regular Pay for Total Compensation

Calculate the total pay by combining regular, overtime, and double time pay.

 

Example Calculations

Scenario 1: Lila’s Holiday Shift

• Lila earns $20/hour.
• She works 10 hours on a federal holiday where her employer offers double time for all hours worked.

Here’s the breakdown:

• Double time rate = $20/hour × 2 = $40/hour.
• Total pay = 10 hours × $40/hour = $400.

 

Scenario 2: California Construction Worker

A construction worker earning $25/hour works a 14-hour day in California.

Here’s how their pay breaks down:

• First 8 hours: Regular rate = $25/hour × 8 = $200.
• Next 4 hours: Overtime (1.5x) = $25 × 1.5 × 4 = $150.
• Final 2 hours: Double time = $25 × 2 × 2 = $100.

Total Pay = $200 + $150 + $100 = $450.

 

Scenario 3: Healthcare Worker with a Long Shift

A nurse in Washington earns $30/hour and works 16 hours in one day. The employer offers double time for hours beyond 12.

Here’s the calculation:

• First 12 hours: Regular + Overtime = $30 × 12 = $360.
• Next 4 hours: Double time = $30 × 2 × 4 = $240.

Total Pay = $360 + $240 = $600.

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Who’s Eligible for Double Time Pay?

Eligibility for double-time pay boils down to whether an employee is classified as exempt or nonexempt under labor laws like the Fair Labor Standards Act (FLSA). Let’s break this down.

Exempt Employees

Exempt employees are generally salaried workers who are not eligible for overtime or double-time pay. Their exemption status is tied to the type of work they do and their salary level.

Examples:

• Executives: A construction manager earning $1,500 per week who oversees job sites and directs employees.
• Administrators: An HR specialist responsible for policy decisions and compliance.
• Highly Paid Professionals: A software engineer earning $130,000 annually.

These positions are exempt because they meet the criteria of earning a salary (at least $684 per week) and performing primarily managerial, intellectual, or creative work.

Nonexempt Employees

Nonexempt employees are typically hourly workers who qualify for overtime and double-time pay under specific conditions.

Examples:

• A construction laborer earning $20/hour working extended shifts.
• A retail associate paid $15/hour and working on holidays.

Nonexempt employees are entitled to additional compensation for hours worked beyond federal or state thresholds, including time-and-a-half or double time when applicable.

Criteria for Eligibility

1. Hourly Workers

Most nonexempt employees who are paid hourly qualify for overtime and, in some states, double time. Their pay is calculated based on the hours they log each week.

2. Tipped Employees

Tipped employees (e.g., waitstaff) are eligible for overtime and potentially double time if their regular pay plus tips meet the federal minimum wage.

• Federal Tip Credit: Employers can pay tipped workers as little as $2.13/hour as long as tips bring their hourly total to at least $7.25/hour. For overtime or double time, their eligibility is calculated based on the standard minimum wage, not the tip-adjusted wage.
• Example: A server in California, where tips can’t reduce hourly pay below $15/hour, may earn double time ($30/hour) after working a holiday shift.

3. Union Workers

Many unionized workplaces include double-time pay provisions in their collective bargaining agreements. For example, a union carpenter may earn double time after 50 hours in a week or for working on Sundays.

Who Typically Qualifies for Double Time?

Here are some roles and industries where double-time pay is commonly applied:

• Construction Workers: Long shifts or consecutive days on-site.
• Healthcare Professionals: Extra hours due to staff shortages or emergencies.
• Retail and Hospitality Employees: Holiday shifts or irregular hours.
• Public Works Employees: Special projects under state contracts.

When Does Double Time Pay Apply?

Double-time pay doesn’t apply to every long shift or holiday. Whether it kicks in depends on your state’s labor laws, union agreements, or company policies.

While federal law doesn’t mandate double time, many employers offer it as an incentive for challenging or undesirable work schedules.

Common Scenarios Where Double Time Is Used

1. Federal Holidays

• Many businesses, especially in retail, hospitality, and healthcare, offer double time for shifts on major holidays like Thanksgiving, Christmas, or Independence Day.
• Example: A healthcare worker earning $25/hour might make $50/hour for working a shift on Christmas Day.

2. Extended Hours

In states like California, employees earn double time when they work:

• More than 12 hours in a single workday.
• More than 8 hours on the 7th consecutive day in a workweek.

3. Industry-Specific Cases

• Construction: Double time often applies for long shifts or during emergencies to complete high-priority projects.
• Healthcare: Nurses or doctors may earn double time for working extended hours during staff shortages or crises.
• Retail and Hospitality: Double time is commonly offered for irregular hours or undesirable shifts, like late nights or weekends.

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Common Mistakes in Calculating Double-Time Pay

Even with clear rules, errors in calculating double-time pay can happen—and they can be costly for employers. Let’s look at some of the most common mistakes and how to avoid them.

1. Failing to Include Bonuses or Commissions in the Regular Pay Rate

When calculating double time, it’s not just the hourly wage that matters. Employers must also factor in non-discretionary bonuses, commissions, or other earnings to determine the “regular rate of pay.”

• Why It’s a Problem: Ignoring these additional earnings can result in underpaying employees, which may lead to legal challenges and penalties.
• Example: If an employee earns $15/hour plus $200 in commissions, their regular rate is higher than $15/hour. Miscalculating double time based on the base rate alone would lead to an underpayment.

2. Misclassifying Employees as Exempt

One of the most common pitfalls is incorrectly classifying employees as exempt from overtime and double-time pay.

• Why It’s a Problem: Exempt employees don’t qualify for double time, but if a worker is misclassified, they may be entitled to back pay for unpaid overtime and double time hours.
• Example: A field technician wrongly classified as exempt misses out on double time for working 13-hour shifts. The employer could face fines and be required to compensate for lost wages retroactively.

3. Using Outdated State or Federal Laws

Labor laws vary by state and can change over time. Employers relying on outdated information may fail to meet compliance requirements.

• Why It’s a Problem: Misapplying state-specific laws, like California’s double time rules, can lead to underpayments or disputes with employees.
• Example: An employer in California applies the 12-hour rule but overlooks the requirement for double time on the 7th consecutive day of work in a single workweek.

Actionable Tip: Use Technology to Avoid Errors

The best way to prevent these mistakes is by leveraging a reliable time-tracking system like Workyard’s or payroll software that:

• Tracks hours accurately and flags when double time applies.
• Automatically includes bonuses, commissions, or other earnings at the regular rate.
• Stays updated with federal and state labor laws.

Business Impacts and Best Practices

Double time pay has a significant impact on businesses, from financial planning to compliance risks. However, with the right strategies, employers can turn these challenges into opportunities to build a fair and motivated workforce.

Here’s a closer look at the implications of double time pay and actionable tips for employers to navigate it effectively.

 

Financial Implications and Operational Adjustments

1. Budgeting Challenges

Double time can quickly increase payroll expenses, especially during peak periods or long-term projects. Businesses must anticipate these costs and adjust their budgets accordingly.

Example: A construction firm staffing employees for extended hours during a project’s final phase may need to plan for double time expenses to avoid budget overruns.

2. Operational Adjustments

To manage costs, businesses often modify work schedules to minimize the need for double time. This could mean:

• Rotating shifts to avoid employees exceeding 12 hours in a day.
• Adjusting weekly schedules to avoid the 7th consecutive day rule in California.

 

Legal and Compliance Risks

Failing to comply with double time pay laws can lead to steep penalties, lawsuits, and reputational damage. Common risks include:

1. Misclassifying Employees

Incorrectly labeling workers as exempt can result in unpaid double time claims.

2. Calculation Errors

Not factoring in commissions or bonuses when calculating the regular rate of pay can lead to underpayment.

 

Practical Tips for Employers

1. Develop a Clear Double Time Pay Policy

• Decide when double time applies (e.g., holidays, extended shifts).
• Include these details in your employee handbook to set expectations for current and future employees.

2. Stay Compliant with State and Union Rules

• Monitor labor law updates and ensure compliance with both state and federal regulations.
• Work closely with union representatives to understand collective bargaining agreements.

3. Leverage Technology

• Use payroll software or time-tracking tools to accurately calculate hours, including double time pay.
• Automate compliance checks to avoid manual errors.

 

Lessons from Case Studies

1. California Agricultural Overtime Changes

Assembly Bill 1066 gradually introduced overtime for agricultural workers employed by smaller companies. By 2023, these employees were eligible for double time for extended hours, aligning their rights with other sectors.

Takeaway: Businesses can proactively adjust payroll systems and educate employees on new regulations to stay compliant.

2. Ecolab’s Bonus-Based Overtime

Ecolab successfully implemented a percentage bonus method that factored bonuses into overtime calculations, avoiding redundancy and simplifying payroll processes.

Takeaway: Using innovative yet legally sound methods can help businesses reduce administrative burdens while maintaining compliance.

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Stay on Top of Double Time Pay With Workyard

Staying compliant with double-time laws is more than avoiding legal trouble—it’s about building trust, boosting morale, and fostering a fair workplace. Clear policies, up-to-date knowledge of labor laws, and accurate payroll systems are key to getting it right.

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