Double Overtime: What It Is, When It Applies, and How to Calculate It

Introduction

Double overtime is a type of overtime pay that certain employees earn for working specific hours beyond their regular work schedule. It is important to understand the concept of double overtime, when it applies, how to calculate it, and how to set up a policy.

What is Double Overtime?

Double overtime is the extra pay that certain employees earn for working more than a certain number of hours in a week or pay period. Overtime is when you pay your employees 1.5 times their normal rate, while double time is when you pay them twice their normal rate.

When Does Double Overtime Apply?

Double overtime typically applies to employees who work more than 40 hours in a week or 8 hours in a day. However, the specific rules may vary depending on the employer's policies and applicable laws.

How to Calculate Double Overtime

To calculate double overtime, you need to multiply the employee's normal hourly rate by the number of hours worked in excess of the overtime threshold. For example, if an employee's normal hourly rate is $10 and they work 50 hours in a week, they would earn double overtime for the 10 hours worked over 40 hours. The calculation would be as follows: 10 (normal hourly rate) x 2 (double time rate) x 10 (hours worked over 40) = $200

Setting Up a Double Overtime Policy

If you are an employer, it is crucial to have a clear policy on double overtime. Your policy should outline the following:

• The circumstances under which double overtime will be paid.
• The rate of pay for double overtime.
• The method for calculating double overtime.
• The approval process for double overtime.

By having a clear policy in place, you can ensure that your employees are aware of their rights and that your business is compliant with applicable laws and regulations.