What Is Double Premium Pay?

How do I calculate my daily rate?

Hourly, Daily Rate CalculatorGet the hours per week =Hours per day x Working days(per week)Get the hours in a year = Hours per Week x 52 weeks (in a year)Get the hours per months = Hours in Year ÷ 12 (months)Get Hourly Pay = Monthly Salary ÷ Hours Per Month.Get Daily Pay = Hourly Pay x Hours Per Day..

Employers offering straight-time overtime must carefully comply with federal wage and hour laws. Those laws require all nonexempt employees in the United States to be paid overtime at a rate equal to one and a half times their regular pay for every hour over 40 hours that they work in a particular week.

How is premium pay calculated?

The minimum statutory premium pay rates are as follows:For work performed on rest days or on special days: Plus 30% of the daily basic rate of 100% or a total of 130%. … For work performed on a rest day which is also a special day: Plus 50% of the daily basic rate of 100% or a total of 150%.More items…•

What is the holiday premium pay rate?

An employee who performs work on a holiday designated by a federal statue is entitled to holiday premium pay. That is pay at the rate of basic pay plus premium pay at a rate equal to the rate of the basic pay, for that holiday work which is not in excess of the scheduled tour of duty or overtime work.

Do night shifts shorten your life?

Why Working at Night Boosts the Risk of Early Death. … After 22 years, researchers found that the women who worked on rotating night shifts for more than five years were up to 11% more likely to have died early compared to those who never worked these shifts.

What does it mean when you get paid double time?

Double time is a rate of pay double the usual amount a person receives for normal hours worked. So, if your normal rate of pay was $11.00 an hour, double time pay would be $22.00 per hour. Double time is sometimes paid for working on federal holidays or when hours work exceeding the normal workday.

Is holiday premium pay double time?

Holiday premium pay, commonly called “double time”, is pay for non-overtime hours of work that you are required to work on a holiday. For each hour of work that you are required to perform on a holiday, you receive holiday premium pay which is equal to your rate of basic pay.

What if your day off falls on a holiday?

While not required by law, many employers give an employee the option of taking off another day if a holiday falls on the employee’s day off. Similarly, many employers observe a holiday on the preceding Friday or the following Monday if a holiday falls on a Saturday or Sunday and the employer is closed on weekends.

What is premium time?

The additional amount given to employees for the overtime hours. Usually this is the “half-time” in time and one-half. For example, if an employee’s hourly pay rate is $10 per hour and the employee works 41 hours in a week, the overtime premium is $5 per hour.

How can I avoid paying overtime?

In reality, the way to avoid paying overtime is to work people less than 40 hours a week, manage a balanced staffing plan so that you have enough floaters and part time help to fill the gaps, and closely watch your trends in customer needs and staffing to make sure they match up.

Does 2nd shift pay more?

Most companies with multiple shifts pay premiums to employees working second shifts, third shifts and holidays (Figure 1). In lieu of paying shift differentials, some companies compensate employees for working undesirable shifts with additional paid time off.

What is the difference between premium pay and overtime pay?

Premium overtime is calculated on one-and-a- half times the regular rate of time (1 hours of premium OT worked = 1.5 hours earned). … Straight overtime is time worked that is more than an employee’s regularly scheduled hours but less than 40 hours.

How do you calculate shift premium?

Straight time is calculated by multiplying the hourly base rate by the total number of hours worked. Shift premium pay is calculated by multiplying the shift premium rate by the number of hours worked on that shift.

How much is 5 hours of overtime?

The federal minimum for overtime for hourly employees is that the person ​must be paid one and a half times the regular hourly rate for work over 40 hours a week. So, an hourly employee working 45 hours a week for $10 an hour would be paid $10 for 40 hours and $15 an hour for the 5 hours of overtime.

Is a shift premium per hour?

Under the Fair Labor Standards Act, a shift pay premium is part of an hourly employee’s regular rate and must be included when overtime pay is calculated.

What is considered premium pay?

Premium pay refers to the higher wages given to employees who work less desirable hours. This includes holidays, weekends, vacation days or anything over eight hours a day. … That means premium pay would need to be ordered and approved before the holiday or weekend when you need your workers on hand.