To quickly answer the question posed in the title – no, Starbucks does not pay double time for overtime hours worked. Like most retail and food service jobs, Starbucks hourly employees are paid at 1.5 times their regular rate of pay for any overtime hours worked over 40 in a workweek. Double time pay (2x the regular rate) is less common and typically seen in select unionized roles or trades requiring shift work. For most Starbucks baristas, shift supervisors and other hourly store employees, overtime is paid at time-and-a-half in accordance with federal wage laws.
What is Starbucks’ overtime pay policy?
Starbucks adheres to federal wage and hour laws regarding overtime pay. For eligible non-exempt employees, any hours worked over 40 in a single workweek are paid at 1.5 times the employee’s regular hourly wage. This is referred to as time-and-a-half pay or overtime pay. Double time pay, which is compensation at 2 times the regular rate, is not a policy Starbucks has for its retail store employees.
Some key facts about Starbucks’ overtime pay practices:
- Overtime eligible roles include baristas, shift supervisors, cafe attendants and other non-salaried hourly employees.
- Managers and assistant managers are exempt salaried roles not eligible for overtime.
- Workweeks run Monday-Sunday at Starbucks. Hours are calculated on a weekly basis.
- In most states, employees must be paid overtime for working over 40 hours in a workweek.
- Only actual hours worked count towards overtime. Paid leave or holidays do not apply.
- Starbucks pays 1.5x regular rates for overtime, not double time pay.
- Overtime policies comply with federal and local wage laws.
So while Starbucks aims to properly compensate employees who work extended hours with overtime premiums, its overtime pay practices follow typical retail industry standards. Employees are paid time-and-a-half rather than double time for overtime hours in a workweek.
Why doesn’t Starbucks pay double time?
There are a couple reasons why paying double time overtime is less common, especially in the retail and service sectors:
- Not required by law – Federal and state labor regulations generally require 1.5x pay for overtime. Double time is not mandated.
- Cost considerations – Paying double wages for overtime substantially increases labor costs for businesses with variable hourly work.
- Industry norms – Most retail, food service and hospitality jobs pay time-and-half overtime only.
Double time overtime was more prevalent through union collective bargaining, especially in manufacturing, trades and some government jobs. Those roles often involved shift work. With retail scheduled around customer demand, overtime needs can vary greatly week to week. The operational costs of double time OT would be prohibitive for most retailers.
When do companies pay double time overtime?
While less common for hourly retail employees, double time pay remains in select roles. Some examples of jobs more likely to receive double time overtime include:
- Unionized positions where it has been negotiated (ex. constructions trades)
- Shift-based plant or manufacturing jobs
- Hourly roles with regular overnight or weekend obligations
- Emergency services workers like EMTs, police, firefighters
- Truck drivers or transportation workers
- Some utility, maintenance and repair technicians
- Oil rig, mining and drilling operators
- Hospitality or entertainment industry shift workers
These types of jobs are more prone to routine overnight, weekend or holiday shifts where double time overtime can help compensate for the disruption and retain employees. Paying double time is less viable for varied retail schedules.
Exceptions to Starbucks’ overtime policies
While Starbucks standard overtime policy is time-and-half pay, there can be some exceptions based on state or local labor laws. Some key exceptions include:
- California – Overtime is paid after 8 hours in a day or 40 in a week, and double time applies after 12 hours in a day.
- Alaska – Overtime is based on a 40 hour workweek but paid at double time rates.
- Hawaii – Some employees may get double time if working over 12 hours in a day.
- Cities like Los Angeles, San Francisco, Seattle – Local ordinances may dictate daily overtime, premium weekend rates, or higher minimum wages.
So in select locations, Starbucks employees may earn overtime or premium pay according to those localized wage and hour laws. But otherwise, Starbucks sticks to time-and-a-half overtime compensation everywhere else.
How does Starbucks restrict overtime?
To better manage labor costs and payroll, Starbucks does aim to minimize overtime. Some ways Starbucks tries to limit extra hours worked include:
- Capping hourly schedules based on store labor budgets
- Careful weekly planning of shifts and staffing
- Hiring more part-time employees for flexibility
- Limiting back-to-back closing/opening shifts
- Restricting off-the-clock or unauthorized overtime
- Staggering part-time partner schedules
- Utilizing temporary staffing or call-ins during peak times
- Spreading hours between cross-trained employees
Starbucks still utilizes some overtime to deal with unexpected needs or absences. But in general, it aims to control OT costs by planning hourly schedules within budget and not overworking employees. Proper staffing and scheduling can help minimize overtime obligations.
How does overtime pay work at Starbucks?
If overtime within budget is approved, here is how Starbucks calculates and pays overtime to non-exempt employees:
- Workweek runs Monday-Sunday.
- All hours worked in the workweek are added up.
- Any hours over 40 in the week are paid an overtime premium.
- The overtime rate is 1.5 times the regular hourly wage.
- Overtime wages are calculated by multiplying OT hours x 1.5 x regular rate.
- Overtime pay is included on weekly direct deposit paychecks.
- Taxes and deductions are taken out of overtime pay as usual.
For example, if an hourly employee earns $15 per hour and works 43 hours in a week, they would be owed 3 hours of overtime. At time-and-a-half, those 3 OT hours would be paid at $22.50 per hour (1.5 x $15). The total overtime wages would equal $67.50 (3 x $22.50) on top of their regular pay.
Starbucks double time controversy
In 2020, some Starbucks baristas did receive double time pay for working on Thanksgiving and Christmas. This was part of temporary “Appreciation Pay” during the pandemic. Some key points:
- The double time holiday pay was a temporary COVID incentive program.
- It applied to hours worked on Thanksgiving and Christmas Day 2020.
- Baristas got 2x their normal wages for those specific holiday hours.
- This was not a permanent change to overtime policy.
- Standard overtime remained at time-and-a-half rates.
There was confusion if the temporary holiday incentive meant a permanent shift to double time overtime. That was not the case. Starbucks simply offered the premium holiday pay as a thank you during an unprecedented health crisis. It did not fundamentally change its overtime compensation model across the board.
How to earn more as a Starbucks employee
While overtime at Starbucks is paid at 1.5x regular rates, not double time, employees still have options to boost their hourly earnings:
- Pick up extra shifts to get more total work hours
- Volunteer to cover busy peak times when extra hands are needed
- Work on holidays or evenings for shift differential premiums
- Transfer to higher paying store locations like airports or resorts
- Get promoted to shift supervisor or management roles
- Improve your bar and customer service skills to merit raises
- Advocate for higher base wages in your market over time
While overtime alone may not double an hourly employee’s wages, greater total hours and improved skills leading to promotions or raises can steadily increase total compensation over time at Starbucks.
Conclusion
Starbucks adheres to fair labor standards by paying proper time-and-a-half overtime wages to its hourly retail employees. Double time overtime is not a standard policy, as the operational costs would be challenging to sustain. While some industry or shift-based jobs do pay double time for extended hours, typical retail work does not warrant such high overtime premiums. Employees should confirm local wage rules, as some states or cities have exceptions. But otherwise, Starbucks follows overtime pay norms for the retail and food service industry.