FLSA Overtime Rules and Exemptions for 2026: The Complete Guide for Payroll Professionals
Joseph Mathew
Overtime pay is one of the most common triggers for a Department of Labor audit, a class-action wage claim, or a client dispute. It is also one of the easier calculations to get wrong. A missed hour, a misapplied exemption, or a bonus that never made it into the regular rate can turn a routine weekly payroll run into a significant back-pay liability. More than 85 years after the Fair Labor Standards Act was signed, overtime remains one of the most consequential decisions a payroll team makes while processing payroll in their regular pay cycles.
Before calculating any additional wages, payroll must answer a more basic question: is this worker eligible for overtime? The employee’s classification determines whether the 40-hour standard applies. If that decision is wrong, every later calculation can also be wrong, even when the arithmetic itself is accurate.
Staffing firms face an added layer of complexity here. A single payroll cycle can involve hourly workers on multiple client assignments, multiple pay rates within the same workweek, multiple work locations subject to different state rules, and hours arriving from several disconnected timesheet systems. A calculation that is straightforward for a single-employer, single-location business becomes a multi-variable reconciliation problem for a staffing payroll team.
This guide explains federal overtime, the classification tests, correct calculations (including blended-rate scenarios common in staffing), and state requirements that can exceed the federal floor. It concludes with a practical compliance checklist and highlights how automation can reduce recurring payroll risk. Payroll, HR, finance, and staffing operations teams can use this article as a reference for employee classification, overtime eligibility, timesheet validation, and maintaining defensible payroll records.
What Is FLSA Overtime?
Under the Fair Labor Standards Act, most non-exempt employees must be paid no less than one and one-half times their regular rate of pay for all hours worked in excess of 40 hours in a workweek. In 2026, the federal salary level threshold that can lead to an employee being exempted from FLSA overtime pay in case of standard executive, administrative and professional exemptions is $684 a week, or $35,568 a year. The highly compensated employee threshold is $107,432 per year, subject to the applicable salary-basis test.
That distinction matters because payroll teams sometimes inherit a worker’s status from an HRIS, job description, or manager without checking whether it still matches the person’s actual duties and compensation. Staffing companies face additional risk when one worker has several assignments, different rates of pay, client-specific requirements, or work in more than one state. Wage-and-hour compliance is therefore a payroll-data issue as well as a classification issue.
Deep dive into FLSA : Meaning, Scope, and Why It Governs Your Payroll
The Fair Labor Standards Act sets the federal baseline for minimum wage, overtime pay, employee coverage, and payroll recordkeeping. For payroll teams, it determines which workers are protected, when overtime applies, and when a more protective state or local rule must take priority. In day-to-day payroll operations, that means the FLSA affects more than the final payment: it also shapes how hours worked, regular-rate components, exemptions, and supporting records must be reviewed.
What does FLSA stand for?
FLSA stands for Fair Labor Standards Act, the federal law of 1938 that established the 40-hour workweek, the federal minimum wage, overtime pay requirements, and record-keeping requirements for covered employers.
What is the scope of FLSA law?
The Act is enforced nationwide by the Department of Labor’s Wage and Hour Division. The FLSA sets a federal minimum level of protection for employees, but states, cities or employers can provide more generous standards. The law also covers child labor, recordkeeping and minimum wage and overtime requirements. If there is another applicable rule that is better for the employee, payroll must apply the higher standard.
Which employers and employees are covered under FLSA?
Coverage generally applies in two ways. “Enterprise coverage” applies to businesses with at least $500,000 in annual revenue engaged in interstate commerce, and “individual coverage” applies to employees who personally engage in interstate commerce even if their employer falls below that revenue threshold. In practice, nearly every staffing agency and most of their clients meet one or both tests, so assuming coverage, rather than assuming exemption from the law, is the safer starting posture for payroll teams.
FLSA vs. state overtime laws: what payroll teams need to know
Consider a California employee who works 9 hours in one day but only 38 across the week. The federal weekly standard alone would not trigger additional wages because the employee did not cross 40 hours. California, however, generally requires daily overtime after 8 hours in a workday. A federal-only calculation could therefore produce an underpayment. The national standard is the floor, not the ceiling, so payroll must check the rule that applies to each workweek and worksite.
What Are the FLSA Overtime Rules in 2026?
The non-exempt employees who are covered under FLSA generally must be paid overtime at 1.5 times their regular rate for hours worked over 40 in a fixed workweek in 2026. Proper compliance also means properly defining the workweek, counting all compensable time, using the full regular rate, and applying any more generous state rule.
When does an employee qualify for FLSA overtime?
Overtime is available for non-exempt employees working more than 40 hours in a single, fixed, recurring 168 hour workweek. The workweek need not be a calendar week or pay period. Any employer may define it as any fixed and regularly recurring period of seven consecutive 24 hour periods. Once set it must be applied consistently.
The 40-hour workweek rule and how a workweek is defined
Overtime hours worked are calculated on a weekly basis. Employers can’t average hours over two workweeks to avoid paying overtime. If an employee works 30 hours one week and 50 the next, the two week average is 40 but the employee is still owed 10 hours of overtime for the second week.
What is the standard overtime threshold?
The threshold is 40 hours in the defined workweek, but hours worked can be broader than scheduled shift time. Depending on the facts, compensable time may include time spent in training, time traveled from one work site to another during the day, short breaks, waiting time, on-call time, and required pre-shift or post-shift activities. If this time is not in the timesheet, the record may show less overtime hours worked over the weekly threshold.
How is FLSA overtime calculated?
Overtime pay is usually calculated based on an employee’s regular rate of pay plus the applicable extra hours of the workweek. That rate may not necessarily be the advertized hourly wage; it may be required to include nondiscretionary bonuses, commissions, shift differentials and other job-related payments. The total compensation base is used by payroll to calculate the correct overtime rate.
What does FLSA not require?
The FLSA requires employers must pay for work in overtime only for hours worked in the workweek in excess of 40, not for hours worked on weekends or holidays. It does not cover holiday pay, vacation pay, or severance pay. It does not impose a maximum number of hours an adult employee may work in a week or daily overtime. Many of these are common misconceptions that exist because a particular state, like California with its daily overtime rule, has independently added its own requirement on top of the federal floor.
What pay rate should be used to calculate overtime?
Use the employee’s regular rate of pay, not automatically the base hourly wage. Depending on the compensation earned, that rate can include shift differentials, nondiscretionary bonuses, commissions, and other incentive payments. However, if the employee has multiple rates during the week, payroll may need to calculate a weighted-average before adding the overtime premium.
Single rate, single assignment, worked example:
An employee works 46 hours in a workweek at $24/hour.
Regular hours: 40 × $24 = $960.00, which does not include any overtime compensation.
Overtime hours: 6 × ($24 × 1.5) = 6 × $36 = $216.00
Total gross wages: $1,176.00
Scenario related to staffing:
A temporary worker earns a $22/hour base rate plus a $2/hour shift differential for a night assignment, working 44 hours entirely on that shift.
Regular rate = $22 + $2 = $24/hour (the shift differential must be included in the regular rate)
Regular hours: 40 × $24 = $960.00
Overtime hours: 4 × ($24 × 1.5) = 4 × $36 = $144.00, which represents the additional compensation for overtime work.
Total gross wages: $1,104.00
Shift differentials, non-discretionary bonuses, and most incentive pay must be folded into the regular rate before the 1.5× premium is applied. This step is easy to overlook and is one of the most common sources of underpayment.
FLSA Exempt vs. Non-Exempt Employees: What’s the Difference?
Exempt employees are excluded from specified FLSA overtime protections only when their pay method, salary level, and actual duties satisfy the exemption tests, as detailed in the sections below. This includes non-exempt employees who are still eligible for overtime and must have their hours worked tracked accurately regardless of their job title or salary.
FLSA exempt meaning, a plain-language definition
“Exempt” means the role is excluded from the FLSA’s overtime protections, and in most cases its minimum wage protections, because it satisfies the salary basis, salary level, and duties tests described below. Exempt employees generally receive a fixed salary regardless of hours worked.
Non-exempt meaning and what it entitles a worker to
“Non-exempt” means the employee is entitled to overtime pay at 1.5× their regular rate for every hour worked beyond 40 in the workweek, and their employer is required to track and record their hours worked.
Why job title never determines FLSA status?
A title such as “manager,” “coordinator” or “supervisor” does not determine status under federal labor law. The determination is based on the worker’s actual form of compensation and day-to-day activities—not the terms used in an offer letter or organization chart.
Why job classification errors create payroll risk?
Suppose a staffing firm classifies a placed “Operations Coordinator” as exempt solely based on her job title, without confirming that she is paid on a true salary basis above $684/week or that she performs duties that satisfy an exemption category. She routinely works 48-hour weeks. The duties test is not satisfied in fact because her role is largely non-discretionary data entry, which does not qualify for overtime provisions. She is misclassified and works 8 hours of unpaid overtime a week she works that schedule, meaning she does not receive overtime pay. Even a single year of tenure can result in thousands of dollars in back wages, plus potential liquidated damages of that same amount under the FLSA’s default remedy scheme.
FLSA Overtime Exemptions: The Three Tests Explained
Most white-collar overtime exemptions depend on three separate requirements: salary basis, salary level, and duties. An employee must satisfy every applicable requirement for the exemption to hold; failing even one generally means the employee must be treated as non-exempt. Because exemptions are interpreted according to the applicable facts, employers should document the compensation and duties analysis used for each FLSA classification and review it when a role, assignment, or pay arrangement changes.
What does FLSA exempt mean?
Exempt status is not a single test. It is the simultaneous satisfaction of three independent tests. Failing any one test means the employee must be treated as non-exempt.
Who is exempt from overtime pay?
Test 1 – the salary basis test
Employee shall be paid a fixed salary which shall be determined in a specified amount and shall not be reduced or increased on the basis of the quality or quantity of work performed in any week.
Test 2 – the salary level test ($684/week in 2026)
The predetermined salary must meet or exceed $684 per week ($35,568 annually) at the federal level, though several states set a higher floor, discussed below.
Test 3 – the duties test
The employee’s actual primary duties must fall within one of the recognized exemption categories, most commonly executive, administrative, professional, computer, or outside sales duties as defined by DOL regulations, not by job title.
Typical FLSA Overtime Exemptions
Some of the most observed exemptions are executive exemption, administrative exemption, professional exemption, computer employee exemption and outside sales exemption.
Executive exemption
Primary duty is managing the enterprise or a department, regularly directing at least two full-time employees, with genuine authority over hiring and firing decisions.
Administrative exemption
Primary duty is office or non-manual work directly related to management or general business operations, involving the exercise of discretion and independent judgment on significant matters.
Professional exemption
Work requiring advanced knowledge in a field of science or learning, customarily acquired through prolonged specialized instruction, or a “creative professional” exemption for original artistic or creative work.
Computer employee exemption
Applies to certain systems analysts, programmers, and software engineers meeting specific duties criteria, with its own alternative hourly threshold.
Outside sales exemption
Primary duty is making sales away from the employer’s place of business. Notably, this exemption has no minimum salary requirement.
Can a salaried employee still be eligible for overtime?
Yes. A salary alone never creates exemption. If the salary level falls below $684/week, or the duties do not genuinely satisfy an exemption category, the employee is non-exempt and owed overtime regardless of how they are paid.
FLSA Overtime Rules for Exempt Employees: When Exempt Status Breaks
Exempt status can fail when salary deductions violate the salary-basis requirement or when an employee’s actual duties no longer satisfy the exemption. Payroll and HR teams should therefore monitor pay practices and role changes throughout the assignment rather than relying only on the original classification.
Improper deductions that destroy the salary basis
Docking an exempt employee’s pay for a partial-day absence, for the quality of their work, or for being short-staffed can violate the salary basis requirement and jeopardize the exemption, not just for that employee, but potentially for the entire job classification if the practice is systemic.
The safe harbour provision
Employers who have a clearly communicated policy prohibiting improper deductions, who reimburse employees promptly for any improper deduction that does occur, and who commit to future compliance can generally preserve the exemption through this safe harbor even after an inadvertent mistake.
When an exempt employee’s duties change mid-assignment
In staffing, an exempt-classified worker’s duties can shift meaningfully once placed at a client site, potentially affecting their eligibility to receive overtime. If the actual duties performed no longer satisfy an exemption category, the exemption is lost regardless of the original job description, and the classification must be re-evaluated.
How to Calculate FLSA Overtime: Step-by-Step Process With Examples
Reliable calculation depends on a fixed workweek, full time data, and the correct regular rate. Payroll should determine the additional time that is eligible for the premium, pay the premium, and reconcile the difference before submitting. This implies that covered workers are paid overtime based on good inputs and the employer pays the right amount when workers work past the appropriate threshold.
Step 1 – Determine the employee’s workweek
Confirm the fixed, recurring 168-hour period the employer has designated.
Step 2 – Calculate the total worked hours
Consolidate all hours worked across every assignment, shift, and location within that single workweek.
Step 3 – Separate regular and overtime hours
The first 40 hours are regular hours; anything beyond 40 is overtime, calculated on a workweek basis only.
Step 4 – Decide the regular rate of pay
Include hourly wages, shift differentials, non-discretionary bonuses, and most incentive pay; exclude discretionary bonuses, gifts, and certain reimbursements.
Step 5 – Apply the 1.5× overtime premium
Multiply the regular rate by 1.5, then by the number of overtime hours.
Step 6 – Validate the final payroll amount
Reconcile total gross wages against the sum of regular and overtime earnings before submission.
What must be included in the regular rate, and what can be excluded
Include hourly or base pay, non-discretionary bonuses, shift differentials, commissions, most incentive pay, and the value of certain non-cash compensation. Exclude discretionary bonuses, gifts, paid time off, reimbursed expenses, and premium pay already paid for overtime or holiday work, to avoid double-counting.
Worked example 1: single rate, single assignment
Already shown above: 46 hours at $24/hour equals $1,176.00 total gross wages.
Worked example 2: blended regular rate across two pay rates
This is the highest-value calculation in staffing payroll, and one that generic payroll content often does not address. A worker is placed on two assignments in the same workweek:
Client A: 25 hours at $22/hour
Client B: 20 hours at $28/hour
Total: 45 hours, 5 of them overtime
The wrong method (a common error)
paying overtime at whichever rate happened to be in effect when the 40-hour mark was crossed, for example, the $28/hour Client B rate. This produces overtime pay of 5 × ($28 × 1.5) = $210.00, which is not FLSA-compliant, even though it appears more generous.
The right method (weighted average regular rate):
Total straight-time earnings: (25 × $22) + (20 × $28) = $550 + $560 = $1,110.00
Weighted average regular rate: $1,110.00 ÷ 45 hours = $24.67/hour
Half-time overtime premium owed (straight-time for those hours is already included in step 1): 5 hours × ($24.67 × 0.5) = $61.68
Total gross wages: $1,110.00 + $61.68 = $1,171.68
The difference between the two methods on a single worker in a single week is small in isolated dollar terms. It is the method itself, not the dollar gap in this example, that regulators and plaintiffs’ counsel scrutinize. Applied incorrectly across thousands of blended-rate weeks a year, this error is one of the most common sources of FLSA back-pay exposure identified in staffing industry wage-and-hour audits.
Worked example 3: the salaried non-exempt worker
A staffing coordinator is paid a fixed salary of $32,000/year ($615.38/week), below the $684/week threshold. Salary status alone does not create exemption, so because the salary level test fails, she is non-exempt. If she works 45 hours in a workweek, her regular rate is calculated by dividing her weekly salary by the hours it is intended to compensate (commonly 40 hours, absent a different agreement): $615.38 ÷ 40 = $15.38/hour. Overtime owed: 5 × ($15.38 × 1.5) = $115.35 for that week alone.
FLSA overtime calculator: what payroll teams should verify
Any calculator or payroll system used for overtime should be checked to confirm it: (1) consolidates hours across all assignments in the workweek, not just one job code; (2) correctly computes a blended regular rate when multiple pay rates apply; (3) includes non-discretionary bonuses in the regular rate before applying the premium; and (4) applies the correct state-specific rule where it is more generous than the federal standard.
FLSA Overtime Rules for Staffing Companies
Managing overtime compliance is significantly harder in staffing environments compared to conventional single-employer environment. Staffing companies must connect time from every client assignment to one worker-level workweek, even when separate managers, VMS portals, job codes, or billing rules are involved, to ensure accurate pay for work. A client restriction on unauthorized overtime does not remove the employer’s obligation to pay for compensable hours actually worked.
Managing overtime for temporary and contract workers
Temporary and contract workers are entitled to the same overtime protections as direct employees. The staffing agency, as the employer of record, bears primary responsibility for correct calculation of overtime hours worked even when the hours were worked at, and reported by, a separate client site.
Multiple client assignments and workweeks
A worker placed with two clients in a single defined workweek must have all hours from both assignments combined for overtime purposes. Overtime cannot be calculated separately per client and then ignored once combined hours exceed 40.
Pay rate changes and overtime calculations at a blended rate
Whenever a worker’s pay rate changes mid-workweek, whether from a new assignment, a shift differential, or a rate increase, the regular rate must be recalculated as a weighted average across all hours and rates in that workweek, as shown in Worked Example 2.
State-specific overtime requirements
Because staffing workers may be placed across state lines, the applicable state requirement can change from one assignment to the next, even for the same worker in the same month.
Overtime approvals and timesheet validation
Overtime hours are only as accurate as the timesheet data feeding them. Consolidating and validating timesheets, especially across multiple VMS portals and client-approval workflows, before payroll calculation is the operational control that prevents downstream FLSA errors.
How timesheet errors become FLSA overtime pay errors
A missed or mis-recorded overtime hour is not a rounding error; it is a wage violation. Consider the scale: 1,000 workers × 2 unrecorded overtime hours × $30/hour × a 50% premium equals $30,000 in additional gross-pay exposure for a single pay period, before accounting for the billing and margin impact on the client relationship, or any liquidated damages if the shortfall is identified later in an audit or complaint. A single systemic timesheet gap, repeated weekly across a workforce this size, compounds into a material liability within a single quarter.
State Laws That Go Beyond the Federal Standard for Overtime Pay in 2026
Federal law sets a minimum standard for overtime, but states can offer more generous protections, such as daily overtime or higher salary thresholds. Payroll teams should use the most employee-friendly rule and confirm requirements in every location work is performed. State overtime laws also vary on double time, meal-period premiums, covered occupations and the compensation that is included in the regular rate, so a federal-only payroll rule won’t work for a multistate workforce.
States with daily overtime thresholds
A handful of states, including California and Alaska, require overtime after a set number of hours in a single workday (commonly 8 hours), independent of the weekly total, a rule the federal FLSA does not impose.
States with higher salary thresholds than the federal floor
Several states set their own, higher minimum salary threshold for exemption. California, for example, ties its exempt salary threshold to a multiple of the state minimum wage, which moves independently of, and is currently well above, the federal $684/week figure.
How to determine which state’s rules apply for a traveling worker
Generally, the law of the state where the work is physically performed governs that portion of the work. This means a single traveling worker’s assignments across two states in one week may require two different overtime calculations for the same workweek. Because these thresholds move on state-specific effective dates, often January 1, payroll teams should verify each applicable state figure against the state labor department directly and date-stamp their internal reference tables so anyone using them knows how current the data is.
FLSA Overtime Compliance Checklist for Payroll Professionals
A reliable FLSA overtime review should confirm employee classification, the defined workweek, complete hours, the correct regular rate, applicable state requirements, and supporting payroll records before payment is released. The following checklist gives payroll professionals a practical final control for every pay cycle.
Employee classification verified (salary basis, salary level, and duties tests all satisfied)
Workweek confirmed and consistently applied
Hours consolidated across all assignments, clients, and locations
Overtime hours correctly identified against the 40-hour threshold
Regular rate validated, including bonuses and differentials
Applicable state rules checked for every worksite
Pay rate changes mid-workweek accounted for in a blended rate
Overtime approval confirmed and documented
Payroll calculation reconciled against source timesheets
Exceptions documented with a clear rationale
Audit trail retained per FLSA record keeping requirements
Common FLSA Overtime Payroll Errors
Common overtime errors usually begin before the final calculation. Misclassification, an incorrectly defined workweek, incomplete timesheet data, excluded compensation, or missed state requirements can all produce underpayments and weaken the employer’s audit trail. A reliable payroll compliance process should therefore test both the underlying data and the calculation logic before wages are released, with exceptions assigned to a named reviewer.
Misclassifying exempt employees
Relying on job title or intent rather than verifying all three exemption tests independently.
Using the wrong workweek
Averaging hours across two workweeks, or shifting the workweek definition to reduce overtime owed. Both are non-compliant.
Lost overtime hours
Failing to consolidate hours across multiple assignments or timesheet systems before calculating the 40-hour threshold.
Incorrect normal rate
Omitting non-discretionary bonuses or shift differentials from the regular rate before applying the 1.5× premium.
Ignoring state specific requirements
Applying only the federal standard in a state with daily overtime rules or a higher salary threshold.
Overtime payments based on partial timesheet information
Running payroll before all client-approved hours have been received and reconciled.
Failure to keep adequate payroll records
Not preserving the documentation needed to defend a calculation in the event of an audit or dispute.
How Payroll Automation can enhance FLSA overtime compliance
Payroll automation may help improve wage-and-hour compliance by streamlining time data, standardizing calculation rules, validating rates and approvals, and routing atypical records for human review. It can also provide an audit trail from the original timesheet through worker matching, rate selection, calculation, approval, correction and final payroll output.
Manual, spreadsheet-driven overtime calculation is difficult to sustain at staffing scale, particularly once multiple clients, VMS portals, and pay rates are involved. Several categories of automation directly reduce FLSA risk.
Automated employee and timesheet validation
Confirms that submitted hours are complete, approved, and attributable to the correct worker and workweek before they reach payroll.
Overtake Checks Based on Rules
Consistently uses the 40-hour threshold and any relevant state daily-overtime rule across all workers and all cycles, without manual recalculation.
Payroll exception review
The only records that emerge are those outside normal patterns – odd hours, rate changes or missing approvals – so payroll staff can focus review time where it matters most.
Payroll decision audit trail
Keeps a paper trail of how each overtime calculation was determined . The difference between a defensible position and a costly one if a calculation is later challenged .
Timesheet hours reconciliation before payroll submission
It closes the gap identified in the above timesheet errors scenario by consolidating hours from multiple client VMS portals into one validated source before the overtime calculation runs.
Automating FLSA Validation using einTime
Staffing payroll teams can leverage automation to streamline adherence to FLSA compliance. einTime is a purpose-built automation platform that helps staffing payroll teams to undertake 40+ validations including FLSA, other federal wage requirements before it becomes a paycheck.
einTime consolidates time across clients, VMS portals, and pay rates, applies configured regular-rate and overtime calculations, flags exceptions, and retains the audit trail regulators and clients expect.
Frequently Asked Questions About FLSA Overtime
These frequently asked questions provide concise answers to the issues payroll and staffing teams most often encounter when applying FLSA overtime rules. They cover eligibility, exempt status, calculations, temporary workers, and the controls a payroll system should support.
FLSA is the Fair Labor Standards Act, the federal law enacted in 1938 that set minimum wage, overtime pay, and recordkeeping standards for covered employers and employees in the U.S.
Federal Labor Standards Act (FLSA) What is overtime? Overtime is the requirement to pay non-exempt employees one and one half times the employee’s regular pay rate for all hours worked over 40 hours in one defined workweek, regardless of whether the employee is hourly paid or salaried.
To determine the overtime premium owed, determine the workweek, total all hours worked, identify the hours over 40, calculate the regular rate (including bonuses and differentials), and multiply that rate by 1.5 and the number of overtime hours.
There is no new federal overtime rule for 2026. For highly compensated employees, the 2019 threshold is $107,432 per year. The 2019 threshold of $684/week ($35,568/year) still applies as of November 2024. A federal court vacated the 2024 DOL rule that would have raised salary thresholds. Employers should still verify the applicable federal threshold in place and any state threshold that applies just before they publish or implement the payroll.
The employee can only be exempt if they pass all three tests: paid on a true salary basis, salary is at least $684/week, and the employee’s actual primary duties qualify within an exemption category such as executive, administrative, or professional work.
Exempt employees are not entitled to overtime protections because they meet the exemption tests for pay and duties. Non-exempt employees must be paid overtime for hours worked in excess of 40 hours in the workweek, and hours must be tracked.
No. Salary alone never creates exemption. The salary must meet the minimum threshold, and the employee’s actual duties must independently satisfy one of the recognized exemption categories to ensure they must receive overtime.
FLSA status on a job description is whether the position has been classified as exempt or non-exempt from overtime pay. This status should be based on a true consideration of pay and duties and not just the title of the position.
Only if their classification was incorrect to begin with, or if an employer’s practices, such as improper salary deductions, break the salary basis and cause the exemption to be lost, will they be entitled to receive overtime pay. At that point, the employee becomes retroactively entitled to overtime for the affected period.
Yes. Temporary and contract workers are entitled to the same overtime protections under the FLSA as any other non-exempt employee. It is typically calculated and paid correctly by the staffing agency as the employer of record.
Yes, if the system properly pools hours across all assignments in the workweek, uses the properly weighted blended regular rate when multiple pay rates are involved, and accounts for any applicable state-specific rules. These capabilities should be tested, not assumed.
Author
Joseph Mathew is an award-winning Payroll leader with 20+ years of experience, building and managing global payroll teams in staffing and tech industry. Joseph currently heads the Product team at einTime. He believes that automation could help transform the timesheet lifecycle in staffing and talent agencies. He advocates for adoption of technology as means to achieve operational excellence and build sustainable competitive advantage.
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