United States
FLSA, in plain English.
The Fair Labor Standards Act is the US federal law setting minimum wage, overtime pay, recordkeeping, and child labour standards. Its best-known rule requires overtime at one and a half times the regular rate for hours worked beyond 40 in a workweek for non-exempt employees. Exempt status depends on salary level and job duties, not job title. Workzoom tracks hours against the workweek so overtime is calculated from actual time, not estimates.
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How FLSA works.
FLSA overtime is calculated on a fixed, recurring workweek of 168 hours, and that workweek does not have to match a pay period. An employer paying semi-monthly still owes overtime by workweek, which is why the two calendars have to be tracked separately. The regular rate is also not simply base hourly pay: non-discretionary bonuses and shift differentials get folded in, which raises the overtime rate above a naive time-and-a-half on base. State law can be stricter than federal, and where it is, the stricter rule applies.
Where FLSA goes wrong.
- Classifying someone as exempt because they are salaried is the classic and expensive mistake.
- Exemption requires meeting both a salary threshold and a duties test, and a job title carries no weight.
- The second trap is averaging hours across two weeks of a biweekly pay period to avoid overtime, which is not permitted. Each workweek stands on its own.
- 2000 Running payroll since Workzoom has run Canadian payroll for 26+ years.
- Canadian hosting on AWS available
- Trusted in production County of Renfrew, Silvera for Seniors, and Cable Bahamas. Built for 50 to 5,000 employees.
In the product
How FLSA runs on Workzoom.
FLSA is part of the Workzoom Workforce Suite. Workzoom runs HR, workforce, and talent on a single employee record across ten countries: Canada, the United States, the Bahamas, Jamaica, Trinidad and Tobago, Barbados, Antigua and Barbuda, Anguilla, the Cayman Islands, and the United Kingdom. Full gross-to-net payroll runs live in Canada, the United States, and the Bahamas. Pricing starts at $4 per employee per suite per month.
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Workzoom works with organizations of 50 or more employees. See our minimums.