Concept: FLSA Calculation Impacts When Workers Move Companies (USA)

Workday processes FLSA for workers that move companies the same regardless of whether the companies are in an FLSA relationship or not. When a worker moves from 1 company to another and you pay a bonus with start and end dates to the current job with the coverage dates going back to the prior company, Workday pays the bonus and adjusts the overtime only to the current designated company. If you target the bonus to the prior company, you should process retro with accurate start and end dates as well as coverage dates for the company.

Example 1

:  Paying an FLSA bonus with coverage dates targeted to the current and prior company.

Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14); get paid 40 hours regular, 1 hour of overtime, and an FLSA bonus with coverage dates 2023-05-01 to 2023-05-14. Workday:

Pays the bonus amount based on the allocation rules set on the earnings code.
Adds the bonus amount only to the FLSA wages of the current company (pay period 2). This impacts overtime premiums only for the current company.

Use retro or prior period on-demand additional processing, when you need to pay a bonus back to the prior company.

Example 2

: Paying an FLSA bonus with coverage dates targeted only to the prior company.

Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14), get paid 40 hours regular, 1 hour of overtime, and an FLSA bonus with coverage dates 2023-05-01 to 2023-05-07. Workday:

Pays the bonus amount based on the allocation rules set on the earnings code.
Adds the bonus amount only to the FLSA wages of the current company (pay period 2). The bonus is considered a non-FLSA bonus. The worker wasn't working in Job B (Company B) during pay period 1 (2023-05-01 to 2023-05-07) so there are no FLSA earnings to calculate.

Use retro or prior period on-demand additional processing, when you need to pay a bonus back to the prior company.

Example 3

: Paying FLSA bonus when moving midperiod

Sam works in Job A (Company A), gets paid 40 hours regular and 1 hour of overtime, for pay period 1 (2023-05-01 to 2023-05-07). They move to Job B (Company B) during pay period 2 (2023-05-08 to 2023-05-14). For pay period 2, they get paid 40 hours regular, 1 hour of overtime, and an FLSA bonus with coverage dates 2023-05-01 to 2023-05-07. Workday:

Allocates bonus to the FLSA week belonging to Company B where the worker moved to the new company midperiod.
Pays the bonus amount based on the allocation rules set on the earnings code.
Adds the bonus amount only to the FLSA wages for the current company (pay period 2). This impact the overtime premiums only for the current company.

Use retro or prior period on-demand additional processing, when you need to pay a bonus back to the prior company.