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Administrator Guide
Last Updated: 2023-09-08
Concept: FLSA Company Relationships (USA)

Concept: FLSA Company Relationships (USA)

You can calculate FLSA blended overtime premium for workers with multiple jobs across different companies. When you
Create FLSA Relationship
Workday:
  • Applies it to all FLSA overtime calculations for eligible employees.
  • Calculates FLSA overtime premiums by aggregating the hours and wages of employees across 2 or more companies within the FLSA company relationship.
Example: Sam has 2 jobs and each job has a unique company. You:
  • Create an FLSA relationship for both companies (Company A and Company B).
  • Assign a worker to a 7-day FLSA week calendar with a weekly payroll period.
Sam's pay for Job A (Company A) is $20 per hour and Job B (Company B) is $23. At Job A (Company A), Sam works 32 hours regular and 1 hour overtime. At Job B (Company B), they work 8 hours regular and 1 hour of overtime. Since the companies are in an FLSA relationship, Workday calculates the FLSA overtime premium at the blended rate of pay.
Sam receives 2 gross-to-net payslips, 1 for each company.
  • Workday processes Job A first. Since Job B hasn't been processed yet, Workday calculates FLSA rate and includes wages and hours only for Job A.
    Job/Company
    Description
    Dates
    Hours
    Rate
    Amount
    YTD
    Job A (Company A)
    Hourly
    2023-05-01 to 2023-05-07
    32
    $20
    $640
    $640
    Job A (Company A)
    Overtime Straight Time
    2023-05-01 to 2023-05-07
    1
    $20
    $20
    $20
    Job A (Company A)
    Overtime Premium
    2023-05-01 to 2023-05-07
    1
    $10
    $10
    $10
  • Calculations for Gross-to-net for Job A (Company A)
    :
    FLSA Eligible Wages and Hours:
    • 32 regular hours @ $20.00 per hour = $640.00
    • 1 overtime hour (1x) @ $20.00 per hour = $20.00
    FLSA Overtime Calculation:
    • FLSA rate = $660.00 (total wages) divided by 33 total hours worked)  = $20.00
    • FLSA Premium Rate = $20.00 * 0.5 = $10.00
    Total Overtime due to the Worker:
    $20.00 (1x) + $10.00 (Premium) = $30.00
  • Workday processes Job B next, and calculates FLSA rate to include hours and wages for both Job A and Job B. Overtime adjustments are made for Job A overtime based on the new FLSA rate. Gross-to-net for Job B (Company B):
    Job/Company
    Description
    Dates
    Hours
    Rate
    Amount
    YTD
    Job B (Company B)
    Hourly
    2023-05-01 to 2023-05-07
    8
    $23
    $184
    $184
    Job B (Company B)
    Overtime Straight Time
    2023-05-01 to 2023-05-07
    1
    $23
    $23
    $23
    Job B (Company B)
    Overtime Premium
    2023-05-01 to 2023-05-07
    1
    $10.33
    $10.33
    $10.33
    Job A (Company A)
    Overtime Premium Adjustment
    2023-05-01 to 2023-05-07
    1
    -$10
    - $10
    $0.33
    Job A (Company A)
    Overtime Premium Adjustment
    2023-05-01 to 2023-05-07
    1
    $10.33
    $10.33
    $0.33
    The YTD for Job A (Company A) is $0.33 because it's the YTD for Company A that's paid on the result of Job B (Company B).
  • Calculations for Gross-to-net for Job B (Company B):
    FLSA Eligible Wages and Hours:
    • Job A (Company A):  32 regular hours @ $20.00 per hour = $640.00
    • Job A (Company A): 1 overtime hour (1x) @ $20.00 per hour = $20.00
    • Job B (Company B): 8 regular hours  (1x) @ $23.00 per hour = $184.00
    • Job B (Company B): 1 overtime hour (1x) @ $23.00 per hour = $23.00
    FLSA Overtime Calculation:
    • FLSA rate = $867.00 (total wages from both companies) divided by 42 (total hours from both companies) = $20.65
    • FLSA Premium Rate = $20.65 * 0.5 = $10.33
    Total Overtime due to the Worker:
    • Job A company A:  Premium adjustment only -  $10.33 (new FLSA Premium rate) – $10.00 (premium rate from GTN1) = 0.33
    • Job B company B:  $23.00 (1x) + $10.33 (Premium) = $33.33