Create FLSA Company Relationships (USA)

You can set up FLSA company relationships for workers with multiple jobs across different companies to calculate:

FLSA blended overtime premium.

Flat Sum bonus overtime premium rate.

When you create an FLSA company relationship, to calculate FLSA blended overtime premium, Workday:

Applies it to all FLSA overtime calculations for eligible employees.

Aggregates the hours and wages of workers across 2 or more companies within the FLSA company relationship.

When you create an FLSA company relationship, to calculate Flat Sum Bonus overtime premium rate, Workday:

Applies it to all Flat Sum Bonus overtime calculations for eligible employees.

Uses all regular hours worked based on coverage dates across 2 or more companies within the FLSA company relationship.

FLSA company relationship configuration takes precedence over tax relationships. You can use FLSA company relationships to calculate only FLSA and has no impact on tax relationships. Any changes to the relationship should be made prior to running the pay calculation. When you make changes to the company relationship, you must recalculate payroll. Workers with a midperiod company change will be in the company for the entire FLSA week. Workday recommends that you move all workers to a new company prior to calculating payroll.

Workday recommends that you enable payroll intercompany accounting to support FLSA company relationships. Make sure you:

Include all companies within an FLSA Company Relationship on the intercompany profile.

Set up payroll ledgers for each company for all configured operational transaction types.

Open ledger periods for all configured operational transaction types for the period end date or in the future.

Review cost center and company restrictions to ensure they're within the related companies and have valid operational transactions and worktag balancing rule configurations.

Review, add, or update a worker's assigned costing.

Access the

Create FLSA Company Relationship

task.

On the

Effective Dated

tab, consider:

Option	Description
Effective Date	Enter an effective date that's on or before the current date. Adding or updating an effective date doesn't trigger a retro event. However, Workday uses the effective date in retro calculations when a worker has supported events such as compensation change or additional hours from a prior period.
Inactive	Inactivate a company relationship to no longer calculate the FLSA blended overtime premium or Flat Sum Bonus overtime premium rate for related companies as of the effective date.
Related Companies	Enter at least 2 companies. You can create any number of FLSA company relationships. However, you can't set up the same company in more than 1 relationship at a time. You can only select USA companies.

You can use the

Edit FLSA Company Relationship

task to update an existing effective date or add a new effective date. To inactivate an active relationship going forward, you must add a new effective date and select the Inactive
check box.