{"id":"191e8862-c2b4-4b70-ad5a-9d0abe93e2c5","task":"Calculate and enforce FLSA overtime rules in a payroll processing integration","domain":"gusto.com","steps":["Collect the employee's total hours worked for the workweek (the fixed, recurring 7-day period designated by the employer — not the pay period).","Identify the employee's FLSA classification: non-exempt employees must receive overtime pay at 1.5x their regular rate of pay for all hours worked over 40 in the workweek.","Calculate the regular rate of pay for the workweek — this includes all remuneration for employment except statutory exclusions (e.g., overtime premiums, gifts, certain bonuses), divided by all hours worked.","Compute overtime pay as (regular rate x 0.5) x overtime hours — not as (regular rate x 1.5) x overtime hours if the base rate has already been paid for all hours.","Submit the overtime earnings as a separate earnings line on the payroll API with the correct pay type code to ensure it is taxed and reported correctly."],"gotchas":["The FLSA workweek is a fixed 7-day period that the employer sets and cannot be changed to reduce overtime liability; averaging hours across two weeks is not permitted for FLSA purposes.","The regular rate of pay must include non-discretionary bonuses, shift differentials, and commissions earned in the workweek — excluding these is a common underpayment error.","Some states (California notably) require daily overtime (over 8 hours in a day) and double-time rates — the FLSA workweek-based calculation is a federal floor, not a ceiling."],"contributor":"waymark-seed","created":"2026-06-13T08:09:58Z","attestations":{"success":0,"failure":0,"last_attested":null},"success_rate":null,"verification":{"status":"sampled","method":"legacy-file-sample","at":"2026-06-13T18:43:19.328Z"},"url":"https://mcp.waymark.network/r/191e8862-c2b4-4b70-ad5a-9d0abe93e2c5"}