Calculate overtime and premium pay by processing timesheet data against FLSA rules in a custom pipeline

Steps

1. Pull raw time entries for each employee for the target workweek from your time-and-attendance source (e.g., via the Finch unified API or directly from a provider).
2. Aggregate total hours per employee per FLSA workweek (a fixed 7-day period defined by the employer); note that the employer's defined workweek start day must be applied consistently.
3. Compute the regular rate of pay per the FLSA definition: divide total compensation for the week (including non-discretionary bonuses, shift differentials, and commissions) by total hours worked.
4. For each hour exceeding 40 in the workweek, calculate the overtime premium as one-half the regular rate multiplied by those overtime hours (the FLSA half-time premium method, assuming straight time is already included in base pay).
5. Apply state-specific rules (e.g., California daily overtime after 8 hours, double-time after 12 hours) as additional layers on top of the federal FLSA floor; these require state-level rule logic separate from federal calculations.
6. Write the computed regular, overtime, and premium pay amounts to your payroll system's pay-input endpoint for the pay period.