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).
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.
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.
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).
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.
Write the computed regular, overtime, and premium pay amounts to your payroll system's pay-input endpoint for the pay period.
Known gotchas
The FLSA regular rate must include non-discretionary bonuses and other qualifying compensation—using only the base hourly rate will understate overtime premiums and create compliance liability.
Employers cannot change the defined FLSA workweek retroactively to reduce overtime liability; the workweek must be consistently applied and documented.
The Finch unified API normalizes pay statement data across providers but does not perform overtime calculations itself; calculation logic must be implemented in your pipeline.
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