If a contractor has an hourly rate, and they are clearly and properly categorized as a contractor, how are the hours in excess of 40 paid? Are there any requirements beyond the regular bill rate for those hours over 40?
Ann Kiernan responds:
If they are contractors, not employees, then FLSA does not apply and there are no overtime requirements. However, the IRS is cracking down on the use of contractors so there may be some question of whether they really are contractors. You can get a letter ruling from the IRS. Your accountant can get you the form to file to request a ruling.
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