Do we have to pay contractors overtime? 

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?

Posted 02-07-2007

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.

Information here is correct at the time it is posted. Case decisions cited here may be reversed. Please do not rely on this information without consulting an attorney first.


About the Author:

Ann Kiernan has litigated claims of wrongful discharge and discrimination before state and federal courts and administrative matters before the New Jersey Division on Civil Rights, the National Labor Relations Board and the Equal Opportunity Employment Commission, representing both employers and employees. Ms. Kiernan co-hosted The Employee Rights Forum, a weekly radio call-in show reaching up to a half-million listeners in the New York metropolitan area, and her articles on employment law have been published in many books and magazines. Both as a firm partner and as a director, Ms. Kiernan gained solid experience in management and human resources compliance. She has worked with Fair Measures since 1997.