Ace the 2026 Workday Pro Payroll Challenge – Payday Perfection Awaits!

The key idea is that overtime under FLSA is calculated against a defined weekly work period, and that boundary is set by an FLSA calendar. This calendar specifies the 7-day workweek reference that determines when hours in a week surpass the threshold for overtime. Without an FLSA calendar, the system wouldn’t know which days belong to the same workweek or how many hours count toward overtime, so you couldn’t consistently apply FLSA rules across payroll periods.

An FLSA calendar is the essential building block for this logic. You can then add an FLSA calendar rule later if you need to handle exceptions or special cases (like holidays or partial days) within that framework, but the calendar itself is what establishes the fundamental weekly structure.

Other items like an FLSA tax code or a retirement plan aren’t part of the FLSA workweek configuration; they serve separate payroll purposes (tax withholding and benefit programs). An FLSA calendar rule is optional and only needed for specific exception handling, not for establishing the base weekly period.