Many areas in the US, and around the world, have their own local rules governing the use of Contingent Workers (CWs). For example, what is the maximum number of work hours allowed per week? Are CWs eligible for Overtime pay (and if so, when)? Is there a minimum hourly wage? Customers who operate in multiple locations can use CCW’s Localization rules to ensure that their CWs are managed appropriately in the region where they work.
This document focuses on best practices in the United States. Localization rules can be configured based on Country, State, and Work Location.
United States Rules
The Best Practice for setting up Localization rules in the US is to create two sets of rules: one for California and one for Non-California. A primary example of how these rules differ is the way Overtime (OT) pay is determined:
- California: OT is based on daily hours worked, and an OT rate must be paid for any daily hours above eight.
- Example, if a CW works nine hours on a given day, the CW must be paid one hour of OT for that day, regardless of the hours worked on other days.
- Non-California: OT is based on weekly hours worked, an an OT rate must be paid for any weekly hours above 40.
- Example, if a CW works 41 hours in a week, the CW must be paid 1 hour of OT for that week.
California has other local rules that do not apply to Non-California locations; for example:
- The Seventh Day Rule: If a CW works all seven days during a work week, any Regular hours worked on the seventh day must be paid at an OT rate. If more than eight hours are worked on the seventh day, the additional hours must be paid at a Double Time (DT) rate.
Configure Localization Rules
Admin and MSP users can configure Localization rules by navigating to: Configuration & Settings > Localization and clicking Add (or selecting the Pencil icon to Edit an existing rule).
Create California Rules
- Rule Name: California
- OT Validation Type: Per Day
- Reg Hour to be worked before OT: 8
- OT Hours to be worked before DT: = 4
Create Non-California Rules
- Rule Name: Non California
- OT Validation Type: Per Week
- Reg Hour to be worked before OT: 40
- OT Hours to be worked before DT: = (Per your specific OT policy)
Other Localization Rules
Rules can be created to comply with local regulations regarding:
- Union agreements
- Collective Bargaining Agreements (CBAs)
- The Service Contract Act
- Misc business requirements