Understanding Overtime for Side Hustlers
Overtime pay is a critical consideration for side hustlers who juggle multiple jobs. The Fair Labor Standards Act (FLSA) mandates that non-exempt employees receive overtime pay at a rate of not less than one and one-half times their regular pay for hours worked over 40 in a workweek. However, understanding if you're entitled to overtime can be complex, especially if you have multiple roles or work as an independent contractor.
Side hustlers must be aware of the distinction between employees and independent contractors. Independent contractors are generally not entitled to overtime pay under federal laws like the FLSA. However, if misclassified, a worker may still be eligible for overtime pay. The IRS and Department of Labor use factors such as behavioral and financial control to determine worker classification, impacting overtime eligibility.