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Compensation for a temporary employee who qualifies for an overtime exemption for only 50% of their duties should reflect their classification as a non-exempt employee for the hours worked beyond the standard 40-hour workweek. This means that they should be paid hourly for all hours worked and receive overtime pay for any hours that exceed the 40-hour threshold.

The rationale is that although the employee performs some exempt duties, they do not meet the criteria for full exemption. As such, they retain their non-exempt status for a significant portion of their work and are entitled to overtime compensation when they work more than the standard hours. This ensures compliance with labor laws that govern overtime pay, which are designed to protect workers by compensating them fairly for extended hours worked.

Options that suggest paying the employee as exempt for all hours or regardless of hours worked do not align with their partial exemption status and therefore would not meet legal and regulatory requirements. Furthermore, paying them hourly plus a bonus may not adequately compensate for the overtime hours they work, particularly if the bonus does not account for extra hours. Thus, the correct approach is to pay them hourly and provide overtime compensation for hours worked beyond 40.