Fluctuating Workweek

News & Analysis as of

Department of Labor Makes Its Move

With just more than a year left in this administration, the U.S. Department of Labor (“DOL” or “Department”) has rolled out two major initiatives that promise to keep employers busy ensuring they are in compliance. First, in...more

Salary and Duty Test Worries? Instead, Have It Your Way

The U.S. Department of Labor (DOL) recently published proposed rules increasing the salary to be overtime-exempt to an estimated $50,440 per year as of January 2016. There will likely be an automatic annual salary escalator...more

The DOL’s New Proposed Overtime Rules and Part-Time White Collar Employees: Can the Fluctuating Workweek Method Solve the Problem?

The big questions often have surprisingly simple solutions, staring right back at us: - If a tree falls in the forest, and no one hears it, does it make a sound? Sound exists as a mechanical wave of pressure,...more

Salary and Duty Test Worries? Maybe Try Something Else!

Do you have employees who are currently overtime exempt making under $50,000 per year, who play an important role in your organization, but you can’t justify paying a higher salary to avoid having them becoming nonexempt...more

FLSA Exemption Changes: More On Salaried-Employee Alternatives

Our April 27 post gave an example of how to reduce the financial impact of a previously-exempt employee's becoming subject to the federal Fair Labor Standards Act's overtime requirement. The illustration had to do with the...more

Some Additional Thoughts on "Half-Time" Overtime: The Fluctuating Workweek Method

Last week, we discussed the fluctuating workweek method and its possible benefits. Remember that the fluctuating workweek method is not a "save lots of overtime expenses method." Employers who use the fluctuating workweek to...more

Supposed Fluctuating-Workweek "Legal Prerequisites" Come From Where, Exactly?

"Fluctuating workweek" pay plans are provoking much litigation under the federal Fair Labor Standards Act. These arrangements call for a non-exempt employee to be paid a salary as straight-time compensation for all hours...more

Captain Obvious Issues Most Obvious FLSA Decision of 2014 (So Far...)

If you have been anywhere near a TV or radio over the past few months, you have probably seen or heard the ads for Hotels.com featuring Captain Obvious. If you’re from the Midwest, and Indiana in particular, it has probably...more

Another Federal Court Finds "Fluctuating Workweek" Overtime Compensation Violates Pennsylvania Minimum Wage Act

Recently, Judge Mitchell Goldberg of the United States District Court for the Eastern District of Pennsylvania issued a decision in Verderame v. RadioShack Corp., finding that the "fluctuating workweek" method of overtime...more

California Assembly Committee Rejects Flexible Workweek Bill

A bill that would have allowed California employers to offer employees a flexible workweek schedule has failed to pass the California Assembly Committee on Labor and Employment in a 5-2 party-line vote. The Committee rejected...more

New York Federal District Court Endorses Use of Fluctuating Workweek Overtime Payment Method Where Employer Pays Performance-Based...

True story: the other day I was speaking with a friend in the HR realm and I asked him whether he was familiar with the fluctuating workweek. He jokingly answered: “does that have anything to do with my weight gain during the...more

The Fifth Circuit Giveth and Then Taketh Away: Another Perspective on Fluctuating Workweeks in Overtime Cases

In the course of two months, two separate Fifth Circuit panels have issued decisions that call into question the application of the fluctuating workweek (FWW) method in suits for unpaid overtime based on misclassification. In...more

It's Past Time To Dispel The "Half-Time" Fog

A decision by the Fifth Circuit U.S. Court of Appeals (with jurisdiction over Louisiana, Mississippi, and Texas) illustrates and exacerbates the utter and unwarranted morass into which the calculation of overtime pay has...more

Fifth Circuit Applies Fluctuating Work Week in FLSA Misclassification Case

You might want to grab a calculator, or at least some strong coffee, before reading this. If an employee or group of employees have been found to have been misclassified as exempt, are they entitled to time-and-a-half...more

Fluctuating-Workweek Ruling Might Be Reviewed

Last month's "Fuzzy Thinking" post mentioned Sisson v. RadioShack Corp., in which a lower federal court in Ohio deferred to the U.S. Labor Department's 2011 allegation that paying performance bonuses is purportedly...more

Fuzzy Thinking About Fluctuating-Workweek

In 2011, the U.S. Labor Department did its best to discourage the use of fluctuating-workweek pay plans under the federal Fair Labor Standards Act. It undertook this in a grab-bag release collectively titled "Final Rule",...more

Fluctuating Workweek and Bonus Payments Are Incompatible under the FLSA Per a Recent Ohio Federal Court Ruling

The “fluctuating workweek” wage payment method is allowed under the Fair Labor Standards Act (FLSA) when (1) a non-exempt employee’s hours of work fluctuate from week to week, (2) the employer and employee agree to use this...more

Eleventh Circuit Weighs in On Several Important FLSA Issues

The Eleventh Circuit Court of Appeals has issued an opinion that has significant implications for employers and employees alleging violations of the Fair Labor Standards Act ("FLSA"). Lamonica, et al. v. Safe Hurricane...more

Top Ten Wage and Hour Developments in 2012 for Pennsylvania Employers

For employers in Pennsylvania, 2012 was another eventful year in the world of wage and hour law. Even in the absence of new federal legislation, a number of noteworthy developments occurred at both the federal and state...more

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