DOL Issues Fact Sheet On The Fluctuating Workweek

As we discussed in May, the Department of Labor (DOL) has revised its regulation that addresses computing overtime compensation for salaried, non-exempt employees whose hours vary each week under the Fair Labor Standards Act (FLSA). The fluctuating workweek regulation, 29 C.F.R. § 778.114, has been changed to expressly state that employers can pay bonuses, premium payments, or other additional pay, such as commissions and hazard pay, to employees compensated using the fluctuating workweek method of compensation and provide that such supplemental payments must be included in the calculation of the regular rate unless they are otherwise excludable under the FLSA.

This revised regulation goes into effect on August 7, 2020. As such, the DOL has issued a fact sheet to help employers understand and apply these changes.

As always, if you have questions about this material, please contact a KZA attorney.

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