DOL Issues Fact Sheet On The Fluctuating Workweek

Volume: 19 | Issue: 46
August 4, 2020

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.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.

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