FSLA Challenges–How Does Overtime Work with a Fluctuating Work Week?

Author: Hans & Associates, P.C.

In recent years, the changes and complexities of wage and hour laws have made it difficult for small businesses to comply with regulations. Yet, with wage and hour lawsuits on the rise, small businesses are increasingly vulnerable to legal action. It is vital for small businesses to put practices in place that are in compliance with the Fair Labor Standards Act (FLSA). One issue in particular that businesses have trouble with are overtime pay and fluctuating work weeks.

In May 2011, new FLSA revised regulations went into effect. The fluctuating work week method of computing overtime compensation for salaried non-exempt employees allowed employers to pay employees non-overtime bonuses and incentives. Employees with fluctuating work weeks must have an understanding with their employer and receive a fixed salary, whether working a few hours or many hours in the week, whether working over 40 hours or under 40 hours a week . The bonus must be included in the regular pay calculations. Previous to this revision, employers were not allowed to pay employees bonuses under the fluctuating work week method. However, the law was revised because paying bonuses for working undesirable hours is beneficial for employees.

To avoid having one or more employees claim that you did not pay them what they were owed under the FLSA, you must make sure that your business incorporates practices compliant with FLSA rules.

At Hans & Associates, a New York employment defense lawyer can help you review your wage and hours practices to ensure they are sound and provide you with legal defense if facing a wage and hours lawsuit.

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