More On

Labor: Paying salaried non-exempt employees using the fluctuating workweek method

Labor Department reverses its position, restricts fluctuating workweek method

The fluctuating workweek has long been a popular method of paying salaried non-exempt employees. However, last year the U.S. Department of Labor (DOL) issued a statement invalidating this method in cases where the employer paid employees bonuses or incentives, causing confusion among employers using the fluctuating workweek method.

Traditionally, with a fluctuating workweek a salary is paid for all hours worked, with half time for all hours worked after 40 hours. Under the Fair Labor Standards Act (FLSA), employers utilizing this method must meet the following requirements:

Managing Partner

author image

Salvador Simao

Salvador P. Simao is managing partner of Ford & Harrison LLP’s New Jersey office. Having spent the majority of his career as a trial attorney...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.