The U.S. Department of Labor (DOL) just announced on May 20, 2020, that employers will have greater flexibility to use the fluctuating workweek method of calculating overtime pay for salaried, nonexempt workers whose hours vary from week to week. Previously, this method was not available to compensate employees with bonuses or other incentive-based pay. Now, the regulations have been revised to grant employers greater flexibility to provide additional forms of compensation to employees whose hours vary from week to week.
Prior to implementing this method of paying overtime, however, employers are cautioned to ensure their polices comply with the Fair Labor Standards Act (FLSA). Failure to do so may expose an employer to claims for unpaid overtime.
To learn more about the fluctuating workweek method of calculating overtime, or to have our experienced attorneys review your current overtime policies, contact Lázaro Law Group at (312) 461-9900 or visit our website at https://lazarolawgroup.com.