U.S. Department of Labor Announces Proposal to Expand Access to Bonuses for America’s Workers


Blog# 11042019NPRM

Fluctuating Workweek Method of Computing Overtime RIN 1235-AA31

Heidi Macomber reads the DOL WHD NPRM dated 11/5/19 re RIN 1235-AA31 Fluctuating Workweek Method of Computing Overtime

I recorded my reading of the NPRM notice as well as the initial summary and the background. I think you might want to hang with me atleast to the start of the background. Also, if I have time later I will go over the examples and maybe add those in a separate post. Sorry, I was trying to fit this in before EOD, so I am going a little too fast.

It definitely is a needed update given all the differing opinions both from the courts and by employers in trying to understand how to properly compute overtime compensation for salaried nonexempt employees who work hours that vary each week (fluctuating workweek) under the Fair Labor Standards Act (FLSA or the Act).

 U.S. Department of Labor Announces Proposal to Expand Access to Bonuses for America’s Workers The U.S. Department of Labor’s Wage and Hour Division (WHD) today announced a Notice of Proposed Rulemaking (NPRM) that would allow job creators to offer bonuses or other incentive-based pay to employees whose hours vary from week to week.The proposal would revise the regulation for computing overtime compensation for salaried, non-exempt employees who work hours that vary each week (i.e., a fluctuating workweek) under the Fair Labor Standards Act (FLSA). It also clarifies that bonus and premium payments on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that supplemental payments must be included when calculating the regular rate of pay as appropriate under the FLSA. The proposal includes examples and minor revisions to make the rule easier to understand.

Resources

NPRM UNPUBLISHED – Fluctuating Workweek Method of Computing Overtime An unpublished Proposed Rule by the Wage and Hour Division on 11/05/2019

29 CFR Part 778


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