As long anticipated, the U.S. Department of Labor (DOL) has published proposed regulations to make it clear that employers are permitted to pay bonuses and other forms of premium pay to nonexempt workers under the so-called “fluctuating workweek” method of pay. The fluctuating workweek method is an alternative means allowed under the Fair Labor Standards Act (FLSA) for determining overtime payments. The proposed changes are designed to clarify current rules and remove disincentives that discourage employers from using this method.
DOL is soliciting public comments on its proposal until December 5, 2019.
A copy of the proposed regulations, as published in the Federal Register, is available here.
Members of the Center for Workplace Compliance (CWC) can read more here.