The U.S. Department of Labor (DOL) has officially promulgated revisions to its regulations under the Fair Labor Standards Act (FLSA) clarifying that employers are permitted to pay bonuses, commissions, and other forms of premium pay to FLSA-nonexempt workers under the so-called “fluctuating workweek” method of pay.

The fluctuating workweek method can be used to determine an employee’s regular rate and overtime if certain circumstances are present. The revised regulations are designed to clarify longstanding rules and remove disincentives that have discouraged eligible employers from using this method. DOL notes in the preamble to the new rule that it believes the changes will allow employers and employees to better utilize flexible work schedules, which will be important as workers return to work following the COVID-19 pandemic.

The final regulations, which contain only minor changes from the changes DOL proposed last year, have not yet been published in the Federal Register. The regulations are scheduled to go into effect 60 days after publication.

Members of the Center for Workplace Compliance (CWC) can read more here.