Among the numerous regulatory initiatives being pursued by the Department of Labor’s (DOL) Wage and Hour Division is a proposed rule that would clarify a relatively little known alternative – the “fluctuating workweek method” – for determining overtime pay.

Over the years, courts have struggled with the question of whether employers that use the fluctuating workweek method can pay extra compensation, like bonuses or premium pay, to employees who are on a fixed weekly salary when they work irregular hours. DOL’s proposal would make it clear that employers may make these additional payments while using the fluctuating workweek method. Our comments strongly support DOL’s proposal on grounds that it will enhance clarity and thus make it more likely that employers will consider this alternative method of compliance in cases where they have employees whose weekly hours fluctuate.

Our comments are available here.

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