Labor Department Issues Two New FLSA Opinion Letters Providing Wage and Hour Guidance on Lump Sum Bonuses and Per-Project Fees

The U.S. Department of Labor’s Wage and Hour Division (WHD) has issued its first two opinion letters of 2020 addressing issues arising under the Fair Labor Standards Act (FLSA). While the opinions don’t break any new ground, they do help illustrate WHD’s take on important FLSA compliance principles.

In the first letter, WHD demonstrates how to properly account for a lump sum bonus earned over several weeks for regular rate purposes. In the second letter, WHD provides guidance on how to assess whether an employee’s per-project fee complies with the salary basis test required of exempt executive, administrative, and professional employees.

Copies of Opinion Letters FLSA 2020-1 and FLSA 2020-2 are available online

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