What does fluctuating workweek mean?

What does fluctuating workweek mean?

(July 2020) (PDF) Many employees have work schedules that vary from week to week. As a result, the total number of hours an employee works may increase or decrease from one week to the next. This type of schedule is called a “fluctuating workweek.”

Is fluctuating workweek legal?

The Department of Labor’s Final Rule, which took effect on August 7, 2020, provides that employers may utilize the fluctuating workweek method of calculating overtime under the Fair Labor Standards Act (“FLSA”) while at the same time making payments in addition to fixed salary.

What is the difference between the fluctuating workweek compensation method and a Belo contract?

The fluctuating workweek method does not require a written contract, only an understanding of the pay arrangement. If this does not or will not occur, the Belo contract will be invalid. The regular rate of pay must be at least the minimum hourly rate and can only include wages for time worked.

What is a fixed work week?

A fixed work schedule is a timetable that generally consists of the same number of hours and days worked per week. Fixed work schedules tend to stay consistent once the number of hours and the days have been agreed upon by both the employer and the worker.

What is a fluctuating salary?

An employee who works a fluctuating workweek has a different amount of work hours from week to week. Employees who work fluctuating workweeks earn a fixed salary, regardless of how many hours they work per week. For example, the employee would earn the same weekly salary whether they worked 35 or 40 hours.

Is half time overtime legal?

California overtime laws require non-exempt employees to earn one-and-a-half times their regular rate of pay when they work: more than 8 hours in a workday, more than 40 hours in a workweek, or.

Do bonuses count toward overtime?

Nondiscretionary bonuses are bonuses that the employer is obligated to pay, and they must be included in overtime pay calculations. Discretionary bonuses are not considered overtime-eligible, as defined in FLSA 29 CFR 778.208-215.

How do I calculate my work week fluctuation?

Fluctuating workweek overtime calculation You can find an employee’s hourly rate by dividing their weekly salary by the number of hours worked during the week. Next, multiply the employee’s hourly pay rate by 0.5 for each hour they worked over 40 during the workweek.

Why is my overtime half my pay?

This is because the employer divides the weekly salary by the number of hours worked in a given week and calculates the overtime based on that hourly rate. Thus, the more hours worked, the lower the hourly rate.

Do you have to pay fixed salary for fluctuating workweek?

If you have an employee who always works a fixed 42-hour schedule, with no variation in hours from week to week, this method can’t be used. According to the U.S. Department of Labor, not only do hours have to fluctuate, but they have to fluctuate both above and below 40 hours per week.

How much overtime do you pay for fluctuating workweek?

On the other hand, fluctuating workweek overtime is additional compensation of 0.5 times the employee’s hourly rate for each hour over 40 worked. You can opt to pay more than the minimum fluctuating workweek overtime rate of 0.5. Can you use the fluctuating workweek method?

What does it mean to have a fluctuating workweek?

As a result, the total number of hours an employee works may increase or decrease from one week to the next. This type of schedule is called a “fluctuating workweek.” The FLSA requires that employers pay most employees in the United States at least the federal minimum wage for each hour they work.

Can a non exempt employee be paid on a fluctuating workweek?

Not allowed for non-exempt employees paid on a fluctuating workweek basis. If you want to use this method, it means paying employees their full salary for every workweek in which they perform any work, even if it’s just one day or even one hour.