ARTICLE · 13 NOVEMBER 2019

DOL Issues Fluctuating Workweek Proposal Permitting Employers To Include Bonus Pay When Calculating Overtime

Ogletree, Deakins, Nash, Smoak & Stewart

Explore more from Ogletree, Deakins, Nash, Smoak & Stewart

On November 4, 2019, the U.S. Department of Labor (DOL) announced its notice of proposed rulemaking (NPRM)

United StatesEmployment and HR

Author LinkedIn connections

On November 4, 2019, the U.S. Department of Labor (DOL) announced its notice of proposed rulemaking (NPRM) that would give employers more flexibility in the way they calculate overtime pay for workers with inconsistent schedules that result in workweeks with varying hours of work. This proposal would update the Fair Labor Standards Act's (FLSA) fluctuating workweek compensation method by allowing employers to include bonus and premium payments when calculating overtime pay.

The FLSA permits the payment of a fixed salary for fluctuating hours (an arrangement also called the "fluctuating workweek method") as one way employers can meet their overtime pay obligations to nonexempt employees, if certain conditions are met. Under the current regulations governing fluctuating hours, an employer may use the fluctuating workweek method for computing overtime compensation for a nonexempt employee if the employee works fluctuating hours from week to week and receives, pursuant

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Related Articles

I Was Just Put On A PIP - What Do I Do Now?

United StatesEmployment and HR

Wilentz, Goldman & Spitzer

Illinois Updates EPRC Demographic Reporting For 2027

United StatesEmployment and HR

Jackson Lewis P.C.

Illinois Attorney General’s Equinox Action Signals High Stakes For Non-Compete Compliance

United StatesEmployment and HR

Seyfarth Shaw LLP

What CPAs Need To Know About Employee Benefits, And When To Call ERISA Counsel

United StatesEmployment and HR

Hall Benefits Law

NLRB Returns To Mixed-Motive Standard For Punishment Of Employee Misconduct

United StatesEmployment and HR

Littler Mendelson

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Employment and HR
- Employee Benefits & Compensation

Related Comparative Guides

Comparative Guide

Employee Incentives

Comparative Guide

Technology Outsourcing

See more popular content from

Employment and HR

Treasury Issues Temporary Regulations On Trump Accounts And Contributions

The U.S. Department of the Treasury and IRS recently issued temporary regulations that provide an immediately effective framework for establishing and administering “Trump Accounts,” including broad automatic enrollment and large-scale contributions funded by governmental and charitable donors. The regulations became effective September 30, 2026, apply to taxable years beginning on or after January 1, 2026, and expire September 30, 2029.

United StatesEmployment and HR

Fennemore Craig, P.C.

IRS Issues New Revenue Procedure

The IRS has released Revenue Procedure 2026-24, establishing new inflation-adjusted limits for Health Savings Accounts and high-deductible health plans effective in 2027. These updates include increased contribution limits, higher minimum deductibles, and expanded out-of-pocket maximums, along with new provisions for direct primary care service arrangements under the One, Big, Beautiful Bill Act. How will these changes impact employee benefit planning and healthcare coverage strategies?

United StatesEmployment and HR

Allegheny County Council Passes Paid Parental Leave Policy

On Tuesday, October 20, 2026, the Allegheny County Council passed legislation requiring employers with at least 15 workers to provide 12 weeks of paid parental leave, ending months-long debate on the proposal. We previously reported on the initial 18-week proposal in May 2026 (summarized here), the revised proposed legislation (summarized here), and the Allegheny County Board of Health passing the legislation (summarized here). The measure was passed in an 11-4 vote. It will become effective in one year, as County Executive Sara Innamorato signed the bill on, October 22, 2026.

United StatesEmployment and HR

Buchanan Ingersoll & Rooney

DOL Announces Enforcement Actions Against Employers In H-1B And PERM Fraud Probe

The Trump Administration has launched an unprecedented enforcement action suspending permanent labor certification processing for eight major employers, linking immigration sponsorship to layoff histories and recruitment practices. This development signals a fundamental shift in how the government evaluates employer access to H-1B and green card programs, with investigations already underway and subpoenas served.

United StatesEmployment and HR

Maryland’s Ban On Mandatory Employer Meetings: Notice Deadline Looms

Maryland employers must comply with new posting requirements under the Worker Freedom Act, which prohibits penalizing employees who decline attendance at employer-sponsored meetings on religious or political matters. The Maryland Department of Labor has released official notices in English and Spanish that must be displayed prominently in workplaces and provided to new hires starting November 1, 2026.

United StatesEmployment and HR

Jackson Lewis P.C.

How To Identify Forced Labor In Supply Chains

Donald Dowling says abusive labor practices are a huge problem around the world, and often the smaller local manufacturers, miners and growers within countries that are committing labor...

United StatesEmployment and HR

Littler Mendelson

US DHS Implements Weighted Selection Process For FY 2027 H-1B Cap Registrations

The U.S. Department of Homeland Security published a final rule that will shift the H-1B cap registration selection process from a random lottery to a weighted selection process...

United StatesEmployment and HR

Herbert Smith Freehills Kramer LLP

Illinois Updates EPRC Demographic Reporting For 2027

Illinois employers face new requirements for Equal Pay Registration Certificate submissions as the state Department of Labor eliminates the "prefers not to identify" option for employee demographic data. Starting January 1, 2027, businesses must report definitive sex and race information for all employees, raising questions about data collection methods and compliance strategies.

United StatesEmployment and HR

Jackson Lewis P.C.

DOL Takes Another Step Towards Eliminating The 80/20 Rule For Tipped Employees

On October 19, 2026, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin No. 2026-1, formally withdrawing three opinion letters that served as the foundation for the so-called “80/20 Rule” governing tipped employees under the Fair Labor Standards Act (FLSA). The DOL also confirmed that its current enforcement guidance does not impose a percentage-based limit on the time a tipped employee may spend performing related, non-tip-producing duties. Instead, the inquiry focuses on whether the employee’s duties are related to the employee’s tipped occupation.

United StatesEmployment and HR

Ford Harrison LLP

DOL Scraps Plan To Eliminate 450+ FLSA Interpretive Regulations

The Department of Labor has reversed course on its controversial proposal to remove over 450 long-standing Fair Labor Standards Act interpretations from federal regulations. What does this mean for employers who have relied on these familiar guidelines for decades to ensure wage and hour compliance? The withdrawal brings stability to industries like retail, construction, and motor carriers...

United StatesEmployment and HR

Jackson Lewis P.C.