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ARTICLE · 08 FEBRUARY 2017

Fluctuating-Workweek Plans: Don't Forget State Law!

Fisher Phillips LLP
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Some have chosen to pay workers at an hourly rate for their hours worked in a particular workweek.

United StatesEmployment and HR
Steven Ferenczy
Steven Ferenczy
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Many employers have responded to the U.S. Department of Labor's ongoing efforts to increase the pay-related requirements for the federal Fair Labor Standards Act's "white collar" exemptions by making tough decisions about employees' compensation going-forward.

Some have chosen to pay workers at an hourly rate for their hours worked in a particular workweek.  For employees subject to the FLSA's overtime requirement, this also means that they are due overtime compensation of at least 1.5 times their hourly rates (assuming that they receive no other pay affecting their overtime wages) for their hours worked over 40 in a workweek.  A number of other employers feel that considerations of employee morale, cost, and/or payroll administration cut against an hourly basis of pay.

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