Tag Archives: fluctuating workweek

Louisiana Federal Court Rules Half-Time Method Applies to Calculation of Any Alleged Unpaid Overtime and Bonuses Paid Offset Any Potential Liability

Courts addressing FLSA misclassification claims brought by employees classified as salaried exempt workers must determine damages. In a new decision from the United States District Court for the Eastern District of Louisiana, Judge Jane Triche Milazzo ruled that successful Plaintiffs in one such misclassification case are only entitled to “half-time” damages. Further, the Court ruled … Continue Reading

Missouri Court Analyzes, Upholds Employer’s Use Of Fluctuating Workweek Method Of Overtime Payment

One method of computing overtime payments under the FLSA is the “fluctuating workweek” method. The Department of Labor’s interpretive bulletin, 29 C.F.R. § 778.114, sets forth this example of determining the regular rate of pay when an employee is paid a salary for all hours worked in a workweek, whether few or many. Because the … Continue Reading

New York Federal Court Upholds Payment of Overtime Pursuant to Fluctuating Workweek Method Notwithstanding Bonus Pay

Uncertainty and litigation have ensued in the wake of the Department of Labor’s May 5, 2011 Final Rule regarding application of the fluctuating workweek method of overtime compensation (FWW) authorized by 29 CFR § 778.114, specifically the Rule’s commentary on the payment of incentive compensation to employees compensated via FWW.  In a thorough recent decision, … Continue Reading

Federal Court Orders Trial Regarding Lady Gaga Assistant’s Wage Claims

In the still unresolved FLSA litigation concerning alleged unpaid overtime brought by a former personal assistant to entertainer Stefani Germanotta a/k/a Lady Gaga, Judge Paul Gardephe of the Southern District of New York has issued a lengthy ruling addressing some of the asserted claims and defenses. The Court concluded that plaintiff’s New York state law claims … Continue Reading

Fifth Circuit Reiterates Appropriate Calculation of Damages For Employees Misclassified as Exempt

In a decision issued on August 16, 2013, the Court of Appeals for the Fifth Circuit, building on its now-venerable ruling in Blackmon v. Brookshire Grocery Co., 835 F.2d 1135 (5th Cir. 1988), reversed a trial court ruling that refused to apply the “half time” measure of damages in an FLSA misclassification case. Ransom v. M. … Continue Reading

SDNY Judge Oetken Upholds Payment Of Overtime Pursuant To Fluctuating Workweek Method

The technical requirements for paying overtime pursuant to the fluctuating workweek method set forth in 29 C.F.R. § 778.114, can be confusing. The regulation, for example, discusses an employee and employer having a clear mutual understanding that overtime will be paid pursuant to the fluctuating workweek (FWW) method. In a new decision analyzing the FWW method, Judge … Continue Reading

District Court Finds Clear Mutual Understanding Necessary to Uphold Fluctuating Workweek Compensation Plan

The requirements of paying overtime to a non-exempt employee pursuant to the fluctuating workweek method are generally straightforward and set forth in 29 C.F.R. 778.114:  (1) the employee’s hours must fluctuate from week to week; (2) the employee must receive a fixed salary that is sufficient to provide compensation at a regular rate that is … Continue Reading

Florida District Court Utilizes Half-Time Calculation In Determining FLSA Damages Owed To Misclassified Independent Contractor

As previously discussed in this blog, many (if not most) courts agree that an employee who receives a fixed salary for varying hours of work has a “clear mutual understanding” with his/her employer that such salary covers all hours of work, and that in the event overtime is deemed owed because the employee was not … Continue Reading

The Price of Non-Compliance with the Fluctuating Workweek Method of Overtime Calculation

Under the FLSA (and most state laws), the fluctuating workweek method (FWW) of overtime payment allows employers to reduce overtime expense by paying “half time” for all overtime hours if the following four factors are satisfied: 1) employees’ hours fluctuate from week; (2) employees receive a fixed salary each week that does not vary with … Continue Reading
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