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
fww
New York Federal Court Upholds Payment of Overtime Pursuant to Fluctuating Workweek Method Notwithstanding Bonus Pay
By Noel P. Tripp on
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,…
SDNY Judge Oetken Upholds Payment Of Overtime Pursuant To Fluctuating Workweek Method
By Noel P. Tripp on
Posted in Regular Rate
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, …
District Court Finds Clear Mutual Understanding Necessary to Uphold Fluctuating Workweek Compensation Plan
By Noel P. Tripp on
Posted in Regular Rate
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…
Connecticut State Court Upholds Application of Fluctuating Workweek
By Noel P. Tripp on
Posted in Connecticut
As we consistently explain, state wage and hour laws do not always follow the FLSA in regard to determining exempt status and issues pertaining to calculation of overtime. State law is often unclear on these issues, and state courts and departments of labor often provide only limited guidance. In a new decision, one Connecticut state…
USDOL Revises Tip Credit Regulations, Leaves Others Unchanged
By Noel P. Tripp on
Posted in Department of Labor
Following up on proposed regulations issued in 2008 for notice and comment, the U.S. Department of Labor issued final regulations last week, effective 30 days following publication in the Federal Register. These regulations address the issues below but other than in regard to use of the tip credit under Section 3(m), the changes to the text…