Save a Bundle OT Rule Fluctuating Workweek
According to HR Morning.com there’s some employers are considering a new tactic to reduce overtime costs under the DOL’s changes to the FLSA overtime exemption rules. The tactic known as the fluctuating workweek approach to paying employees can save you a lot of money. But of course there’s a downside too:
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It’s only applicable in very specific circumstances
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It’s an administrative burden (it requires weekly calculations), and
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If the DOL audits you, it will heavily scrutinize your approach to calculating pay and your record keeping practices (the agency will want you to prove that you have been using the approach correctly).
While the DOL allows the fluctuating approach specific conditions must be met:
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Your state must not ban its use
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The employee’s salary must be fixed and provided each week, no matter the number of hours worked
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The employee’s hours must fluctuate each week
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The employee must always make the minimum wage, and
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The employee must understand and agree to — in writing — this method of payment.