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DOL Issues Proposal to Revise Fluctuating Workweek Method of Computing Overtime

Economic

On Nov. 5, the U.S. Department of Labor’s Wage and Hour Division published a Notice of Proposed Rulemaking titled Fluctuating Workweek Method of Computing Overtime, which would revise a DOL regulation concerning salaried, non-exempt employees who work hours that vary each week under the Fair Labor Standards Act.

According to a WHD news release, the proposed rule would revise the regulation for computing overtime compensation for salaried, non-exempt employees whose hours vary from week to week (i.e., a fluctuating workweek).

Additionally, the proposal clarifies that bonus and premium payments on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that supplemental payments must be included when calculating the regular rate of pay as appropriate under the FLSA.

The DOL is soliciting feedback on the proposed rule from now until Dec. 5, 2019. ABC will continue to keep members informed of any developments about this proposal in Newsline.

More information on the NPRM can be found on the DOL website.

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