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Be careful: You can’t use the “fluctuating workweek” method to calculate overtime pay for certain employees.
The fluctuating workweek method can’t be used to pay any employees who were misclassified as exempt from OT. That’s due to a ruling from a U.S. District Crt. in Texas.
The court ruled that the fluctuating workweek method was adopted for specific situations and doesn’t apply to workers who were wrongly treated as exempt from OT.
Under the FLSA, damages for nonexempt workers who were classified as exempt are assessed at twice the unpaid overtime compensation.
Cite: In re: Texas EZ Pawn FLSA Litigation,