FinanceRegs.com » Fluctuating workweek: When you can’t use it for OT

Fluctuating workweek: When you can’t use it for OT

August 25, 2008 by Carol Katarsky
Posted in: Best practices, DOL, Hiring & training staff, In this week's e-newsletter, Internal controls, Latest news & views, OT regs, Tax compliance

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,

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