Insight

Fluctuating Workweek and Overtime Pay

Fluctuating Workweek and Overtime Pay

Rhiannon Herbert

Rhiannon Herbert

January 24, 2023 07:35 PM

What is a fluctuating workweek, and how does it affect overtime pay?

Does your work schedule vary from week to week? If so, your employer may be paying you on a “fluctuating workweek” basis. Your Ohio Unpaid Overtime attorneys explain everything you need to know to ensure you are being paid overtime at the correct rate.

Under the Fair Labor Standards Act (FLSA), employers generally must pay their hourly-paid employees overtime, at a rate of one-and-one-half times the employee’s regular hourly rate, for all hours worked over 40 in a workweek.

Many employees are paid by the hour, so an overtime calculation is simple – the employee’s hourly rate is multiplied by one-and-one-half to calculation the overtime rate. However, some employees are paid on different bases, such as salary, commission, or piece-rate, and work a varying number of hours each week. Under the fluctuating workweek method,[1] a non-exempt employee will receive a set weekly salary regardless of how many hours he or she works, plus an additional amount as overtime pay for all hours worked over 40 per workweek. For all overtime hours, the employee receives an additional “half time” hourly rate.

For example, if an employee receives a weekly salary of $800 per week, they will receive this amount regardless of whether they work 20 hours or 40 hours per week. If, however, the employee works 50 hours per week, they will receive their $800 weekly salary plus overtime pay for 10 hours of overtime. The employee’s regular rate of pay in this example is $16 per hour ($800 weekly salary divided by 50 hours worked). Thus, in addition to their $800 per week salary, the employee receives an additional $80 as overtime pay (half-time rate of $8.00 per hour x 10 overtime hours).

If you believe that you are not being paid overtime correctly or have other questions related to you wages or employment, reach out to your Columbus Unpaid Overtime Lawyers today for a free consultation.

Mansell Law LLC

Columbus Employment Attorneys

[1] See 29 C.F.R. 778.114

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