U.S. Dept. Of Labor Releases Final Workweek Method Of Computing Overtime Rule
The U.S. Department of Labor (DOL) recently released a final rule that allows employers to pay bonuses or other incentive-based pay to salaried, nonexempt employees whose hours vary from week to week.
The rule clarifies that payments in addition to the fixed salary are compatible with the use of the fluctuating workweek method under the Fair Labor Standards Act (FLSA).
“This final rule offers another example of how the U.S. Department of Labor is working to reduce unnecessary regulatory burdens in order to benefit American workers,” said U.S. Secretary of Labor Eugene Scalia. “Because of the clarity provided by this rule, employers will know they can pay workers’ bonuses in a broader range of circumstances.”