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ABC Supports DOL-Issued Final Rule on Overtime Determination for Fluctuating Workweek Employees

June 10, 2020

On June 8, the U.S. Department of Labor’s Wage and Hour Division published its final rule on the Fluctuating Workweek Method of Computing Overtime in the Federal Register. The rule will go into effect on Aug. 7, 2020. On Dec. 5, 2019, ABC submitted comments on the fluctuating workweek proposed rule expressing support for the proposed revisions.

According to a DOL news release, the final rule revises the agency’s regulation for computing overtime compensation for salaried, nonexempt employees who work hours that vary each week (a fluctuating workweek) under the Fair Labor Standards Act. Additionally, the rule clarifies that bonuses, premium payments, commissions and hazard pay on top of fixed salaries are compatible with the fluctuating workweek method of compensation, and that employers must include supplemental payments in the calculation of the regular rate as appropriate under the FLSA.

More information on the final rule can be found on the DOL website.

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