Hidden Dangers Of The Fluctuating Workweek Method

Law360, New York (November 20, 2017, 11:46 AM EST) -- The fluctuating workweek (FWW) method allows employers to streamline the process of paying overtime to employees who are not exempt from overtime pay requirements under the Fair Labor Standards Act. However, there are still unsettled issues regarding the rules for calculating overtime under this method that can invite collective or class action lawsuits under the FLSA and state wage and hour laws. The recently approved multimillion-dollar settlement agreement in Acevedo v. BrightView Landscapes LLC,[1] a hybrid collective/class action covering 27 states, illustrates the limitations of FWW plans, and potential pitfalls for employers who utilize this payment method.

The FWW method, which...

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