The Shortcomings Of DOL's Fluctuating Workweek Proposal

Law360 (January 14, 2020, 5:20 PM EST) -- In November, the U.S. Department of Labor announced a proposed change to the Fair Labor Standards Act’s fluctuating workweek method of compensation. If adopted, the proposed rule would silence the debate regarding whether or not bonus payments preclude an employer’s use of the fluctuating workweek method of compensation as an inherent conflict to the fixed salary prerequisite for such compensation arrangements.

Yet, the DOL’s proposal falls short of eliminating all litigation arising from fluctuating workweek compensation arrangements. To the surprise of many, the DOL’s proposed rule failed to address the heavily litigated fluctuating hours requirement.

Regardless, employers should refrain from changing...

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