The premise of fluctuating work week fww is that the salaried non exempt employee receives a guaranteed salary each pay period regardless of hours worked. The employer should have a written consent agreement signed by the employee acknowledging that the employer will be using the fluctuating workweek computation for overtime.
This standard document is intended to be used by private employers with their nonunionized workforce.
Fluctuating workweek agreement template. Vandeventer black llp norfolk office by now you all are aware that on december 1 2016 the salary threshold for the fair labor standards act flsa white collar exemptions is about to jump to 47476 per year. The fixed salary must provide compensation every week at not less than the minimum wage. It is so misunderstood that even federal judges in texas dont understand it.
The fluctuating workweek method of calculating overtime pay can be a great tool for employers but it doesnt work for all jobs or in all states. As the salary is constant but the number of hours worked varies it causes a fluctuating hourly rate. If you do not have such an agreement and you believe you are being paid under the fluctuating workweek system please contact human resources or use the complaint procedure outlined at the end of this policy.
Employers whose employees work a lot of hours part of the year and very little hours a week another part of the year usually use it. All non exempt employees paid under the fluctuating workweek system must sign a written agreement regarding that arrangement. The agreement could be implied if an.
A trial court erroneously applied the fluctuating workweek method when computing damages after a jury found a paralegal was improperly classified as flsa exempt and thus wrongly denied overtime pay black v settlepou pc october 11 2013 graves j jr. The employees repeated objections to being reclassified as exempt from overtime. Salary divided by total number of ho.
In preparing for the flsa salary increase the fluctuating workweek method and belo contract may not be right for your business. C the fluctuating workweek method of overtime payment may not be used unless the salary is sufficiently large to assure that no workweek will be worked in which the employees average hourly earnings from the salary fall below the minimum hourly wage rate applicable under the act and unless the employee clearly understands that the. Fluctuating workweek overtime pay is a way to comply with the overtime pay requirements of time and half pay for all hours worked in excess of 40 in a workweek when an employees time fluctuates from week to week.
The fifth circuit rejected the improper application of the fluctuating work week by the northern district of texas in dallas in black v. The fluctuating work week is perhaps the least understood subject in wage law under the fair labor standards act. How does the fww overtime calculation work.
August 24 2016 author. Offer letter for a fluctuating workweek employeeby practical law labor employment related content maintained usa nationalfederalan offer letter or short form employment agreement to be used for a nonexempt employee paid on a fluctuating workweek basis.
0 Response to "Fluctuating Workweek Agreement Template"
Post a Comment