Calculate overtime for a salaried non-exempt employee paid under the fluctuating workweek method.
Regular rate = weekly salary ÷ hours worked.
Overtime premium = 0.5 × regular rate × hours over 40.
Total = salary + premium.
A field supervisor on a $900 weekly salary under the fluctuating workweek method works 50 hours. The regular rate is $18.00, overtime premium is $90 for 10 hours, and pay for the week is $990. In a 45-hour week the rate is $20.00 and the premium $50.
The fluctuating workweek method lets employers pay a fixed salary for hours that vary, plus half-time for overtime. It has conditions: a clear understanding, hours that truly fluctuate, and a salary that never falls below minimum wage for all hours.
Several states do not allow this method. Check before using it.
A property maintenance supervisor is paid a fixed $1,100 a week under the fluctuating workweek method. In a 38-hour week there is no overtime and pay is the $1,100 salary, which works out to $28.95 an hour. In a 58-hour week the regular rate falls to $18.97, and the premium for 18 overtime hours is $170.69, so pay for that week is $1,270.69.
The regular rate is the salary divided by all hours worked, so the more hours worked, the lower the rate and the smaller the premium per overtime hour. Total pay is only correct if every condition of the method is met, including hours that truly vary, a clear understanding and a salary that always meets minimum wage. If an includable bonus was paid, add it to the salary first, or the rate and premium will come out too low.
No; some states prohibit it.
The same salary is divided by different hours.
The full salary is still paid.
No, the regular rate must meet minimum wage.
Federal rules allow bonuses and premium pay on top of the fixed salary. They must be included in that week’s regular rate, so add them to the salary figure before calculating.
Yes. A fixed salary that does not change with hours worked is a core condition of the method. If the salary is cut in slow weeks, the method does not apply and overtime would be owed at the normal 1.5 times rate.
More for the same job
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