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Incentive Pay Allowed Under Fluctuating Workweek Method of Overtime Pay

May 22, 2020

Via: HR Hero

The federal Department of Labor (DOL) released a final rule on May 20, 2020 addressing whether employers may pay bonuses, commissions, and other types of incentive payments to employees paid under the fluctuating workweek (FWW) method of paying overtime.

The rule states that employers may pay various types of incentive payments to employees working hours that fluctuate from week to week, including bonuses, commission payments, hazard pay, premium payments, or other additional payments. These payments must be included in the calculation of the regular rate of pay, unless specifically excluded under the Fair Labor Standards Act (FLSA).

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