Fair Labor Standards Act

The U.S. Department of Labor (DOL) is making significant changes to the regulations covering the regular rate of pay under the Fair Labor Standards Act (FLSA) for the first time in more than 50 years. The FLSA entitles most covered, nonexempt employees to receive overtime pay of at least one and one-half times the employee’s

We’ve noticed some cases recently filed challenging employers’ use of the fluctuating workweek method to determine the overtime compensation for employees who receive commission payments. Plaintiffs are alleging that this practice is not permitted by the Fair Labor Standards Act (FLSA) when employees earn commissions in addition to their salaries. However, this issue is unresolved, and precedent seems to favor the employer defendants.
Continue Reading FLSA Hot Topic: The Fluctuating Workweek and Commission Pay