Is the fluctuating workweek right for your company?
With the new, increased salary requirements set to take effect later this year for exempt employees, many employers are asking how they might reduce their overtime obligations. One possible approach is the fluctuating workweek method of compensation. However, prior to implementing such an approach, employers would be wise to seek guidance from counsel because the fluctuating workweek method comes with its own potential challenges, and it may not be permissible under some state overtime laws, such as the California Labor Code.
Any employee – including non-exempt employees – can be paid a salary; receiving a salary does not automatically exempt the employee from overtime. A groundskeeper, a receptionist, and a file clerk can all be paid a salary; none are exempt under the general white collar exemptions (executive, administrative, professional). If such a nonexempt employee is paid a salary for all hours worked in any work week, their salary can be considered the straight time compensation for each hour worked.”
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Daniel A. Kaplan is a partner and litigation attorney with Foley & Lardner LLP. Mr. Kaplan counsels employers in all aspects of the employer-employee relationship, including wage and hour, employment contracts, confidentiality and non-compete agreements, worker’s and unemployment compensation, family and medical leave, disability accommodations and compliance with the Americans with Disability Act, and all state, federal and local discrimination laws.
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Daniel A. Kaplan
Foley & Lardner LLP
Daniel A. Kaplan is a partner and litigation attorney with Foley & Lardner LLP. Mr. Kaplan counsels employers in all aspects of the employer-employee relationship, including wage and hour, employment contracts, confidentiality and non-compete agreements, worker’s and unemployment compensation, family and medical leave, disability accommodations and compliance with the Americans with Disability Act, and all state, federal and local discrimination laws.
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