Pennsylvania rules against fluctuating workweeks
The decisions in two recent cases have made it clear that Pennsylvania employers will not be allowed to calculate employees' overtime earnings based on fluctuating work weeks, according to the Pittsburgh Post-Gazette. One instance involved Frito-Lays drivers, who received less overtime pay than they should have for their time and attendance.
Normally, the Fair Labor Standards Act (FLSA) guarantees employees receive at least minimum wage for all of their hours worked in addition to overtime compensation for any employee attendance in excess of 40 hours. Premium pay is usually calculated by multiplying an employee's standard earnings by one-and-a-half times. This applies whether those are based on hourly wages, piecemeal or salary rates.
When employers use fluctuating workweeks, however, employees receive lower wages the longer they work. For example, if employees receive $440 a week for 40 scheduled hours, they are earning $11 per hour. When they perform work outside of their standard schedule, they should receive time-and-a-half rates, or $16.50 per hour.
In a fluctuating schedule, they earn overtime pay based on the total number of hours worked instead. So, an employee who works 44 hours will be paid just $15 an hour, because the premium pay rate is calculated by dividing the total earnings by the overall employee attendance ($440 by 44 hours).
Employers can prevent violations that result in payroll disputes by keeping up with changes made to labor laws and incorporating those adjustments into their timekeeping systems.
Normally, the Fair Labor Standards Act (FLSA) guarantees employees receive at least minimum wage for all of their hours worked in addition to overtime compensation for any employee attendance in excess of 40 hours. Premium pay is usually calculated by multiplying an employee's standard earnings by one-and-a-half times. This applies whether those are based on hourly wages, piecemeal or salary rates.
When employers use fluctuating workweeks, however, employees receive lower wages the longer they work. For example, if employees receive $440 a week for 40 scheduled hours, they are earning $11 per hour. When they perform work outside of their standard schedule, they should receive time-and-a-half rates, or $16.50 per hour.
In a fluctuating schedule, they earn overtime pay based on the total number of hours worked instead. So, an employee who works 44 hours will be paid just $15 an hour, because the premium pay rate is calculated by dividing the total earnings by the overall employee attendance ($440 by 44 hours).
Employers can prevent violations that result in payroll disputes by keeping up with changes made to labor laws and incorporating those adjustments into their timekeeping systems.
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