How does the fluctuating workweek work?
An employer may use the fluctuating workweek method of calculating overtime when an employee’s hours vary from week to week. Under the fluctuating workweek, an employee is paid a base salary regardless of the number of hours worked in any week. This means that the employee earns the same salary for the week in which s/he works 24 hours and for the week in which s/he works 60 hours. During the week in which the employee worked 24 hours, not overtime would be owed, but the difference between 24 and 40 hours cannot be docked from the employee’s salary. During the week in which the employee works 60 hours, the 20 hours of overtime may be paid at ½ of the regular rate of pay (that is, the salary divided by 60 hours).
