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Fluctuating Workweek, Belo and Other Guaranteed Pay Plans for Nonexempt Employees - Webinar (Recorded)

  • Webinar

  • 90 Minutes
  • November 2019
  • Compliance Online
  • ID: 4899773
Why Should You Attend:

Changes to the white-collar exemptions from the minimum wage and overtime requirements of the Fair Labor Standards Act have many employers faced with reclassification of some currently exempt employees paid on a fixed salary basis to nonexempt status.

Paying a fixed salary, regardless of hours worked, is generally limited to exempt employees. The amount paid to a non-exempt employee, even if salaried, is usually subject to adjustment with variations in hours worked. Where the requirements are met, however, a non-exempt employee can be paid a fixed salary each workweek even though the hours vary from week to week.

Understanding the rules for such plans is critical. It is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked. Such plans have strict requirements for compliance.

A fluctuation workweek plan allows for a set salary, regardless of the number of hours worked, for regular pay purposes, but requires overtime compensation for hours worked in excess of the statutory maximum. Under this plan, pay in addition to the regular salary is restricted and an employee’s hours must fluctuate from workweek to workweek. Employees may also be paid under other plans that smooth employee earnings such as day or job rates or for a “stint”. However, it is important for employers to be aware that such plans do not reduce the need to keep accurate records of hours worked.

In addition, the Department of Labor has identified a number of plans that employers have attempted to use that do not meet the statutory requirements of the FLSA. Such plans include such things as artificial wage rates, split day plans, pseudo bonuses or a low “regular” rate supplemented by employer provided “facilities”. Use of such plans can be costly to employers in terms of payment of back wages and penalties.

Areas Covered in the Webinar:

Detailed discussion of requirements for allowable methods
Discussion of potential use of Fluctuating work week as a remedy in employee misclassification cases
Examples of situations in which particular guaranteed pay plan might be beneficial
Examples of plans including numerical tables that show the effects on employee compensation
Examples of plans that do not meet the FLSA requirements
The importance of a clear and mutual understanding between employer and employee of the pay plan


Patrick A. Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent tax payers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll publications. In addition, he regularly develops and presents webinars and presentations on a variety of topics including payroll tax issues, FLSA compliance, and information return reporting.