Editor's note: Katie Clarey is a regular freelancer with HR Dive. Her column, Back to Basics, began three years ago, when she started covering employment law. If you're new to HR (or just need a little refresher), follow along as she speaks with legal experts, peruses federal guidance and lays out the basics of federal employment law. Feel free to send tips, questions and feedback to [email protected].
Andre services machinery at an auto manufacturer. When everything is in working order, our hypothetical employee works fewer than 20 hours per week. But breakdowns can multiply, and Andre sometimes logs as many as 60 hours.
When Andre started working at the plant, his supervisor told him he'd receive a fixed salary. The salary wouldn't change from week to week, even when his hours shifted.
The supervisor said Andre wouldn't be paid overtime. After an uptick in machinery issues and 60-hour workweeks, Andre grew frustrated with his paychecks. Was it true that his fixed salary was incompatible with overtime pay? Or did his supervisor make a mistake?
To answer this question, I reached out to Stephanie J. Lowe, associate at Liebert Cassidy Whitmore. She broke down the basics of the fluctuating workweek method — that's the official name for the way Andre is paid. She also addressed Andre's question. Spoiler alert: the fluctuating workweek method doesn't give employers an overtime pass.
The Fair Labor Standards Act...
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