September 20

Fluctuating Workweek Agreement Template

Your request for a variable work week requires the agreement of your supervisor, who must take into account operational requirements and costs such as overtime before authorization. As soon as your supervisor has approved your variable week schedule, he will inform your team of staff in the department, who in turn will provide the necessary information to the paid center. Employer, if you want the variable weekly working time method to be applied to one of your employees, you must have a clear agreement with those employees so that the salary you pay them is intended to be compensated for all hours requiring hourly work, and not for a fixed number of hours, or even changing regularly. Overtime pay for work performed beyond your variable weekly working time during a regular working day or a day of rest is normally paid at a different rate. In many collective agreements, it is paid temporarily and three-quarters. For example, if your collective agreement states that the waiting time for the exercise of remuneration is 3 days and the hours of work in your collective agreement are 7.5 hours per day, you must act 22.5 hours before you are entitled to wages. There are some important restrictions on when an employer can use the fluctuating work week method. This implies that workers` working time must indeed vary and that there must be a clear and mutual understanding between the employer and the worker that their wages must compensate them for all hours worked during a given working week. For the U.S. Department of Labor, the “fixed wage for a fluctuating work week” method or simply the “fluctuating work week” method for calculating overtime pay has always been a kind of disadvantaged step-child.

This is likely due to the fact that this calculation can, if properly applied, significantly reduce an employer`s overtime liability. You can find an explanation of how this works in our previous article, which explains the concept. In recent years, U.S. courts have made conflicting decisions about whether additional compensation, such as bonuses, is allowed under the method. The DOL is now trying to clarify that “bonuses, bonuses and other additional wages of any kind are compatible with the use of the variable method of weekly compensation for work”. Attempts are also made to add examples to the rule to illustrate the variable method of the work week for calculating overtime, in which a worker (1) receives a difference in night shift and (2) a productivity bonus in addition to a fixed salary. . . .

Leave a comment