The employee's salary must be sufficient to meet the minimum wage requirements for the work weeks in which the employee works the greatest number of hours.
#Flextime definition full
Important Legal Considerationsīoth the employer and employee must clearly understand that the employee will receive a full salary regardless of the number of hours the employee works, even if the employee does not work a full 40 hours. Attorneys at Parks, Chesin & Walbert are also available to advise you on issues related to wage calculations. Contact Parks, Chesin & Walbert to help you understand your options and explore which methods of pay are right for your situation. Overtime pay is frequently miscalculated. Although it is a useful method of pay for employees with irregular schedules, some employers use this method of payment to keep their costs down.
For weeks in which an employee works more than 40 hours, that employee will receive extra pay equal to one-half their regular rate for each hour worked in excess of 40 hours.įlex-pay has been approved by the Department of Labor, but with limitations. With flex pay, the employee receives their regular salary regardless of how many hours they work in a given week. Some salaried employees have a variable schedule some weeks they work more than 40 hours and some weeks they work less than 40 hours. Therefore, the salaried employee is only entitled to one-half the regular rate for any overtime work. The reasoning behind this method is that the employer has already compensated the employee for all hours worked, even the hours above 40. This is often frustrating for employees who consistently work in excess of 40 hours per week because they see their overtime rate decrease as the number of overtime hours increases. However, the "regular rate" fluctuates because it is calculated by dividing the weekly wage by the total number of hours worked put differently, the more hours worked, the lower the regular rate. The employee also receives additional pay equal to one-half the regular rate for all hours worked over 40 hours in a workweek. Under this method of payment, an employee receives a fixed weekly salary regardless of the number of hours worked. Some employers pay nonexempt workers using the fluctuating workweek guidelines for overtime compensation published by the Department of Labor (29 C.F.R. Because certain conditions must be met, it is important to consult with an attorney before offering an employee flex pay.
Typically, some weeks will require more than 40 hours, and other weeks will require less than 40. Flex pay is a type of fixed weekly compensation (with a variable overtime premium) that is sometimes available to employees who work a varying number of hours each week.
However, some salaried employees with fluctuating schedules may be properly paid using the "fluctuating workweek" method of calculating overtime, which is sometimes referred to as "flex pay" (note that "flex pay" may have a different meaning with respect to public sector compensation plans). Under the Fair Labor Standards Act (FLSA), non-exempt workers are entitled to overtime pay at the rate of 1.5 times their hourly rate for all hours worked in excess of 40 hours per week.
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