Trump Reverses Obama Stance on Fluctuating Workweek Overtime Pay

Businesses will have more legal certainty over how to calculate overtime pay under a little-used alternate method reserved for workers with irregular schedules, the Labor Department said today in a proposed rule.

The regulation would update the Fair Labor Standards Act’s “fluctuating workweek” compensation method. That option is available for employers to pay certain workers whose hours vary widely each week at half their regular rates, instead of at one-and-a-half times, for any hours worked over 40 each week.

The new rule would include bonuses and other incentives in the regular rate calculation, rescinding language from an Obama-era rule. ...