Hi. I work for a company in Texas. We were salaried employees and now the payroll company hhas opted to put us on the Fluctuating pay schedule beginning the next pay period. I work a 40 hr workweek and normally get overtime (time) or comp time. However, I undetstand this to be my weekly salary divided by the number hours worked in that week, and my overtime will be divided by two with that total? example: 45 hrs week worked - weekly salary $500 - 45 / 500 = $11.11/hr. So, $11.11 x 40 = $444.40 and overtime at $11.11 / 2 = $5.56 x 5 = $27.80. Does the overtime have to be over the minimum wage? Does the employer have to give the weekly salary to the employees or do we find that out ourselves?

I just spoke to the pres and he said that an auditor came and said that non-exempt employees (non supervisor) have to now clock in according to law. Is this true?

In your calculations above, your overtime would be paid that week at $16.67 (straight plus 1/2 = $11.11 plus $5.56)...you forgot to add in the $11.11 for each over time hour or multiply each straight hour by 45 hours, not 40.

rr

In your calculations above, your overtime would be paid that week at $16.67 (straight plus 1/2 = $11.11 plus $5.56)...you forgot to add in the $11.11 for each over time hour or multiply each straight hour by 45 hours, not 40.

rr
What you are calculating is time and a half. We are not getting time and a half, we are getting paid half of time (half of the calculated hourly rate).

Well, let's start with the fact that the FLSA regulations state that you actually must work a fluctuating workweek on a regular basis to be paid using this method. IOW, some weeks below 40 hours, some weeks over 40 hours.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.114.htm

I didn't know that, and I don't think they do either. Everyone here works 8-5, 40 hours a week and about 4 employees work on saturday.

* What constitutes a "fluctuating workweek"? (a) normal hours worked (b) normal hours worked plus overtime some weeks
I was told that because the employees work overtime (non-mandatory) we are on a fluctuating workweek

* Does the half time have to be over minimum wage? If so, will the company have to raise our salaries?

I see where I am off....the regular wage per week is standard...the rate fluctuates...and then you are paid OT half on that rate.

From one article I read "This method of computing overtime for a salaried employee is called “fixed salary for fluctuating hours.” The advantage to the employee is that the same amount is guaranteed, even in short weeks. The advantage to the employer is that the hourly overtime payment decreases the longer the employee works in a long week."

Do you have short weeks at all? If not, I wonder if you couldn't make a case that your hours don't fluctuate. This seems like a sneaky way to get around paying full overtime (unless your weekly wage is generous).

rr

I work 40 hrs week for $520 before taxes....

It doesn't include overtime. If you are scheduled for 40 hours per week, and you regularly work that or more, you're not working a fluctuating schedule. Such situations normally occur when business needs vary greatly from week to week. I'm not convinced you are eligible for this method.

So what should I do? If anything..

You can file a claim with the Texas Workforce Commission for unpaid overtime wages.