I ran into a situation where employees were paid $1 less than their hourly rate for overtime pay. Employees were paid as "salaried", but received overtime. The employer was supposedly told by a DOL representative that they would have to pay some figure less than than the employee's regular hourly rate -- it didn't matter what that figure was, but it had to be less.

I had never heard this before and wanted to know if that can happen and under what circumstances. The only caveat I can think that would make this different would be that the employees were working under the fluctuating work week rule.

Thanks.

It's not that it HAS to, it's that the fluctuating workweek method results in the premium portion of overtime being less than the base hourly rate. That's because the more hours worked, the lower the "regular rate of pay".

That makes more sense...

Thanks.