The Fair Labor Standards Act allows employers to use various different methods to pay employees while still remaining compliant with the law. One of these methods is the “fluctuating workweek method,” or paying a base weekly salary to an employee regardless of the hours the employee worked. The key to using this method and remaining in compliance with the law is establishing a clear understanding about how the employee will be paid. In a recent 11th Circuit Court of Appeals case of note to Georgia employers and employees, the employee’s testimony in a deposition proved that the required level of “clear understanding” existed in this case, and the employer was not in violation of the law’s overtime pay rules.
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