Courtesy of Robert W. Pritchard – March 11, 2014

In a pair of appeals that will have significant implications for employers that utilize the fluctuating workweek (FWW) method of calculating overtime compensation, the U.S. Courts of Appeals for the Second and Sixth Circuits are considering whether the payment of incentive compensation (in addition to fixed weekly salary) is incompatible with the FWW method. Nothing says “no good deed goes unpunished quite like a claim that the payment of additional compensation invalidates an otherwise lawful compensation plan.

Incentive-Compensation-to-Fluctuating-Workweek-Employees