What administrative complexity arises when calculating overtime for a salaried nonexempt employee who receives a fluctuating commission in the same week they worked overtime?
Answer
The fluctuating regular rate necessitates a weekly reconciliation, and failure to account for the bonus requires retroactive payment of the overtime differential
Because irregular compensation like bonuses affects the regular rate, reconciliation must occur weekly. If overlooked, the FLSA requires the employer to go back and retroactively pay the required overtime differential for the affected week.
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