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FLSA

I am employed by a group that owns franchised restaurants. Our Assistant Managers do fall below the salary threshold for the new FLSA OT requirements.

To avoid the reduction in pay on a slow week, Can we pay them for a guaranteed 50hours minimum work week(40 regular and 10 hours OT) if they do not work 50 hours? and Pay additional OT if they exceed the 50 scheduled?

Answers

Nick Hughes
Title: Business Advisor
Company: ADP
(Business Advisor, ADP) |

You can always be more generous than required by the FLSA, but you need to calculate the employee hourly rate to reflect OT premium pay on the 10 hour portion. You can not redefine the OT standard of hours worked over 40 entitled to premium pay.

Nick Hughes
Title: Business Advisor
Company: ADP
(Business Advisor, ADP) |

Ex. $30000 salary

Nonexempt cost neutral hourly rate for fifty hours worked would be

30000 / (50 + .5 x 10) or
30000 / (40 + 1.5 x 10)

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