4th Circuit Case on Blended Rate Is Lesson in Record-Keeping

Thursday, February 21, 2019

Debra Friedman spoke with Corporate Counsel about a recent U.S. Court of Appeals for the Fourth Circuit decision concerning the Fair Labor Standards Act and overtime pay. Generally, employers are looking for the easiest way to administer their payroll, Friedman said, and if they believe there is a way for easier administration, they may be tempted to have a blended kind of compensation. “Here the idea of saying we’re going to pay you a fixed rate for a fixed number of hours is totally appropriate as long as that fixed rate is based on the number of straight time hours and the number of overtime hours worked,” Friedman said. 

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