Alternative FLSA Compensation Methods: Piece Rate / Day Rate, Fluctuating Workweek, and Belo Plans

Summary

This practice note discusses alternative methods for compensating employees under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq. Each method requires that the employee's regular rate of pay is at least equal to the minimum wage but they allow employers some flexibility in choosing a compensation method that best suits their business practices. In particular, the fluctuating workweek and the Belo plan methods of compensation can help employers with employees who regularly work varied hours control overtime compensation costs.