The Fluctuating Workweek Method of Paying Overtime
October 23, 2026
Per DOL Fact Sheet #82, the fluctuating workweek method is an alternative way of calculating overtime for a non-exempt employee who receives a fixed salary intended to cover all hours worked in a week, regardless of how many that turns out to be — under specific conditions, overtime is then paid at just 0.5× (rather than 1.5×) of the derived regular rate.
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Since the fixed salary is understood to already cover straight-time pay for all hours worked, including overtime hours, only the additional 0.5× overtime premium needs to be added on top — the 1× straight-time portion is already baked into the salary, unlike the standard hourly calculation where straight-time and the full 1.5× are calculated separately.
Worked Example
A fixed weekly salary of $800 covers a week where the employee actually works 50 hours.
- Derived regular rate: $800 ÷ 50 = $16/hour (recalculated each week based on actual hours)
- Overtime premium: 10 overtime hours × ($16 × 0.5) = 10 × $8 = $80
- Total pay for the week: $800 + $80 = $880
Specific Conditions Required
This method has specific eligibility conditions (such as a clear mutual understanding that the salary covers fluctuating hours, and hours that genuinely fluctuate week to week) — it's not a method an employer can apply unilaterally without meeting those conditions, so confirming eligibility against DOL Fact Sheet #82 directly matters before relying on it.
Frequently Asked Questions
What is the fluctuating workweek method?
An alternative overtime calculation for employees with a fixed salary covering genuinely fluctuating weekly hours, where overtime is paid at 0.5× the derived regular rate, per DOL Fact Sheet #82.
Why is the overtime premium only 0.5× under this method?
Because the fixed salary already covers straight-time pay for all hours worked, so only the additional 0.5× premium needs to be added.
What's the regular rate in this example?
$16/hour, recalculated each week by dividing the fixed $800 salary by that week's actual 50 hours worked.
Can any employer use this method freely?
No — it has specific eligibility conditions under DOL Fact Sheet #82 that must be met, not something applied unilaterally.