Overtime Fluctuating Workweek (FWW)
FWW: salaried non-exempt employees with variable hours get 0.5× regular rate for OT (not 1.5×). Reg rate = salary ÷ hours that week. 29 CFR 778.114.
| Weekly salary | — |
| Hours worked | — |
| Bonus | — |
| Regular rate (salary ÷ hours) | — |
| OT hours | — |
| OT pay (0.5× × hours) | — |
| Total weekly pay (FWW) | — |
| Standard 1.5× OT calc | — |
| Employer savings vs standard | — |
The Fluctuating Workweek (FWW) overtime method (29 CFR 778.114) lets employers pay non-exempt salaried workers a fixed salary plus 0.5× regular rate overtime — instead of 1.5×. The salary is deemed to cover all straight-time hours, so OT only requires the half-time premium.
FWW Requirements (29 CFR 778.114)
Four elements: (1) hours fluctuate week to week, (2) fixed salary covers all hours including OT, (3) salary high enough that regular rate ≥ federal minimum even at peak hours, (4) clear written advance agreement.
Calculation Method
Each week: regular rate = (salary + non-discretionary bonus) ÷ total hours worked. OT premium = regular rate × 0.5 × hours over 40. Total = salary + bonus + OT premium.
2020 Bonus Rule Change
DOL final rule (2020) allows non-discretionary bonuses, premium pay, additional compensation to be included in FWW calculations. Pre-2020, bonuses voided FWW eligibility — now they are allowed.
State Restrictions
California, Alaska, Nevada, NM, NJ explicitly reject FWW or limit it. Pennsylvania repealed FWW in 2020 then partially reinstated. Check state DOL before using.
Last updated May 2026. Sources: 29 CFR 778.114 FWW, DOL FWW Final Rule.