The fluctuating workweek pay method, or FWW, combines elements of a fixed salary model and traditional time and a half overtime and is intended to provide income stability for workers and cost predictability for employers. Non exempt employees receive a fixed weekly salary regardless of hours worked, including weeks with fewer than forty hours. For overtime hours, they receive an additional premium equal to one half of their weekly regular rate, which is recalculated each week based on total hours worked.

For example, an FWW employee earns a fixed salary of $750 per week. In a 50 hour week, the regular rate is $15 per hour and the half time overtime premium is $7.50 per hour. For 10 overtime hours, the employee receives an additional $75, bringing total weekly pay to $825.

In a 60 hour week, the regular rate drops to $12.50 per hour and total weekly pay rises to $875.

In a 70 hour week, the regular rate falls to $10.71 per hour and total weekly pay is $910.71.

Eventually, at 104 hours, the regular rate drops to $7.21 per hour and total weekly pay is $980.77, falling below the federal minimum wage of $7.25 per hour and creating a compliance issue. Notice the difference in pay between a 50 hour week and a 104 hour week is only $155.77.

While the framework sounds simple, when modeling real life the complications can escalate quickly. To qualify for the FWW, weekly work hours must actually fluctuate, which means the regular rate changes every single week for each employee. In larger matters, assembling accurate week by week hour totals can be a significant data challenge. Payroll structures may be bi weekly, requiring careful alignment of workweeks to pay periods. Additional compensation such as bonuses or holiday premium pay must be properly incorporated into the regular rate. And throughout the analysis, the model must ensure that the regular rate never falls below the applicable minimum wage threshold.

Our firm has more than a decade of experience modeling FWW damages for trial, mediation, and settlement. We assist at any stage of a case, whether you need a straightforward exposure estimate or a fully developed dynamic model. We build both clear, practical summaries and more advanced tools that incorporate fluctuating hours, supplemental pay, payroll structures, and minimum wage thresholds. Our models allow you to adjust hours for individuals or groups, compare FWW to alternative pay methods, and test the impact of case specific variables in real time.

If you are evaluating an FWW issue, feel free to reach out anytime to discuss your case. No commitment required. You can also visit our website to learn more and interact with basic live damage models at https://lnkd.in/eSQdtZGq