The US Department of Labor (DOL) last week submitted a proposal to the White House Office of management and Budget (OMB) that would alter how employers must calculate overtime for certain employees. Under the Fair Labor Standards Act, overtime-eligible employees must be paid time and a half for any hours over 40 in a workweek. However, when an employee’s hours vary each week, the employer may use an alternative method known as the fluctuating workweek. Under the fluctuating workweek method, employees entitled to overtime receive a fixed weekly salary, which is divided by the actual hours worked to determine the week’s base hourly rate. The employee will then receive an additional 0.5 times their base rate for each hour beyond 40 in the workweek. Back in 2011, the Obama DOL, which opposed the fluctuating workweek method, issued a rule precluding employers who compensated their workers with bonus payments from using it. Under President Trump, DOL is looking to remove restrictions on the fluctuating workweek method as a means to “grant employers greater flexibility to provide additional forms of compensation to employees.” When/if OMB approves the proposal, it will then be published in the Federal Register for a 60 day period of public comment, after which DOL will look to finalize and implement it.