Affirming Common Sense: Appeals Court Rejects Plaintiff’s “Two Rights Make A Wrong” Theory Involving Fluctuating Workweek Method

The U.S. Court of Appeals for the First Circuit recently sided with an ever-increasing line of cases clarifying the type of payments that may be added to a fixed salary without violating the fluctuating workweek method described in 29 C.F.R § 778.114.  The Court distinguished additional hourly-based pay from performance-based bonuses in this context, and re-affirmed that employers retain significant discretion in crafting and implementing creative compensation plans — including pay plans that combine various types of compensation — to meet business needs and incentivize their workers.

To read the entire blog post, click here