"Fluctuation" Over Method of Calculating Damages in Misclassification Cases

In wage-and-hour cases, the method of calculating potential damages is often just as (if not more) important as the underlying misclassification determination.  Since at least the 1940s, the U.S. Department of Labor has consistently taken the position that, where the employer and misclassified employees have a “clear mutual understanding” that their weekly salary compensated them for all hours worked, they are only entitled to “overtime” damages calculated at one-half their regular rate of pay.  The regular rate of pay is based on a mathematical formula and is determined by dividing the salary by the number of hours worked in a particular workweek

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