Fluctuating Workweek Overtime Method Not Permissible Under Pennsylvania Law

A federal court in Pennsylvania recently held that the "fluctuating workweek method" of calculating overtime compensation violates Pennsylvania's Minimum Wage Act (PMWA), 34 Pa. Code. § 231.43(d)(3). See Foster v. Kraft Foods Global, Inc., No. 2:09-cv-00453 (W.D. Pa. Aug. 27, 2012). Under the fluctuating workweek method, a non-exempt (or "overtime eligible") employee is paid a fixed weekly salary, regardless of the number of hours worked. Then, for overtime, the employee is paid one-half times his or her regular rate (a calculation of the employee's weekly salary divided...