The DOL has issued a final rule that allows employers to offer bonuses or other incentive pay to employees who are paid overtime under the fluctuating workweek method of the Fair Labor Standards Act (FLSA). The final rule takes effect August 7, 2020.

To lower costs and avoid layoffs during difficult times, employers may consider reducing employees' regular work hours. Among other things, a reduction in hours can affect wage and hour law compliance, eligibility for unemployment and benefits, loan forgiveness under the Paycheck Protection Program (PPP), and employee morale. For those reasons, it's important to carefully consider a number of factors before reducing employees' hours.