Sarah has a position with a work plan that meets the eligibility requirements for a Belo contract. Sarah and her employer agreed on a weekly salary of $825 based on Sarah working a maximum of 50 hours per week. Based on a weekly wage of $825, your employer calculates that their regular wage will be $15 per hour for the 40-hour base and $22.50 per hour for the overtime premium (the 10 overtime hours are calculated by the hour and half of the base salary of $15 per hour). Sarah`s salary for 40 hours of entitled time is $600, and her overtime salary is $225. This corresponds to a weekly salary of $US 825. Registration requirements are important to show that fluctuations involve weeks of both 40 and below 40 hours. If the fluctuation is only in overtime, the plan is not valid. Donovan v. Tierra Vista, Inc., 796 F2d 1259 (10th Cir 1986); Trager v. Plastics Mfg. Corp., 13 Wage and Hour Cases 621 (SD NY 1958).
A worker who worked only 7 times less than 40 hours per week in 30 months did not work “irregular” hours under the Belo exception. Dunlop v. Marvin A. Smith Co., 23 Wage and Hour Cases 794 (D E Tex 1976). A worker who worked less than 40 hours per week in just 8 weeks out of 119 did not meet the requirement for irregular hours. Crenshaw v. Qualres Drilling Corp., 798 F2d 1345 (10th Cir. 1986). The Belo contract exemption provides that an employer does not violate overtime requirements if: the fluctuating workweek method allows an employer to pay a tax-free worker a fixed weekly wage plus overtime equal to 50% of the worker`s normal hourly rate. At first glance, this sounds great: the worker`s overtime rate is only 50% instead of the usual 150%, and the more hours the worker works, the lower his overtime wage.
If z.B an employee`s weekly wage is $500 and he or she works 45 hours per week, this week`s hourly rate is $11.11/hour ($500/45 hours) and his overtime rate for that week is $5.56/hour. Thus, their total salary this week is 527.80 $US. If she works 60 hours next week, her regular hourly rate for this week will fall to $8.33 ($500/60 hours) and her overtime rate to $4.17 for a total salary of $583.40. By comparison, if the same employee received an hourly wage of $US 12.50 without the fluctuating method of the workweek, they would earn. Weekly working hours must be significantly longer than 40 hours per week.