Is it allowed to average employee hours over 2 weeks or more for pay calculations?

In the context of pay calculations, averaging employee hours over two weeks or more is not permitted. Each workweek under the Fair Labor Standards Act (FLSA) must be treated independently when calculating wages and, specifically, overtime pay. This means that the hours worked must be accounted for based on a standard week, making it imperative for employers to track hours in single-week increments. The regulation is designed to ensure that employees receive fair compensation for every hour worked, particularly when it comes to overtime, which is calculated based on the total hours worked in that specific workweek.

The reasoning behind this regulation is to prevent manipulation of pay periods that could result in unfair compensation for employees, especially regarding overtime pay, which is typically mandated at a higher rate. Therefore, this rigid structure protects workers from potentially being underpaid if their hours are averaged over longer periods. Options that suggest allowances in situations or conditions clash with the stringent requirements laid out by labor laws intended to maintain fair and equitable pay practices.