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B-332266 1 (2020-06-23)

handle is hein.gao/gaobaebnm0001 and id is 1 raw text is: 




GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-332266


June 23, 2020

The Honorable Lamar Alexander
Chairman
The Honorable Patty Murray
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable Robert C. Bobby Scott
Chairman
The Honorable Virginia Foxx
Ranking Member
Committee on Education and Labor
House of Representatives

Subject: Department of Labor, Wage and Hour Division: Fluctuating Workweek Method of
        Computing Overtime

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Labor, Wage and Hour Division (the Department) entitled
Fluctuating Workweek Method of Computing Overtime (RIN: 1235-AA31). We received the
rule on June 8, 2020. It was published in the Federal Register as a final rule on June 8, 2020.
85 Fed. Reg. 34970. The effective date of the rule is August 7, 2020.

According to the Department, the final rule revises the regulations for computing overtime
compensation of salaried nonexempt employees who work hours that vary each week
(fluctuating workweek) under the Fair Labor Standards Act, as amended, Act of June 25, 1938,
ch. 676, 52 Stat. 1060, classified at 29 U.S.C. §§ 201-219. The Department stated the final rule
clarifies that payments, in addition to the fixed salary, are compatible with the use of the
fluctuating workweek method of compensation and that such payments must be included in the
calculation of the regular rate as appropriate. According to the Department, the final rule also
adds examples and makes minor revisions to make the rule easier to understand.

The Congressional Review Act (CRA) requires a 60-day delay in the effective date of a major
rule from the date of publication in the Federal Register or receipt of the rule by Congress,
whichever is later. 5 U.S.C. § 801(a)(3)(A). The final rule was published on June 8, 2020.
85 Fed. Reg. 34610. However, the Congressional Record does not indicate that either House
of Congress received the rule. The agency indicated to us the rule was delivered on June 9,
2020. Email from Wage and Hour Division, Department of Labor, to GAO. The rule has a
stated effective date of August 7, 2020. Therefore, the final rule does not have the required 60-
day delay in effective date.

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