On January 5, 2026, the U.S. Department of Labor’s Wage and Hour Division issued six opinion letters addressing a range of FMLA and FLSA issues. This post – part two of a three-part series – focuses on two FLSA letters that address problems employers often assume they have already resolved.

One letter deals with exempt classifications that appear sound based on job duties but unravel because of how the employee is paid. The other addresses bonus programs that feel discretionary until overtime calculations say otherwise. Continue reading

Employers often try to manage overtime by adjusting schedules, staffing, or compensation models.

What they cannot do is manage overtime by adjusting the “regular rate” in a way that only shows up when overtime does.

That distinction mattered here. Continue reading