When do employers risk FLSA violations by raising and lowering hourly wage rates?

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The Fair Labor Standards Act can present a minefield for even the savviest wage-and-hour gurus. Last night, I read a Pennsylvania federal court decision that helps clarify when employers can (and can’t) adjust employee pay rates.

The FLSA requires employers to pay non-exempt employees one-and-one-half times their regular pay rate when they work more than 40 hours in a workweek. The plaintiff in the lawsuit alleged that her employer manipulated her hourly base pay rate to deprive her of overtime compensation.

Specifically, the plaintiff claimed that after the company hired her, but before she began working, she signed a

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