Rooms to Go Facing Lawsuit Over Use of ‘Fluctuating Workweek’ Pay Method

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A proposed class action out of Georgia claims RTG Furniture Corporation and its Rooms to Go subsidiaries across seven states have failed to pay appropriate overtime wages pursuant to the Fair Labor Standards Act (FLSA). The plaintiff, who the case says is currently employed by the defendants as a distribution center supervisor, alleges that prior to January 1, 2017, Rooms to Go paid him (and other supervisors) under the “fluctuating workweek” method, through which he was supposed to receive a set pay rate each week regardless of how many hours he worked, plus half of his regular hourly rate for all hours worked over 40. The plaintiff argues the defendants violated the FLSA by paying him only half-time for his over-40 hours worked, and not proper time-and-a-half hourly overtime. 

The case claims that although supervisors should have been guaranteed the same wages each week under Rooms to Go’s fluctuating workweek pay model regardless of how many hours they worked, proposed class members’ wages varied as a result of the distribution of shift bonuses (for working night shifts) and survey bonuses for positive customer reviews.

“Because of Rooms to Go’s payment of shift and survey bonuses, [the plaintiff] was not guaranteed the same rate of pay regardless of the number of hours he worked,” the case argues. “Instead, under Rooms to Go’s compensation policy, his weekly pay fluctuated depending on whether he worked the night shift during a given week and whether he received a survey bonus.”

Because of these extra bonuses, the case claims, the company’s fluctuating workweek pay practices were invalid, and therefore, plaintiffs and proposed class members should have received overtime pay when working more than 40 hours a week.