Sean Freixa sold cruises for Prestige Cruise Services and received a weekly salary plus commissions that were computed monthly and paid the following month. He sued under the Fair Labor Standards Act, alleging that his compensation fell below the hourly threshold for the retail or service establishment overtime exemption in some weeks. The district court spread his annual compensation across every hour worked during the year, producing an average rate above the exemption threshold, and granted summary judgment to the cruise company. The Eleventh Circuit held that the exemption requires the employee’s regular rate to be calculated week by week. Although commissions count toward that rate, federal regulations do not permit an employer to allocate a commission payment across weeks outside the period in which the commission was earned merely because exact weekly allocation is difficult. Because the district court used an impermissible annual averaging method, the appellate court reversed the judgment and remanded for a proper calculation of Freixa’s weekly regular rate and further proceedings.