Senior Professional in Human Resources (SPHR) Certification 2025 – 400 Free Practice Questions to Pass the Exam

Calculating employee pay based on a fluctuating workweek is appropriate when employees’ hours vary each week. This method allows employers to pay a fixed salary for fluctuating hours worked, instead of strictly hourly pay, which can accommodate unpredictable schedules while ensuring employees are compensated fairly.

Under the fluctuating workweek method, the salary essentially covers the employee for all hours worked, and any overtime hours worked (beyond 40 hours in a week) are compensated at one half of the regular hourly rate, determined by taking the salary divided by the total hours worked. This method is conducive to positions where work hours may significantly fluctuate from week to week, making it ideal for certain types of jobs, such as those in the hospitality or service industries.

Choosing the right method for compensating employees is crucial for compliance with the Fair Labor Standards Act (FLSA) regulations, which this pay structure falls under. It ensures that employees are awarded proper pay for their hours worked, especially concerning overtime, while providing flexibility in scheduling for employers.