Human Resources Certification Institute (HRCI) Practice Exam

Under which condition may an employer adopt a fluctuating work week to calculate employee pay?

1. For exempt employees to keep track of time

2. If the employee schedules actually fluctuate

3. For nonexempt workers who are paid a flat, biweekly sum

4. Never, because fluctuating workweeks are prohibited under the Fair Labor Standards Act.

The correct answer is: If the employee schedules actually fluctuate

The correct answer is that an employer may adopt a fluctuating work week to calculate employee pay if the employee schedules actually fluctuate. This method is designed to provide a salary to nonexempt employees whose hours worked may vary from week to week. This payment structure allows for flexibility in employee hours while ensuring compliance with pay regulations. When schedules fluctuate, this method becomes particularly beneficial for employers as it helps manage their payroll based on the varying hours worked by the employee, rather than needing to adjust the pay every time the hours change. It provides a fixed salary for fluctuating hours while ensuring that employees still receive overtime pay when their hours exceed the standard 40 per week. The idea is rooted in the principle that as long as the employee understands and agrees to this compensation structure, it can be legally implemented, specifically for nonexempt workers receiving a predetermined salary as opposed to an hourly wage.