Under which condition can an employer adopt a fluctuating work week for calculating employee pay?

The correct option indicates that an employer can adopt a fluctuating work week for calculating employee pay if the employee schedules actually fluctuate. This principle is based on the Fair Labor Standards Act (FLSA), which allows the fluctuating workweek method for nonexempt employees whose hours vary from week to week.

Employers using this method must compensate employees with a fixed salary for all hours worked in a week, regardless of the number of hours worked, so long as that salary is sufficient to meet the minimum wage requirements when divided by the total hours worked. This approach is beneficial for employers managing fluctuating schedules as it allows them to have predictable payroll expenses while ensuring employees receive at least their minimum wage.

In this context, it’s crucial to note that the flexibility of employee schedules is what allows the fluctuating workweek method to be applicable. This arrangement also emphasizes that the approach is specifically for nonexempt workers, not exempt employees, whose pay structures differ significantly.