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The fluctuating workweek method of pay can be advantageous to both employer and employee. (Under this method, which must be agreed to by both parties, the employee is paid a fixed salary for all hours worked in a week, whether he or she worked more or less than 40 hours a week. The employee, despite working varying hours from week to week, can count on a baseline salary in each paycheck, which makes household budgeting much easier. (The employee receives overtime pay when he or she works more than 40 hours in a week.) The employer (and payroll department) enjoys fewer administrative costs, lower salary expenses, and a steadier cash flow.
There are benefits to using …