Deck 2: Computing Wages and Salaries

Question 1

Employees paid biweekly receive their remuneration every two weeks.

Answer 1

True

Question 2

Public safety employees of a state can be granted compensatory time off in lieu of overtime compensation.

Answer 2

True

Question 3

The FLSA defines a tipped employee as one who regularly receives tips of more than $20 a month.

Answer 3

False

Question 4

Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume.

Question 5

The FLSA requires that workers receive overtime pay of twice the em-ployees' regular hourly rate for hours worked on Sunday.

Question 6

Under the FLSA, severance pay is excluded from the definition of wages.

Question 7

If a business does not meet the enterprise coverage test, none of its workers qualify for individual employee coverage.

Question 8

Employees paid by the hour without a guarantee of a weekly minimum salary do not qualify for the salary test for white-collar workers.

Question 9

The FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

Question 10

All major cities have enacted ordinances establishing a so-called "living wage" at $8.25 per hour.

Question 11

A retail shop may employ a full-time student at $5.00 per hour.

Question 12

No employer can grant compensatory time off to employees in place of overtime pay.

Question 13

Domestics are excluded from coverage under the FLSA individual employee coverage.

Question 14

An employer can credit up to $5.12 of a tipped employee's minimum wage as coming from the tips received by that employee.

Question 15

Exempt professional employees are exempt from all provisions of the FLSA-minimum wages, overtime pay, and equal pay.

Question 16

The term wage refers to remuneration paid only on an hourly basis.

Question 17

A college may employ its own full-time students at 85 percent of the minimum wage.

Question 18

Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

Question 19

In May 2013, workers who receive the minimum hourly wage are paid $6.10 an hour.

Question 20

Employees who are receiving remedial education may work up to 10 hours overtime each week without receiving overtime pay.

Question 21

Provided employees can use the on-call time for their own purposes, this time is not compensable.

Question 22

The FLSA requires that employees be given at least two 15-minute rest periods each workday.

Question 23

Under no conditions may children under age 16 be employed in food service establishments.

Question 24

The courts have ruled that preliminary and postliminary activities, even if indispensable to the main activities of an employee, do not constitute work time.

Question 25

To calculate the overtime pay rate for a commissioned worker, divide the total commission by the hours worked, and then take one-half of the resulting rate of pay.

Question 26

"Engaged to wait" and "waiting to be engaged" are both considered work time.

Question 27

Under the piece-rate system, workers are paid according to their output.

Question 28

The FLSA contains detailed specifications of the methods that employers must follow in keeping time records.

Question 29

One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $455 per week.

Question 30

Bona fide meal periods when the employee is completely relieved from duty are not considered working time.

Question 31

Employers may adopt the practice of recording an employee's starting and stopping time to the nearest quarter of an hour.

Question 32

The FLSA requires that employees be given the day off on all Monday holidays or be paid time and one-half for those Mondays.

Question 33

In converting semimonthly wage rates to hourly rates, divide the semimonthly rate by 4 to arrive at the weekly rate, then divide this rate by the standard number of hours.

Question 34

The FLSA sets no limits upon the number of hours that a 15-year-old person may work so long as the overtime pay provisions are met.

Question 35

Payments made to a bona fide profit-sharing plan that meets the standards set by the secretary of labor's regulations are not deemed wages in determining the regular rate of pay.

Question 36

The Equal Pay Act stipulates that there cannot be any wage differentials between the sexes.

Question 37

When employees spend time changing clothes on the employer's premises, this time must be counted as part of their principal activities for which they are always fully compensated.

Question 38

Under the continental system of recording time, 9:00
a.m. is recorded as 900 while 9:00 p.m. is recorded as 2100.

Question 39

Nondiscretionary bonuses are part of the determination of regular rate of pay.

Question 40

Although commissions are considered payments for hours worked, in all cases they are excluded when determining the regular hourly rate.

Question 41

The tips received by a tipped employee are less than $5.12 of the minimum hourly tip credit rate. The maximum permissible tip credit is:

A) $30 a month.
B) $5.12 an hour.
C) 45% of the employee's minimum wage.
D) 50% of the employee's minimum wage.
E) the amount of tips actually received by the employee.

Question 42

In August 2014, the minimum hourly wage was:

A) $3.35.
B) $7.15.
C) $5.85.
D) $5.15.
E) none of the above.

Question 43

If an employee works two jobs at two different wage rates for the same employer during the same pay week, any overtime pay must be calcu?lated by using an overtime hourly rate of:

A) one and one-half the higher of the two wage rates.
B) one and one-half the lowest of the two wage rates.
C) one-half of the higher of the two wage rates.
D) one-half of the two rates combined.
E) none of the above.

Question 44

Under the continental system of recording time, 9:20 p.m. is recorded as:

A) P2120.
B) 9:20P.
C) 2120.
D) 2220.
E) none of the above.

Question 45

To determine a pieceworker's regular hourly rate for one week:

A) divide the total weekly earnings from piece rates and all other sources by the hours worked in the week.
B) divide the total weekly earnings from piece rates by the number of pieces produced.
C) divide the total weekly earnings from piece rates, less earnings from other sources, by the hours worked in a week.
D) add the total weekly earnings from piece rates and all other sources and divide by the total number of pieces produced.
E) do none of the above.

Question 46

Under the Equal Pay Act:

A) employers must pay a married male a higher wage rate than a single female if both are performing equal work.
B) white-collar workers are exempt from its requirements.
C) wage differentials based on a seniority system are allowed.
D) if there is an unlawful pay differential, employers may reduce the higher rate to equal the lower rate.
E) none of the above.

Question 47

Which of the following is not required by the FLSA?

A) Extra pay for work on holidays
B) Two weeks' vacation pay after one year of service
C) Restriction on hours worked by a 17-year-old worker
D) All of the above are required.
E) None of the above is required.

Question 48

The FLSA requires:

A) that employers use time cards to record the employees' time worked.
B) that employers use the continental time system to record all time worked by employees.
C) that employers keep records that show the hours each employee worked each workday and each workweek.
D) that employees sign each clock card.
E) none of the above.

Question 49

Under the FLSA, regular rate of pay does not include:

A) vacation pay.
B) severance pay.
C) overtime pay.
D) earned bonuses.
E) All of the above are considered wages.

Question 50

Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is:

A) calculated at a time and one-half rate.
B) calculated at a double time rate.
C) calculated at the regular rate of pay.
D) unpaid.
E) none of the above.

Question 51

Under enterprise coverage, all employees of a business are covered by the FLSA if the organization is:

A) a nursing home.
B) a public agency.
C) a hospital.
D) all of the above.
E) none of the above.

Question 52

Workers exempt from all of the FLSA requirements include:

A) employees paid by the hour.
B) clerk-typists earning less than $200 a week.
C) taxicab drivers.
D) motion picture theater employees.
E) none of the above.

Question 53

Under individual employee coverage, the worker is covered by the FLSA if:

A) the worker produces goods for interstate commerce.
B) the worker is a housekeeper in a private home for 16 hours a week.
C) the domestic receives cash wages of at least $1,800 from the employer in the calendar year.
D) all of the above.
E) none of the above.

Question 54

Rest periods and coffee breaks may be required by all of the following except:

A) a union contract.
B) a state legislation.
C) a municipal legislation.
D) the FLSA.
E) none of the above.

Question 55

The Wage and Hour Division allows the practice of recording an em-ployee's starting and stopping time to:

A) the nearest five minutes.
B) the nearest tenth of an hour.
C) the nearest quarter of an hour.
D) all of the above.
E) none of the above.

Question 56

A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called:

A) a piece rate.
B) a commission.
C) a regular hourly rate.
D) a remunerative salary.
E) none of the above.

Question 57

If an employer is unable to obtain a certificate of age or a work permit for a minor employee, the employer may rely upon what document as evidence of age?

A) Baptism record
B) Mother's statement as to date of birth
C) High school enrollment form showing date of birth
D) Minor employee's statement as to date of birth
E) None of the above

Question 58

Under the FLSA, overtime pay is required for:

A) any hours worked in excess of 8 in one day.
B) all work on Sunday.
C) all hours worked in excess of 40 in a workweek.
D) all hours worked on Christmas.
E) all of the above.

Question 59

Training sessions are counted as working time when the following condition is met:

A) the employee's attendance is voluntary.
B) the employer requires the employee's attendance.
C) the training sessions are for the primary benefit of the employee.
D) the session takes place outside the regular working hours.
E) the session is not directly related to the employee's work.

Question 60

Those tasks that employees must perform and which include any work of consequence performed for the employer are known as:

A) preliminary activities.
B) postliminary activities.
C) work activities.
D) principal activities.
E) none of the above.