Question 1

In January 2016, workers who receive the minimum hourly wage are paid $6.10 an hour.

Accepted Answer

The federal minimum wage in the United States in January 2016 was $7.25 per hour, not $6.10.

Question 2

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

Accepted Answer

Under the Fair Labor Standards Act (FLSA), hospitals and institutions primarily engaged in the care of the sick, the aged, or the mentally ill are covered by the FLSA regardless of their annual dollar volume of business. This means that the FLSA's protections apply to employees of such institutions without regard to how much money the institution earns or charges for its services.

Question 3

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

Accepted Answer

According to the Fair Labor Standards Act, colleges and universities may employ their own full-time students at a wage rate of not less than 85 percent of the minimum wage.

Question 4

All interns in the for-profit sector are exempt from the minimum wage and overtime requirements of the FLSA.

Accepted Answer

Interns in the for-profit sector may be entitled to the minimum wage and overtime protections of the Fair Labor Standards Act (FLSA) unless they meet the specific criteria for being an unpaid intern, such as training similar to that given in an educational environment and not displacing regular employees.

Question 5

Employees paid biweekly receive their remuneration every two weeks.

Accepted Answer

Biweekly means occurring every two weeks, so employees paid biweekly receive their remuneration every two weeks.

Question 6

A discretionary bonus is included in an employee's regular rate of pay.

Accepted Answer

A discretionary bonus is not included in an employee's regular rate of pay. It is given at the discretion of the employer and is not part of the employee's regular earnings.

Question 7

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

Accepted Answer

Exempt professional employees are exempt from the minimum wage and overtime pay provisions of the FLSA, but are not exempt from the equal pay provisions.

Question 8

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

Accepted Answer

The answer of Domestics are excluded from coverage under the...

Question 9

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

Accepted Answer

This is the basic requirement of the Fair Labor Standards Act (FLSA).

Question 10

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

Accepted Answer

The answer of Employees who are receiving remedial education may...

Question 11

All employers can grant compensatory time off to employees in place of overtime pay.

Accepted Answer

Under the Fair Labor Standards Act (FLSA), only public sector (government) employers are generally allowed to offer compensatory time off ("comp time") in place of overtime pay. Private sector employers must pay overtime wages for hours worked over 40 in a workweek.

Question 12

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

Accepted Answer

Under the Fair Labor Standards Act (FLSA), the federal minimum wage is $7.25 per hour (as of my last update in 2023), and employers must pay employees at least this amount, unless specific exemptions apply. Full-time students may be paid 85% of the federal minimum wage for certain types of work, but $5.00 per hour is below this threshold.

Question 13

All major cities have enacted ordinances establishing a so-called "living wage" at $10.25 per hour.

Accepted Answer

This statement is false. While many major cities have enacted living wage ordinances, the amount varies depending on the city and is not consistently set at $10.25 per hour.

Question 14

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

Accepted Answer

If a business does not meet the enterprise coverage test, some of its workers may still qualify for individual employee coverage if they meet certain criteria such as working a certain number of hours per week or being employed in a certain type of job.

Question 15

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

Accepted Answer

This is true under the Fair Labor Standards Act (FLSA) for public safety employees who are engaged in fire protection, law enforcement, emergency response, and related activities. Compensatory time off can be granted at a rate of 1.5 hours for each hour of overtime worked, up to a maximum of 480 hours.

Question 16

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

Accepted Answer

The FLSA defines a tipped employee as one who customarily and regularly receives more than $30 per month in tips, not $20 as stated in option A.

Question 17

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

Accepted Answer

According to the Fair Labor Standards Act, employees must meet both the duties test and the salary test to be considered exempt white-collar workers. The salary test requires that the employee is paid a minimum salary of $684 per week. This requirement only applies to employees who are guaranteed a minimum salary, not those who are paid hourly without a guaranteed minimum salary.

Question 18

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

Accepted Answer

Institutions of higher education are considered covered "enterprise" under FLSA and are subject to its provisions regardless of their annual sales volume.

Question 19

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

Accepted Answer

The FLSA does not require that workers receive overtime pay for hours worked on Sunday specifically. Overtime pay is required for hours worked over 40 in a workweek regardless of the day of the week.

Question 20

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

Accepted Answer

This is true according to the Fair Labor Standards Act (FLSA) in the United States. This means that as long as the employee's tips combined with the employer's direct wages of at least $2.13 per hour equals the minimum wage, the employer is not required to pay additional wages. However, if the tips and direct wages do not equal the minimum wage, the employer must make up the difference.

Quiz 2: Computing Wages and Salaries