Question 1

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

Accepted Answer

True

Question 2

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

Accepted Answer

According to the FLSA, a tipped employee is someone who customarily and regularly receives more than $30 a month in tips.

Question 3

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 known as the tip credit provision, where an employer can pay a lower minimum wage to tipped employees, as long as their tips make up the difference to reach the regular minimum wage. As of 2021, the federal minimum wage for tipped employees is $2.13 per hour, and the maximum tip credit allowed is $5.12 per hour, meaning employers must pay at least $7.25 per hour with tips included. However, some states have their own minimum wage and different rules for tip credits.

Question 4

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

Accepted Answer

The Fair Labor Standards Act (FLSA) allows for compensatory time off in lieu of overtime compensation for public safety employees of a state. However, there are limitations and conditions that must be met in order for this to be allowed.

Question 5

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

Accepted Answer

According to the US Department of Labor, colleges can employ their own full-time students at 85 percent of the minimum wage. This is known as the "student minimum wage."

Question 6

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

Accepted Answer

Institutions of higher education are generally considered to be covered by FLSA regardless of their annual sales volume. This is because they are typically classified as "enterprise" entities under FLSA, which extends coverage to a wide range of businesses and organizations.

Question 7

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 a duties test and a salary test to qualify for exemption as a white-collar worker. The salary level test requires an employee to be paid a predetermined weekly or monthly salary and hourly employees are not eligible for this exemption. Additionally, there is no guarantee of a minimum salary for hourly employees.

Question 8

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

Accepted Answer

The FLSA provides specific criteria that must be met in order for an internship to be unpaid. If these criteria are not met, the intern must be paid at least minimum wage and overtime for any hours worked over 40 in a week.

Question 9

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 10

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 employers to pay overtime specifically for hours worked on Sunday. The overtime rate is calculated based on total hours worked in a week, not on a particular day. However, some states have their own laws that require employers to pay a higher rate for work performed on Sundays or holidays.

Question 11

In January 2017,workers who receive the minimum hourly wage are paid $6.10 an hour.

Accepted Answer

The federal minimum wage in the United States was $7.25 an hour in January 2017, so workers who received the minimum hourly wage were paid at least $7.25 an hour.

Question 12

Employees paid biweekly receive their remuneration every two weeks.

Accepted Answer

Biweekly means every two weeks, so employees paid biweekly would receive their payment every two weeks.

Question 13

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, it may still have workers who qualify for individual employee coverage if they meet other criteria such as working in a certain type of job or earning a certain amount of wages.

Question 14

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 15

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 16

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 cities have enacted living wage ordinances, the specific amount varies widely depending on the location. For example, in Los Angeles the living wage is currently $15.00 per hour, while in Durham, NC it is $15.96 per hour.

Question 17

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 employer's discretion and can vary based on factors such as individual performance or company profits. It is not guaranteed or expected by the employee as part of their regular wages.

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

The Fair Labor Standards Act (FLSA) does indeed require that workers receive overtime pay for all hours worked in excess of 40 in a workweek.

Question 20

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

Quiz 2: Computing Wages and Salaries