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Grayco Has Close to 1,000 Full-Time and Part-Time Employees Who

Question 31

Multiple Choice

Grayco has close to 1,000 full-time and part-time employees who manufacture component parts for hand tools.The company policy states that part-time employees are not eligible for overtime pay,even if an employee works more than 40 hours during a particular week.Which of the following is most likely to be true in this case?


A) Grayco has not violated the Fair Labor Standards Act of 1938 because part-time employees are by definition exempt from overtime pay.
B) Grayco has not violated the Fair Labor Standards Act of 1938 because private employers are not covered under the act.
C) Grayco has violated the Fair Labor Standards Act of 1938 because all of its employees are covered by the act and are entitled to overtime pay.
D) Grayco has violated the Fair Labor Standards Act of 1938 because the law prohibits an employer from requiring employees to work over 40 hours per week.

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