Question 1

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.

Question 2

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 3

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

Accepted Answer

Domestic workers are covered under the Fair Labor Standards Act (FLSA) if they meet certain conditions, such as working in a private home for more than 8 hours a week or earning more than a specified amount.

Question 4

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 5

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

Accepted Answer

Institutions of higher education are exempt from certain provisions of FLSA, but they are not exempt based on their annual sales volume. Their exemption is based on their status as educational institutions.

Question 6

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

Accepted Answer

Employees who are receiving remedial education are exempt from overtime pay for up to 10 hours per week.

Question 7

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 are not automatically exempt from minimum wage and overtime requirements of the FLSA. They may be exempt if they meet certain criteria, such as their role being primarily for educational purposes and not displacing regular employees. The determination of exemption status is based on a case-by-case basis using a six-factor test.

Question 8

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) mandates that covered employees must receive overtime pay at a rate not less than one and one-half times their regular rate of pay for hours worked over 40 in a workweek.

Question 9

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 provide premium pay for work performed on weekends or holidays, only for hours worked beyond 40 in a workweek.

Question 10

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 (FLSA), colleges can pay their own full-time students at a rate of 85 percent of the federal minimum wage.

Question 11

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 12

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, as it is given at the discretion of the employer and is not considered to be part of the employee's wages or salary.

Question 13

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 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.

Accepted Answer

This is known as the tip credit, and it allows employers to pay tipped employees less than the standard minimum wage as long as the employee's tips bring their total earnings up to at least the minimum wage. The exact amount of the tip credit varies by state and may change over time.

Question 15

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

Accepted Answer

This statement is false. While some major cities have enacted living wage ordinances, the amount varies and is not always $10.25 per hour. Additionally, not all major cities have enacted living wage ordinances.

Question 16

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, in order to qualify for the white-collar exemption, an employee must meet both the duties test and the salary test. The salary test requires that the employee be paid a predetermined weekly or biweekly salary that is not subject to reduction based on the quantity or quality of work performed. Employees paid by the hour without a guarantee of a minimum salary do not meet this requirement, and therefore do not qualify for the white-collar exemption.

Question 17

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 they are not exempt from equal pay provisions.

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.

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 19

In January 2019, workers who receive the minimum hourly wage are paid $6.10 an hour.

Accepted Answer

According to the US Department of Labor, the federal minimum wage as of January 2019 was $7.25 an hour.

Question 20

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

Accepted Answer

According to the Fair Labor Standards Act, public safety employees of a state can be granted compensatory time off in lieu of overtime compensation.

Quiz 2: Computing Wages and Salaries