Question 1

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.

Accepted Answer

The FLSA does set limits on the number of hours that a 15-year-old may work, including restrictions on working during school hours and limitations on total hours worked during the week.

Question 2

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.

Accepted Answer

The compensability of time spent changing clothes depends on whether it is considered integral and indispensable to the employee's principal activities. If it is not, it may not be compensable under the Fair Labor Standards Act (FLSA).

Question 3

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

Accepted Answer

Nondiscretionary bonuses must be included in the regular rate of pay for calculating overtime pay under the Fair Labor Standards Act (FLSA).

Question 4

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

Accepted Answer

Children under age 16 may be employed in food service establishments under certain conditions, such as restrictions on hours and types of work, according to the Fair Labor Standards Act (FLSA) in the United States.

Question 5

One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $1,000 per week.

Accepted Answer

The salary threshold for the white-collar exemption for an executive is set by the Fair Labor Standards Act (FLSA) and, as of 2023, is $684 per week, not $1,000.

Question 6

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

Accepted Answer

If employees are free to use on-call time for their own purposes and are not restricted by the employer, this time is generally not considered compensable under labor laws.

Question 7

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

Accepted Answer

The Fair Labor Standards Act (FLSA) requires employers to keep accurate time records for non-exempt employees, but it does not specify the exact methods employers must use to track hours worked.

Question 8

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

Accepted Answer

Employers are allowed to round employees' starting and stopping times to the nearest quarter of an hour, as long as the rounding is done in a neutral manner that does not result in the systematic underpayment of wages.

Question 9

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

Accepted Answer

The answer of "Engaged to wait" and "waiting to be...

Question 10

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

Accepted Answer

According to the Fair Labor Standards Act (FLSA), bona fide meal periods where the employee is completely relieved from duty are not considered working time and are therefore not compensable.

Question 11

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

Accepted Answer

The FLSA does not require employers to provide rest periods. It only requires that non-exempt employees be paid for rest periods shorter than 20 minutes that are provided.

Question 12

Hourly employees who take work home without the permission of the employer do not have to be paid for the work done at home.

Accepted Answer

According to the Fair Labor Standards Act (FLSA), hourly employees who take work home without permission from the employer must be paid for the hours worked, including any overtime. Employers are responsible for tracking and compensating their employees for all work hours, whether they are performed in the office or at home.

Question 13

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.

Accepted Answer

To convert semimonthly wage rates to hourly rates, divide the semimonthly rate by the number of hours worked in the month (usually around 160) to arrive at an hourly rate. Dividing by 4 and then dividing by the standard number of hours would result in an incorrect hourly rate.

Question 14

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

Accepted Answer

Under the piece-rate system, workers are paid based on the amount of work they produce, rather than the hours they work.

Question 15

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

Accepted Answer

This is true, as the continental system uses military or 24-hour time, which counts the hours from 0 to 23 instead of using a 12-hour clock. Therefore, 9:00 a.m. (in the morning) would be recorded as 900, and 9:00 p.m. (at night) would be recorded as 2100.

Question 16

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.

Accepted Answer

To calculate the overtime pay rate for a commissioned worker, you first divide the total commission earned by the total hours worked to find the regular rate of pay. Then, for overtime hours, you pay one-half of that regular rate in addition to the commission already earned, as the commission covers the straight-time pay for all hours worked.

Question 17

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.

Accepted Answer

This statement is true. Payments made to a bona fide profit-sharing plan that meets the standards set by the secretary of labor's regulations are not considered wages when determining the regular rate of pay for overtime calculation purposes under the Fair Labor Standards Act (FLSA).

Question 18

Violators of the overtime provision of the FLSA are required to pay the unpaid overtime at a rate of triple the employee's rate.

Accepted Answer

Violators of the overtime provision of the Fair Labor Standards Act (FLSA) are required to pay the unpaid overtime at a rate of one and one-half times the employee's regular rate, not triple.

Question 19

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

Accepted Answer

The Equal Pay Act prohibits wage discrimination on the basis of sex for “equal work.” However, employers are allowed to pay different wages based on seniority, merit, quantity or quality of work, or other factors unrelated to sex. So, there can be wage differentials, but they must be based on non-discriminatory factors.

Question 20

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

Accepted Answer

Commissions are considered payments for hours worked and must be included in the regular rate of pay calculation for overtime purposes.

Quiz 2: Computing Wages and Salaries