Another basis for compensation centers on whether employees are classified as nonexempt or exempt under the _____.
A) Equal Pay Act
B) Fair Labor Standards Act
C) Taft-Hartley Act
D) Employment Classification Act

Question

Quizplus · Accepted Answer

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, record keeping, and child labor standards for most employees. The FLSA also distinguishes between nonexempt and exempt employees, which affects their eligibility for overtime pay. Nonexempt employees are entitled to overtime pay for any hours worked over 40 in a workweek, while exempt employees are not. This classification also impacts their eligibility for certain benefits and protections under the law, such as minimum wage requirements. Therefore, compensation is often based on whether employees are classified as exempt or nonexempt under the FLSA.

Another Basis for Compensation Centers on Whether Employees Are Classified