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Wage & Hour Laws Flashcards

6 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Wage & Hour Laws flashcards as text

  1. What is the current federal minimum wage in the United States?

    Answer: $7.25 per hour

    The federal minimum wage is $7.25 per hour (since 2009). Many states and cities have higher minimum wages that employers must follow when they exceed the federal rate.

  2. What is the FLSA overtime requirement?

    Answer: Non-exempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek

    The Fair Labor Standards Act requires employers to pay non-exempt employees at least 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek.

  3. What determines whether an employee is exempt or non-exempt from overtime?

    Answer: Salary level, salary basis, and primary job duties as defined by the FLSA

    Exemption requires meeting three tests: salary level (minimum threshold), salary basis (paid a predetermined salary not reduced for variations in work quality/quantity), and duties (executive, administrative, professional, computer, or outside sales).

  4. What is a garnishment and what are the employer's obligations?

    Answer: A court-ordered deduction from wages for debts like child support, taxes, or creditor judgments that employers must comply with

    Wage garnishment is a legal process requiring employers to withhold a portion of an employee's earnings to satisfy debts, with specific limits under federal and state law.

  5. What records must employers maintain under the FLSA?

    Answer: Employee information, hours worked, wages paid, and deductions for at least 3 years

    The FLSA requires employers to maintain records including employee identification, hours worked each day and week, regular pay rate, total overtime, total wages, deductions, and pay period dates for at least 3 years.

  6. What is the difference between gross pay and net pay?

    Answer: Gross pay is total earnings before deductions; net pay is take-home pay after all deductions

    Gross pay is the total amount earned before any deductions (taxes, benefits, garnishments), while net pay is the actual amount the employee receives after all mandatory and voluntary deductions.