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Wage & Hour Laws Flashcards

7 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 7 Wage & Hour Laws flashcards as text

  1. Under the FLSA, which of the following employees is EXEMPT from overtime pay requirements?

    Answer: A salaried employee earning $684/week who manages two or more employees

    The executive exemption under FLSA requires a salary of at least $684/week, management as a primary duty, and directing the work of two or more employees.

  2. An employee works 10 hours on a holiday that is not counted as hours worked under company policy. The employee also works 32 hours during the rest of the week. How many overtime hours must be paid?

    Answer: 0 hours

    FLSA overtime is based on actual hours worked exceeding 40; holiday hours not worked (paid leave) do not count toward the 40-hour threshold.

  3. Which federal law sets the minimum wage for employees of federal contractors performing work on federal service contracts valued over $2,500?

    Answer: McNamara-O'Hara Service Contract Act

    The McNamara-O'Hara Service Contract Act (SCA) establishes wage and fringe benefit requirements for service employees on federal contracts exceeding $2,500.

  4. A tipped employee's cash wage is $2.13/hour and tips bring total hourly earnings to $6.00. The federal minimum wage is $7.25. What must the employer do?

    Answer: Pay an additional $1.25/hour to meet minimum wage

    If tips plus the $2.13 cash wage do not reach the federal minimum wage of $7.25, the employer must make up the difference.

  5. Under the FLSA, what is the maximum tip credit an employer may take against the federal minimum wage for tipped employees?

    Answer: $5.12 per hour

    The maximum tip credit is $5.12/hour ($7.25 federal minimum wage minus the $2.13 required cash wage).

  6. Which of the following is NOT a permissible deduction from an exempt employee's salary under the FLSA salary basis test?

    Answer: Deduction for a partial day absence when no PTO is available

    Deducting pay for partial-day absences (except under FMLA or disability) destroys the salary basis and may eliminate the FLSA exemption.

  7. An employee's regular rate of pay is $20/hour. The employee works 48 hours in a week. What is the correct FLSA overtime premium owed for the week?

    Answer: $80

    FLSA overtime premium is 0.5x the regular rate for each hour over 40: 8 hours × $10 (0.5 × $20) = $80 (straight-time already included in regular pay).