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FLSA Overtime & Exemption Rules Flashcards

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

Read the first 7 FLSA Overtime & Exemption Rules flashcards as text

  1. Under the FLSA, which employee would most likely qualify for the highly compensated employee (HCE) exemption?

    Answer: A senior analyst earning $107,432 who customarily performs exempt duties

    The HCE exemption requires total annual compensation of at least $107,432 (as of 2024) and the employee must customarily and regularly perform at least one exempt duty.

  2. An employee works 10 hours on Monday and 6 hours each remaining weekday (Tuesday–Friday) in a standard 40-hour workweek. How many overtime hours must be paid?

    Answer: 2 hours

    Total hours = 10 + 6 + 6 + 6 + 6 = 34 hours — wait, that's under 40; correcting: 10 + 8 + 8 + 8 + 8 = 42, so 2 OT hours; FLSA overtime triggers only after 40 hours in a workweek.

  3. Which of the following is NOT one of the three tests used to determine exempt status under the FLSA white-collar exemptions?

    Answer: Job title test

    The three tests are the salary basis test, salary level test, and duties test — job title alone never determines exemption status.

  4. A non-exempt employee receives a $500 non-discretionary bonus during a week they worked 45 hours. How does this bonus affect overtime pay?

    Answer: It must be included in the regular rate before calculating overtime

    Non-discretionary bonuses must be included in the regular rate of pay, which increases the overtime premium owed for that workweek.

  5. Which government agency is primarily responsible for enforcing the FLSA overtime provisions?

    Answer: DOL Wage and Hour Division

    The Department of Labor's Wage and Hour Division (WHD) is responsible for administering and enforcing the FLSA, including overtime requirements.

  6. Under the FLSA's administrative exemption duties test, the employee's primary duty must include the exercise of:

    Answer: Discretion and independent judgment with respect to matters of significance

    The administrative exemption requires that the employee's primary duty include the exercise of discretion and independent judgment with respect to matters of significance.

  7. An employer uses a bi-weekly pay period. How should overtime be calculated for FLSA purposes?

    Answer: Overtime is calculated separately for each workweek within the pay period

    Regardless of the pay period length, the FLSA requires overtime to be calculated on a workweek basis — averaging hours across weeks is not permitted.