FLSA Overtime & Exemption Rules Flashcards

Which of the following is an example of a 'discretionary bonus' that may be excluded from the FLSA regular rate of pay?

Answer: A holiday bonus given at management's sole discretion with no prior promise

A discretionary bonus is one where both the fact and amount of payment are determined at the employer's sole discretion at or near the end of the period, with no prior promise or agreement.

The FLSA's executive exemption requires that the employee's primary duty be managing the enterprise or a customarily recognized department and regularly directing the work of at least how many full-time employees?

Answer: Two

The executive exemption requires that the employee customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.

For the outside sales exemption, what percentage of the employee's primary duty must involve making sales or obtaining orders away from the employer's place of business?

Answer: There is no specific percentage — it must be the primary duty

The outside sales exemption has no specific percentage requirement; rather, making sales away from the employer's place of business must simply be the employee's primary duty.

An employer pays a non-exempt employee a fixed salary of $800 per week intended to cover all hours worked, including overtime. Under the fluctuating workweek method, how is overtime calculated in a week with 50 hours?

Answer: $800 / 50 × 0.5 × 10

Under the fluctuating workweek method, the regular rate is $800 / 50 = $16/hr; since the salary already covers straight-time for all hours, only an additional 0.5× premium is owed for the 10 OT hours.

Which of the following is TRUE regarding state overtime laws and the FLSA?

Answer: Employers must follow whichever standard — state or federal — provides greater benefit to the employee

The FLSA establishes a federal floor; states may enact stronger overtime protections, and employers must comply with whichever standard provides greater benefit to the employee.

Under the FLSA, what is the statute of limitations for filing a claim for unpaid overtime wages in cases of willful violations?

Answer: 3 years

For willful FLSA violations, the statute of limitations is three years; for non-willful violations, it is two years.

A paramedic works a 24-hour shift at a fire station and sleeps 8 hours on-site. Under the FLSA, how should the sleeping time be treated?

Answer: The 8 sleeping hours may be excluded if there is a written agreement and adequate sleeping facilities

For shifts of 24 hours or more, up to 8 hours of bona fide sleep time may be excluded from compensable time if there is a prior agreement and the employer provides adequate sleeping facilities that allow the employee to get an uninterrupted sleep.