FLSA Overtime & Exemption Rules Flashcards

Which of the following employees is covered by the FLSA's 'retail or service establishment' partial overtime exemption under Section 7(i)?

Answer: A car salesperson whose regular rate exceeds 1.5× minimum wage and more than half their pay is commissions

Section 7(i) exempts retail/service employees from overtime if their regular rate exceeds 1.5 times the minimum wage and more than half their compensation in a representative period comes from commissions.

Which record-keeping requirement applies to non-exempt employees under the FLSA?

Answer: Employers must maintain payroll records for non-exempt employees for at least 3 years

The FLSA requires employers to keep payroll records for non-exempt employees for at least three years, and records on which wage computations are based must be retained for two years.

Under the FLSA, 'suffered or permitted' work means:

Answer: Work the employer knows about or should know about, even if not specifically requested

The 'suffered or permitted' standard means employers must compensate employees for all work they know or should know is being performed, even if the employee does it voluntarily or without explicit request.

The FLSA's creative professional exemption would apply to which of the following employees?

Answer: A graphic designer who creates original advertising art with significant creative discretion

The creative professional exemption applies to employees whose primary duty requires invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor.

An employer is found liable for $50,000 in unpaid overtime. Under the FLSA, what additional amount is the employee typically entitled to as liquidated damages?

Answer: $50,000 (equal to unpaid wages)

The FLSA provides for liquidated damages equal to the amount of unpaid wages, effectively doubling the employer's liability unless the employer can demonstrate good faith and a reasonable basis for believing it was complying with the law.

Which of the following best describes the 'primary duty' test used in FLSA white-collar exemption analysis?

Answer: The principal, main, major, or most important duty the employee performs, considering all relevant factors

Primary duty means the principal, main, major, or most important duty — while time is a useful indicator, courts look at all relevant factors including relative importance, freedom from supervision, and wages paid.

Under FLSA anti-retaliation provisions, which of the following employer actions is prohibited?

Answer: Terminating an employee who filed a complaint about unpaid overtime

The FLSA prohibits employers from discharging or in any other manner discriminating against employees because they filed a complaint or participated in any FLSA proceeding.