CPM FLSA Overtime & Exemption Rules 2

Question 1

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

Accepted Answer

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

Answer

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.

Question 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?

Accepted Answer

2 hours

Answer

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.

Question 3

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

Accepted Answer

Job title test

Answer

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

Question 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?

Accepted Answer

It must be included in the regular rate before calculating overtime

Answer

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

Question 5

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

Accepted Answer

DOL Wage and Hour Division

Answer

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

(CPM) Certified Payroll Manager Practice Test

(CPM) Certified Payroll Manager Practice Test

CPM FLSA Overtime & Exemption Rules 2