CPM FLSA Overtime & Exemption Rules 5

Question 1

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

Accepted Answer

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

Answer

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.

Question 2

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

Accepted Answer

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

Answer

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.

Question 3

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

Accepted Answer

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

Answer

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.

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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?

Accepted Answer

$50,000 (equal to unpaid wages)

Answer

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.

(CPM) Certified Payroll Manager Practice Test

(CPM) Certified Payroll Manager Practice Test

CPM FLSA Overtime & Exemption Rules 5