CPP Wage & Hour Laws — Questions and Answers
Question 1: What is the current federal minimum wage in the United States?
- $7.25 per hour (Correct answer)
- $15.00 per hour
- $10.00 per hour
- $5.15 per hour
Correct answer: $7.25 per hour
The federal minimum wage is $7.25 per hour (since 2009). Many states and cities have higher minimum wages that employers must follow when they exceed the federal rate.
Question 2: What is the FLSA overtime requirement?
- Non-exempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek (Correct answer)
- All employees receive overtime after 8 hours per day
- Overtime is voluntary and not legally required
- Exempt employees must receive double pay for overtime
Correct answer: Non-exempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek
The Fair Labor Standards Act requires employers to pay non-exempt employees at least 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek.
Question 3: What determines whether an employee is exempt or non-exempt from overtime?
- Salary level, salary basis, and primary job duties as defined by the FLSA (Correct answer)
- Only the employee's job title
- Whether the employee prefers to be exempt
- The number of years the employee has worked for the company
Correct answer: Salary level, salary basis, and primary job duties as defined by the FLSA
Exemption requires meeting three tests: salary level (minimum threshold), salary basis (paid a predetermined salary not reduced for variations in work quality/quantity), and duties (executive, administrative, professional, computer, or outside sales).
Question 4: What is a garnishment and what are the employer's obligations?
- A court-ordered deduction from wages for debts like child support, taxes, or creditor judgments that employers must comply with (Correct answer)
- A voluntary employee deduction for charitable giving
- A bonus payment added to employee wages
- An employer's option to reduce pay for poor performance
Correct answer: A court-ordered deduction from wages for debts like child support, taxes, or creditor judgments that employers must comply with
Wage garnishment is a legal process requiring employers to withhold a portion of an employee's earnings to satisfy debts, with specific limits under federal and state law.
Question 5: What records must employers maintain under the FLSA?
- Employee information, hours worked, wages paid, and deductions for at least 3 years (Correct answer)
- Only annual salary information
- No specific records are required
- Only records for currently employed individuals
Correct answer: Employee information, hours worked, wages paid, and deductions for at least 3 years
The FLSA requires employers to maintain records including employee identification, hours worked each day and week, regular pay rate, total overtime, total wages, deductions, and pay period dates for at least 3 years.
Question 6: What is the difference between gross pay and net pay?
- Gross pay is total earnings before deductions; net pay is take-home pay after all deductions (Correct answer)
- They are the same amount
- Gross pay is always lower than net pay
- Net pay includes bonuses while gross pay does not
Correct answer: Gross pay is total earnings before deductions; net pay is take-home pay after all deductions
Gross pay is the total amount earned before any deductions (taxes, benefits, garnishments), while net pay is the actual amount the employee receives after all mandatory and voluntary deductions.
CPP Wage & Hour Laws
What is the current federal minimum wage in the United States?