CPP Wage & Hour Laws

Question 1

What is the current federal minimum wage in the United States?

Accepted Answer

$7.25 per hour

Answer

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?

Accepted Answer

Non-exempt employees must receive 1.5 times their regular rate for hours worked over 40 in a workweek

Answer

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?

Accepted Answer

Salary level, salary basis, and primary job duties as defined by the FLSA

Answer

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?

Accepted Answer

A court-ordered deduction from wages for debts like child support, taxes, or creditor judgments that employers must comply with

Answer

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?

Accepted Answer

Employee information, hours worked, wages paid, and deductions for at least 3 years

Answer

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.

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Wage & Hour Laws