CPP Wage & Hour Laws 2 — Questions and Answers
Question 1: Under the FLSA, which of the following employees is EXEMPT from overtime pay requirements?
- A salaried employee earning $684/week who manages two or more employees (Correct answer)
- A part-time hourly worker earning $15/hour
- A full-time non-supervisory production worker
- A temporary employee placed by a staffing agency
Correct answer: A salaried employee earning $684/week who manages two or more employees
The executive exemption under FLSA requires a salary of at least $684/week, management as a primary duty, and directing the work of two or more employees.
Question 2: An employee works 10 hours on a holiday that is not counted as hours worked under company policy. The employee also works 32 hours during the rest of the week. How many overtime hours must be paid?
- 0 hours (Correct answer)
- 2 hours
- 10 hours
- 12 hours
Correct answer: 0 hours
FLSA overtime is based on actual hours worked exceeding 40; holiday hours not worked (paid leave) do not count toward the 40-hour threshold.
Question 3: Which federal law sets the minimum wage for employees of federal contractors performing work on federal service contracts valued over $2,500?
- McNamara-O'Hara Service Contract Act (Correct answer)
- Davis-Bacon Act
- Walsh-Healey Public Contracts Act
- FLSA
Correct answer: McNamara-O'Hara Service Contract Act
The McNamara-O'Hara Service Contract Act (SCA) establishes wage and fringe benefit requirements for service employees on federal contracts exceeding $2,500.
Question 4: A tipped employee's cash wage is $2.13/hour and tips bring total hourly earnings to $6.00. The federal minimum wage is $7.25. What must the employer do?
- Pay an additional $1.25/hour to meet minimum wage (Correct answer)
- Nothing; $6.00 exceeds the tipped minimum
- Allow the employee to keep all tips without adjustment
- Reduce the employee's hours to avoid the shortage
Correct answer: Pay an additional $1.25/hour to meet minimum wage
If tips plus the $2.13 cash wage do not reach the federal minimum wage of $7.25, the employer must make up the difference.
Question 5: Under the FLSA, what is the maximum tip credit an employer may take against the federal minimum wage for tipped employees?
- $5.12 per hour (Correct answer)
- $3.02 per hour
- $2.13 per hour
- $7.25 per hour
Correct answer: $5.12 per hour
The maximum tip credit is $5.12/hour ($7.25 federal minimum wage minus the $2.13 required cash wage).
Question 6: Which of the following is NOT a permissible deduction from an exempt employee's salary under the FLSA salary basis test?
- Deduction for a partial day absence when no PTO is available (Correct answer)
- Deduction for a full week during which the employee performed no work
- Deduction for penalties imposed for safety rule violations
- Deduction for jury duty fees received
Correct answer: Deduction for a partial day absence when no PTO is available
Deducting pay for partial-day absences (except under FMLA or disability) destroys the salary basis and may eliminate the FLSA exemption.
Question 7: An employee's regular rate of pay is $20/hour. The employee works 48 hours in a week. What is the correct FLSA overtime premium owed for the week?
- $80 (Correct answer)
- $160
- $240
- $320
Correct answer: $80
FLSA overtime premium is 0.5x the regular rate for each hour over 40: 8 hours × $10 (0.5 × $20) = $80 (straight-time already included in regular pay).
CPP Wage & Hour Laws 2
Under the FLSA, which of the following employees is EXEMPT from overtime pay requirements?