CPP Wage & Hour Laws 2

Question 1

Under the FLSA, which of the following employees is EXEMPT from overtime pay requirements?

Accepted Answer

A salaried employee earning $684/week who manages two or more employees

Answer

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?

Accepted Answer

0 hours

Answer

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?

Accepted Answer

McNamara-O'Hara Service Contract Act

Answer

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?

Accepted Answer

Pay an additional $1.25/hour to meet minimum wage

Answer

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?

Accepted Answer

$5.12 per hour

Answer

The maximum tip credit is $5.12/hour ($7.25 federal minimum wage minus the $2.13 required cash wage).

CPP - Certified Payroll Professional Practice Test

CPP - Certified Payroll Professional Practice Test

CPP Wage & Hour Laws 2