CPP Wage & Hour Laws 4 — Questions and Answers
Question 1: A salaried nonexempt employee earns $800/week and works 44 hours. What is the correct overtime calculation?
- $800/44 × 1.5 × 4
- $800/40 × 0.5 × 4
- $800/44 × 0.5 × 4 (Correct answer)
- $800 + ($20 × 4)
Correct answer: $800/44 × 0.5 × 4
For salaried nonexempt employees, the regular rate is the salary divided by total hours worked; overtime premium is 0.5x the regular rate for hours over 40.
Question 2: Which of the following best describes the 'fluctuating workweek' method of overtime compensation?
- A fixed salary covers all hours worked; overtime premium is 0.5x the regular rate (Correct answer)
- Overtime is paid at 1.5x for all hours over 40 based on a fixed hourly rate
- The employee receives a different rate for each hour worked over 40
- Overtime is calculated using the highest rate earned during the week
Correct answer: A fixed salary covers all hours worked; overtime premium is 0.5x the regular rate
Under the fluctuating workweek method, a fixed salary covers all hours; since straight time is already included, only the 0.5x premium is owed for overtime hours.
Question 3: An employee works at two different pay rates during the same workweek: 30 hours at $15/hour and 15 hours at $20/hour. Which method is the FLSA default for calculating the regular rate?
- Weighted average of all earnings divided by total hours worked (Correct answer)
- The higher of the two rates applies to all hours
- The lower of the two rates applies to overtime hours only
- Overtime is paid at 1.5x the rate in effect when overtime hours were worked
Correct answer: Weighted average of all earnings divided by total hours worked
The default FLSA method for multiple pay rates is the weighted average: total earnings divided by total hours worked gives the regular rate used to calculate overtime.
Question 4: Which federal law requires employers to post a notice of FLSA rights in a conspicuous place where employees can see it?
- The Fair Labor Standards Act itself (Correct answer)
- The Occupational Safety and Health Act
- The National Labor Relations Act
- The Employee Retirement Income Security Act
Correct answer: The Fair Labor Standards Act itself
The FLSA requires employers to display the official WHD poster informing employees of their minimum wage, overtime, and child labor rights.
Question 5: Under FLSA Section 7(k), which of the following employers may adopt an alternative work period for overtime purposes?
- Law enforcement and fire protection agencies (Correct answer)
- Private manufacturing companies
- Retail establishments with extended hours
- Hospitals using 8-and-80 agreements only
Correct answer: Law enforcement and fire protection agencies
Section 7(k) allows public agencies employing law enforcement or firefighting personnel to use work periods of 7–28 days, with overtime triggered at higher hour thresholds.
Question 6: Which of the following is classified as a 'hazardous occupation' under FLSA child labor rules, barring minors under 18?
- Operating a paper bailer or compactor (Correct answer)
- Cashiering at a retail store
- Delivering newspapers on foot
- Bagging groceries in a supermarket
Correct answer: Operating a paper bailer or compactor
Operating power-driven paper bailers and compactors is listed as a hazardous occupation order (HO) under the FLSA, prohibited for workers under 18.
Question 7: An employer pays employees twice monthly (semi-monthly). Under the FLSA, which workweek period determines overtime liability?
- A fixed, regularly recurring 168-hour period (7 consecutive 24-hour periods) (Correct answer)
- The pay period itself (approximately 86.67 hours)
- A calendar month divided into two equal halves
- Whatever period the employer designates at the start of each month
Correct answer: A fixed, regularly recurring 168-hour period (7 consecutive 24-hour periods)
FLSA overtime is always calculated on a fixed 7-day, 168-hour workweek, regardless of the pay period frequency chosen by the employer.
CPP Wage & Hour Laws 4
A salaried nonexempt employee earns $800/week and works 44 hours.
What is the correct overtime calculation?