CSP CSP Compensation & Benefits Administration 1

Question 1

Under the Fair Labor Standards Act (FLSA), what is the federal minimum wage as of 2024?

Accepted Answer

$7.25 per hour

Answer

The federal minimum wage under the FLSA is $7.25 per hour, though many states have set higher minimums.

Question 2

Which classification determines whether a staffing employee is entitled to overtime pay under the FLSA?

Accepted Answer

Exempt vs. non-exempt status

Answer

Exempt employees are not entitled to FLSA overtime protections, while non-exempt employees must receive 1.5x their regular pay for hours over 40 per week.

Question 3

When a staffing agency places a worker at a client site, who is generally responsible for paying the employee's wages?

Accepted Answer

The staffing agency

Answer

The staffing agency is the employer of record and is primarily responsible for paying wages, taxes, and benefits to placed workers.

Question 4

What does the term 'bill rate' refer to in staffing compensation?

Accepted Answer

The hourly amount charged to the client

Answer

The bill rate is the hourly or per-unit charge invoiced to the client, which includes the pay rate plus the agency's markup for overhead and profit.

Question 5

Which law requires staffing firms to provide continuation of health coverage to eligible employees after a qualifying event?

Accepted Answer

COBRA

Answer

COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20+ employees to offer continued health coverage after qualifying events like job loss.

(CSP) Certified Staffing Professional Practice Test

(CSP) Certified Staffing Professional Practice Test

CSP CSP Compensation & Benefits Administration 1