Fundamental Payroll Worker Status and FLSA Flashcards
7 cards from real Fundamental Payroll Certification practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Fundamental Payroll Worker Status and FLSA flashcards as text
Under the FLSA, which test is primarily used by the Department of Labor to determine whether a worker is an employee or independent contractor?
Answer: The economic reality test
The DOL uses the economic reality test, which examines whether a worker is economically dependent on the employer or truly in business for themselves.
A non-exempt employee works 44 hours in a workweek at $18/hour. What is their total gross pay?
Answer: $828.00
Regular pay = 40 × $18 = $720; overtime = 4 × $27 (1.5 × $18) = $108; total = $828.00.
Which of the following employees is most likely EXEMPT from FLSA overtime under the executive exemption?
Answer: A department manager earning $70,000/year who regularly directs 10 employees and has authority to hire and fire
The executive exemption requires a salary of at least $684/week, primary duty of management, directing 2+ employees, and authority over employment status.
Under the FLSA, what is the current federal minimum wage?
Answer: $7.25 per hour
The federal minimum wage has been $7.25 per hour since July 24, 2009.
A worker sets her own hours, provides her own tools, works for multiple clients, and is paid per project. Under the economic reality test, this worker is most likely:
Answer: An independent contractor because she is economically independent
Setting her own schedule, supplying tools, working for multiple clients, and project-based pay all indicate economic independence, pointing to independent contractor status.
The FLSA child labor provisions generally prohibit minors under age 18 from working in hazardous occupations. What is the minimum age for most non-agricultural, non-hazardous jobs with unlimited hours?
Answer: 16
At age 16, minors may work unlimited hours in non-hazardous occupations; those aged 14–15 face strict hour and time-of-day restrictions.
Under the FLSA, an employer and employee agree to pay a salary that covers all hours worked, regardless of how many. This arrangement is known as:
Answer: Fluctuating workweek method
The fluctuating workweek method allows overtime to be paid at a 0.5 multiplier on the regular rate, which decreases as hours increase, provided the salary is fixed and the agreement is clear.
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