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's administrative exemption, which of the following best describes the 'discretion and independent judgment' requirement?
Answer: The employee must make decisions on matters of significance, not just apply established guidelines
Discretion and independent judgment means the employee compares and evaluates possible courses of action and makes decisions that genuinely affect the business, not just following set procedures.
A retail employee works at Store A for 30 hours and at Store B (a sister company under common ownership and control) for 20 hours in the same workweek. How many overtime hours must be paid?
Answer: 10 hours — combined hours exceed 40
When employers are considered joint employers or are under common control, their hours are aggregated; 50 combined hours means 10 overtime hours must be paid.
The FLSA allows a 'youth minimum wage' for employees under age 20. What is that rate and for how long may it be paid?
Answer: $4.25/hour for the first 90 calendar days
Employers may pay new employees under age 20 a minimum of $4.25/hour during their first 90 consecutive calendar days of employment.
Which of the following is a valid FLSA exemption from both minimum wage AND overtime requirements?
Answer: Outside sales employees
Outside sales employees who primarily make sales away from the employer's place of business are exempt from both minimum wage and overtime under the FLSA.
An employer deducts the cost of a mandatory uniform from a non-exempt employee's wages. Under the FLSA, this deduction is illegal if it causes the employee's wage to fall below:
Answer: The federal minimum wage
Deductions that reduce an employee's effective hourly rate below the federal minimum wage in any workweek violate the FLSA.
What is the FLSA statute of limitations for filing a claim for unpaid minimum wages or overtime?
Answer: Two years, or three years for willful violations
The FLSA provides a two-year statute of limitations for non-willful violations and a three-year period when the violation is proven willful.
Which of the following workers is classified as a 'statutory employee' for FICA purposes even if they may be an independent contractor under common law?
Answer: A full-time life insurance salesperson who sells only for one company
Full-time life insurance salespersons working primarily for one company are statutory employees whose earnings are subject to FICA withholding by the employer.
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