Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 2

Question 1

Under the FLSA, which test is primarily used by the Department of Labor to determine whether a worker is an employee or independent contractor?

Accepted Answer

The economic reality test

Answer

The DOL uses the economic reality test, which examines whether a worker is economically dependent on the employer or truly in business for themselves.

Question 2

A non-exempt employee works 44 hours in a workweek at $18/hour. What is their total gross pay?

Accepted Answer

$828.00

Answer

Regular pay = 40 × $18 = $720; overtime = 4 × $27 (1.5 × $18) = $108; total = $828.00.

Question 3

Which of the following employees is most likely EXEMPT from FLSA overtime under the executive exemption?

Accepted Answer

A department manager earning $70,000/year who regularly directs 10 employees and has authority to hire and fire

Answer

The executive exemption requires a salary of at least $684/week, primary duty of management, directing 2+ employees, and authority over employment status.

Question 4

Under the FLSA, what is the current federal minimum wage?

Accepted Answer

$7.25 per hour

Answer

The federal minimum wage has been $7.25 per hour since July 24, 2009.

Question 5

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:

Accepted Answer

An independent contractor because she is economically independent

Answer

Setting her own schedule, supplying tools, working for multiple clients, and project-based pay all indicate economic independence, pointing to independent contractor status.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 2