Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 4

Question 1

Under the FLSA's administrative exemption, which of the following best describes the 'discretion and independent judgment' requirement?

Accepted Answer

The employee must make decisions on matters of significance, not just apply established guidelines

Answer

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.

Question 2

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?

Accepted Answer

10 hours — combined hours exceed 40

Answer

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.

Question 3

The FLSA allows a 'youth minimum wage' for employees under age 20. What is that rate and for how long may it be paid?

Accepted Answer

$4.25/hour for the first 90 calendar days

Answer

Employers may pay new employees under age 20 a minimum of $4.25/hour during their first 90 consecutive calendar days of employment.

Question 4

Which of the following is a valid FLSA exemption from both minimum wage AND overtime requirements?

Accepted Answer

Outside sales employees

Answer

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.

Question 5

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:

Accepted Answer

The federal minimum wage

Answer

Deductions that reduce an employee's effective hourly rate below the federal minimum wage in any workweek violate the FLSA.

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Practice Test

Fundamental Payroll Certification Fundamental Payroll Worker Status and FLSA 4