OCPS OCPS Workforce Management & Labor Relations 1 — Questions and Answers
Question 1: Under the FLSA, which category of employees is entitled to overtime pay at 1.5 times their regular rate?
- Exempt salaried employees meeting salary and duties tests
- Non-exempt employees who work more than 40 hours in a workweek (Correct answer)
- Independent contractors working over 40 hours
- Part-time employees working more than 20 hours per week
Correct answer: Non-exempt employees who work more than 40 hours in a workweek
Non-exempt employees under the FLSA must receive overtime pay at 1.5 times their regular rate for all hours worked beyond 40 in a single workweek.
Question 2: What is the primary purpose of a collective bargaining agreement (CBA) in relation to payroll?
- To eliminate payroll taxes for union members
- To set legally binding wage rates, hours, benefits, and working conditions negotiated between employer and union (Correct answer)
- To require all employees to join a union
- To replace government labor regulations
Correct answer: To set legally binding wage rates, hours, benefits, and working conditions negotiated between employer and union
A CBA is a negotiated contract that establishes binding terms for wages, benefits, and working conditions that payroll must administer accurately.
Question 3: Which classification error exposes employers to significant back-pay liability and penalties?
- Classifying a part-time employee as full-time
- Incorrectly classifying an employee as an independent contractor (Correct answer)
- Listing an exempt employee as salaried
- Overpaying a bonus to an executive
Correct answer: Incorrectly classifying an employee as an independent contractor
Misclassifying an employee as an independent contractor can result in back taxes, unpaid overtime, benefit claims, and substantial IRS and DOL penalties.
Question 4: What does 'prevailing wage' refer to in the context of government contracts?
- The minimum wage set by state law
- The wage rate determined by the DOL that must be paid to workers on federally funded construction projects under the Davis-Bacon Act (Correct answer)
- The average salary in a given industry
- The salary offered by the largest regional employer
Correct answer: The wage rate determined by the DOL that must be paid to workers on federally funded construction projects under the Davis-Bacon Act
Prevailing wage under the Davis-Bacon Act is the DOL-determined rate that contractors must pay workers on federally funded construction and public works projects.
Question 5: How does the Family and Medical Leave Act (FMLA) interact with payroll processing?
- FMLA requires employers to pay double wages during leave
- FMLA leave is unpaid but job-protected; payroll must correctly track leave usage and benefit continuation (Correct answer)
- Employees on FMLA must be removed from payroll entirely
- FMLA automatically triggers short-term disability benefits
Correct answer: FMLA leave is unpaid but job-protected; payroll must correctly track leave usage and benefit continuation
FMLA provides up to 12 weeks of unpaid, job-protected leave; payroll must track leave hours and ensure benefits like health insurance continue during the leave period.
Question 6: What is a 'shift differential' in payroll?
- A penalty assessed for late payroll submissions
- Additional pay provided to employees who work less desirable shifts such as nights or weekends (Correct answer)
- A tax applied to employees working multiple jobs
- A deduction for employees who miss scheduled shifts
Correct answer: Additional pay provided to employees who work less desirable shifts such as nights or weekends
A shift differential is extra compensation paid to employees for working non-standard hours, such as overnight or weekend shifts, as an incentive.
OCPS OCPS Workforce Management & Labor Relations 1
Under the FLSA, which category of employees is entitled to overtime pay at 1.5 times their regular rate?