ACT 249 - Ch 2

he FLSA requires that workers receive overtime pay for all hours worked in excess of 40 in a workweek. T/F

True

One of the tests to be met for the white-collar exemption for an executive is to be paid a salary of at least $1,000 per week. T/F

False At least $455

The FLSA requires that workers receive overtime pay of twice the employees' regular hourly rate for hours worked on Sunday. T/F

False FLSA requires 1.5

A discretionary bonus is included in an employee's regular rate of pay. T/F

False Non-Discretionary bonuses are included

Connie Duffy started working for Dexter Company on Thursday of this week. She worked 9 hours on Thursday and 8 hours on Friday. Her annual salary is $80,000, and she is an exempt white-collar employee. Determine her gross pay for her first partial week of work. Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round your final answer to the nearest cent. Gross pay $615.38

Gross Pay $615.38 80,000(yearly salary)/52(weeks in year) = 1,538.46 (weekly salary) 1538.46 * 2/5 = 615.38

Casey Collins' average workweek during the first quarter of the year (13 weeks) was 43 hours. As part of his company's perfect attendance program, he earned a bonus of $975. Determine the extra overtime pay due Collins for the first quarter. Note: For each calculation, round to 2 decimal places before continuing to next computation. At next step, round to 2 decimal places. And then, round your final answer to the nearest cent. Extra overtime pay $33.93

$33.93 Explanation: 975(bonus)/13(weeks) = 75 per week 75/43(weekly hours) = 1.74(hourly bonus pay) 1.74 x 0.5 = 0.87(OT Bonus rate) 0.87 x 39(ot hours per week times weeks) = 33.93

Kenneth Caplan is a salaried employee who normally works a 37½-hour week and is paid a weekly salary of $675.00. The agreement that he has with his employer states that his salary is to cover all hours worked up to and including 40. This week, Caplan worked 42 hours. Calculate his gross pay. Gross pay $729

$729 675(salary)/37.5(hours) = 18 (hrly rate) 18 x 1.5 x 2 = 54 54 + 675 = 729

A stated percentage of revenue paid an employee who transacts a piece of business or performs a service is called: a. a commission. b. a piece rate. c. a regular hourly rate. d. a remunerative salary. e. None of these choices are correct

A

Sheila Williams, a medical secretary, earns $3,575 monthly for a 35-hour week. For overtime work, she receives extra pay at the regular hourly rate up to 40 hours and time and one-half beyond 40 hours in any week. During one semimonthly pay period, Williams worked 10 hours overtime. Only 2 hours of this overtime were beyond 40 hours in any one week. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The regular semimonthly earnings $1,787.50 b. The overtime earnings $259.28 c. The total earnings $2,046.78

A. $1,787.50 3575/2 = 1787.50 B. $259.28 (23.57 x 8) + (23.57 x 1.5 x 2) = 259.28 C. $2,046.78

Carson Beck has been working for the last 4 months at the local Worst Buy Shop. As a full-time student at the local university, he is being paid an hourly rate of $4.20 an hour. One week, Beck worked 37 hours. Round your answers to the nearest cent. a. Beck's earnings for the week are $155.4 b. Is the hourly rate in violation of the FLSA? Yes c. If the hourly rate is in violation of the FLSA, what is the amount the shop should pay Beck for the week? When computing the per hour rate, use the government's rounding rule in your calculation. $228.29

A. $155.40 4.20 * 37 = 155.40 B. Yes C. $228.29 6.17 (student minimum) * 37 = 228.29

Cal DiMangino earns $2,875 each month and works 40 hours each week. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The hourly rate $16.59 b. The overtime rate at time and one-half $24.89

A. $16.59 2875(monthly rate) x 12(months in a year) = 34,500 34,500/52(weeks in a year) = 663.46(weekly pay) 663.46/40 = 16.59 B. $24.89 16.59 x 1.5 = 24.89

John Porter is an hourly employee of Motter Company located in New York City. This week, Porter had to travel to the company's regional office in Albany. He left Sunday at noon and arrived in Albany at 3:00 P.M. During the week, he worked his normal 40 hours in the Albany office (Monday through Friday—9 A.M. to 5 P.M.). In addition, he attended the company's mandatory 4-hour work training session on Wednesday evening. Porter's hourly rate of pay is $24.80 per hour. Round the overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent. a. Porter's overtime earnings for the week are $260.4 b. Porter's total earnings for the week are $1,252.4

A. $260.40 7(OT Hours) * 37.25(OT Rate) = 260.40 B. $1,252.40 260.40(OT Pay) + 922(regular pay) = 1,252.40

Joseph Cavato is paid $12.96 per hour. During the past week, he worked 46 hours, and he is a covered employee who must be paid for overtime. Calculate his gross pay using the overtime premium approach. Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round your final answers to the nearest cent. a. Regular pay (46 hours) $596.16 b. Overtime premium pay $38.88 c. Gross pay $635.04

A. $596.16 12.96(regular rate) * 46(hours) = 596.16 B. $38.88 12.96(reg rate) * 6(OT Hours) * 0.5 (OT premium) = 38.88 C. $635.04 596.16 + 38.88 = 635.04

Kyle Forman worked 47 hours during the week for Erickson Company at two different jobs. His pay rate was $14.00 for the first 40 hours, and his pay rate was $11.80 for the other 7 hours. Round your overtime rate and other interim computations to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent. Determine his gross pay for that week if the company uses the one-half average rate method. a. Gross pay $690.48 b. If prior agreement existed that overtime would be paid at the rate for the job performed after the 40th hour, the gross pay would be $683.9

A. $690.48 One-half average rate method is calculated by taking the total earnings for both jobs, dividing by the total hours worked, then overtime earnings are computed by taking one-half of this rate and multiplying by the overtime hours. B. $683.90 Use overtime rate based on the rate for the job performed after the 40th hour.

Barbara Ripa receives $695 for a regular 40-hour week and time and one-half for overtime. For a workweek of 45 hours, compute the following amounts. If required, round your interim computations to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The regular earnings $695 b. The overtime earnings $130.35 c. The total earnings $825.35

A. $695 B. $130.35 695/40(reg hours) = 17.38 17.38 * 1.5 = 26.07 (OT Rate) 26.07 * 5(OT Hours) = 130.35 C. $825.35

Gabrielle Hunter, a waitress at the Hole-in-the-Wall restaurant, worked 42 hours this week and collected over $500 in tips. The restaurant uses the full tip credit against the minimum wage and pays Hunter the minimum required for tipped employees. Determine her gross pay from the restaurant. Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round your final answers to the nearest cent. a. Pay for the 40 hours $85.20 b. Pay for the overtime hours $11.52

A. $85.20 2.13 * 40 = 85.20 B. $11.52 2 (OT Hours) * 5.76 (OT Rate) = 11.52

Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $80 plus tips for a 40-hour workweek. Lieber's weekly tips usually range from $280 to $400. Round your answers to the nearest cent. a. Under the Fair Labor Standards Act, the minimum amount of wages that Lieber must receive for a 40-hour workweek is $85.2 b. Since Harbor House is in violation of the FLSA, the additional amount it should pay Lieber each week to meet the minimum wage requirement for a tipped employee is $5.20

A. $85.20 ($2.13 × 40 = $85.20* minimum weekly wages. *In order to be able to pay just the minimum ($85.20) for a 40-hour week, the employee must receive at least $204.80 in tips ($290.00 - $85.20). B. $5.20 ($ 85.20 min weekly wages - 80.00 wkly wage reg. paid = $5.20 additional weekly wage due)

Carrie Overwood works fluctuating work schedules. Besides her fixed salary of $1,050 per week, her employment agreement provides for overtime pay at an extra half-rate for hours worked over 40. This week she worked 48 hours. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The overtime earnings $87.52 b. The total earnings $1,137.52 c. If this was a BELO plan with a pay rate of $22.00 per hour and a maximum of 53 hours, how much would Overwood be paid for 48 hours? ???

A. $87.52 1050(salary)/48(total hours) = 21.88(hrly rate) 21.88 x 0.5 = 10.94(OT Rate) 10.94 x 8 = 87.52 B. $1,137.52 1050 + 87.52 = 1137.52 C. ??? BELO = wage rate multiplied by maximum number of hours and then add 50% for OT

Wendy Epstein, a sales representative, earns an annual salary of $29,500 and receives a commission on that portion of her annual sales that exceeds $150,000. The commission is 8.5% on all sales up to $50,000 above the quota. Beyond that amount, she receives a commission of 10%. Her total sales for the past year were $295,000. Compute the following amounts: a. The regular annual salary $29,500 b. The commission $13,750 c. The total annual earnings $43,250

A. 29,500 (given) B. 13,750 commission Income for commission = 295000(tot sales) - 150000 = 145000 Commission = 8.5% of 50000 = 4250 Commission on 95000(145000-50000) =10% of 95000 =9500 Total Commission = 4250+9500=13750 C. 43,250 total annual earnings 29500+13750=43250

During the first week in November, Erin Mills worked 45½ hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.45 a unit. Mills had agreed with her employer prior to the performance of the work that she would be paid one and one-half times the regular piece rate for all pieces produced during the overtime hours. Assume that her production totals for the week were 1,075 pieces during regular hours and 200 pieces during overtime hours. Compute the following amounts. Round your overtime rate to two decimal places and use the rounded amount in subsequent computations. Round the final answers to the nearest cent. a. The piecework earnings $483.75 b. The overtime earnings $136 c. The total earnings $619.75

A. 483.75 1075(reg hours) x 0.45(piece rate) = 483.75 B. 136 (0.45 piece rate x 1.5) x 200 OT pieces = 136 (OT Earnings) C. 619.75 483.75 + 136 = 619.75

During the first week in November, Erin Mills worked 45½ hours and produced 1,275 units under a piece-rate system. The regular piece rate is $0.45 a unit. Mills is paid overtime according to the FLSA ruling for overtime work under a piece-rate system. Compute the following amounts. Round all divisions to two decimal places and use the rounded amounts in subsequent computations. Round your final answers to the nearest cent. a. The piecework earnings $573.75 b. The regular hourly rate $12.61 The overtime hourly rate $6.31 c. The overtime earnings $34.71 d. The total earnings $608.46

A. 573.75 0.45(piece rate) x 1275(total units) = 573.75(piecework earnings) B1. 12.61 573.75/45.5(tot hours) = 12.61(reg hrly rate) B2. 6.31 12.61 x 0.5 = 6.31(OT rate) C. 34.71 6.31 x 5.5(OT hours) = 34.71 D. 608.46 573.75 + 34.71 = 608.46

Under the FLSA, overtime pay is required for: a. all hours worked on Christmas. b. any hours worked in excess of 8 in one day. c. all hours worked in excess of 40 in a workweek. d. all work on Sunday. e. All of these choices are correct

C

The following time card shows the time worked one week by Ken Pace. Employees do not begin work until 8:00 a.m. or 1:00 p.m. and do not work beyond 5:00 p.m., unless they are asked. The employer disregards any time before 8:00 a.m., between 12:00 and 1:00 p.m., and after 5:00 p.m. Fractions of the hour for time worked are based on full quarter-hour increments. Hours worked beyond the regular 8-hour day and on Saturday are paid at one and one-half times the regular rate. Hours worked on Sunday are paid double the regular rate. No. Name 72 Ken Pace (a) Day Morning Afternoon Overtime Hours Worked In Out In Out In Out M 7:50 12:00 12:50 5:01 T 7:56 12:01 12:49 5:02 5:30 7:31 W 7:59 12:02 12:58 5:03 T 7:45 12:00 12:55 5:00 5:29 8:02 F 8:01 12:01 1:00 5:01 6:00 7:30 S 7:48 12:02 S 2:00 6:03 Pace's regular wage rate is $13.50 per hour, and the regular workweek is 40 hours with five 8-hour days. Compute the following: a. The hours worked each day. (Ignore the one-minute tardiness on Friday and enter hours to two decimal places.) Monday 8 hours Tuesday 10hours Wednesday 8 hours Thursday 10.5 hours Friday 9.5 hours Saturday 4 hours Sunday 4 hours b. The total hours worked 54 hours For (c)-(e), round overtime rate to two decimal places and round your final answers to the nearest cent. Use the rounded amounts in subsequent computations. c. The regular earnings $540 d. The overtime earnings $310.5 e. The total earnings $850.5

C. $540.00 40 x 13.50 = $540.00 D. $310.50 [10(reg OT hours) x 13.50 x 1.5] + [4 x 13.50 x 2] = 202.50 + 108.00 = $310.50

Employers may pay nonexempt employees who work fluctuating schedules a fixed salary. In these cases, the extra pay is: a. calculated at a double time rate. b. calculated at the regular rate of pay. c. unpaid. d. calculated at a time and one-half rate. e. None of these choices are correct.

E

Workers exempt from all of the FLSA requirements include: a. clerk-typists earning less than $200 a week. b. taxicab drivers. c. employees paid by the hour. d. motion picture theater employees. e. None of these choices are correct.

E

In January 2019, the minimum hourly wage was: a. $12.15. b. $9.35. c. $8.15. d. $10.00. e. None of these choices are correct.

E Minimum wage is $7.25

"Engaged to wait" and "waiting to be engaged" are both considered work time. T/F

False

Domestics are excluded from coverage under the FLSA individual employee coverage. T/F

False

The FLSA requires that employees be given at least two 15-minute rest periods each workday. T/F

False

Employees paid biweekly receive their remuneration every two weeks. T/F

True

Institutions of higher education are extended coverage under FLSA without regard to their annual sales volume. T/F

True

To calculate the overtime pay rate for a commissioned worker, divide the total commission by the hours worked, and then take one-half of the resulting rate of pay. T/F

True