Review Questions Chapter 2

The "white collar" exemption from the minimum wage and overtime provisions of the FSLA is made up of the categories of employees?

* Administratives * Executive * Professional * Computer-related professional * Outside sales

What are the five areas regulated by the Fair Labor Standards Act?

* Minimum wages * Overtime * Child labor * Equal pay * Recordkeeping

What is the meaning of the term "compensable time"?

"Compensable time" is defined as all hours during which the employee is under the employer's control, even if the time is unproductive, so long as the time spent is for the employer's benefit.

What penalties can be assessed for violations of the FLSA's child labor restrictions?

Employers can be fined up to $11,000 for each violation of the child labor restrictions and up ton$50,000 for each violation that causes the death or serious injury of a minor.

What is the basic difference between exempt and nonexempt employees.

Exempt employees do not have to be paid the required minimum wage or overtime pay, and the employer does not have to keep certain records detailing their work, while nonexempt employees must be paid the required minimum wage and overtime pay and the employer must keep detailed records of their work hours and wage payments.

What restrictions does the FLSA place on employer's regarding the employment of minors under 18 ?

No minors under the age of 18 can work in a job that has been declared hazardous by the Wage and Hour Division. Some minors age 16 and 17 are exempt from these restrictions under student learner or apprenticeship programs, under an exemption for 17 year olds who work with wood products under the supervision of a parent and meet several other requirements.

A plan similar to the fluctuation workweek was approved by the U.S. Supreme Court and later made part of the FLSA and its regulations. What is this plan called, and what does it provide?

The plan is called the "Belo" plan, named after the computer involved in the Supreme Court's decision, and the plan guarantees a fixed salary for irregular hours that includes a set amount of overtime pay.

What is the "regular rate of pay" and how is it determined?

The regular rate of pay is an hourly rate of pay determined by dividing the total regular pay actually earned for the workweek by the total number of hours worked. For salaried nonexempt employees, the regular rate of pay is the employee's salary divided by the number of hours the salary is intended to compensate .

What is the time limit for filing an FLSA complaint with the Wage and Hour Division?

The time limit is two years after the allege violation or three years if the violation was willful.

Under the FSLA , what are the differences between enterprise coverage and individual employee coverage?

Under enterprise coverage, all the employees of a business are covered by the FSLA so long as at least two employees of the business are engaged in interstate commerce or involved in the production of goods or services for interstate commerce, and the business has the annual gross sales of at least $500,000. Individual employees can be covered even if the business is not covered enterprise if the employee is engaged in interstate commerce or the production of goods for interstate commerce.

Company B hires a computer system analyst and agree to pay the employee $25 an hour. If this person works over 40 hours in a week, is the employee due overtime pay?

Yes. In order for the computer professional exemption to apply to an hour paid employee, the employee would have to be paid at least $27.63 per hour.

What conditions must be met for an employer to take advantage of the tip credit?

* The employee must be a "tipped employee", which is an employee working in an occupation in which he or she regularly receives at least $30 per month in tips. * The employee must receive at least as much in tips as the credit taken by the employer. * The employee must be informed about the tip credit provisions of the law before the credit is taken. * All tips received by the employee must be kept by the employee, although the tip pooling may be required among employees who are customarily and regularly tipped. * Credit card tips must be given to the employee by the next payday.

What must an employee's primary duty be to qualify for the administrative employee exemption under the FLSA?

* The employee's primary duty must be performance of office or no manual work directly related to the management or general business operations of the employer or the employer's customers. *The employee's primary duty must include the exercise of discretion and independent judgement regarding matters of significance.

Attendance at lectures,meetings, seminars, and training sessions is considered work time unless certain conditions are met. What are these conditions?

* The meeting, lecture, etc.,is not held during the employee's regular work hours. * Attendance is voluntary. * The meeting ,lecture, etc is not directly related to the employee's job. * The employee does not perform why productive work for the employer while attending.

What questions must be answered before overtime pay can be calculated?

* What is the employee's workweek? * What constitutes hours worked? * What payments made to the employee are considered wages? * What is the employee's regular rate of pay?