Compensation Wage, Hour, And Related Ch9 Verified Test Bank

Test Bank

Chapter 9

Compensation: Wage, Hour, and Related Statutes

True/False

1. The FLSA is one of the most recent statutes regulating the private sector workplace.

2. Even when the employer is not covered under the FLSA, individual employees may be covered.

3. To determine whether an employer is in compliance with the minimum wage, the employee’s weekly gross pay is multiplied by the number of hours worked.

4. When state minimum wage requirements exceed the federal minimum wage, employers are free to choose which wage they will pay.

5. An employee’s title is meaningless when establishing bona fide status under the FSLA.

6. Compensable time is time off in lieu of overtime compensation.

7. In the private sector, compensatory time must be used within the pay period it was accrued.

8. A receptionist who eats lunch at her desk while answering the company’s telephones would not be entitled to compensation.

9. There is still considerable debate over whether or not break and rest periods are compensable time.

10. Mandatory training periods are usually not compensable.

11. Travel on company business is compensable time for nonexempt employees.

12. Workers aged sixteen and seventeen are limited to working no more than three hours per day on school days.

13. The most important function of the HR department, with regard to the FLSA, is keeping the necessary documentation to substantiate the employer’s good faith effort to comply with the Act’s provisions.

14. The FLSA does not contain a whistleblower clause.

15. The FLSA forbids an employer to work her 15 year-old son more than three hours per day on school days.

16. The FLSA contains a provision requiring employers to provide premium pay for weekend, night, or holiday work.

17. The prevailing wage is the minimum wage established for each class of workers as determined by the Secretary of Labor.

18. In any instance in which at least five hundred employees (excluding any part-time employees) are laid off a mass layoff is considered to have occurred.

19. A sixty-day notice is still required, even if the plant closing resulted from a natural disaster.

20. The EPPA does not allow indiscriminate use of polygraphs in investigations.

Multiple Choice

1. The FLSA was enacted in:

A. 1938

B. 1952

C. 1964

D. 1991

2. The FLSA was intended to lessen the effects of:

A. World War I.

B. World War II.

C. the Great Depression.

D. the Gulf War.

3. Which of the following was created by the FLSA?

A. minimum wage

B. limitations on child labor

C. overtime

D. all of the above

4. The FLSA as enacted requires a minimum for __________ employees.

A. nonexempt

B. part-time

C. fulltime

D. A & C only

5. ____ per hour is the current federal minimum wage?

A. $5.15

B. $6.25

C. $7.85

D. None of the above

6. Which of the following is a nonexempt employee under the FLSA?

A. bona fide administrative employee

B. outside sales person

C. elected official

D. none of the above

7. To be eligible for bona fide executive status under the FLSA, a manager in the retail sector cannot spend more than ____ percent of his/her time performing nonmanagement activities.

A. 40

B. 50

C. 60

D. 20

8. Which of the following would be exempted from the FLSA protection?

A. Bona fide executive

B. Independent contractor

C. Parent

D. All of the above

9. One way to be classified as a bona fide __________ is if an employee’s job responsibilities are tied to performing work that is original and creative in character in a recognized field of artistic endeavor.

A. executive

B. professional

C. administrator

D. educator

10. A __________-factor test was developed by the IRS to gauge the substance of the relationship between an independent contractor and employer.

A. fifteen

B. twenty

C. twenty-five

D. thirty

11. Which company in the text had “freelancers” who were essentially treated like independent contractors until the court ruled them common law employees?

A. Apple

B. Wal-Mart

C. Microsoft

D. Home Depot

12. The subminimum wage for full-time students is an amount not less than _____ percent of the current national minimum wage.

A. 55

B. 65

C. 75

D. 85

13. As of 2009, the FLSA requires an employer to pay a tipped employee (one who regularly receives more than $30.00 per month in tips) not less than _____ an hour.

A. $2.13

B. $3.26

C. $3.50

D. $4.00

14. __________ is time off in lieu of overtime compensation.

A. Compensable time

B. Compensatory time

C. Vacation time

D. Time and a half

15. __________ refers to the difference between situations in which employees are entitled to be paid for their time and when they are not.

A. Overtime

B. Compensatory time

C. Compensable time

D. Prevailing wage

16. Compensatory time is given to the employee at a rate of __________.

A. one hour compensatory time for each hour worked over 40.

B. one and a half hours compensatory time for each hour worked over 40.

C. two hours compensatory time for each hour worked over 40.

D. compensatory time is only permitted in the public sector.

17. Normally, travel time to and from the place of employment is __________.

A. compensatory time

B. compensable time

C. not compensatory time

D. not compensable time

18. The __________ places limitations on an employer’s use of child labor.

A. FLSA

B. OSHA

C. NLRB

D. OFCCP

19. Workers aged __________ may work no more than 40 hours a day during nonschool weeks.

A. 18 and up

B. 16 and 17

C. 14 and 15

D. None of the above

20. Workers aged __________ may work an unlimited number of hours, but cannot work in hazardous job settings.

A. 18 and up

B. 16 and 17

C. 14 and 15

D. 12 and 13

21. In the event of an investigation by the Wage and Hour Division, the employer is responsible for making payroll records available within:

A. two days

B. three days

C. one work week

D. two work weeks

22. When an employer has failed to pay employees the minimum wage or overtime due under the FLSA, the employer is liable for paying:

A. only the complaining party

B. only employees within the division found in violation

C. all affected employees, as long as they are current employees

D. all affected employees, even employees who no longer work there

23. When investigating FSLA complaints, the __________ will examine all of the employer’s payroll records.

A. National Labor Relations Board

B. Office of Federal Contract Compliance Programs

C. Wage and Hour Division

D. Office of Labor Management Standards

24. Which of the following is considered when determining whether an employer has willfully violated the FLSA?

A. the number of employees affected by the violation

B. the employer’s previous history of violations

C. the employer’s explanation for the violations

D. All of the above

25. Which of the following is required by the FSLA?

A. premium pay for weekend or holiday work

B. pay raises or fringe benefits

C. overtime

D. meal or rest periods

26. The __________ requires employers to pay their employees the prevailing wage for the geographic area in which the work is being performed and covers any employer who holds a federal construction contract in excess of $2,000.

A. Service Contract Act

B. Davis-Bacon Act

C. Walsh-Healey Act

D. Worker Adjustment and Retraining Notification Act

27. The __________ applies to contractors and subcontractors who hold federal contracts or subcontracts for the manufacture or furnishing of materials, supplies, articles, and equipment in any amount exceeding $10,000.

A. Service Contract Act

B. Davis-Bacon Act

C. Walsh-Healey Act

D. Worker Adjustment and Retraining Notification Act

28. WARN requires covered employers to provide a __________ written notice to employees in the event of a plant closing or mass layoff.

A. thirty-day

B. forty-day

C. fifty-day

D. sixty-day

29. A mass layoff occurs when a reduction in force involves at least a __________ of the employees (excluding part-time employees), and at least fifty employees are laid off for at least a thirty-day period.

A. third

B. fourth

C. half

D. sixth

30. Under the EPPA, polygraph testing may be used by:

A. federal, state, and local government employers

B. pharmaceutical companies

C. private sector employers who provide security services

D. All of the above

Essay

1. Why did the FLSA enact overtime? Does this philosophy still work in today’s working environment?

2. Describe the basic provisions of the Fair Labor Standards Act.

3. Explain the circumstances under which an employer has a legal obligation to inform employees of plant closings or major layoffs.

4. Provide three (3) of the “federal contract” compensation laws discussed in class. What are the employer’s compliance requirements of each? Which contract law also requires employers to provide fringe benefits?

a. Bacon-Davis Act;

Walsh-Healey Act;

McNamara-O’Hare Service Contract Act.

b. Bacon-Davis Act: federal construction contracts excess of $2,000.

Walsh-Healey Act: federal supply contracts excess of $10,000.

McNamara-O’Hara Service Contract Act: federal service contracts in excess of $2,500.

c. McNamara-O’Hara Service Contract Act requires fringe benefits as well as the prevailing wage.

Pages: 256-257