Wage and Hour Law – Protect Yourself from Litigation
The Fair Labor Standards Act (effective August 23, 2004) guarantees overtime protection to salaried employees earning less than $23,660 per year--thereby strengthening overtime rights for millions of American workers.
Since the enactment of these standards, wage-and-hour lawsuits have been on the rise with over 7,000 lawsuits filed in federal courts in the past year. Don’t be caught in the middle of one of today’s hottest litigation areas.
How well do you do your wage and hour law?
Take the quiz and check your answers at the end of this post!
1. Which of the following terms is used to describe an employee whose minimum wage and overtime rights are not guaranteed under the Fair Labor Standards Act?
2. The modified FLSA laws that went into effect on August 23, 2004 are referred to by the Department of Labor as which of the following?
A. The Fair Pay Rules
B. Duties Test
C. White Collar Test
D. Blue Collar Rules
3. The Fair Pay rules guarantee overtime protection to all employees earning less than how much salary per week?
4. The principal, main, major, or most important duty that the exempt employee performs is defined as which of the following?
A. Executive duty
B. Management duty
C. Primary duty
D. Exempt duty
5. An exempt executive employee must customarily and regularly direct the work of at least how many other full-time employees?
A. One or more
B. Two or more
6. Under the FLSA, a workweek begins on?
D. Any day of the week
7. The Fair Labor Standards Act does NOT regulate which of the following?
A. Record retention
B. Agricultural jobs
C. Vacation or holiday pay
D. Employment of minors
8. Employees NOT protected by FLSA (or “exempt”) mostly include what type employees?
A. Administrative, executive, and professional employees
B. Manufacturing employees
C. Employees paid on a piece rate basis
D. Waitresses and Bartenders
9. Which of the following may bring suit for back wages?
A. Secretary of Labor
B. Wage and Hour Division
C. Securities and Exchange Commission
D. Internal Revenue Service
Answers: 1A, 2A, 3D, 4C, 5B, 6D, 7C, 8A, 9A
Questions courtesy of Colleen Neuharth McClain from her self-study course on Wage and Hour Law.
by Sue Anderson - Based on 30 years of experience in continuing education for accountants. Currently program director for online CPE provider, CPE Link. Formerly with the California CPA Education Foundation managing key operational areas including marketing, program development, and distance learning.