Chapter 22: Employment Law
1. A person need not be supervised to be classified as an employee.
2. An independent contractor receives pay without supervision.
3. Generally, an employee can be discharged if unable to do the work because of illness or injury.
4. The minimum wage and overtime requirements of the law do not apply to salaried executives, administrators,
and professional workers.
5. The person who hired an independent contractor usually is liable for the contractor’s torts.
6. All employees are entitled to due process before being discharged.
7. If the job to be done by an independent contractor is inherently dangerous, such as blasting with dynamite,
the party who hired the independent contractor may be liable to anyone injured.
8. In calculating the maximum number of hours a young person may work, some states count school hours.
9. When state child-labor laws have stricter standards than federal laws, the state laws control.
10. Under the controlling federal act, if more than 40 hours are worked in one week, overtime must be paid at
two times the regular rate.
11. An employment relationship can be established without
C. supervision and control.
D. all of these.
12. A common contractual term for an employee and an independent contractor would be
C. supervision and control.
D. all of these.
13. Employees that can be discharged at any time are
C. public employees.
D. none of these.
14. Which employee duty is violated when the employee reveals confidential information about the employer or
its business.
C. duty of reasonable performance
D. duty of reasonable skill
15. Which employee duty obligates the employee to look out for the employer’s best interest?
C. duty of reasonable performance
D. duty of reasonable skill
16. What duty is owed to the employee by the employer?
A. duty of accounting
B. duty of obedience
17. The minimum wage and maximum hours for employees is established by
A. child labor laws.
B. the employer.
18. If an employer fires an employee in retaliation for the employee’s reporting unlawful conduct by the
employer it is termed
A. discharged for cause.
C. both a and b.
D. none of these.
20. Public employees are entitled to notice of the reasons for the discharge along with a hearing before being
terminated. This procedure is referred to as
C. labor review procedure.
D. none of the above.
21. After Stacey was laid off she was unable to quickly obtain a new job. The government program that will
provide her with short-term income is called
A. FICA.
B. workers’ compensation.
22. Reilly is the owner and manager of Retro Boutique. He has hired Jody to work in his store under his direct
supervision in which she will perform a variety of tasks including retail sales, inventory, and stocking. In this
situation Jody is known as a(n)
A. independent contractor.
B. employee contractor.
23. Which of the following statements regarding child-labor laws is true?
A. Only the federal government regulates the conditions of employment for individuals under 18 years of age.
24. Toni presented Calvin Cooper, the president of Cooper Copters, Inc., with a resume in which she stated she
was a recent graduate of a business college and typed 90+ words per minute. Based upon Toni’s representation
of her skill level, Cooper hired her to work as his executive secretary. In a short time Cooper learned that Toni
had never attended a business college and could barely type 9 words per minute. Which of the following
statements is true about this employment situation?
C. Cooper can fire Toni for cause but is responsible for paying her damages for breach of her employment
contract.
D. Once fired, Toni will be eligible for unemployment compensation.
25. Which of the following statements is true?
C. Children under the age of 18 must be paid if they work for their parents in agricultural jobs.
D. When children work, the government does not require the employer to make payroll deductions for the child
employee.
C. They must receive the same level of pay, seniority, and benefits they would have received if not on leave for
active duty.
D. They are guaranteed to be reinstated to positions equivalent to or the same as those held prior to their leave
of absence to serve their company.
27. Greenlake School hired Jorge to work as the school’s head administrator for a period of 12 months
beginning July 1 and ending the next year on June 30. Which of the following statements regarding Jorge’s
work arrangement is true?
C. Jorge’s job as head administrator is terminable at will.
D. None of these.
28. If Dot agrees to pay Jarred on a monthly basis but fails to do so, what has occurred?
C. violation of Fair Labor Standards Act
D. FICA violation
29. Which of the following is not considered a hazardous occupation unavailable to minors?
A. mining
B. roofing
30. Every state government has a child-labor law to regulate the conditions and types of employment for
persons under age
A. 14.
B. 16.
31. The federal government enacted the ____________________ to establish the minimum wage and maximum
hours for all employees under the jurisdiction of the act.
32. Employers make payments into a fund that, in turn, makes ____________________ payments to employees
unable to work due to on-the-job injuries.
33. Federal laws that assure that employees who are members of the armed services are not discriminated
against while on active duty include the Military Selective Service Act, The Veterans’ Reemployment Rights
Act, and the ____________________ .
34. The ____________________ Act makes it illegal for people under 14 years old to work except in
entertainment and agriculture.
35. While working as a sales representative for a local health club, Caterina noticed that chlorine levels in the
swimming pool were too high and that the locker area was not properly cleaned according to local health
regulations. Although she reported these violations to her supervisor, she saw no improvement and later opted
to notify local health board officials. In firing Caterina two days later, the health club committed a tort called
____________________.
36. Denny operates a trucking business in which he agrees to pay each trucker 50 cents per mile payable two
weeks after the completion of a trip. Before distributing paychecks, however, Denny must make certain
deductions from each employee’s paycheck in order to fund the federal Social Security program. The name of
37. If the breach of an employment contract is ____________________, it extinguishes the obligations of the
other party to the contract.
38. If you merely hire someone to produce a result in the manner they see fit, you have hired what the law terms
a(n) ____________________.
39. If an employee commits a tort but is not acting within the scope of the employer’s business, the
____________________ alone is liable for any resulting injuries.
40. Certain governmental programs are financed by payments made by employees which are paid for by
_______________ from the employee’s paychecks.
41. Melanie is an 11-year old pianist considered by many to be a child prodigy. After several church and school
performances, her community’s symphony wants to hire her for two three-hour performances per week and
agrees to pay her $1,000 per week. In addition, the symphony will pay Melanie an additional $400 per week for
two four-hour promotional appearances per week at local schools, music stores, etc. Melanie is understandably
excited about her blossoming musical career and the money she will make. Her parents are concerned that
Melanie’s proposed work schedule will be illegal because of child-labor laws. Their state law regarding child
labor holds that children under 14 years of age may obtain permits to work up to 10 hours per week. In
examining this situation, what would the federal law state regarding the legality of Melanie’s proposed
employment contract? Which would prevail, the federal or state laws? Why?
The federal Fair Labor Standards Acts sets the minimum protection for young workers. This law makes it illegal
42. Name the duties of an employee and then choose the one you think most important. Justify your choice.
Duty to fulfill the employment contract, duty of obedience, duty of reasonable skill, duty of loyalty and honesty,