CHAPTER 12
WAGES, HOURS, AND PAY EQUITY
MULTIPLE CHOICE QUESTIONS
1. Which of the following is true regarding overtime pay under the Fair Labor Standards
Act?
a. employees who work more than 8 hours in a work day must be compensated with
overtime pay
b. employees are entitled to twice their regular rate of pay for overtime hours
c. private sector employers can pay for overtime required under the FLSA with
compensatory time off in the future, whereas government agencies may not do so
d. all of the above
e. none of the above
2. “Tipped employees” can be paid less than the minimum wage provided:
a. they agree to a reduced minimum wage salary, however, if they don’t agree they
must be paid the full minimum wage and any tips are forfeited to the employer or
the other employees
b. they retain on an individual basis all tips that are earned; pooling of tips is not
permitted
c. their total pay in wages and tips equals at least the minimum wage
d. the employee customarily and regularly receives at least $30 per week in tips
3. The maximum number of hours that an employee can work in a workweek under the Fair
Labor Standards Act is:
a. not limited for employees 16 years of age and over
b. limited to forty hours per week for employees under 16 years of age while school
is in session
c. not limited for employees 16 years and over, but it must equal no more than 40
hours a week when averaged across any two work weeks
d. limited to 50 hours per week for employees who are non-exempt, but there is no
limit for exempt managers and professionals.
e. none of the above
4. Under the Fair Labor Standards Act, a “workweek”:
a. is any fixed and reoccurring period of 5 consecutive days
b. is any fixed and reoccurring period of 7 consecutive days
c. is the same as a calendar week
d. includes all the days during a calendar week on which any work is performed
5. A non-exempt employee’s usual pay is $800/wk, based on a 40/hr week. This week he
works 50/hrs. His regular hourly rate of pay is ______. His total pay for this week should
be _______.
a. $800/wk; $800
b. $16/hr; $1100
c. $20/hr; $1000
d. $20/hr; $1100
e. $16/hr; $1040
6. Which of the following is true regarding compensatory (“comp”) time?
a. employers can require employees to use up their accrued comp time, regardless of
whether employees wish to do so
b. the maximum amount of comp time that can be banked is capped at 240 hours for
most employees
c. acceptance of comp time can be made a condition for receiving overtime work
d. b and c
e. all of the above
7. Pay secrecy policies cause which of the following problems?
a. the make it difficult for people to know whether they are discriminated against in
the matter of pay
b. they make it difficult for coworkers to discuss the terms and conditions of
employment
c. both of these
d. none of these
8. Which of the following is generally compensable time under the FLSA?
a. meetings during work hours concerning employee grievances
b. meal periods of any length
c. periods spent waiting to start work
d. time spent traveling to and from work in a private car
e. all of the above
9. The Migrant & Seasonal Protection Worker Act (MSPA) provides all of these
requirements EXCEPT:
a. a minimum wage and overtime
b. disclosure of working terms and conditions at the time of hire
c. safe and sanitary housing and transportation
d. maintenance of wage and hour records
10. The Migrant and Seasonal Agricultural Worker Protection Act requires that:
a. migrant agricultural workers must be paid no less than the prevailing wage for
farm laborers in the geographic region
b. migrant agricultural workers must be provided with housing and the housing must
be safe and sanitary
c. migrant agricultural workers must receive overtime pay of one and a half times
their regular rate of pay for all work hours in excess of 50 in a week
d. all of the above
e. none of the above
11. Which of the following activities is compensable time for which an employee must be
paid?
a. time spent taking pre-employment tests
b. time spent traveling to and from work
c. time spent waiting to start work
d. rest periods of up to 20 minutes
12. Under the duties test, in order to be classified as exempt, an employee:
a. must perform the duties of an executive, administrator, or professional
b. must work in an office setting
c. must have a job title that includes the word executive, administrator, or
professional in the title
d. all of the above
13. Under the Department of Labor’s “pay docking rule”:
a. wages withheld for disciplinary purposes are not counted as compensation when
determining compliance with minimum wage and overtime requirements
b. it violates the FLSA for employers to make deductions from the pay of salaried
employees for partial day absences
c. certain deductions from the pay of salaried employees can lead to the finding that
these employees are non-exempt
d. a and b
e. none of the above
14. Under the FLSA, minors under 16 years of age:
a. are allowed to work at any job provided that they have obtained working papers
b. are allowed to work no more than 18 hours per week while school is in session
c. are allowed to work no more than 8 hours per day while school is in session
d. b and c
e. all of the above
15. Which of the following is among the things that must be shown in order for two jobs to
be considered “equal work”?
a. they must have the same or very similar job titles
b. the jobs must be of comparable worth to the employer
c. there must be substantial overlap in the duties and tasks performed
d. they must have the same or very pay rates
e. all of the above
16. If employees come in to start work early, or stay beyond scheduled hours, or come in to
work on days off,
a. the extra time put in on the job could be used to re-classify those employees from
non-exempt to exempt
b. the extra time put in on the job could qualify those employees for overtime pay
c. under the FLSA, they have volunteered their services for that extra time
d. none of these
17. Employers should maintain accurate and up-to-date job descriptions because they will
help establish:
a. the essential functions of the job
b. the exempt status of the employee, if exempt
c. that an employment requirement is job-related
d. the similarity or non-similarity between two different jobs
e. all of these
f none of these
18. Which of the following statements is NOT true?
a. US employees have the dubious distinction of working the longest hours among
industrialized nations
b. job stress is related to such maladies as high blood pressure and coronary heart
disease
c. longer workdays are associated with increases in injuries
d. all of these
e. none of these
19. In the U.S., more and more workers are working:
a. around the clock
b. off the clock
c. on the clock
d. none of these
20. As the new Assistant Human Resources Manager, you now have access to the salaries of
all of the staff at your firm, and discover that the sole female salesperson on the staff is being
paid significantly less than her male counterparts, although she has the same educational
background and experience. Within about 6 months, you are to replace the current Human
Resources Manager, an “old school” kind of fellow who is retiring. But since you are newly
hired, you are reluctant to “make waves.” Considering your duties and also the protection of your
career, which of the following options would NOT be advisable?
a. Tell the current “old school” HR Manager that the lower salary of the female
salesperson is illegal, and that he must immediately raise her pay, or you will tell
the salesperson that she should file an EEOC claim
b. Ask the current HR Manager if he is aware that the female salesperson is
receiving a lower salary for the same work, which could cause a claim to be filed
against the firm, and ask what he thinks should be done
c. Do and say nothing yet, awaiting the day when you assume the role of HR
Manager; then take steps to raise the saleswoman’s pay to compare with that of
her male colleagues, without telling her why
ESSAY QUESTIONS
1. Why is each of the following good legal advice?
a. Employers should not ignore employees starting work early, staying beyond scheduled
hours, or coming in to work on days off.
b. Employers should maintain accurate and up-to-date job descriptions
c. Employers should not make deductions from the pay of exempt employees for partial day
absences or require that the time off be made up.
d. Employers should refrain from establishing and enforcing pay secrecy policies.
e. Employers should be prepared to account for disparities in the pay of men and women
performing similar jobs in the same workplace.
2. An employer of an emergency response service required its service employees to be on
call every weekend, as they might be called to report within 10 minutes. While on call,
employees were not permitted to leave their homes, as the employer’s contact was to
their home phones. Also, employees were not permitted to drink alcohol on the
weekends, because of their potential on-call duties. The employer did not pay for on-call
weekends, and the employees sued. What are the issues, and what should the court
decide?
3. What could the employer in number 2 above have done differently to avoid incurring
liability for compensable time and perhaps overtime?
