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E–9
CHAPTER 2
True-False Questions
2–2
are only covered if their annual charges for services are at least
$500,000.
2–2
out regard to their annual sales volume.
2–2
workers qualify for individual employee coverage.
2–3
ployee coverage.
2–4
2–4
overtime requirements of the FLSA.
2–4
2–4
$6.10 an hour.
2–5
2–5
imum wage.
2–6
wage” at $10.25 per hour.
2–6
of more than $20 a month.
2–6
wage as coming from the tips received by that employee.
2–8
worked in excess of 40 in a workweek.
2–8
ployees’ regular hourly rate for hours worked on Sunday.
2–9
hours overtime each week without receiving overtime pay.
E–10 Chapter 2/Examination Questions
2–9
in lieu of overtime compensation.
2–9
overtime pay.
2–10
FLSA—minimum wages, overtime pay, and equal pay.
2–10
salary do not qualify for the salary test for white-collar workers.
2–10
is to be paid a salary of at least $1,000 per week.
2–13
between the sexes.
2–13
vice establishments.
2–13
person may work so long as the overtime pay provisions are met.
2–14
unpaid overtime at triple the employee’s hourly rate.
2–16
ises, this time must be counted as part of their principal activities for
which they are always fully compensated.
2–17
time is not compensable.
2–17
periods each workday.
2–17
duty are not considered working time.
2–17
time.
2–17
employer do not have to be paid for the work done at home.
2–19
and stopping time to the nearest quarter of an hour.
2–19
must follow in keeping time records.
2–20
900 while 9:00 P.M. is recorded as 2100.
Examination Questions/Chapter 2 E–11
2–25
monthly rate by 4 to arrive at the weekly rate, then divide this rate by the
standard number of hours.
2–28
F 37.
2–30
Although commissions are considered payments for hours worked, in all
cases they are excluded when determining the regular hourly rate.
2–30
total commission by the hours worked, and then take one-half of the re-
sulting rate of pay.
2–31
pay.
2–31
ards set by the secretary of labor’s regulations are not deemed wages in
determining the regular rate of pay.
Multiple-Choice Questions
2–2
the FLSA if the organization is:
a. a nursing home.
b. a public agency.
c. a hospital.
d. all of the above.
e. none of the above.
2–2
if:
a. the worker produces goods for interstate commerce.
b. the worker is a housekeeper in a private home for 16 hours a week.
c. the domestic receives cash wages of at least $2,000 from the
employer in the calendar year.
d. all of the above.
e. none of the above.
2–4
a. vacation pay.
b. severance pay.
c. overtime pay.
d. earned bonuses.
e. All of the above are considered wages.
E–12 Chapter 2/Examination Questions
2–4
a. $9.35.
b. $12.15.
c. $10.00.
d. $8.15.
e. none of the above.
2–6
mum hourly tip credit rate. The maximum permissible tip credit is:
a. $30 a month.
b. $5.12 an hour.
c. 45% of the employee’s minimum wage.
d. 50% of the employee’s minimum wage.
e. the amount of tips actually received by the employee.
2–8
a. any hours worked in excess of 8 in one day.
b. all work on Sunday.
c. all hours worked in excess of 40 in a workweek.
d. all hours worked on Christmas.
e. all of the above.
2–11
a. employees paid by the hour.
b. clerk-typists earning less than $200 a week.
c. taxicab drivers.
d. motion picture theater employees.
e. none of the above.
2–13
a. employers must pay a married male a higher wage rate than a single
female if both are performing equal work.
b. white-collar workers are exempt from its requirements.
c. wage differentials based on a seniority system are allowed.
d. if there is an unlawful pay differential, employers may reduce the
higher rate to equal the lower rate.
e. none of the above.
2–14
a minor employee, the employer may rely upon what document as evi-
dence of age?
a. Baptism record
b. Mother’s statement as to date of birth
c. High school enrollment form showing date of birth
d. Minor employee’s statement as to date of birth
e. None of the above
Examination Questions/Chapter 2 E–13
2–15
a. Extra pay for work on holidays
b. Two weeks’ vacation pay after one year of service
c. Restriction on hours worked by a 17-year-old worker
d. All of the above are required.
e. None of the above is required.
2–15
consequence performed for the employer are known as:
a. preliminary activities.
b. postliminary activities.
c. work activities.
d. principal activities.
e. none of the above.
2–17
except:
a. a union contract.
b. a state legislation.
c. a municipal legislation.
d. the FLSA.
e. none of the above.
2–18
tion is met:
a. the employee’s attendance is voluntary.
b. the employer requires the employee’s attendance.
c. the training sessions are for the primary benefit of the employee.
d. the session takes place outside the regular working hours.
e. the session is not directly related to the employee’s work.
2–19
ee’s starting and stopping time to:
a. the nearest five minutes.
b. the nearest tenth of an hour.
c. the nearest quarter of an hour.
d. all of the above.
e. none of the above.
2–19
a. that employers use time cards to record the employees’ time worked.
b. that employers use the continental time system to record all time
worked by employees.
c. that employers keep records that show the hours each employee
worked each workday and each workweek.
d. that employees sign each clock card.
e. none of the above.
E–14 Chapter 2/Examination Questions
2–20
a. P2120.
b. 9:20P.
c. 2120.
d. 2220.
e. none of the above.
2–23
employer during the same pay week, any overtime pay must be calcu-
lated by using an overtime hourly rate of:
a. one and one-half the higher of the two wage rates.
b. one and one-half the lower of the two wage rates.
c. one-half of the higher of the two wage rates.
d. one-half of the two rates combined.
e. none of the above.
2–26
ules a fixed salary. In these cases, the extra pay is:
a. calculated at a time and one-half rate.
b. calculated at a double time rate.
c. calculated at the regular rate of pay.
d. unpaid.
e. none of the above.
2–28
a. divide the total weekly earnings from piece rates and all other
sources by the hours worked in the week.
b. divide the total weekly earnings from piece rates by the number of
pieces produced.
c. divide the total weekly earnings from piece rates, less earnings from
other sources, by the hours worked in a week.
d. add the total weekly earnings from piece rates and all other sources
and divide by the total number of pieces produced.
e. do none of the above.
2–30
of business or performs a service is called:
a. a piece rate.
b. a commission.
c. a regular hourly rate.
d. a remunerative salary.
e. none of the above.
Examination Questions/Chapter 2 E–15
Problem-Solving
NOTE: In all problems, unless instructed otherwise, compute the hourly and overtime
rates as follows:
1. Carry the hourly rate and the overtime rate to 3 decimal places and then
round off to 2 decimal places (round the hourly rate to 2 decimal places
before multiplying by one and one-half to determine the overtime rate).
2. If the third decimal place is 5 or more, round to the next higher cent.
3. If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all
that follow.
1. Abel works a 37½-hour week at $10.75 an hour. Overtime hours are
paid at 1½ times the regular rate.
Abel’s weekly gross earnings are [$403.13 + (6 × $16.13)] ............ $499.91
2. Jack Kentson works a 40-hour week with overtime paid at 1½ times
3. Carolyn Clark, a full-time student at Atlanta State University, works at the
5. Annette Henri is paid an hourly wage of $10.90 for a 32-hour workweek
6. Jose Cruz earns $2,275 each month and works 37½ hours each week.
E–16 Chapter 2/Examination Questions
7. Every two weeks, Linda Corson is paid $650. Corson works a 32-hour
week. For overtime, she receives extra pay at the regular hourly rate
8. Carla Maloney is a waitress who regularly receives $80 each week in
9. Elder is paid a monthly salary of $2,250. Overtime is paid for hours
10. Kevin Kurtz is a newly hired exempt employee who earns an annual
11. Fall is paid a biweekly salary of $937.50. Overtime is paid for hours
12. Gates is paid a semimonthly salary of $900.00. Overtime is paid for
13. Stacy Forvour is a salaried employee who works fluctuating workweeks.
14. Casey Klemons’ agreement (BELO plan) with his employer provides for
a pay rate of $16.50 per hour with a maximum of 50 hours. How much
Examination Questions/Chapter 2 E–17
16. Ides receives 16 cents for every unit produced. Ides produces 2,976
pieces in a 43-hour workweek. For overtime, Ides is paid a sum equal to
17. Gorman is paid $10.50 per hour for a 35-hour workweek. This past
week, he worked an extra 10 hours on a job at a pay rate of $13.00
18. Kenneth Anderson works two separate jobs for Mesa Company. During
the week, Job A consisted of 38 hours at $20 per hour; Job B involved
19. Kerr receives an annual $25,700 base salary for working the territory
in Arizona. A quota of $900,000 in sales has been set for that state.
20. Kelli England earns $12.30 per hour and has earned a production
