- (Topic 2)
The FLSA is enforced by which of the following entities?
Correct Answer:A
✑ TheFair Labor Standards Act (FLSA)isenforced by the Department of Labor (DOL)through itsWage and Hour Division (WHD).
✑ ICE (Immigration and Customs Enforcement)handles immigration-related work
issues, not wage enforcement.
✑ IRS (Internal Revenue Service)enforces tax laws, not labor standards.
✑ SSA (Social Security Administration)manages Social Security benefits, not wage laws.
References:
✑ FLSA Compliance and Enforcement (DOL)
✑ Payroll Compliance Guidelines (Payroll.org)
- (Topic 1)
Under the FLSA, all of the following categories are defined as "white-collar" exemptions EXCEPT:
Correct Answer:D
Comprehensive and Detailed Explanation:Under theFair Labor Standards Act (FLSA), "white-collar exemptions" apply tocertain salaried employees who meet specific duties and salary tests. The three main categories are:
✑ Executive (Option A)– Managers with supervisory responsibilities.
✑ Administrative (Option B)– Employees in non-manual work related to business operations.
✑ Outside Sales (Option C)– Sales employees working away from the employer??s place of business.
✑ Option D (Computer Hardware Operators) is incorrectbecause this roledoes not qualifyfor exemption under the FLSA white-collar rules. Onlycertain IT professionals (software engineers, systems analysts, etc.)qualify under theComputer Employee Exemption.
Reference:
U.S. Department of Labor – FLSA Exemptions Payroll.org – White-Collar Exemption Criteria
- (Topic 1)
A company has engaged an individual to write a sales contract. The individual receives a flat amount for the task and has an assigned time frame for completion. This individual is classified as a(n):
Correct Answer:C
Comprehensive and Detailed Explanation:Anindependent contractoris an individual who:
✑ Works on aper-project basis
✑ Isnot under direct employer control
✑ Provides services to multiple clients
✑ Option A (Leased Employee)refers to employees hired through astaffing agency.
✑ Option B (Administrative Employee)is incorrect because administrative employees are typicallyW-2 employees.
✑ Option D (Commissioned Salesperson)is incorrect because commissioned employees arepaid based on sales, not per-project work.
Reference:
IRS – Independent Contractor vs. Employee Guidelines Payroll.org – Worker Classification Compliance
- (Topic 2)
A state's minimum wage is $0.60 higher than the federal minimum wage. Under the FLSA, for an employee age 20, what is the MINIMUM hourly rate an employer can pay the employee?
Correct Answer:D
✑ Thefederal minimum wageis$7.25 per hour.
✑ A state's minimum wage is$0.60 higher, so$7.25 + $0.60 = $7.85.
✑ FLSA requires thehigherof state or federal minimum wage. References:
✑ FLSA Minimum Wage Provisions (Department of Labor)
- (Topic 1)
All of the following plans are deferred compensation plans EXCEPT:
Correct Answer:D
Comprehensive and Detailed Explanation:Deferred compensation plansallow employees to deferincome taxationuntil retirement. These include:
✑ 401(k) (Option A)– A private-sector retirement savings plan.
✑ 403(b) (Option B)– A similar plan fornonprofits and schools.
✑ 457(b) (Option C)– Anonqualified deferred compensation planfor government employees.
✑ Option D (501(c)) is incorrectbecause it refers totax-exempt organizations under the IRS code, not a deferred compensation plan.
Reference:
IRS – Tax Treatment of Deferred Compensation Plans Payroll.org – Retirement Plan Payroll Compliance