D352 | D352 Objective Assessment Employment
and Labor Law Exam 1 Version 3 | Questions with
Correct Answers and Expert Explanation for Each
Question | WGU
1. Under the Fair Labor Standards Act (FLSA), which of the following is a primary factor
in determining if a worker is an employee rather than an independent contractor?
A. The worker’s preference for tax filing
B. The degree of control the employer exercises over the work
C. The duration of the worker’s previous employment history
D. The job title given to the worker by the hiring manager
Correct Answer: B
Expert Explanation: The ‘Economic Realities’ test primarily focuses on the level of
control an employer has over how work is performed. Courts examine whether the
worker is economically dependent on the business or is in business for themselves.
Factors such as tool ownership and the opportunity for profit or loss are critical
indicators. Merely assigning a title does not legally define the relationship under the
FLSA. This analysis ensures that workers receive appropriate legal protections
based on the actual nature of their work.
,2. Which exception to the ‘employment-at-will’ doctrine prevents an employer from
firing an employee for refusing to perform an illegal act?
A. The Public Policy Exception
B. The Implied Contract Exception
C. The Covenant of Good Faith
D. The Statutory Non-Compete Exception
Correct Answer: A
Expert Explanation: The public policy exception is the most widely recognized
limitation on the at-will doctrine across various states. It protects employees from
being terminated for reasons that violate fundamental social interests or statutes.
This includes instances where an employee is fired for whistleblowing or exercising
a legal right like filing for workers’ compensation. Employers who violate this policy
can be held liable for wrongful discharge in a court of law. Legal compliance
requires businesses to understand these boundaries to minimize litigation risks.
3. A non-compete agreement is generally considered enforceable by a court only if it
meets which of the following criteria?
A. It is reasonable in geographic scope and duration
B. It lasts for at least ten years to protect the company
C. It prevents the employee from working in any industry whatsoever
,D. It is signed only after the employee has left the company
Correct Answer: A
Expert Explanation: Courts balance the employer’s need to protect legitimate
business interests with the employee’s right to earn a living. A non-compete clause
must be narrowly tailored to a specific geographic area where the employer does
business. The duration must also be reasonable, typically ranging from six months
to two years depending on the industry. If a clause is overly broad, it may be struck
down entirely or modified under the ‘blue pencil’ rule. This legal framework
prevents companies from unfairly restraining trade through restrictive covenants.
4. According to the FLSA, how many hours must a non-exempt employee work in a
single workweek before they are entitled to overtime pay?
A. Over 35 hours
B. Over 8 hours in a single day
C. Over 45 hours
D. Over 40 hours
Correct Answer: D
Expert Explanation: The FLSA mandates that non-exempt employees receive
overtime pay for all hours worked in excess of 40 in a workweek. Overtime pay
must be at a rate of at least one and one-half times the regular rate of pay. Federal
, law does not require overtime for daily hours, though some state laws like
California’s do. Employers must maintain accurate records of hours worked to
ensure compliance with these federal standards. Failure to pay overtime correctly
can lead to significant back-pay liabilities and liquidated damages.
5. What is the primary purpose of the ‘Administrative Exemption’ under the FLSA?
A. To exempt all employees who work in an office setting
B. To classify all independent contractors as exempt managers
C. To allow employers to pay less than the minimum wage to office clerks
D. To exempt employees whose work involves the exercise of discretion on
significant matters
Correct Answer: D
Expert Explanation: To qualify for the administrative exemption, an employee’s
primary duty must be the performance of office or non-manual work directly
related to management. They must also exercise discretion and independent
judgment regarding matters of significance. Meeting a minimum salary threshold is
a secondary but necessary requirement for this classification. Simply having a
‘manager’ title is insufficient if the worker’s duties are primarily clerical or routine.
Proper classification is essential for risk management and avoiding costly labor
disputes.
and Labor Law Exam 1 Version 3 | Questions with
Correct Answers and Expert Explanation for Each
Question | WGU
1. Under the Fair Labor Standards Act (FLSA), which of the following is a primary factor
in determining if a worker is an employee rather than an independent contractor?
A. The worker’s preference for tax filing
B. The degree of control the employer exercises over the work
C. The duration of the worker’s previous employment history
D. The job title given to the worker by the hiring manager
Correct Answer: B
Expert Explanation: The ‘Economic Realities’ test primarily focuses on the level of
control an employer has over how work is performed. Courts examine whether the
worker is economically dependent on the business or is in business for themselves.
Factors such as tool ownership and the opportunity for profit or loss are critical
indicators. Merely assigning a title does not legally define the relationship under the
FLSA. This analysis ensures that workers receive appropriate legal protections
based on the actual nature of their work.
,2. Which exception to the ‘employment-at-will’ doctrine prevents an employer from
firing an employee for refusing to perform an illegal act?
A. The Public Policy Exception
B. The Implied Contract Exception
C. The Covenant of Good Faith
D. The Statutory Non-Compete Exception
Correct Answer: A
Expert Explanation: The public policy exception is the most widely recognized
limitation on the at-will doctrine across various states. It protects employees from
being terminated for reasons that violate fundamental social interests or statutes.
This includes instances where an employee is fired for whistleblowing or exercising
a legal right like filing for workers’ compensation. Employers who violate this policy
can be held liable for wrongful discharge in a court of law. Legal compliance
requires businesses to understand these boundaries to minimize litigation risks.
3. A non-compete agreement is generally considered enforceable by a court only if it
meets which of the following criteria?
A. It is reasonable in geographic scope and duration
B. It lasts for at least ten years to protect the company
C. It prevents the employee from working in any industry whatsoever
,D. It is signed only after the employee has left the company
Correct Answer: A
Expert Explanation: Courts balance the employer’s need to protect legitimate
business interests with the employee’s right to earn a living. A non-compete clause
must be narrowly tailored to a specific geographic area where the employer does
business. The duration must also be reasonable, typically ranging from six months
to two years depending on the industry. If a clause is overly broad, it may be struck
down entirely or modified under the ‘blue pencil’ rule. This legal framework
prevents companies from unfairly restraining trade through restrictive covenants.
4. According to the FLSA, how many hours must a non-exempt employee work in a
single workweek before they are entitled to overtime pay?
A. Over 35 hours
B. Over 8 hours in a single day
C. Over 45 hours
D. Over 40 hours
Correct Answer: D
Expert Explanation: The FLSA mandates that non-exempt employees receive
overtime pay for all hours worked in excess of 40 in a workweek. Overtime pay
must be at a rate of at least one and one-half times the regular rate of pay. Federal
, law does not require overtime for daily hours, though some state laws like
California’s do. Employers must maintain accurate records of hours worked to
ensure compliance with these federal standards. Failure to pay overtime correctly
can lead to significant back-pay liabilities and liquidated damages.
5. What is the primary purpose of the ‘Administrative Exemption’ under the FLSA?
A. To exempt all employees who work in an office setting
B. To classify all independent contractors as exempt managers
C. To allow employers to pay less than the minimum wage to office clerks
D. To exempt employees whose work involves the exercise of discretion on
significant matters
Correct Answer: D
Expert Explanation: To qualify for the administrative exemption, an employee’s
primary duty must be the performance of office or non-manual work directly
related to management. They must also exercise discretion and independent
judgment regarding matters of significance. Meeting a minimum salary threshold is
a secondary but necessary requirement for this classification. Simply having a
‘manager’ title is insufficient if the worker’s duties are primarily clerical or routine.
Proper classification is essential for risk management and avoiding costly labor
disputes.
