UPDATED ACTUAL Exam Questions and
CORRECT Answers
What is the federal wage and hour law also known as? - CORRECT ANSWER - The Fair
Labor Standards Act (FLSA)
What is the FLSA tip credit? - CORRECT ANSWER - $5.12 per hour
What is waiting to be engaged? - CORRECT ANSWER - Waiting to be engaged is not
compensable time because the employee is free to pursue personal business.
What is a nondiscretionary bonus? - CORRECT ANSWER - - A contractual or agreed-
upon bonus or incentive
- Paid to nonexempt employees
- Included in the regular rate of pay in the week earned
What is Form I-9? - CORRECT ANSWER - Employment Eligibility Verification
- verifies an individual's identity and right to work in US
Child labor rules under age 14: - CORRECT ANSWER - - generally prohibited
- exceptions for minors working for parents, or...
- in some situations, actors, batboys or girls, and ballboys or girls
Child labor ages 14 and 15: - CORRECT ANSWER - - May only work in nonhazardous
jobs
- 3 hours per day and 18 hours in a week when school is in session
- up to 8 hours a day and 40 hours per week when school isn't in session
, What is engaged to be waiting? - CORRECT ANSWER - compensable time, because the
employer requires the employee to wait to begin work
Tipped employee's hourly rate - CORRECT ANSWER - no less than $2.13 per hour under
the FLSA
What is a workweek? - CORRECT ANSWER - - any seven 24 hour periods totaling 168
consecutive hours
- employers set when a workweek begins
- can be changed when a business need occurs
What is the 8/80 Rule? - CORRECT ANSWER - A workweek exception for hospitals and
nursing homes. Employers using this rule pay overtime for work over 8 hours a day OR 80 hours
in a 14-day period (whichever favors the employee)
What is the federal minimum wage? - CORRECT ANSWER - $7.25 per hour
What is Form W-4P? - CORRECT ANSWER - Withholding Certificate for Pension or
Annuity Payments
- allows retirees to request the amount of federal income tax to withhold from pensions or
annuity payments
What is backup withholding? - CORRECT ANSWER - - 24% FITW on reportable non-
payroll payments when TIN is not provided or organization is notified by the IRS
- reported annually on Form 945
What varies in a fluctuating workweek? - CORRECT ANSWER - employee's hours vary
while employee's salary remains constant
What is SSNVS? - CORRECT ANSWER - Social Security Number Verification Service