aPHR - Compensation and Benefits
Exam-Graded A
Fair Labor Standards Act, FLSA (1938) - ANSWER-Establishes a minimum wage,
overtime provision, and child labor regulations.
Enforced by the Wage and Hour Division of the Department of Labor.
Applies to most non-managerial employees in a private industry.
Federal minimum wage - ANSWER-The current federal minimum wage is $7.25 per
hour, and has not increased since July 2009
Tipped employees may be paid $2.13/hour, however wages plus tips must equal at
least minimum wage.
State minimum wage requirements may be higher.
WA state:
12.00 USD per hour
Jan 1, 2019
Overtime - ANSWER-For hours worked in excess of a 40-hour workweek, covered
employees must be paid at least time and a half their hourly rate of pay.
Includes all "pay", including bonus, shift differential, etc.
Shift differential refers to the extra compensation a staff member receives for hours
worked that are outside the hours of 8:00 a.m. to 5:00 p.m., Monday through Sunday. A
typical shift differential schedule would consist of hours worked between 5:00 p.m. and
8:00 a.m., Monday through Sunday.
Does not include paid time off.
Compensatory Time in Lieu of Overtime Pay - ANSWER-An hour and 1/2 off at some
later date for every hour worked over 40 per week, instead of paying overtime.
Also called "comp time".
Generally illegal for private employers. May offset time within same work week - work
less one day to offset excess hours worked another day.
,Federal, state, and local governments can offer comp time, in certain circumstances. -
up to 240 hours (30 days)/year; police/fire 480 hours (60 days)/year
Exempt and Non-exempt status - ANSWER-Non-exempt: must be paid for all hours
worked; must comply with overtime provisions of the FLSA; non-exempt employees
must be paid overtime for hours worked over 40 hours per week
Exempt from the provisions of the Fair Labor Standards Act, not entitled to overtime
pay.
FLSA Salary Tests for determining exempt status - ANSWER-UNDER $23,660/year
($455/wk) = definitely non-exempt
EXCEPTION: If employee receives non-discretionary bonuses and incentive payments
(including commissions). This extra payment may only be used to satisfy up to 10% of
the standard salary level. These are usually bonuses for productivity and profitability.
These payments must be paid on a quarterly or more frequently basis.
"Super salary" test for highly-compensated employees
IF PAID AT LEAST $100,000/year, most likely exempt, especially if customarily and
regularly perform at least one of the duties of an exempt executive, administrative or
professional employee.
List of Professions Exempt from FLSA - ANSWER-(1) Business Owner
(2) Executive
(3) Creative Professional
(4) Learned Professional
(5) Computer-related (some)
(6) Outside Salespersons
Executive Exemption to FLSA - ANSWER-- Primary duty must be managing the
enterprise, or managing a customarily recognized department or subdivision of the
enterprise;
- Must customarily and regularly direct the work of at least two or more other full-time
employees or their equivalent; and,
- Must have the authority to hire or fire other employees, or the employee's suggestions
and recommendations as to the hiring, firing, advancement, promotion, or any other
change of status of other employees must be given particular weight.
Special Exemption of Business Owners to FLSA - ANSWER-An employee who owns at
least a bona fide 20% equity interest in the enterprise in which employed, and who is
actively engaged in its management, is considered a bona fide exempt executive.
, Professional Exemption to FLSA - Learned Professional - ANSWER-Performs work
requiring advanced knowledge, predominately intellectual requiring consistent exercise
of discretion and judgment.
Advanced knowledge customarily acquired by a prolonged course of specialized
instruction - i.e., 4-year college degree.
The exemption does not apply to occupations in which most employees acquire skill by
experience.
Professional Exemption to FLSA - Creative Professional - ANSWER-Work requiring
invention, imagination, originality, or talent in a recognized field of artistic or creative
endeavor.
Administrative Exemption to FLSA - ANSWER-Primary duty is the performance of office
or non-manual work directly related to the management or general business operations
of the employer or the employer's customers; and
Exercises "discretion and independent judgment" with respect to matters of significance
Outside Salespersons to FLSA - ANSWER-Primary duty must be making sales; and
Must be customarily and regularly engaged away from the employer's place or places of
business
Inside sales persons are non-exempt
Computer related occupations - ANSWER-Overtime pay not required if paid
$27.63/hour on salary basis (approximately $58,000/year); and primary duties include:
- The application of systems analysis techniques and procedures, including consulting
with users; or
- The design, development, documentation, analysis, creation, testing or modification of
computer systems or programs.
Exempt Level Employees - ANSWER-Must regularly receive a predetermined amount of
compensation each pay period;
The compensation cannot be reduced because of variations in the quality or quantity of
the work performed;
The employee must be paid the full salary for any week in which the employee performs
any work.
Exempt Level Employees
Exam-Graded A
Fair Labor Standards Act, FLSA (1938) - ANSWER-Establishes a minimum wage,
overtime provision, and child labor regulations.
Enforced by the Wage and Hour Division of the Department of Labor.
Applies to most non-managerial employees in a private industry.
Federal minimum wage - ANSWER-The current federal minimum wage is $7.25 per
hour, and has not increased since July 2009
Tipped employees may be paid $2.13/hour, however wages plus tips must equal at
least minimum wage.
State minimum wage requirements may be higher.
WA state:
12.00 USD per hour
Jan 1, 2019
Overtime - ANSWER-For hours worked in excess of a 40-hour workweek, covered
employees must be paid at least time and a half their hourly rate of pay.
Includes all "pay", including bonus, shift differential, etc.
Shift differential refers to the extra compensation a staff member receives for hours
worked that are outside the hours of 8:00 a.m. to 5:00 p.m., Monday through Sunday. A
typical shift differential schedule would consist of hours worked between 5:00 p.m. and
8:00 a.m., Monday through Sunday.
Does not include paid time off.
Compensatory Time in Lieu of Overtime Pay - ANSWER-An hour and 1/2 off at some
later date for every hour worked over 40 per week, instead of paying overtime.
Also called "comp time".
Generally illegal for private employers. May offset time within same work week - work
less one day to offset excess hours worked another day.
,Federal, state, and local governments can offer comp time, in certain circumstances. -
up to 240 hours (30 days)/year; police/fire 480 hours (60 days)/year
Exempt and Non-exempt status - ANSWER-Non-exempt: must be paid for all hours
worked; must comply with overtime provisions of the FLSA; non-exempt employees
must be paid overtime for hours worked over 40 hours per week
Exempt from the provisions of the Fair Labor Standards Act, not entitled to overtime
pay.
FLSA Salary Tests for determining exempt status - ANSWER-UNDER $23,660/year
($455/wk) = definitely non-exempt
EXCEPTION: If employee receives non-discretionary bonuses and incentive payments
(including commissions). This extra payment may only be used to satisfy up to 10% of
the standard salary level. These are usually bonuses for productivity and profitability.
These payments must be paid on a quarterly or more frequently basis.
"Super salary" test for highly-compensated employees
IF PAID AT LEAST $100,000/year, most likely exempt, especially if customarily and
regularly perform at least one of the duties of an exempt executive, administrative or
professional employee.
List of Professions Exempt from FLSA - ANSWER-(1) Business Owner
(2) Executive
(3) Creative Professional
(4) Learned Professional
(5) Computer-related (some)
(6) Outside Salespersons
Executive Exemption to FLSA - ANSWER-- Primary duty must be managing the
enterprise, or managing a customarily recognized department or subdivision of the
enterprise;
- Must customarily and regularly direct the work of at least two or more other full-time
employees or their equivalent; and,
- Must have the authority to hire or fire other employees, or the employee's suggestions
and recommendations as to the hiring, firing, advancement, promotion, or any other
change of status of other employees must be given particular weight.
Special Exemption of Business Owners to FLSA - ANSWER-An employee who owns at
least a bona fide 20% equity interest in the enterprise in which employed, and who is
actively engaged in its management, is considered a bona fide exempt executive.
, Professional Exemption to FLSA - Learned Professional - ANSWER-Performs work
requiring advanced knowledge, predominately intellectual requiring consistent exercise
of discretion and judgment.
Advanced knowledge customarily acquired by a prolonged course of specialized
instruction - i.e., 4-year college degree.
The exemption does not apply to occupations in which most employees acquire skill by
experience.
Professional Exemption to FLSA - Creative Professional - ANSWER-Work requiring
invention, imagination, originality, or talent in a recognized field of artistic or creative
endeavor.
Administrative Exemption to FLSA - ANSWER-Primary duty is the performance of office
or non-manual work directly related to the management or general business operations
of the employer or the employer's customers; and
Exercises "discretion and independent judgment" with respect to matters of significance
Outside Salespersons to FLSA - ANSWER-Primary duty must be making sales; and
Must be customarily and regularly engaged away from the employer's place or places of
business
Inside sales persons are non-exempt
Computer related occupations - ANSWER-Overtime pay not required if paid
$27.63/hour on salary basis (approximately $58,000/year); and primary duties include:
- The application of systems analysis techniques and procedures, including consulting
with users; or
- The design, development, documentation, analysis, creation, testing or modification of
computer systems or programs.
Exempt Level Employees - ANSWER-Must regularly receive a predetermined amount of
compensation each pay period;
The compensation cannot be reduced because of variations in the quality or quantity of
the work performed;
The employee must be paid the full salary for any week in which the employee performs
any work.
Exempt Level Employees
