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Do You Know Your Stuff: Quiz #1
Exempt vs. Nonexempt
Think you know the difference? Do you understand how to qualify employees as either exempt or nonexempt? We'll try out our quiz and see if your an Exemption Master or Walking Lawsuit.
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Question 1
All salaried employees are exempt, but not all exempt employees are salaried.
True
False
Question 1 Explanation:False - In order to understand who is exempt you need to know all the criteria for exemptions. For example, it is possible to be salaried and non-exempt.
Question 2
"Salaried" employees are not eligible for overtime.
True
False
Question 2 Explanation:False – “Exempt” employees are “exempt” from the laws requiring overtime, and while exempt employees are paid under the salary basis rule, it is the duties of the position and the level of pay that determines who is “exempt” from overtime. In other words, it is possible to be salaried as well as non-exempt.
Question 3
You cannot require an exempt employee to punch a time clock.
True
False
Question 3 Explanation:False – You can. However, unlike non-exempt employees (even those paid by salary), you are not required to keep time records of the exempt employees’ working hours.
Question 4
The Fair Labor Standards Act requires employers to provide meal periods.
True
False
Question 4 Explanation:False – Rest and meal periods regulations are left for the States to decide, and the results vary widely, so be sure to check your state’s law. Federal law does provide that if you do give employees a meal period, they must be completely relieved from duty for the time to be unpaid, and “watching the phones” is not relieved of all duties. Federal law also provides that short breaks, up to 20 minutes, if offered, must be paid.
Question 5
You may require an exempt employee to work 50 hours per week as well as make up time he or she has missed.
True
False
Question 5 Explanation:True – It is something of a myth that exempt employees may decide how many hours to work, and that myth was put to rest by the DOL opinion letter.
Question 6
Bob works 10 hours on Monday and 8 hours on Tuesday, Wednesday and Thursday. Friday he is out sick and takes 8 hours of accrued sick leave. With the exception of two states, he is owed 42 hours of straight time and no overtime.
True
False
Question 6 Explanation:True - Sick time is not counted towards overtime.
Question 7
Sally, a nonexempt employee works 10 hours on Christmas Day. She must be paid double time for the two hours and overtime for working on the holiday.
True
False
Question 7 Explanation:False - There is no regulation which mandates overtime for working on a holiday. Further, Double time is never required except in California where double time must be paid for all work over 12 hours in a day.
Question 8
Billy, an exempt employee takes four hours off for sick leave. While his salary cannot be docked, his accrual of sick time can be docked.
True
False
Question 8 Explanation:True - Sick time accrual is not regulated by the FLSA and can be managed at the employers discretion.
Question 9
If a company requires its nonexempt employees to attend training meetings before or after normal working hours for their benefit, it does not have to pay for that time.
True
False
Question 9 Explanation:False - Employees must be compensated for this time.
Question 10
By paying a salary and allowing an employee discretionary powers, a company will have met "all" the criteria for exempt status under the Fair Labor Standards Act.
True
False
Question 10 Explanation:False - That's only two of the six criteria for exemptions, all of which must still be met simultaneously.
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Score Time allowedminutessecondsTime usedAnswer Choice(s) SelectedQuestion TextAll doneWatch Out! It's not a matter of "if" but "when" you'll be sued.Keep trying!Might Need to Study Up!Good work! You might be able to get away with a mistake now and then.Great Job! The Department of Labor has nothing on you.