1 Exam Prep Business Procedures Employment Regulations Practice Test

Size: px
Start display at page:

Download "1 Exam Prep Business Procedures Employment Regulations Practice Test"

Transcription

1 1 Exam Prep Business Procedures Employment Regulations Practice Test PRACTICE TEST ONE 1. The child labor provisions of the Fair Labor Standards Act include restrictions on the hours of work for minors under the age of. A. 14 B. 15 C. 16 D Willful violations of the FLSA may be fined to a maximum of. A. $1,000 B. $3,000 C. $5,000 D. $11, Which of the following records do not have to be kept according to the FLSA? A. Total hours worked each workday and workweek B. Social Security numbers C. Regular hourly pay rate D. Date of payment and pay period covered 4. The overtime pay directives of the FLSA requires. A. Overtime pay for Sundays. B. Overtime pay for hours in excess of 8 per day. C. Overtime pay for hours in excess of 40 per week D. All of the above. 5. Which of the following standards are not established by the FLSA? A. Minimum wage B. Overtime pay C. Vacation pay D. Record keeping 1 Exam Prep Business Procedures (Employment Regulations) 1

2 6. According to the Fair Labor Standards Act, a company or entity with two employees or more with gross receipts of at least _ or more will be regulated under the act. A. $250,000 B. $500,000 C. $750,000 D. $1,000, A construction worker's weekly pay period begins at 8 a.m. Thursday and ends at 7:59 a.m. on the following Thursday. According to the FLSA, the employee receives overtime when he works on. A. Sunday B. Saturday or Sunday C. National holidays D. None of the above 8. In February, a construction firm employs an office assistant at $14,000 per year (52 weeks) for fluctuating hours. The assistant works 52 hours during the week of June 5 to 11. According to the Handy Reference Guide to the FLSA, what are the gross wages that the assistant is entitled to receive for the week? A. $ C. $ B. $ D. $ An employee earns $32,942 per year and is classified as non-exempt under the FLSA. He works total of 48 hours during the payroll period from February 13 to 20. What is his gross pay for the week? A. $ B. $ C. $ D. $ An employee earns $11.30 per hour. Assume that the employer payroll taxes and insurance are 14% of the direct labor costs. The employee worked 8-hour days on Monday, Tuesday, and Saturday, and 10 hour-days on Wednesday and Thursday. He did not work Friday or Sunday. He is nonexempt under the FLSA. What was the company's average hourly labor cost for the employee for all hours actually worked on the job for the hours described above? A. $10.32 B. $12.21 C. $13.47 D. $ Exam Prep Business Procedures (Employment Regulations) 2

3 11. Which of the following is most likely exempt from overtime provisions? A. A laborer on salary B. A laborer on an hourly wage C. An office messenger on salary D. An office manager 12. A salaried employee made $12,000 per year in 2001, and is classified as nonexempt under the FLSA. What is his gross pay for a week in which he works 64 hours? A. $ B. $ C. $ D. $ An employee paid $6.00 per hour works a 50-hour week that begins on Wednesday and ends the following Tuesday. This employee will be paid for hours of overtime. A. Two B. Five C. Ten D. Twelve 14. According to the FLSA, how many consecutive hours are in a fixed and regularly occurring work week? A. 40 B. 120 C. 160 D A non-exempt laborer is employed 10 hours per day and paid at the day rate of $ In week one, the laborer works 6 days. The laborer's gross pay for week one is. A. $ B. $ C. $ D. $ A non-exempt employee earns a salary of $175 per week on a fluctuating work week and works 50 hours in a particular week, what is her gross pay? A. $218 B. $175 C. $283 D. $192 1 Exam Prep Business Procedures (Employment Regulations) 3

4 17. A secretary is hired on a salary basis of $ per week for a work schedule that fluctuates week to week. The salary is to compensate her for the hours worked, whether few or many. In week number 1 she works 15 hours, and receives a salary of $ In week number 2 she works 50 hours, and would receive. A. $ B. $ C. $ D. $ A bookkeeper earns $20,000 salary per year, and is paid on a fluctuating work week basis. The bookkeeper works 44 hours the first week, then is allowed to take 4 hours off the second week. The bookkeeper is nonexempt and works 52 weeks per year. What is the bookkeepers first week gross earnings? A. $ B. $ C. $ D. $ A secretary is hired on a salary basis of $425 per week for a work schedule of Monday through Friday 8 a.m. to 3 p.m. with 1/2 hour lunch daily. In week #2 she works 45 hours. Her gross pay for week #2 is. A. $ B. $ C. $ D. $ A secretary is hired on a salary basis of $450 per week for a work schedule that fluctuates from week to week. Her salary is intended to compensate her for her hours worked -- whether few or many. In week #1 she works 30 hours. In week #2 she works 50 hours. Her gross pay for week #2 is. A. $ B. $ C. $ D. $ Regardless of pay period, the fair labor standards act allow averaging of hours over 2 or more weeks to arrive at a single workweek hourly figure. Example: = 80 divided by 2 = 40 hours per week for 2 weeks. A. may B. does not C. does D. could 1 Exam Prep Business Procedures (Employment Regulations) 4

5 22. Overtime compensation should be paid at not less than times the regular rate of pay after 40 hours in one workweek. A..5 B. 1.5 C D The minimum age for non-manufacturing, non-mining and non-hazardous work for minors is years of age. A. 14 B. 15 C. 16 D A salaried employee on a fluctuating work week will be paid overtime based on which of the following? A. Dividing the salary by the hours worked that week, then pay overtime at 1/2 the regular rate of pay for that week. B. Pay overtime at 1-1/2 times the regular rate of pay, which is established by dividing the weekly salary by 40 hours. C. Employees on salary are exempt from FLSA, & are not entitled to overtime. D. Employees on salary are non-exempt from FLSA & are not entitled to overtime. 25. Which of the following records do not have to be kept under The Fair Labor Standards Act? A. Total hours worked each day B. Social security number C. Deductions from wages for each pay period D. The date wages are paid 26. A construction employee's weekly pay period begins at 8:00 AM Thursday and ends at 7:59 AM on the following Thursday. Under The Fair Labor Standards Act the employee receives overtime pay when he works on. A. Sunday B. Saturday or Sunday C. National holiday D. None of these 27. In May 2012, a construction firm employees an office assistant at $24,000 per year (52 weeks ) for fluctuating hours. The assistant works 52 hours the week of June 5-11, According to the The Fair Labor Standards Act, what are the gross wages that the assistant is entitled to for the week? A. $ B. $ C. $ D. $ Exam Prep Business Procedures (Employment Regulations) 5

6 28. An employee earns $11.30 per hour. Assume that the employer payroll taxes and insurance is 14 % of the direct labor cost. The employee worked 8 hour days on Monday, Tuesday, and Saturday, he worked 10 hours per day on Wednesday and Thursday. He did not work on Friday or Sunday. According to the Fair Labor Standards Act, the employee is non-exempt. What was the company's average hourly labor cost for the employee for all hours actually worked on the job for the week described above? A. $10.32 per hour B $12.21 per hour C. $13.47 per hour D. $13.88 per hour 29. A salaried worker earns $32, per year and is classified as non-exempt under The Fair Standards Act. He works a total of 48 hours during the payroll period from February 13-20, What is his gross pay for that week? A. $ B. $ C. $ D. $ The Fair Labor Standards Act provides for sub-minimum wage provisions under which of the following sets of employees? A. Part-time employees B. Student-learners C. Full time students D. Temporary workers 31. According to the Fair Labor Standards Act, how many consecutive hours are in a fixed and regularly occurring workweek? A. 40 hours B. 120 hours C. 160 hours D. 168 hours 32. According to the Fair Labor Standards Act, overtime is paid to an employee after hours are worked in a workweek. A. 36 hours B. 40 hours C. 45 hours D. 50 hours 33. A willfull violation of youth employment fine could be up to. A. $100 B. $1,000 C. $11,000 D. None of the above 1 Exam Prep Business Procedures (Employment Regulations) 6

7 34. The willful violation of recovery of backpay has a year statute of limitations. A. 2 B. 3 C. 4 D. 5 1 Exam Prep Business Procedures (Employment Regulations) 7

8 PRACTICE TEST TWO: ADA and Other Labor Laws 1. The Americans with Disabilities Act of 1990 makes it unlawful for an employer to discriminate against a qualified applicant or employee with a disability. This law applies to private employers with or more employees. A. 50 B. 25 C. 15 D Which of the following enforces the employment provisions of the ADA? A. Equal Employment Opportunity Commission B. Fair Labor Commission C. U.S. Department of Labor D. None of the Above 3. Which of the following acts require payment for prevailing wage rates and fringe benefits on federallyfinanced or assisted construction? A. Walsh-Healey Act B. Davis-Bacon Act C. Service Contract Act D. Contract Work Hours and Safety Act 4. Which of the following is not defined as a person with a disability by the ADA? A. Has mental impairment that substantially limits a major life activity B. Has a record or history of a substantially limiting impairment C. Is regarded or perceived by an employer as having a substantially limiting impairment D. Has a physical impairment that limits a activities more than 60% of the time 5. How long must an employer keep I-9 forms on file? A. 5 years B. 3 years C. 3 years and 1 year after the employee is terminated D. 1 year after the employee is terminated 6. The ADA makes it unlawful to discriminate in which employee practices? A. Recruitment B. Fringe benefits C. Promotion D. All of the above 1 Exam Prep Business Procedures (Employment Regulations) 8

9 8. Under the ADA, an employer must maintain records relating to hiring, requests for reasonable accommodation, promotion, rate of pay, etc for a period of year(s). A. 5 B. 3 C. 2 D Under the ADA, does an employer have to give preference to a qualified applicant with a disability over other applicants? A. Yes B. No 9. Does an employer have to give preference to a qualified applicant with a disability over other applicants? A. Yes B. No 10. The ADA requires written job descriptions for disabled employees. A. True B. False 1 Exam Prep Business Procedures (Employment Regulations) 9

10 PRACTICE TEST THREE - FLSA Overtime Compensation Practice Test 1. A salaried employee earns $32, per year and is classified as exempt under the Fair Labor Standards Act. She is single and claims four withholding allowances. What is the total Social Security, Medicare and Federal Income tax withheld from her salary in one biweekly payroll period? A. $ B. $ C. $ D. $ A salaried employee earns a yearly salary of $44, and is classified as exempt under the Fair Labor Standards Act. He is single and claims four withholding allowances. He is paid biweekly and receives a yearend bonus of $10, What is the total withholding for the year's last pay period in which the bonus is given? Use the flat percent method for determining withholding for the bonus. A. $3, B. $3, C. $3, D. $3, A salaried employee is paid $12,000. per year and is classified as non-exempt under the Fair Labor Standards Act. What is his gross pay for a week in which he works 64 hours? A. $ B. $ C. $ D. $ A salaried worker earns $32,942. per year and is classified as non-exempt under the Fair Labor Standards Act. The employee is married and shows four withholding allowances. He works a total of 48 hours during the payroll period from February 16 to 22. Total deductions from total earnings for this one-week pay period are. A. $ B. $ C. $ D. $ An employee earns $11.30 per hour. Assume that the employer payroll taxes and insurance is 14% of the direct labor cost. The employee worked 8-hour days on Monday, Tuesday and Saturday, he worked 10 hours per day on Wednesday and Thursday, he did not work on Friday or Sunday. According to the Fair Labor Standards Act the employee is non-exempt. What was the company's average hourly labor cost for the employee for all hours actually worked on the job for the week described above? A. $10.32 per hour B. $12.21 per hour C. $13.47 per hour D. $13.88 per hour 1 Exam Prep Business Procedures (Employment Regulations) 10

11 6. A construction company's general superintendent earns $39, for the twelve months. He is exempt as per the Fair Labor Standards Act. He is married and claims three withholding allowances and is paid biweekly. In the last pay period he gets a $4, Bonus (supplemental wage payment). Using the flat percentage method for determining withholding tax on the bonus, what is the total income tax, Social Security and Medicare withheld. A. Less than $8, B. Between $8, and $8, C. Between $8, and $8, D. Greater than $8, In February a construction firm employs an office assistant at $14, per year (52 weeks) for fluctuating hours. The assistant works 52 hours the week of June According to the Handy Reference Guide to the Fair Labor Standards Act, what are the gross wages that the assistant is entitled to for the week? A. $ B. $ C. $ D. $ Given: A contractor hires a day laborer at the rate of $35. per one day s work. The contractor uses the laborer for six days in one workweek. The laborer averages 8-1/2 hours of work per day. The laborer is entitled to a gross pay of for the six days work. A. $ B. $ C. $ D. $ A salaried construction employee earns $ per 40 hour week and a Christmas bonus of two weeks salary worth $ each year. The employees regular rate of pay for computing overtime required by federal law would be per week. A. $ B. $ C. $ D. $ A construction employee's weekly pay period begins at 8:00 AM Thursday and ends at 7:59 AM on the following Thursday. Under Florida law the employee receives overtime pay when he works on. A. Sunday B. Saturday or Sunday C. National Holidays D. none of these 1 Exam Prep Business Procedures (Employment Regulations) 11

12 11. Which of the following records DO NOT have to be kept under FSLA? A. Total hours worked each day B. Pictures identification C. Deductions from wages for each pay period D. The date wages are paid 12. A construction worker and his employer agree that if the employee works 42 hours in a week he will be compensated by being paid for 40 hours the following week for which he worked 38 hours. If his salary is $ per week for a 40 hour week, his gross wages for two weeks would be. A. $ B. $ C. $ D. $ Exam Prep Business Procedures (Employment Regulations) 12

13 1 Exam Prep Business Procedures Employment Regulations Practice Test Answers ANSWERS TO PRACTICE TEST ONE 1. C 2. D 3. C 4. C 5. C 6. B 7. D 8. B 9. A 10. C 11. D 12. B 13. C 14. D 15. C 16. C 17. B 18. B 19. B 20. D 21. B 22. B 23. A 24. A 25. B 26. D 27. C 28. C 29. B 30. B 31. D 32. B 33. C 34. B ANSWERS TO PRACTICE TEST TWO 1. C 2. A 3. B 4. D 5. C 6. D 7. D 8. B 9. B 10.B ANSWERS TO PRACTICE TEST THREE 1. B 2. A 3. D 4. A 5. C 6. A 7. C 8. C 9. B 10. D 11. B 12. C 1 Exam Prep Business Procedures (Employment Regulations) 13

14 *See below for explanation of answers. EXPLANATION OF ANSWERS PRACTICE TEST ONE 1. Ans C. FLSA Youth Employment, Pg Ans D,FLSA Enforcement, Pg 312. Note that Willfull violations have a max fine of $10,000, but violations of youth employment have a penalty of $11,000 for each employee. 3. Ans C. FLSA Recording keeping, Pg Ans C. FLSA Computing Overtime Pay, Pg Ans C. FLSA Basic Wage Standards, Page Ans B. FLSA Who is covered, Pg 307. See Item (1). 7. Ans D. FLSA Computing overtime pay, Pg 311. A, B or C not mentioned. 8. Ans B. FLSA Computing overtime pay, Pg Math: $14, weeks = $269.23/wk 52 hrs = $5.18/hr. (Base pay). OT = $5.18 x 1.5 = $7.77/hr. Regular pay = $5.18 x 40 hours = $ OT= $7.77 x 12 hours = $93.24 Total Pay = $ $93.24 = Ans A. FLSA Computing overtime pay, Pg Regular Salary- not flexible hours. Math: Base pay: $32,942 52wks =$ hrs = $15.84/hr. OT pay: $15.84 x 1.5 =$23.76/hr. $23.76 x 8hrs = $ Total = $ $ = $ Ans C. FLSA Computing overtime pay, Pg Math: Base pay cost: $11.30/hr + 14% = $12.88/hr. For 40 hrs. = $ OT Cost: $12.88 x 1.5 = $19.32/hr. For 4 hrs. = $ Total = $ $77.28 = $ Avg hourly = $ Hrs = $13.47/hr. 11. Ans D. FLSA Exemptions from overtime pay, Pg Ans B. FLSA Computing overtime pay, Pg Math: Base pay: $12, = $230.77/wk + 40 hrs = $5.77/hr. OT pay: $5.77 x 1.5 =$8.65/hr. x 24 hrs = $ Total = $ $ = $ Ans C. FLSA Computing overtime pay, Pg Ans D. FLSA Terms Workweek, Pg Ans C. FLSA Basic wage Standards, Pg 306. $30/day + 10 hrs = $3.00 per hour (violates minimum wage) Pay minimum wage. Base pay: $5.15 x 40 hrs $ OT pay = 1.5 x $5.15 x 20hrs = $ $ $ = $ Ans C. FLSA Pages 306 $175/50= $3.50 but minimum wage of $5.15 applies, so 40 x 5.15 = 206, OT=10 x 5.15 x 1.5 = 77.25, so = Ans B. FLSA Computing overtime pay, Pg 311. Math: Base pay rate (wk 2): $ hrs = $5.20/hr. OT pay: = $5.20/hr x1 x 10 hrs = $26. Total = $260 + $26 = $ Ans B. FLSA Computing overtime pay, Pg 311. See (3) Salary. Math: $20,000/52 weeks = $ per week. Base rate (wk 1): $ hours = $ 8.74/hr. OT pay = 0.5 x $8.74/hr x 4 hrs = $ $ $17.48 = $ Ans B. FLSA Computing overtime pay, Pg 311. Math: Weekly hrs: 6.5 hrs/day x 5 days = hrs. Regular pay rate = $ hrs = $13.08/ hr. Wk2 straight pay above regular work hours = (45 hrs hrs) x $13.08/hr = $ OT pay = (45hrs - 40 hrs) x 1/2 x $13.08 = $ Total: $425 + $ $32.70 = $ Ans D. FLSA Computing overtime pay, Pg See (3) Salary. Regular rate = $ hrs = $9.00/hr. OT pay = 0.5 x $9.00 x 10 hrs = $45. Total = $450 + $45 = $ Ans B. FLSA Terms used in FLSA, Workweek, Pg Ans B. FLSA Computing overtime pay, Pg Ans A. FLSA Nonagricultural Jobs (Youth Employment), Pg 311. See Item (3). 24.Ans A. FLSA Computing overtime pay, Pg See (3) Salary. Page Ans B. Recordkeeping, Pg Ans D. Exemptions from Overtime Pay Only, Pg. 309, Computing Overtime Pay, Pg Exam Prep Business Procedures (Employment Regulations) 14

15 27. Ans C. Computing Overtime Pay, Pg $24, weeks = $461.54, $ = $8.88 per hour. $ = $4.44 per overtime hour. $4.44 x 12 = $53.25, $ $ = $ Ans C. Computing Overtime, pg $11.30 x 40 hours = $452, x 1.5 = $16.95 overtime pay, $16.95 x 4 hours overtime = $67.80, $ $452 = $519.80, $ x.14 = $72.77, $ $ = $592.57, = $ Ans B. Computing Overtime Pay, Pg $32, weeks = $663.50, $ = $13.20 per hour. $ = $6.60 per overtime hour. $6.60 x 8 = $52.79, $ $ = $ Ans B. Subminimum Wage Provisions, Pg Ans D. Terms Used in FLSA, Pg Ans B. Computing Overtime Pay, Pg Ans C. Enforcement, Pg Ans. B. Recovery of Back Wages, Pg PRACTICE TEST TWO 1. Ans C. Job Applicants and the Americans with Disabilities Act, Pg Ans A. Job Applicants and the Americans with Disabilities Act, Pg Ans B. Other Labor Laws, Pg Ans D. Job Applicants and the Americas with Disabilities Act, Pg Ans C. Other Labor Laws, Pg Ans D. Americans with Disabilities Act, What practices and activities are covered? 7. Ans B. Americans with Disabilities Act, Does an employer have to give preference? 8. Ans D. Americans with Disabilities Act, What are an employer s recordkeeping requirements under the ADA? 9. Ans B. Americans with Disabilities Act, Does an employer have to give preference to a qualified applicant? 10.Ans B. Americans with Disabilities Act, Does the ADA require written job descriptions? PRACTICE TEST THREE No explanations 1 Exam Prep Business Procedures (Employment Regulations) 15