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CHAPTER 2
True-False Questions
F 1.
2–2
Under the FLSA enterprise coverage test, hospitals and nursing homes
are only covered if their annual charges for services are at least
$500,000.
T 2.
2–2
Institutions of higher education are extended coverage under FLSA with-
out regard to their annual sales volume.
F 3.
2–2
If a business does not meet the enterprise coverage test, none of its
workers qualify for individual employee coverage.
F 4.
2–3
Domestics are excluded from coverage under the FLSA individual em-
ployee coverage.
F 5.
2–4
Under the FLSA, severance pay is excluded from the definition of wages.
F 6.
2–4
The term wage refers to remuneration paid only on an hourly basis.
T 7.
2–4
Employees paid biweekly receive their remuneration every two weeks.
F 8.
2–4
In May 2013, workers who receive the minimum hourly wage are paid
$6.10 an hour.
F 9.
2–5
A retail shop may employ a full-time student at $5.00 per hour.
T 10.
2–5
A college may employ its own full-time students at 85 percent of the min-
imum wage.
F 11.
2–5
All major cities have enacted ordinances establishing a so-called ―living
wage‖ at $8.25 per hour.
F 12.
2–6
The FLSA defines a tipped employee as one who regularly receives tips
of more than $20 a month.
T 13.
2–6
An employer can credit up to $5.12 of a tipped employee’s minimum
wage as coming from the tips received by that employee.
T 14.
2–7
The FLSA requires that workers receive overtime pay for all hours
worked in excess of 40 in a workweek.
F 15.
2–7
The FLSA requires that workers receive overtime pay of twice the em-
ployees’ regular hourly rate for hours worked on Sunday.
T 16.
2–8
Employees who are receiving remedial education may work up to 10
hours overtime each week without receiving overtime pay.
E–8 Chapter 2/Examination Questions
T 17.
2–8
Public safety employees of a state can be granted compensatory time off
in lieu of overtime compensation.
F 18.
2–8
No employer can grant compensatory time off to employees in place of
overtime pay.
F 19.
2–9
Exempt professional employees are exempt from all provisions of the
FLSA—minimum wages, overtime pay, and equal pay.
T 20.
2–10
Employees paid by the hour without a guarantee of a weekly minimum
salary do not qualify for the salary test for white-collar workers.
T 21.
2–10
One of the tests to be met for the white-collar exemption for an executive
is to be paid a salary of at least $455 per week.
F 22.
2–10
The Equal Pay Act stipulates that there cannot be any wage differentials
between the sexes.
F 23.
2–11
Under no conditions may children under age 16 be employed in food ser-
vice establishments.
F 24.
2–11
The FLSA sets no limits upon the number of hours that a 15-year-old
person may work so long as the overtime pay provisions are met.
F 25.
2–12
The FLSA requires that employees be given the day off on all Monday
holidays or be paid time and one-half for those