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Under the FLSA enterprise coverage test, hospitals and nursing homes
are only covered if their annual charges for services are at least
Institutions of higher education are extended coverage under FLSA with-
out regard to their annual sales volume.
If a business does not meet the enterprise coverage test, none of its
workers qualify for individual employee coverage.
Domestics are excluded from coverage under the FLSA individual em-
Under the FLSA, severance pay is excluded from the definition of wages.
The term wage refers to remuneration paid only on an hourly basis.
Employees paid biweekly receive their remuneration every two weeks.
In May 2013, workers who receive the minimum hourly wage are paid
$6.10 an hour.
A retail shop may employ a full-time student at $5.00 per hour.
A college may employ its own full-time students at 85 percent of the min-
All major cities have enacted ordinances establishing a so-called ―living
wage‖ at $8.25 per hour.
The FLSA defines a tipped employee as one who regularly receives tips
of more than $20 a month.
An employer can credit up to $5.12 of a tipped employee’s minimum
wage as coming from the tips received by that employee.
The FLSA requires that workers receive overtime pay for all hours
worked in excess of 40 in a workweek.
The FLSA requires that workers receive overtime pay of twice the em-
ployees’ regular hourly rate for hours worked on Sunday.
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
Public safety employees of a state can be granted compensatory time off
in lieu of overtime compensation.
No employer can grant compensatory time off to employees in place of
Exempt professional employees are exempt from all provisions of the
FLSA—minimum wages, overtime pay, and equal pay.
Employees paid by the hour without a guarantee of a weekly minimum
salary do not qualify for the salary test for white-collar workers.
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.
The Equal Pay Act stipulates that there cannot be any wage differentials
between the sexes.
Under no conditions may children under age 16 be employed in food ser-
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.
The FLSA requires that employees be given the day off on all Monday
holidays or be paid time and one-half for those