PHR practice question 7 of 25

The Federal Labor Standards Act is something that all HR Professionals should be familiar with. This act clearly defines four areas that affect all employees. Which one of the following is not one of the four areas of employment covered by this act?

Full set: 165 questions
Answer options
A: Commissions, royalties, and tips Correct answer
B: Overtime
C: Record keeping
D: Minimum wage
Correct Answer:
A. Commissions, royalties, and tips
Explanation

The Fair Labor Standards Act (FLSA) is a cornerstone of U.S. labor law, establishing federal standards in four primary areas. These are: (1) the federal minimum wage, (2) overtime pay for all hours worked over 40 in a workweek for nonexempt employees, (3) specific recordkeeping requirements for employers, and (4) child labor provisions that restrict the hours and types of work for minors. While the FLSA does regulate how commissions and tips are incorporated into wage and overtime calculations, "Commissions, royalties, and tips" is not considered one of the four foundational pillars of the act.

Why Incorrect

B. Overtime pay for nonexempt employees working more than 40 hours in a workweek is a core provision of the FLSA.
C. The FLSA explicitly mandates that employers must keep accurate records of wages, hours, and other employment information.
D. Establishing a federal minimum wage for covered, nonexempt employees is one of the most fundamental provisions of the FLSA.

References

- U.S. Department of Labor. (n.d.). Wages and the Fair Labor Standards Act. Retrieved from dol.gov. (This page outlines the major provisions).

- Cornell Law School, Legal Information Institute. (n.d.). Fair Labor Standards Act (FLSA). Retrieved from law.cornell.edu. (Provides a summary of the Act's main components).

- Fossum, J. A. (2015). Labor Relations: Development, Structure, Process (12th ed.). McGraw-Hill Education. (Chapter 3, Section on The Fair Labor Standards Act of 1938).

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