D352 | D352 Objective Assessment Employment
and Labor Law Exam 2 Version 3 | Questions with
Correct Answers and Expert Explanation for Each
Question | WGU
1. Under the Fair Labor Standards Act (FLSA), which test is primarily used to determine
whether a worker is an employee or an independent contractor?
A. The Control Test
B. The Economic Realities Test
C. The Common Law Agency Test
D. The IRS 20-Factor Test
Correct Answer: B
Expert Explanation: The Economic Realities Test focuses on the worker’s financial
dependence on the employer. It examines whether the individual is in business for
themselves or relies on the company. Courts look at factors like the degree of
control and the opportunity for profit or loss. This test is broader than the common
law test to provide more protection to workers. Correct classification is essential for
determining FLSA coverage and tax obligations.
2. Which of the following must be included when calculating an employee’s ‘regular
rate’ for overtime pay purposes?
A. Discretionary bonuses
,B. Non-discretionary production bonuses
C. Paid time off (PTO) for vacations
D. Reimbursed travel expenses
Correct Answer: B
Expert Explanation: Non-discretionary bonuses are part of the total compensation
used to calculate the regular rate. Discretionary bonuses and gift payments are
typically excluded from this calculation by law. The regular rate is the hourly
equivalent of all remuneration paid to the employee. Including production bonuses
ensures that overtime pay reflects the actual value of the work performed.
Employers must be careful to include these incentives to avoid underpaying
overtime wages.
3. An employer has 60 employees. According to the Family and Medical Leave Act
(FMLA), how many weeks of unpaid leave is an eligible employee entitled to for a
serious health condition?
A. 10 weeks
B. 24 weeks
C. 12 weeks
D. 52 weeks
,Correct Answer: C
Expert Explanation: The FMLA provides eligible employees with up to 12
workweeks of unpaid, job-protected leave. This leave can be used for the birth of a
child or a serious health condition of the employee. To be eligible, the employee
must have worked for the employer for at least 12 months. The employer must also
have at least 50 employees within a 75-mile radius. This law ensures that workers
can balance work and family life without losing their jobs.
4. Which federal statute regulates private-sector employee benefit plans, including
pensions and health insurance, regarding reporting and vesting?
A. ERISA
B. HIPAA
C. COBRA
D. NLRA
Correct Answer: A
Expert Explanation: ERISA sets minimum standards for most voluntarily
established retirement and health plans in private industry. It requires plans to
provide participants with important information about plan features and funding.
The law also establishes fiduciary responsibilities for those who manage and control
plan assets. Vesting requirements ensure that employees gain a non-forfeitable right
, to their benefits after a certain period. ERISA does not require employers to provide
plans, but it regulates them if they do.
5. Under the FLSA, at what age can a minor be employed in any non-agricultural
occupation that has not been declared hazardous by the Secretary of Labor?
A. 14
B. 16
C. 15
D. 18
Correct Answer: B
Expert Explanation: The FLSA sets 16 as the basic minimum age for non-
agricultural employment during school hours. Minors aged 14 and 15 may work in
certain occupations but only outside of school hours. Hazardous occupations, such
as mining or operating heavy machinery, are reserved for those 18 and older. These
regulations are designed to protect the educational opportunities and health of
young workers. Employers must strictly adhere to these age limits to avoid heavy
federal fines.
6. A company is accused of violating the Equal Pay Act (EPA). Which defense would be
valid for the employer if men are paid more than women for the same work?
A. A seniority system is in place
and Labor Law Exam 2 Version 3 | Questions with
Correct Answers and Expert Explanation for Each
Question | WGU
1. Under the Fair Labor Standards Act (FLSA), which test is primarily used to determine
whether a worker is an employee or an independent contractor?
A. The Control Test
B. The Economic Realities Test
C. The Common Law Agency Test
D. The IRS 20-Factor Test
Correct Answer: B
Expert Explanation: The Economic Realities Test focuses on the worker’s financial
dependence on the employer. It examines whether the individual is in business for
themselves or relies on the company. Courts look at factors like the degree of
control and the opportunity for profit or loss. This test is broader than the common
law test to provide more protection to workers. Correct classification is essential for
determining FLSA coverage and tax obligations.
2. Which of the following must be included when calculating an employee’s ‘regular
rate’ for overtime pay purposes?
A. Discretionary bonuses
,B. Non-discretionary production bonuses
C. Paid time off (PTO) for vacations
D. Reimbursed travel expenses
Correct Answer: B
Expert Explanation: Non-discretionary bonuses are part of the total compensation
used to calculate the regular rate. Discretionary bonuses and gift payments are
typically excluded from this calculation by law. The regular rate is the hourly
equivalent of all remuneration paid to the employee. Including production bonuses
ensures that overtime pay reflects the actual value of the work performed.
Employers must be careful to include these incentives to avoid underpaying
overtime wages.
3. An employer has 60 employees. According to the Family and Medical Leave Act
(FMLA), how many weeks of unpaid leave is an eligible employee entitled to for a
serious health condition?
A. 10 weeks
B. 24 weeks
C. 12 weeks
D. 52 weeks
,Correct Answer: C
Expert Explanation: The FMLA provides eligible employees with up to 12
workweeks of unpaid, job-protected leave. This leave can be used for the birth of a
child or a serious health condition of the employee. To be eligible, the employee
must have worked for the employer for at least 12 months. The employer must also
have at least 50 employees within a 75-mile radius. This law ensures that workers
can balance work and family life without losing their jobs.
4. Which federal statute regulates private-sector employee benefit plans, including
pensions and health insurance, regarding reporting and vesting?
A. ERISA
B. HIPAA
C. COBRA
D. NLRA
Correct Answer: A
Expert Explanation: ERISA sets minimum standards for most voluntarily
established retirement and health plans in private industry. It requires plans to
provide participants with important information about plan features and funding.
The law also establishes fiduciary responsibilities for those who manage and control
plan assets. Vesting requirements ensure that employees gain a non-forfeitable right
, to their benefits after a certain period. ERISA does not require employers to provide
plans, but it regulates them if they do.
5. Under the FLSA, at what age can a minor be employed in any non-agricultural
occupation that has not been declared hazardous by the Secretary of Labor?
A. 14
B. 16
C. 15
D. 18
Correct Answer: B
Expert Explanation: The FLSA sets 16 as the basic minimum age for non-
agricultural employment during school hours. Minors aged 14 and 15 may work in
certain occupations but only outside of school hours. Hazardous occupations, such
as mining or operating heavy machinery, are reserved for those 18 and older. These
regulations are designed to protect the educational opportunities and health of
young workers. Employers must strictly adhere to these age limits to avoid heavy
federal fines.
6. A company is accused of violating the Equal Pay Act (EPA). Which defense would be
valid for the employer if men are paid more than women for the same work?
A. A seniority system is in place
