Chapter 2, Problem 1SSQ

To determine

State the false statements related to Fair Labor Standard Act.

Answer to Problem 1SSQ

The correct options are “Statement 2” and “Statement 4”.

Explanation of Solution

Fair Labor Standard Act (FLSA): Fair Labor Standard Act covers the standards and provisions for minimum wages, overtime pay, equal pay for equal work irrespective of sex, recordkeeping, and child labor. This act is also known as the “Federal Wage and Hour Law”. This act sets the minimum wage rate for the workers.

Justification for Statement 2:

Direct care workers are employed directly by a family or individual to perform the services like fellowship and protection. Hence, they are not paid overtime compensation with the wages.

Direct care workers are eligible to receive overtime compensation with the minimum wages in the following conditions:

• If they perform medically related duties or provided more than a limited amount of care.
• If they are employed by third-party employers.

Justification for Statement 4:

Individual Employee Coverage is applicable to the employee, if he/she fulfills the following conditions:

• An employee is involved in interstate commerce or production of goods for interstate commerce.
• An employee is engaged in fringe occupation associated directly or indirectly with the production of goods for interstate commerce.

Justification for Statement 1, Statement 3, and Statement 5:

As per Fair Labor Standard Act (FLSA), these statements are true. Hence these are incorrect options.

Conclusion

Hence, the correct options are “Statement 2” and “Statement 4”.