Take this short True/False quiz to see how knowledgeable you are on some basic payroll laws.
1. If a majority of employees agree, an employer may require payroll direct deposit. True or False?
False – The Field Operations Handbook of the U.S. Department of Labor states that direct deposit is an acceptable means of payment, as long as employees have the option of “receiving payment by cash or check directly from the employer.” Most States require the employee’s written permission to participate in direct deposit, and any employee may refuse.
2. “Salaried” employees are not eligible for overtime. True or False?
False – “Exempt” employees are “exempt” from the laws requiring overtime, and while exempt employees are paid under the salary basis rule, it is the duties of the position and the level of pay that determines who is “exempt” from overtime.
3. You cannot require an exempt employee to punch a time clock. True or False?
False – You can, and we recommend that you require exempt employees to keep a time record. However, unlike non-exempt employees (even those paid by salary), you are not required to keep time records of the exempt employees’ working hours.