I85PREP
⌘ K
CLIA MCC study materials
CLIA MCC study resources

CLIA MCC practice questions

One question at a time. Build your CLIA MCC understanding.

First 50 of 200 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Innkeeping law and regulatory issues

Under the federal regulations governing laboratory personnel, which document must a laboratory retain to demonstrate that an individual's qualifications were reviewed and approved before that person began testing patient specimens?

  1. A copy of the laboratory's CLIA certificate posted in the testing area
  2. A personnel file containing the individual's diploma or transcript and a documented director review of qualifications Correct answer.
  3. A signed vendor service agreement for the instruments the individual operates
  4. An annual proficiency testing attestation signed by the individual

Explanation

CLIA personnel requirements make the laboratory responsible for documenting that each individual meets the qualification category before performing testing. The file must contain the credential evidence plus a documented review by the laboratory director, not merely a posted certificate.

Question 2Innkeeping law and regulatory issues

A laboratory holds a certificate of waiver and performs only waived testing. Which requirement applies to this laboratory under CLIA?

  1. It must perform and document equivalent quality control every testing day for each waived method
  2. It must enroll in a proficiency testing program approved by CMS for each waived test it performs
  3. It must follow the manufacturer's instructions and may be subject to inspection only in limited circumstances such as a complaint Correct answer.
  4. It must retain a technical consultant with a doctoral degree to oversee waived testing

Explanation

Certificate of waiver laboratories must follow the manufacturer's instructions for the waived tests they perform. They are not subject to routine biennial inspection, though CMS may inspect in response to complaints or to verify waiver conditions.

Question 3Innkeeping law and regulatory issues

A laboratory performs moderate complexity testing and is not accredited by a private organization. Which entity issues its CLIA certificate of compliance after a survey?

  1. The manufacturer of the laboratory's analyzers
  2. The state agency acting on behalf of CMS Correct answer.
  3. The College of American Pathologists
  4. The Joint Commission

Explanation

For non-accredited laboratories, the state agency conducts the survey on behalf of CMS and a certificate of compliance is issued when the laboratory meets the conditions. Private accrediting organizations issue accreditation certificates under their own programs, not a federal certificate of compliance.

Question 4Innkeeping law and regulatory issues

A laboratory director wants to delegate the responsibility for evaluating and approving the laboratory's quality control procedures. Which statement describes the director's obligations under CLIA?

  1. The director may delegate the activity and is then relieved of any responsibility for the outcome
  2. The director may delegate only to a person with the same doctoral degree and certification
  3. The director may delegate the activity in writing but remains responsible for ensuring it is performed correctly Correct answer.
  4. The director may not delegate any director responsibility under any circumstances

Explanation

CLIA permits the laboratory director to delegate certain director responsibilities to qualified individuals, but delegation must be documented and the director retains overall responsibility. The director cannot transfer accountability for the laboratory's compliance.

Question 5Innkeeping law and regulatory issues

Which of the following best describes the purpose of the CLIA 'certificate of accreditation'?

  1. It authorizes the laboratory to perform only waived testing without further oversight
  2. It permits the laboratory to bill Medicare for tests performed in other states
  3. It recognizes that an approved accrediting organization has determined the laboratory meets requirements deemed equivalent to the CLIA conditions Correct answer.
  4. It exempts the laboratory from all personnel qualification requirements

Explanation

A certificate of accreditation is issued when a laboratory is accredited by an approved organization whose standards CMS has determined are equivalent to the CLIA conditions. The laboratory is then surveyed by the accreditor rather than the state agency.

Question 6Innkeeping law and regulatory issues

A laboratory must report a change of ownership to CMS. Which action best satisfies this obligation?

  1. Continue operating under the prior owner's certificate indefinitely
  2. Notify CMS in writing before the change so a new certificate can be issued to the new owner Correct answer.
  3. Report the change only if the new owner intends to alter the test menu
  4. Wait until the next scheduled survey and report the change at that time

Explanation

A change of ownership requires the laboratory to notify CMS so that a new certificate can be issued to the succeeding owner. The new owner must not rely on the previous owner's certificate for continued operation.

Question 7Innkeeping law and regulatory issues

Which of the following is an example of a waived test under CLIA?

  1. A dipstick urinalysis performed at the point of care Correct answer.
  2. A quantitative serum creatinine assay on an automated chemistry analyzer
  3. A blood bank antibody identification panel
  4. A flow cytometric lymphocyte subset analysis

Explanation

Simple point-of-care tests such as dipstick urinalysis are classified as waived because they are cleared for home or bedside use and pose negligible risk of erroneous results. More complex quantitative and immunohematology methods are moderate or high complexity.

Question 8Innkeeping law and regulatory issues

A laboratory's CLIA certificate expires on a given date. What is the consequence of continuing to test patient specimens after expiration without renewal?

  1. The laboratory may continue testing for a 12-month grace period while renewal is processed
  2. The laboratory's results remain billable but the laboratory loses accreditation automatically
  3. The laboratory may continue testing if the director signs a self-attestation of compliance
  4. The laboratory is operating without a valid certificate, which is a violation subject to enforcement including civil money penalties Correct answer.

Explanation

Testing patient specimens requires a current, valid CLIA certificate. Operating after expiration is a violation of the statute and can result in enforcement actions such as civil money penalties and directed plans of correction.

Question 9Innkeeping law and regulatory issues

A hospital laboratory wants to add a new moderate complexity test that it has not previously performed. Which step must occur before patient results are reported?

  1. Submit the new test to CMS for individual approval of the test menu
  2. Obtain a new CLIA certificate listing the specific test
  3. Verify or establish the method's performance specifications and document the verification before reporting patient results Correct answer.
  4. Complete proficiency testing for the test before performing any patient testing

Explanation

Before reporting patient results for a test not previously performed, the laboratory must verify or establish performance specifications such as accuracy, precision, and reportable range. The verification must be documented and reviewed.

Question 10Innkeeping law and regulatory issues

A laboratory performing nonwaived testing receives a proficiency testing result that falls outside the acceptable range. What is the laboratory's obligation regarding the PT records?

  1. Discard the failing result because PT records are retained only for six months
  2. Report the failing result to the accrediting organization within 24 hours
  3. Retain the PT records and the investigation of the unacceptable result for at least two years Correct answer.
  4. Repeat the PT sample until an acceptable result is obtained and retain only that result

Explanation

Laboratories must retain proficiency testing records, including documentation of investigation and corrective action for unacceptable results, for at least two years. Altering or discarding PT results is prohibited.

Question 11Innkeeping law and regulatory issues

A laboratory director discovers that a technologist released patient results before completing the required daily quality control. What is the most appropriate corrective action consistent with CLIA quality systems?

  1. Discard the quality control logs so the deficiency cannot be cited
  2. Continue reporting results and address the issue at the next scheduled survey
  3. Investigate the affected results, document the corrective action, and retrain or take personnel action as warranted Correct answer.
  4. Report the event only if a patient files a complaint

Explanation

Quality systems require the laboratory to investigate problems, determine the effect on patient results, and document corrective action. Retraining or personnel action may be warranted when an individual fails to follow required procedures.

Question 12Innkeeping law and regulatory issues

Which individual qualifies to serve as a technical consultant for moderate complexity testing in a laboratory that is not accredited?

  1. A person currently enrolled in a medical laboratory science program
  2. A person with a bachelor's degree in a chemical or biological science and at least one year of laboratory training or experience Correct answer.
  3. A person with a doctoral degree in an unrelated field and no laboratory experience
  4. A person with a high school diploma and three years of clerical experience in a laboratory

Explanation

The technical consultant for moderate complexity testing must meet education and experience requirements, commonly a bachelor's degree in a relevant science plus at least one year of laboratory training or experience. The role involves oversight of technical and scientific performance.

Question 13Innkeeping law and regulatory issues

A laboratory is cited for failing to perform calibration verification when required. Which statement best reflects the regulatory expectation?

  1. Calibration verification is required only for high complexity testing
  2. Calibration verification must be performed at least every six months and when specified changes occur, with results documented Correct answer.
  3. Calibration verification is optional if the manufacturer states the method is stable
  4. Calibration verification is required only when a new lot of reagent is received

Explanation

For nonwaived testing, calibration verification is required at least every six months and after specified events such as changes in reagent lot or major instrument maintenance. The results must be documented and reviewed.

Question 14Innkeeping law and regulatory issues

A laboratory wants to use a test that the manufacturer has modified from its cleared instructions. What is the regulatory effect of that modification?

  1. The test remains waived because the original test was waived
  2. The test may be performed under a certificate of waiver without further action
  3. The modification is permitted without documentation if the director approves orally
  4. The test is generally treated as high complexity testing unless the laboratory establishes performance specifications as required Correct answer.

Explanation

Modifying a cleared or waived test from its instructions generally causes the test to be categorized as high complexity, unless the laboratory establishes performance specifications as required by regulation. Documentation and validation become essential.

Question 15Innkeeping law and regulatory issues

A laboratory performing high complexity testing must ensure that testing personnel meet which requirement?

  1. Only on-the-job training with no formal education requirement
  2. Certification by any accrediting body regardless of education
  3. Qualifications specified for high complexity testing personnel, including education and training documented by the laboratory Correct answer.
  4. A minimum of ten years of experience in any healthcare setting

Explanation

High complexity testing personnel must meet specified education and training qualifications, and the laboratory must document that those qualifications are met. The requirements are more stringent than those for moderate complexity testing.

Question 16Innkeeping law and regulatory issues

A laboratory receives a statement of deficiencies after a survey. Which response is required?

  1. Submit a plan of correction only for deficiencies involving patient harm
  2. Submit a plan of correction that addresses each deficiency with specific corrective action and completion dates Correct answer.
  3. Wait for the next survey to demonstrate that the deficiencies have been corrected
  4. Appeal the deficiencies and continue operating unchanged until the appeal is decided

Explanation

The laboratory must respond with a plan of correction that describes the corrective action for each cited deficiency and includes completion dates. Failure to submit an acceptable plan can lead to enforcement action.

Question 17Innkeeping law and regulatory issues

Which of the following is a responsibility of the laboratory director under CLIA?

  1. Personally performing every proficiency testing sample
  2. Negotiating reimbursement rates with payers
  3. Ensuring that quality control and quality assessment programs are established and maintained Correct answer.
  4. Signing each patient report personally

Explanation

The laboratory director is responsible for the overall operation and administration of the laboratory, including establishing and maintaining quality control and quality assessment programs. The director may delegate specific activities but retains accountability.

Question 18Innkeeping law and regulatory issues

A laboratory performs testing at a temporary testing site away from its main location. What is the laboratory's obligation regarding CLIA?

  1. Suspend all quality control at the temporary site because it is not the main laboratory
  2. Ensure that the temporary site operates under the laboratory's certificate and complies with applicable requirements Correct answer.
  3. Notify the manufacturer of the instruments used at the temporary site
  4. Obtain a separate certificate of waiver for each temporary site

Explanation

Temporary testing sites operate under the laboratory's existing certificate and must comply with the same applicable requirements, including quality control and personnel standards. Additional certificate applications are not required for each temporary location.

Question 19Innkeeping law and regulatory issues

A laboratory's quality assessment program must address which of the following?

  1. Only the laboratory's financial performance
  2. Review of quality control results, proficiency testing performance, and patient result accuracy Correct answer.
  3. Only the maintenance records of analyzers
  4. Only the credentials of the laboratory director

Explanation

Quality assessment encompasses monitoring quality control, proficiency testing performance, and other indicators of the accuracy and reliability of patient results. It is a broad, ongoing program rather than a single record type.

Question 20Innkeeping law and regulatory issues

A laboratory is accredited by a private organization with deemed status. Which statement best describes the relationship between accreditation and CLIA enforcement?

  1. The accreditor surveys for compliance, but CMS retains authority to take enforcement action when needed Correct answer.
  2. The laboratory is exempt from all CLIA requirements while accredited
  3. The laboratory must also be surveyed by the state agency each year
  4. Accreditation permanently immunizes the laboratory from CMS enforcement

Explanation

Deemed status means CMS accepts the accreditor's survey as evidence of compliance, but CMS retains oversight and enforcement authority. Accreditation does not eliminate the underlying CLIA obligations.

Question 21Innkeeping law and regulatory issues

A laboratory learns that its proficiency testing results were manipulated by an employee to appear acceptable. What is the most serious regulatory concern?

  1. The laboratory may simply discard the manipulated records
  2. The laboratory may substitute results from a different PT event
  3. Falsification of PT results undermines the laboratory's external quality assessment and may result in sanctions Correct answer.
  4. The employee's action is acceptable if the laboratory director approves after the fact

Explanation

Proficiency testing is intended to provide an independent assessment of laboratory performance. Falsifying or manipulating PT results defeats that purpose and can lead to serious enforcement action, including loss of certification.

Question 22Innkeeping law and regulatory issues

A laboratory performing moderate complexity testing must have a director who meets which qualification?

  1. Certification as a medical assistant
  2. A bachelor's degree in any field with no laboratory experience
  3. A high school diploma with two years of phlebotomy experience
  4. A doctoral degree in a relevant field with laboratory experience, or another qualifying combination specified in the regulations Correct answer.

Explanation

The laboratory director for moderate complexity testing must meet specified education and experience requirements, typically a doctoral degree in a relevant field plus laboratory experience, or an alternate qualifying pathway. The laboratory must document the director's qualifications.

Question 23Innkeeping law and regulatory issues

A laboratory changes its test menu from moderate complexity to include high complexity testing. Which action is required before performing the high complexity testing?

  1. Obtain a certificate of waiver for the high complexity tests
  2. Notify the instrument vendor and begin testing immediately
  3. Ensure the laboratory's certificate covers the testing category and that personnel meet high complexity qualifications Correct answer.
  4. Submit a new proficiency testing enrollment and wait one year

Explanation

Adding high complexity testing requires that the laboratory's certificate reflect the appropriate category and that personnel meet high complexity qualifications. The laboratory must also have the required quality systems in place before testing.

Question 24Innkeeping law and regulatory issues

A laboratory director delegates quality control review to a supervisor, but the supervisor fails to review the records for several months. How is responsibility allocated under CLIA?

  1. Only the supervisor is responsible because the delegation was in writing
  2. The director remains responsible for ensuring the delegated activity is performed, even though the supervisor also bears responsibility Correct answer.
  3. Responsibility shifts to the accrediting organization
  4. Only the director is responsible and the supervisor has no accountability

Explanation

Delegation transfers the performance of a task but not the director's ultimate accountability for laboratory compliance. Both the director and the delegated individual can be held responsible for failures in the delegated activity.

Question 25Innkeeping law and regulatory issues

A laboratory is cited for an unacceptable proficiency testing result and for failing to investigate it. Which combination of actions best demonstrates an adequate corrective response?

  1. Remove the failing result from the PT record and note that the method is stable
  2. Investigate the root cause, evaluate the impact on patient results, implement corrective action, and document the entire process Correct answer.
  3. Repeat the PT sample and report only the acceptable result
  4. Change the laboratory director and take no further action

Explanation

An adequate response requires a documented investigation of the root cause, an assessment of whether patient results were affected, and corrective action to prevent recurrence. Simply repeating or deleting results does not satisfy the requirement.

Question 26Innkeeping law and regulatory issues

Under CLIA, a laboratory that performs only waived testing must obtain which type of certificate before examining human specimens?

  1. A certificate of compliance
  2. A certificate for provider-performed microscopy
  3. A certificate of waiver Correct answer.
  4. A certificate of accreditation

Explanation

A laboratory whose menu is limited to waived tests must hold a CLIA certificate of waiver, which carries minimal regulatory requirements. Certificates of compliance and accreditation apply to laboratories performing nonwaived testing, and a PPM certificate is a distinct category tied to provider-performed microscopy procedures.

Question 27Innkeeping law and regulatory issues

A laboratory holds a certificate of waiver and wishes to begin performing a moderate complexity test on its menu. What must the laboratory do first?

  1. Request a deemed status review from an accreditor
  2. Apply for the appropriate nonwaived certificate before testing Correct answer.
  3. Submit proficiency testing results for the new test
  4. Notify the manufacturer of the test being offered

Explanation

A certificate of waiver authorizes only waived testing, so the laboratory must first obtain a certificate of compliance or accreditation that covers nonwaived testing. Proficiency testing enrollment and survey review follow issuance of the correct certificate; they cannot substitute for holding the right certificate category.

Question 28Innkeeping law and regulatory issues

Which activity is permitted for a laboratory that holds only a CLIA certificate of waiver?

  1. Performing a test classified as waived by FDA Correct answer.
  2. Performing a laboratory-developed test for a rare analyte
  3. Performing high complexity testing under a consultant's supervision
  4. Modifying a cleared test's instructions for use

Explanation

A waiver certificate permits only tests that FDA has categorized as waived, meaning simple procedures with low risk of erroneous results. Laboratory-developed tests, modified cleared tests, and high complexity testing all require a nonwaived certificate with corresponding oversight.

Question 29Innkeeping law and regulatory issues

A laboratory performs nonwaived testing and has no accreditation from a private organization. Which entity conducts its routine survey and issues any statement of deficiencies?

  1. The test manufacturer's quality department
  2. The state agency acting on behalf of CMS Correct answer.
  3. The laboratory's own quality assurance committee
  4. The proficiency testing provider

Explanation

Laboratories holding a certificate of compliance are surveyed by the state agency under CMS authority, and citations are documented in a statement of deficiencies. Manufacturers, internal committees, and PT providers have no survey or enforcement authority over the laboratory's CLIA compliance.

Question 30Innkeeping law and regulatory issues

A laboratory must notify CMS of a change in the director of the laboratory. Which statement best describes the timing of that notification?

  1. Notification is due within 30 days of the change Correct answer.
  2. Notification is due only at the next certificate renewal
  3. Notification is due only if the new director requests it
  4. Notification is due within 6 months of the change

Explanation

CLIA regulations require a laboratory to report specified changes, including a change of director, to CMS within 30 days of the effective date. Waiting for renewal or for the incoming director's request would leave the certificate record inaccurate and could affect the laboratory's authority to test.

Question 31Innkeeping law and regulatory issues

A laboratory performing moderate complexity testing has a director who is a physician but is not board certified in a laboratory specialty. Which additional qualification can support that director's eligibility?

  1. Documented training and experience in the specialty plus qualifying experience Correct answer.
  2. Certification as a phlebotomy technician
  3. Two years of experience directing a waived laboratory
  4. A business degree with hospital administration experience

Explanation

A physician director without board certification in a laboratory specialty may qualify through a combination of documented training or experience in the relevant specialty and the required period of laboratory experience. Waived laboratory experience, business credentials, and phlebotomy certification do not satisfy the director qualifications for moderate complexity testing.

Question 32Innkeeping law and regulatory issues

A laboratory director plans to be absent for an extended period. Which arrangement is consistent with CLIA obligations?

  1. Designating a qualified individual to fulfill director responsibilities during the absence Correct answer.
  2. Suspending all testing for the duration of the absence
  3. Delegating all director duties permanently to a testing technologist
  4. Leaving the laboratory without a director until a replacement is hired

Explanation

CLIA requires the laboratory to have a qualified director at all times, and the director may delegate specific responsibilities to qualified individuals while remaining accountable. A permanent delegation to unqualified personnel or an unfilled directorship would breach the requirement, and suspending testing is not the required remedy.

Question 33Innkeeping law and regulatory issues

Which element is required in a laboratory's procedure manual for a nonwaived test before patient testing begins?

  1. The manufacturer's marketing brochure
  2. The laboratory's organizational chart
  3. A list of referring physicians
  4. A written procedure describing specimen handling and reporting Correct answer.

Explanation

CLIA requires written procedures for each nonwaived test that address specimen collection and handling, test performance, quality control, and result reporting. Marketing materials, referral lists, and organizational charts do not fulfill the requirement for documented test procedures.

Question 34Innkeeping law and regulatory issues

A laboratory performing nonwaived testing is preparing for a survey. Which record retention practice best aligns with CLIA expectations?

  1. Discard quality control records after 30 days to save space
  2. Retain records only when a physician requests them
  3. Retain records for the period specified by regulation, generally at least two years Correct answer.
  4. Retain records only until the next proficiency testing event

Explanation

CLIA requires laboratories to keep records such as quality control, proficiency testing, and personnel documentation for specified periods, commonly at least two years. Short retention windows tied to space, PT events, or physician requests would leave the laboratory unable to demonstrate compliance during a survey.

Question 35Innkeeping law and regulatory issues

A laboratory performing high complexity testing wants to introduce a new test method. Which action reflects the required verification before reporting patient results?

  1. Relying solely on the manufacturer's package insert performance claims
  2. Reporting results while verification is in progress
  3. Verifying only after the first proficiency testing cycle
  4. Documenting the laboratory's own verification of accuracy and precision Correct answer.

Explanation

Before reporting patient results for a new nonwaived method, the laboratory must verify or establish performance specifications such as accuracy and precision in its own setting. Package insert claims alone do not demonstrate performance in the laboratory, and results cannot be released before verification is complete.

Question 36Innkeeping law and regulatory issues

A laboratory is enrolled in a CMS-approved proficiency testing program for a regulated analyte. Which practice is required?

  1. Sharing PT samples with another laboratory for confirmation
  2. Testing PT samples using the same method used for patient specimens Correct answer.
  3. Selecting which PT challenges to test based on workload
  4. Averaging PT results with another laboratory's results

Explanation

CLIA requires PT samples to be tested in the same manner as patient specimens, including the same method and personnel routines. Sharing samples, selectively testing challenges, and pooling results with other laboratories would compromise the integrity of the PT evaluation.

Question 37Innkeeping law and regulatory issues

A laboratory performing moderate complexity testing is deciding how often to run quality control for a stable analyte. Which approach is most consistent with CLIA requirements?

  1. Following the manufacturer's instructions and the laboratory's established QC plan Correct answer.
  2. Running controls once per year during inspection
  3. Running controls only when a result looks unusual
  4. Skipping controls whenever the reagent lot is new

Explanation

CLIA requires laboratories to follow the manufacturer's instructions for quality control and to maintain a documented QC plan appropriate to the test. Running controls only on suspicion, annually, or skipping them for new reagent lots would fail to detect systematic error before patient results are reported.

Question 38Innkeeping law and regulatory issues

A laboratory is preparing to implement a new moderate complexity test. Which combination of documents must be in place before patient testing starts?

  1. A proficiency testing enrollment alone
  2. A referring physician roster and a billing schedule
  3. A procedure, documented verification of performance, and a QC plan Correct answer.
  4. A marketing plan, a staffing forecast, and a budget

Explanation

Before patient testing begins, the laboratory needs a written procedure, documented verification of the method's performance in its own setting, and a quality control plan consistent with the manufacturer's instructions. Business, staffing, and billing documents do not satisfy these regulatory prerequisites, and PT enrollment alone is insufficient.

Question 39Innkeeping law and regulatory issues

A laboratory performing nonwaived testing receives a complaint alleging inaccurate results. Which action best reflects CLIA's quality assessment expectations?

  1. Documenting the complaint and investigating the cause Correct answer.
  2. Referring the complainant to the manufacturer
  3. Discarding the complaint after the patient is retested
  4. Filing the complaint without further action

Explanation

CLIA quality assessment requires laboratories to investigate and document complaints and to take corrective action when problems are identified. Simply filing or discarding a complaint, or shifting responsibility to the manufacturer, fails to address the laboratory's own accountability for the accuracy of its results.

Question 40Innkeeping law and regulatory issues

A laboratory performing nonwaived testing is cited for a condition-level deficiency that poses immediate jeopardy to patient safety. Which outcome is most consistent with CLIA enforcement?

  1. Exemption from future surveys for one year
  2. Principal sanctions such as limitation or revocation of the certificate Correct answer.
  3. Automatic renewal of the certificate without further review
  4. Conversion of the certificate to a waiver certificate

Explanation

When condition-level deficiencies create immediate jeopardy, CMS may impose principal sanctions, including limitation, suspension, or revocation of the laboratory's certificate. Automatic renewal, conversion to a waiver, or survey exemptions would not address the serious noncompliance and are inconsistent with the enforcement framework.

Question 41Wage and hour and labor law

Under the Fair Labor Standards Act, which of the following best describes the general rule for when an employer must pay overtime compensation to a covered nonexempt employee?

  1. For hours worked beyond forty in a workweek, at the employee's straight-time rate.
  2. For hours worked beyond forty in a workweek, at one and one-half times the regular rate. Correct answer.
  3. For hours worked beyond eight in a single workday, at one and one-half times the regular rate.
  4. For all hours worked on Saturdays, Sundays, and federal holidays, at double the regular rate.

Explanation

The FLSA requires overtime at not less than one and one-half times the employee's regular rate for hours worked in excess of forty in a workweek. The statute is workweek-based, not daily, so daily overtime is a matter of state law or contract rather than federal law. Premium pay for weekends and holidays is not mandated by the FLSA.

Question 42Wage and hour and labor law

An employer pays a nonexempt employee a fixed salary of $800 per week regardless of hours worked. In a week the employee works 50 hours. What is the correct FLSA treatment?

  1. Overtime is owed at the straight-time rate for the 10 extra hours only.
  2. Overtime is owed at one and one-half times the salary divided by 50, for the 10 extra hours. Correct answer.
  3. Overtime is owed at one and one-half times the salary divided by 40, for the 10 extra hours.
  4. No overtime is owed because the employee is salaried.

Explanation

A fixed salary does not exempt an employee from overtime; the regular rate is computed by dividing the salary by the total hours the salary is intended to compensate. Here $800 divided by 50 hours yields a regular rate of $16, and the 10 overtime hours are paid at one and one-half times that rate. Simply paying a salary does not satisfy the overtime obligation.

Question 43Wage and hour and labor law

Which test must generally be satisfied for an employee to be exempt as an executive, administrative, or professional employee under the FLSA?

  1. The employee must be paid on a salary basis at not less than the regulatory minimum and must meet the duties test. Correct answer.
  2. The employee must be paid on an hourly basis at a rate above the federal minimum wage.
  3. The employee must work at least fifty hours per week and have supervisory authority.
  4. The employee must hold a job title that includes the word manager or director.

Explanation

The white-collar exemptions require both a salary-basis payment at or above the regulatory threshold and satisfaction of the applicable duties test. Job titles are not controlling, and hours worked are irrelevant to exemption status. Hourly pay is generally inconsistent with the salary-basis requirement.

Question 44Wage and hour and labor law

A nonexempt employee receives a $100 production bonus during a workweek in which she worked 45 hours and earned $720 in straight-time hourly pay. How is the bonus treated for overtime purposes?

  1. The bonus is excluded because discretionary bonuses never affect the regular rate.
  2. The bonus is allocated only to the five overtime hours before computing the rate.
  3. The bonus is added only to the overtime hours and paid at double the regular rate.
  4. The bonus is added to straight-time pay and divided by total hours to derive the regular rate, then a half-time premium is owed on the overtime hours. Correct answer.

Explanation

Nondiscretionary bonuses must be included in the regular rate by adding the bonus to straight-time earnings and dividing by total hours worked. Because the hourly rate already compensated all hours at straight time, the employer owes an additional half-time premium on the overtime hours. Discretionary bonuses are the narrow exception.

Question 45Wage and hour and labor law

Which of the following activities is generally compensable working time under the FLSA?

  1. Time spent on a bona fide meal period of at least thirty minutes during which the employee is fully relieved of duty.
  2. Time spent voluntarily attending an unrelated evening class reimbursed by the employer.
  3. Time spent commuting from home to the regular worksite in a personal vehicle.
  4. Time spent by a nonexempt employee answering work emails at home as required by the employer. Correct answer.

Explanation

Time the employer requires or permits an employee to work, including off-hours email responses, is compensable even if performed away from the worksite. Ordinary home-to-work commuting and bona fide meal periods during which the employee is relieved of all duties are not compensable. Purely voluntary unrelated training is also generally excluded.

Question 46Wage and hour and labor law

Under the FLSA, which statement correctly describes the treatment of tips for a tipped employee?

  1. Tips must always be excluded from the regular rate and never affect overtime calculations.
  2. An employer may require tipped employees to share tips with managerial staff as part of a tip pool.
  3. All tips are the property of the employer and may be used to satisfy any wage obligation.
  4. An employer may take a tip credit toward its minimum wage obligation only if it informs the employee and the employee retains tips beyond the credit. Correct answer.

Explanation

An employer may use a tip credit against the minimum wage only when it has provided the required notice and the employee keeps all tips except valid pool contributions. Managers and supervisors may not share in tip pools. Tips must also be included in the regular rate when calculating overtime for tipped employees.

Question 47Wage and hour and labor law

An employer discovers that a nonexempt employee was underpaid overtime for the past eighteen months. Which statement best reflects the FLSA recordkeeping and liability implications?

  1. Only the most recent six months of underpayment can ever be recovered.
  2. The employer must keep accurate records of hours worked and is liable for unpaid overtime plus liquidated damages unless it shows good faith. Correct answer.
  3. Liquidated damages are automatic and cannot be avoided under any circumstance.
  4. The employer has no obligation to reconstruct hours because the employee did not complain.

Explanation

Employers must maintain accurate payroll and time records, and they bear the burden of proving hours when records are inadequate. Unpaid overtime is recoverable, and liquidated damages may be awarded unless the employer proves good faith and reasonable grounds. The limitations period is generally two years, extended to three for willful violations.

Question 48Wage and hour and labor law

Which of the following is the correct federal minimum wage standard currently applicable to covered, nonexempt employees under the FLSA?

  1. $7.25 per hour, the federal floor, subject to a higher applicable state or local minimum. Correct answer.
  2. $10.00 per hour, adjusted annually for inflation.
  3. $5.15 per hour, unchanged since 1997.
  4. $12.00 per hour, applicable only to employers with more than 100 employees.

Explanation

The federal minimum wage has been $7.25 per hour since 2009, and employers must pay the higher of the federal, state, or local minimum that applies. There is no automatic federal inflation adjustment. Employer size does not change the federal floor in the manner described.

Question 49Wage and hour and labor law

A nonexempt employee is required to be on the employer's premises overnight and may sleep for eight hours if not disturbed. Under the sleep-time rule, how is the sleep time generally treated?

  1. All sleep time is excluded regardless of interruptions or facilities.
  2. Up to eight hours of sleep time may be excluded if the employer provides adequate sleeping facilities and the employee usually gets an uninterrupted night, with interruptions counted as hours worked. Correct answer.
  3. All sleep time is compensable because the employee is on the premises.
  4. Sleep time is compensable only if the employee is actually interrupted by a call.

Explanation

For duty of 24 hours or more, the employer and employee may agree to exclude bona fide meal periods and a regular sleeping period of up to eight hours, provided adequate facilities are furnished and interruptions are uncommon. Interruptions are counted as hours worked, and if sleep is frequently interrupted the entire period may become compensable.

Question 50Wage and hour and labor law

Which statement correctly describes the FLSA's treatment of compensatory time off in lieu of overtime for private-sector employees?

  1. Comp time is permitted for private employers only if the employee requests it in writing.
  2. Private employers may offer comp time at one and one-half hours per overtime hour in place of cash overtime.
  3. Private employers generally may not substitute comp time for overtime pay; cash overtime is required unless a specific exception applies. Correct answer.
  4. Comp time is permitted for private employers only for hours worked beyond fifty in a workweek.

Explanation

Compensatory time in lieu of overtime is generally limited to public agencies; private employers must pay cash overtime when due. Some limited exceptions exist, but they do not create a general private-sector comp-time option. An employee request does not authorize an otherwise impermissible practice.