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Questions and Answers
Which establishments are included in the restaurant/fast food industry?
Which establishments are included in the restaurant/fast food industry?
- Establishments primarily engaged in selling and serving groceries
- Establishments primarily engaged in selling and serving prepared food and beverages for consumption on or off the premises (correct)
- Establishments primarily engaged in selling and serving clothing
- Establishments primarily engaged in selling and serving alcoholic beverages
Which businesses are subject to the FLSA?
Which businesses are subject to the FLSA?
- Restaurants/fast food businesses with annual gross sales of at least $500,000 (correct)
- All businesses in the food industry
- Restaurants/fast food businesses with annual gross sales of less than $500,000
- All businesses in the retail industry
Who is individually subject to the minimum wage and overtime protection of the FLSA?
Who is individually subject to the minimum wage and overtime protection of the FLSA?
- Only employees who earn less than the federal minimum wage
- Any person who works on or otherwise handles goods that are moving in interstate commerce (correct)
- Any person who works in the food industry
- Only employees of restaurants/fast food businesses
What is the federal minimum wage for covered non-exempt workers?
What is the federal minimum wage for covered non-exempt workers?
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Which deductions made from wages are illegal?
Which deductions made from wages are illegal?
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Study Notes
Restaurant and Fast Food Industry
- Establishments included in the industry: restaurants, cafes, coffee shops, bars, and fast food outlets
Businesses Subject to the FLSA
- Businesses subject to the Fair Labor Standards Act (FLSA) include: restaurants, hotels, hospitals, and institutions, as well as retail and service establishments with annual gross volume of sales of $500,000 or more
Minimum Wage and Overtime Protection
- Individuals subject to minimum wage and overtime protection of the FLSA: employees engaged in interstate commerce, including those involved in the production of goods for interstate commerce
- Exemptions: executive, administrative, professional, and outside sales employees, as well as certain computer professionals and highly compensated employees
Federal Minimum Wage
- Federal minimum wage for covered non-exempt workers: $7.25 per hour
Illegal Wage Deductions
- Illegal deductions from wages include: cash shortages, breakage, and customer walk-outs, as well as fines and penalties for misconduct
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