CSP CSP Compensation & Benefits Administration 1 — Questions and Answers
Question 1: Under the Fair Labor Standards Act (FLSA), what is the federal minimum wage as of 2024?
- $6.55 per hour
- $7.25 per hour (Correct answer)
- $8.00 per hour
- $9.00 per hour
Correct answer: $7.25 per hour
The federal minimum wage under the FLSA is $7.25 per hour, though many states have set higher minimums.
Question 2: Which classification determines whether a staffing employee is entitled to overtime pay under the FLSA?
- Exempt vs. non-exempt status (Correct answer)
- Full-time vs. part-time status
- Union vs. non-union status
- Temporary vs. permanent status
Correct answer: Exempt vs. non-exempt status
Exempt employees are not entitled to FLSA overtime protections, while non-exempt employees must receive 1.5x their regular pay for hours over 40 per week.
Question 3: When a staffing agency places a worker at a client site, who is generally responsible for paying the employee's wages?
- The client company exclusively
- The staffing agency (Correct answer)
- Both share equal responsibility
- The government
Correct answer: The staffing agency
The staffing agency is the employer of record and is primarily responsible for paying wages, taxes, and benefits to placed workers.
Question 4: What does the term 'bill rate' refer to in staffing compensation?
- The employee's net take-home pay
- The hourly amount charged to the client (Correct answer)
- The agency's internal cost per hire
- The overtime multiplier applied to wages
Correct answer: The hourly amount charged to the client
The bill rate is the hourly or per-unit charge invoiced to the client, which includes the pay rate plus the agency's markup for overhead and profit.
Question 5: Which law requires staffing firms to provide continuation of health coverage to eligible employees after a qualifying event?
- ADA
- COBRA (Correct answer)
- ERISA
- HIPAA
Correct answer: COBRA
COBRA (Consolidated Omnibus Budget Reconciliation Act) requires employers with 20+ employees to offer continued health coverage after qualifying events like job loss.
Question 6: What is 'co-employment' in the context of staffing agency compensation obligations?
- When two agencies jointly recruit the same candidate
- A shared employer relationship where both agency and client bear certain employment duties (Correct answer)
- A contract where client pays the worker directly
- A situation where a worker holds two part-time jobs simultaneously
Correct answer: A shared employer relationship where both agency and client bear certain employment duties
Co-employment occurs when both the staffing agency and the client company share employer responsibilities, such as supervision, benefits, and wage compliance.
CSP CSP Compensation & Benefits Administration 1
Under the Fair Labor Standards Act (FLSA), what is the federal minimum wage as of 2024?