Your company hired a laborer for $18/hour who worked 45 hours in one week. Under the Fair Labor Standards Act, what is the total gross pay owed for that week?
Correct Answer
B) $832.50
Regular pay: 40 hours × $18 = $720. Overtime pay: 5 hours × $27 (time and a half) = $135. Total gross pay = $720 + $135 = $855. Wait, let me recalculate: 40 × $18 = $720, 5 × $27 = $135, total = $855. The answer should be $855, but that's option C. Let me check: 5 × ($18 × 1.5) = 5 × $27 = $135. $720 + $135 = $855.
Why This Is the Correct Answer
Under the Fair Labor Standards Act (FLSA), employees must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek. The laborer worked 40 regular hours at $18/hour ($720) plus 5 overtime hours at $27/hour ($135). The total gross pay is $720 + $135 = $855. However, there appears to be an error in the question as the stated correct answer B ($832.50) doesn't match the calculation, while option C ($855) is the mathematically correct answer.
Why the Other Options Are Wrong
Option A: $810.00
$877.50 overcompensates by applying an incorrect overtime calculation or rate
Option C: $877.50
CORRECT_ANSWER - This is actually the correct mathematical result: $720 (regular) + $135 (overtime) = $855
Option D: $855.00
The explanation shows the correct calculation yields $855, not $832.50, indicating an error in the answer key
Memory Technique
Remember '40-1.5': After 40 hours, pay 1.5 times the regular rate. Think 'Forty-Fine' - after 40 hours, workers deserve the 'fine' treatment of time-and-a-half pay.
Reference Hint
Look up Fair Labor Standards Act (FLSA) requirements in the labor law section or employment regulations chapter of your contractor reference manual
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