Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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Can senior executive Michael earn overtime pay after working 50 hours in one week?

  1. Yes

  2. No

  3. He can earn half pay

  4. The CEO of his business must decide

The correct answer is: The CEO of his business must decide

For senior executives, such as Michael, the ability to earn overtime pay is determined by the Fair Labor Standards Act (FLSA) regulations. Under these regulations, employees classified as exempt from overtime pay typically include certain high-level positions like executives, professionals, and some administrative roles. Senior executives usually have specific salary thresholds that must be met, and they often have significant control over their departments and decision-making processes. Given this classification, they are generally not entitled to overtime pay regardless of the number of hours worked in a given week. This means that, in most circumstances, the decision for these executives to receive additional pay for hours worked beyond a standard workweek rests more on company policy rather than any legal requirements. The selection regarding the CEO's discretion implies a misunderstanding of the exemption status since it ultimately hinges on the established guidelines of the FLSA rather than the CEO’s personal decision. Hence, the correct conclusion would be that a senior executive like Michael is not eligible for overtime pay after working 50 hours in a week because of his exempt status as an executive.