Wheels-to-Go is a car and bike rental company headquartered in Pittsburgh, Pennsylvania with twenty locations throughout the state. They rent only hybrid vehicles and bicycles, as part of their mission is to care for the planet. They are a relatively new company (about three years old with fifty-five employees throughout Pennsylvania) and hope to grow rapidly and expand into other geographic regions. 
Once in a while (but not very often), a renter will tip an employee a couple of dollars for bringing their bike or car around – this has resulted in up to an extra ten dollars a month for those lucky employees. Full-time employees also get the free use of any rental cars or bikes that are not currently reserved to customers. Everyone that works there is an employee (no independent contractors), no one has an individual contract of employment and there is no union representing any of the workers. The following questions focus on some legal issues faced by Wheels-to-Go in their business.
36. Wheels-to-Go hires only people who can ride a bike, as all the jobs require moving bikes from location to location. Is this job requirement legal?

a.Yes
b.No

37. Wheels-to-Go is hiring people over 21 for their full-time positions because their insurance rates are lower if they implement this age restriction. What is the legal minimum according to federal law that they can pay them per hour?
a.$2.13
b.$4.25
c.$7.25
d.$10.10
e.There is no federal minimum wage restriction that applies here

38. Wheels-to-Go is thinking of hiring some high school students for part-time positions (vehicle cleaning, taking phone and online reservations, etc.) this July and August. They are expecting that with summer vacations, they will need the extra help. What is the legal minimum according to federal law that they can pay these part-time workers per hour for these two months?

a. There is no federal minimum wage restriction on workers under 21
b. There is no federal minimum wage restriction on part-time workers
c. $7.25
d. $2.13
e. $4.25

39. Can the state of Pennsylvania impose a minimum wage if there is a federal minimum wage that applies to the employees of Wheels-to-Go?

a. No, if there is a federal minimum wage that applies then the state cannot legislate one; federal law supersedes state law

b. No, the Fair Labor Standards Act and the U.S. Department of Labor forbids state interference in all matters of wage and hours by individual states

c. Yes, it can impose a higher minimum wage. If the state passes a lower minimum wage, the federal (higher) minimum wage will apply.

d. Yes, it can impose a lower minimum wage for jobs that take place within its state borders; the federal minimum wage will not apply.

e. It depends on whether the state has an unemployment insurance system approved by the federal government; if it does, it can set the state minimum wage and overrule the federal one.

 
40. Can a 14 year old 8th grader legally have a summer job answering phones to enter reservations in the computer for Wheels-to-Go?

a. Probably. The FLSA regulates child labor and the states also regulate the rules for hours worked and types of jobs for workers under 18.

b. No. The FLSA forbids child labor; the states regulate rules for hours worked and types of jobs for workers over 18.

c. Yes. The FLSA and the state laws permit any kind of work that workers under 18 want to do in the summer because it will not interfere with their educational opportunities.

d. Probably not. The FLSA and the state laws do not permit dangerous work, even if it is in the summer.

e. Yes, but only for 90 days, then the job must stop if the worker is under 21.

41. Candace, a 25 year old college graduate, accepts a full-time marketing position with Wheels-to-Go. In her orientation, she learns that she is required to clock in when she gets to the office, just like all the other workers. She is surprised, because she is being paid a yearly salary above the legal cap instead of an hourly rate and has been classified as “exempt” due to her duties. Stan, her manager, tells her not to worry about it – just to do it because it is company policy and to fit in, but they will never dock her salary for being a little bit late. Stan tells Candace the company will only dock her salary if she is two hours late or more, so not to worry. What would you advise Wheels-to-Go about their clocking-in policy?
a. This is a good policy because it makes the hourly workers and the salaried workers feel more equal (since everyone is clocking in and out) and encouraged by the FLSA

b. This is a good policy because it signals to all workers how important it is to be on time for work (consistent with the FLSA)

c. This is a risky policy because it may jeopardize Candace’s exempt status (under the FLSA)

d. This would have been a risky policy (under the FLSA) but if it is company policy across the board for all workers, it will not jeopardize Candace’s exempt status (under the FLSA)

e. This is a risky policy because it treats exempt workers differently from non-exempt workers and that could be illegal discrimination
42. Andrew is an hourly worker who travels a lot – his job is to pick up the one-way vehicle rentals that have been driven to Florida and return them to Pennsylvania. He loves his job – he loves Florida and he likes the freedom of being away from an office. He also loves to drive and he is a good driver! Unfortunately, in his latest trip home from Palm Beach, he got into an accident with a big truck on the highway entrance ramp. The police reports are not clear who was at fault, but Andrew is vehement that it was the truck driver’s fault! Andrew suffered severe whiplash, two broken bones in his wrist, three broken ribs, a concussion, and bruising from the air bags. The Wheels-to-Go vehicle was totaled. He is out of work and recovering at home until he heals enough to return to work at Wheels-to-Go. What benefits can Andrew collect to help him with his medical co-pays and to pay for the time he will be missing work while he heals?

a. Unemployment insurance and workers compensation
b. Intentional interference and unemployment compensation
c. OSHA benefits and whistleblower compensation
d. Unemployment compensation only
e. Workers compensation only

43. If true, what fact below would MOST JEOPARDIZE Andrew’s claim for workers compensation benefits? (See previous question for facts of Andrew’s situation.)

a. Wheels-to-Go didn’t fire him after the accident
b. Wheels-to-Go did fire him after the accident 
c. The accident was only 10% the truck driver’s fault; it was mostly Andrew’s fault
d. Andrew was drinking alcohol while driving the Wheels-to-Go vehicle and that may have caused the accident
e. Andrew wasn’t on his way back to Wheels-to-Go with the vehicle; he was off to bet on the racetrack first and that’s when the accident happened

44. Knowing what you know about Andrew and his duties (see question 42), is he properly classified as an exempt or a non-exempt employee?

a. Exempt
b. Non-exempt