Employment Law Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The potential outcome of not complying with the Fair Labor Standards Act (FLSA) regarding overtime pay is liability for unpaid wages and damages. The FLSA establishes specific requirements for overtime compensation, which mandates that covered employees must receive time and a half for hours worked over 40 in a workweek.

If an employer fails to comply with these regulations, it can result in significant financial repercussions. Employees may have the right to file a claim for unpaid overtime wages, and courts can award back pay, which includes the unpaid amounts along with liquidated damages, which essentially double the owed amount. This financial liability serves as a strong motivator for employers to understand and properly implement FLSA guidelines to avoid potential litigation and expensive settlements.

In terms of the other potential outcomes listed, they do not accurately reflect the consequences of non-compliance. There are indeed legal repercussions for failing to comply with wage and hour laws, which could include fines and enforcement actions. Non-compliance would not typically lead to increased employee morale, as failure to pay overtime can create resentment and dissatisfaction among employees. While higher employee turnover may be a concern in the context of poor labor practices, it is not as direct a consequence as facing liability for unpaid wages and damages under the F