National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

What is the purpose of the Fair Labor Standards Act?

1. To grant rights to unionized workers

2. To establish minimum wage and overtime pay standards

3. To control workplace safety

4. To regulate employee benefits

The correct answer is: To establish minimum wage and overtime pay standards

The Fair Labor Standards Act (FLSA) primarily aims to establish minimum wage and overtime pay standards, ensuring that workers receive fair compensation for their labor. This legislation was enacted to protect workers from exploitation by setting a baseline for wages, which includes stipulating the federal minimum wage that employers must pay their employees. Additionally, the FLSA outlines regulations for overtime pay, requiring employers to pay workers at least one and a half times their regular pay rate for hours worked beyond the standard 40-hour workweek. While the other choices encompass important aspects of labor rights and workplace regulation, they do not reflect the central focus of the FLSA. For instance, granting rights to unionized workers pertains more to collective bargaining and union activities, rather than wage standards. Similarly, workplace safety is typically overseen by the Occupational Safety and Health Administration (OSHA), which is distinct from the FLSA’s scope. Employee benefits may include various forms of compensation and support, but they are not specifically addressed by the FLSA. Hence, the establishment of minimum wage and overtime pay standards is precisely the key purpose of the Fair Labor Standards Act.