Certified Payroll Professional Practice Exam

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How are public sector agencies required to compensate overtime hours under FLSA?

With double pay for each overtime hour
Not required to compensate overtime
With an hour of compensatory time for each overtime hour
With half an hour of compensatory time for each overtime hour

The correct answer is: With an hour of compensatory time for each overtime hour

Public sector agencies are required to compensate overtime hours under the Fair Labor Standards Act (FLSA) with an hour of compensatory time for each overtime hour worked. This is in accordance with the guidelines set forth in the FLSA for public sector employees. Compensatory time off can be granted to public sector employees in lieu of monetary compensation for overtime hours worked, ensuring fair treatment in terms of compensating employees for their extra work hours.