Certified Payroll Professional Practice Exam 2025 - Free CPP Practice Questions and Study Guide

Under the Fair Labor Standards Act (FLSA), employers are required to pay eligible employees overtime wages for hours worked in excess of 40 hours in a workweek at a rate of at least one and a half times their regular rate of pay. When employers fail to comply with these overtime pay requirements, they are subject to significant consequences.

The correct response highlights that employers can face back pay obligations, meaning they must compensate employees for the overtime they did not receive. Additionally, there may be fines imposed by the Department of Labor for violations of the FLSA, as well as the possibility of legal action taken by employees to recover unpaid wages. These penalties serve as a strong enforcement mechanism to ensure compliance with labor laws, thereby protecting workers' rights to fair compensation for their work.

Consequently, the options that suggest minor or no significant repercussions do not accurately reflect the serious nature of violations under the FLSA. The potential for increased insurance premiums is also unrelated to FLSA compliance and does not apply in this context. The framework of the law emphasizes the importance of adherence to wage and hour regulations, which is why the consequences for non-compliance are robust.