What restrictions do companies have in regards to their salaried employees?

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

The correct choice identifies a misconception in employee classification. It is not true that companies cannot have both salaried and hourly employees. In many organizations, it is common practice to employ a mix of both types of workers. Salaried employees, often classified as exempt from overtime under the Fair Labor Standards Act (FLSA), can coexist with hourly employees, who are typically non-exempt and entitled to earn overtime pay.

The other options involve particular legal requirements or common practices regarding salaried employees. For instance, while companies may choose to pay salaried employees on a bi-weekly basis, there is no strict legal mandate requiring this frequency. Additionally, providing health benefits to salaried employees is contingent on the specific policies of the employer and applicable laws but is not universally mandated for all salaried employees. Moreover, while it is generally true that salaried employees may not be compensated for overtime, there are exceptions based on certain factors such as their role and industry.

Overall, the existence of various employee classifications within a company emphasizes the flexibility organizations have in structuring their workforce, which includes maintaining both salaried and hourly employees.

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