Chapter 11 - Theory to Practice (p. 391)

Facts: Collegiate Banner Company (CBC) is a manufacturer and distributor of flags and banners bearing the names, logos, mottos, and mascots of American colleges and universities. Their products are purchased for retail sale by college bookstores as well as large-scale retail outlet sports equipment chains. CBC's administrative headquarters and sole manufacturing facility are located in different buildings on the same site. Its total workforce is 121 employees, with 76 employees located in the plant and the remaining 45 employees working in the office. CBC classifies their employees into two broad classifications: administrative employees or trade employees. The breakdown is as follows:

Administrative Employees:

Trade Employees:

1. Which of the following statements best describes the employee's status as exempt or nonexempt under FLSA?

a. The executive managers, general managers, plant supervisor, and line manager are exempt employees.

b. The members of the professional staff are exempt employees.

c. The members of the support staff are nonexempt employees.

d. The drivers, skilled trade employees, and trade employees are exempt.

e. All of the above.