Compensation in the United States is governed by a number of laws that set boundaries for what companies can do. Two of the most important are the rules governing equal employment opportunity and the Fair Labor Standards Act (FLSA). In the United States, it is illegal to discriminate on the basis of race, sex, or other protected categories in employment practices, including pay. The 1938 FLSA established the minimum wage, requirements for overtime regulations, and employment of minors. The FLSA establishes periodic minimum wages, of which the latest federal minimum wage is $7.25 per hour as of October 2016, although some exceptions apply for training wages and adherence to state minimum-wage laws. The FLSA also establishes overtime pay for wage earners working over 40 hours per week with detailed computation that includes bonuses and piece-rate payments. These employees are considered nonexempt workers because they are covered under FLSA requirements for overtime pay. Those employees who are not covered are considered exempt employees, usually paid salaries, who are in the executive and other professional white-collar jobs. FLSA rules also govern employment of child labor, outlining details from ages under 14 through 18. Finally, two additional federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors. This activity is important because it distinguishes between exempt and nonexempt compensation. The goal of this activity is to match legal requirements with the associated pay policy. Read each statement, then select the category to which it best applies.NON EXEMPT, EXEMPT, MINIUM WAGE1. Requires time and a half for work beyond 40 hours in a week. (Click to select)2. Supervisors receive a salary regardless of the number of hours worked or its quality. (Click to select)3. FLSA allows for a lower pay rate for certain trainees up to 90 days. (Click to select)4. A living wage is a law passed by some cities to raise wages based on cost of living. (Click to select)5. A pay status on an hourly basis. (Click to select)6. Some state laws specify that employers must pay the state’s higher rates. (Click to select)7. Despite typically being paid an hourly wage, computer professionals are usually not paid overtime if they work more than 40 hours a week. (Click to select)8. Requires employers to pay overtime if they know employees are working over 40 hours, even if it is off the clock. (Click to select)9. Corporate executives work 70 hours per week. (Click to select)10. A fast-food employee earns $7.25 per hour in 2016. (Click to select)11. Full-time janitors travel between buildings, working over 40 hours per week. (Click to select)12. A pay status on a salary basis.