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Test Your US Payroll and Labor Knowledge with Our Quiz

US Payroll

Author

Shannon Hodgen

Published

August 24, 2023

Last Update

June 27, 2024

From astrology in Alabama to workers’ comp in Wyoming, US payroll and employment laws cover a wide variety of topics. While some may seem a little… odd, every employer needs to stay up to date on local requirements to avoid the reputational damage, fines, and criminal proceedings that can come from non-compliance.

Whether you’re an HR professional, business owner, or self-appointed trivia master, this quiz will challenge your understanding of US payroll and employment laws and demonstrate just how complex—and strange—they can be. 

Test your knowledge, and start the quiz below! Make note of your answer for each question, then scroll to the end for the correct answers.

1. What is the Chauffeur Tax?

A) A tax in Puerto Rico imposed on employees with jobs that involve driving vehicles on a regular basis

B) A tax in California imposed on companies who employ private drivers

C) A tax levied on the carbon emissions created by chauffeuring companies in New York

2. Which state requires private companies to grant organ and bone marrow donors unpaid leave of up to 90 days?

A) Arkansas

B) Florida

C) Michigan

3. Where is it illegal for employers to discriminate against an employee based on their astrological sign?

A) All US states

B) No US states

C) California, Nevada, and New York

4. How many weeks of leave are covered under the Family and Medical Leave Act (FMLA)?

A) 8

B) 12

C) 24

5. Which of the following states do not levy a state income tax?

A) Missouri

B) Maryland

C) Nevada

6. In which state are fortune tellers required to obtain a license to operate their business?

A) Connecticut

B) Massachusetts

C) New York

7. In California, how many hours per year can a parent take off work to participate in their child’s school activities?

A) 12

B) 24

C) 40

8. When do Florida employers have to get workers’ compensation coverage?

A) When they have 4 or more employees

B) When their payroll exceeds $50,000 USD per year

C) When they register their business

9. Which of the following states require employers to provide bereavement leave?

A) Utah

B) Oregon

C) Pennsylvania

10. Which activity is illegal in South Dakota cheese factories?

A) Drinking oat milk

B) Lying down and sleeping

C) Discussing wages

11. Which state has the highest minimum wage?

A) District of Columbia

B) Washington

C) California

12. How frequently must employees in Kentucky be paid?

A) Semi-monthly

B) Monthly

C) Weekly

13. Which of the following employees are exempt from FLSA overtime laws?

A) Employees who process maple sap into sugar or syrup

B) Employees who work on fishing boats

C) Employees who are related to their employers

14. Which state explicitly includes height and weight as a protected class?

A) South Dakota

B) Louisiana

C) Michigan

15. When are non-compete agreements valid in North Dakota?

A) Between business partners

B) Between an employee and an employer

C) Between an independent contractor and their client

16. In which state can an employer mandate direct deposit as their payment method?

A) Oklahoma

B) Utah

C) New Mexico

17. Which state prohibits businesses from operating before 1:30 p.m. on Sundays?

A) South Carolina

B) Alabama

C) Montana

18. What is the minimum age requirement for workers in Georgia?

A) 14

B) 12

C) 16

19. Which factors can employers in Kentucky use to adjust employees’ health plan contribution rates?

A) Vegetarian vs. omnivore

B) Smoker vs. non-smoker

C) Whether or not they have a gym membership

20. What can’t you do during a business meeting in North Carolina?

A) Wear a costume

B) Drink alcohol

C) Be more than 30 minutes late

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Correct answers

1. What is the Chauffeur Tax?

Answer:

A) A tax in Puerto Rico imposed on employees with jobs that involve driving vehicles on a regular basis

The Chauffeur Tax, also known as Chauffeur’s Insurance, is a tax in Puerto Rico that’s withheld and paid in lieu of the disability benefits tax. This tax applies if you hire employees who are required or permitted to operate motor vehicles as an integral and regular part of their jobs. 

2. Which state requires private companies to grant organ and bone marrow donors unpaid leave of up to 90 days?

Answer:

A) Arkansas

Good news for donors in ‘The Natural State.’ Employers in Arkansas are required to provide unpaid leave of up to 90 days to organ and bone marrow donors, provided the employer has at least one employee. State employees are entitled to up to 30 days of paid leave for organ donation and 7 days for bone marrow donation. Employers can claim a tax credit of 25% of the employee’s regular salary during their leave.  

3. Where is it illegal for employers to discriminate against an employee based on their astrological sign?

Answer:

B) No US states

Tread carefully, Geminis. There are federal, state, and regional laws that prohibit discrimination against protected classes such as race, religion, gender, and age, but astrological signs are not explicitly included. Still, asking questions about an employee or job candidate’s zodiac sign may result in claims of religious discrimination

4. How many weeks of leave are covered under the Family and Medical Leave Act (FMLA)?

Answer:

B) 12

The FMLA covers 12 weeks of unpaid, job-protected leave for specific family and medical reasons within one 12-month period. During that time, employees are entitled to continuous group health insurance coverage under their standard terms. 

5. Which of the following states do not levy a state income tax?

Answer:

C) Nevada

Looking to lower your tax burden? You could move to one of the nine US states that do not levy a state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. 

6. In which state are fortune tellers required to obtain a license to operate their business?

Answer:

B) Massachusetts

If you want to read palms, tarot, or hold a seance for paying customers in Boston, you’d better be certified. Massachusetts requires fortune tellers to receive a license to operate their business, which is issued by their city or town. Connecticut does not currently have any regulations or laws regarding fortune tellers. In New York, fortune-telling is considered a class B misdemeanor unless it’s part of a show or exhibition solely for the purpose of entertainment or amusement.

7. In California, how many hours per year can a parent take off work to participate in their child’s school activities?

Answer:

C) 40

Employers with 25 or more employees working at a single location are required to give parents, grandparents, or guardians up to 40 hours off per year to participate in activities at their child’s school or daycare. The employee must provide reasonable notice to their employer and use any existing vacation, personal leave, or compensatory time off first. This time off is not required to be paid. 

8. When do Florida employers have to get workers’ compensation coverage?

Answer:

A) When they have 4 or more employees

In Florida, workers’ compensation requirements vary depending on the industry, number of employees, and entity organization. An employer in a non-construction industry must provide workers’ compensation coverage when they have four or more employees. Employers in the construction industry must have workers’ compensation coverage when they have one employee, including the owner of the business. 

9. Which of the following states require employers to provide bereavement leave?

Answer:

B) Oregon

There are five US states that have enacted bereavement leave policies: California, Oregon, Illinois, Maryland, and Washington. These policies vary by state. Vermont, Massachusetts, and New Jersey currently have active legislation related to providing bereavement leave for employees.

10. Which activity is illegal in South Dakota cheese factories?

Answer:

B) Lying down and sleeping

It is illegal to lie down and fall asleep in a cheese factory in South Dakota, presumably for reasons related to food cleanliness and safety. Why they had to specify this and formalize it into law is anyone’s guess. 

11. Which state has the highest minimum wage?

Answer:

A) District of Columbia

Working in the nation’s capitol has its perks: DC currently has the country’s highest minimum wage requirement of $16.50. This is followed by Washington ($15.74), California ($15.50), and Massachusetts ($15.00). 

12. How frequently must employees in Kentucky be paid?

Answer:

A) Semi-monthly

Kentucky employees must be paid on a semi-monthly pay schedule (at a minimum) within 18 days of the end of the pay period in which they earned their wages. Learn more about the most common types of payroll schedules

13. Which of the following employees are exempt from FLSA overtime laws?

Answer:

A) Employees who process maple sap into sugar or syrup

It takes a lot of sweat to make the sweet stuff. Under the Fair Labor Standards Act (FLSA) section 13(b)(15), employees engaged in processing maple sap into sugar or syrup are exempt from the Act’s overtime requirements. Employees engaged in processing sugar beets, sugar beet molasses, or sugar cane into sugar or syrup are partially exempt as well. 

14. Which state explicitly includes height and weight as a protected class?

Answer:

C) Michigan

While many states prohibit discrimination based on appearance, which could include height and weight, Michigan is the only state that explicitly names height and weight as protected classes. Some jurisdictions in other states—including New York City, NY; San Francisco, CA; and Madison, WI—also protect individuals from height and weight discrimination

15. When are non-compete agreements valid in North Dakota?

Answer:

A) Between business partners

In North Dakota, a contract that restrains an individual from exercising a lawful profession, trade, or business is void—and that includes non-compete agreements. The exceptions to this rule are for contracts between business partners who are dissolving a partnership, LLC, or corporation, as well as contracts between buyers and sellers. 

16. In which state can an employer mandate direct deposit as their payment method?

Answer:

B) Utah

Unlike other states, employers in Utah can mandate direct deposit as their way of paying workers, but there are stipulations. They must pay $250,000 or more in state payroll taxes or be able to prove at least two-thirds of employees agree to direct deposits. 

17. Which state prohibits businesses from operating before 1:30 p.m. on Sundays?

Answer:

A) South Carolina

Ever been in SC, and wonder why it’s so sleepy on a Sunday morning? Well, working on a Sunday in South Carolina before 1:30 p.m. is technically illegal, but there are numerous exceptions listed in the law that essentially make it redundant. These exceptions cover a wide range of industries, from food services and transportation to art supply retailers and funeral homes. 

18. What is the minimum age requirement for workers in Georgia?

Answer:

B) 12

The minimum legal age to work in Georgia is 12, though this only applies to employers who are not subject to the FLSA.  

19. Which factors can employers in Kentucky use to adjust employees’ health plan contribution rates?

Answer:

B) Smoker vs. non-smoker

Smoking isn’t exactly the healthiest habit, and Kentucky has taken notice. While employers cannot discriminate against an employee for smoking or not smoking, a Kentucky statute declares that “a difference in employee contribution rates for smokers and non-smokers in relation to an employer-sponsored health plan shall not be deemed to be an unlawful practice.” 

20. What can’t you do during a business meeting in North Carolina?

Answer:

A) Wear a costume

If you want to add an air of mystery to your next all-hands, or take casual Friday to the next level, North Carolina is not your state. A law in North Carolina states that no person 16 years of age or older can hold meetings or demonstrations while wearing a mask or hood that conceals their face, voice, or identity. The only exception is if the person obtains written permission from the owner or occupier of the property where the meeting is held. 

Simplify US payroll with Deel

With Deel, your payroll will be 100% compliant with the local, state, and federal requirements, no matter where you hire. 

Our in-house experts on US state registration, payroll, taxes, labor laws, and other local regulations ensure air-tight compliance, while a dedicated client success manager and 24/7 in-app support guarantee fast, high-quality assistance.

Deel enables you to manage US and international employees in a single platform, featuring:

  • Registration support in all 50 states
  • Instant tax and wage calculations
  • Taxes filing and payment
  • Deel HR to manage your entire workforce
  • Benefits administration (add-on)

Book a 30-minute product demo with an expert to learn more.

Disclaimer: This content is provided for general informational purposes and should not be treated as legal or tax advice.

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