1) Every company must provide rest breaks for its employees as dictated by federal law.

False – There are no federal laws regarding breaks, and only 7 states have strict rest break codes.

2) Federal holidays such as July 4th and Labor Day must be given off to all employees of public and private institutions.

False – There are no federal or state laws requiring specific holidays be given.

3) Commissioned outside sales personnel are normally exempt from overtime regulations.

True

4) Employers must continue providing health insurance coverage for employees on family leaves of absence under the Family Medical Leave Act.

True – If the employer has at least 50 employees.

5) An exempt employee cannot be docked for an absence of less than eight hours in a work week.

True – An exempt employee cannot be docked at all if s/he puts any work in during the week. There is a difference between docking salary (no) and using sick leave accrued (yes).

6) A nonexempt employee works 10 hours on Christmas Day. S/he must be paid double time for the two hours and overtime for working on the holiday.

False – First, nonexempt employees get overtime for any work over 40 hours in a week, except in California where overtime is paid for all work over 8 hours in a day. Second, there is no regulation which mandates overtime for working on a holiday. Third, double time is never required except in California where double time must be paid for all work over 12 hours in a day.

7) An exempt employee takes four hours off for sick leave. While his/her salary cannot be docked, his/her accrual of sick time can be docked.

True

8) Yours is a 50 employee company. One day an employee comes to you and states that he has a "problem with alcohol". You must make reasonable accommodations for his disability.

True – As long as he comes to you first.

9) If a pregnant employee cannot perform her job due to lack of skills rather than the pregnancy, the company can terminate her.

True – Make sure you can document the performance, however.

10) Every employee has the right to see and copy documents such as performance appraisals, consultation reports, and letters of recommendation in his or her personnel file.

False – The employee might have the right to see his file, but not the letters of recommendation. In some states, the employee has the right to have a copy of the entire file minus letters of recommendation. In some, the employee may rebut any comments made in his or her file.