V432 Ch. 7 exam
According to the FLSA, in order to be exempt from overtime compensation requirements, an employee must be paid a minimum salary of ________ per week.
$455
A three-year total wage increase package that provides 8 percent wage increase in the first year, 5 percent in the second year, and 2 percent in the third year is known as a back-end contract.
false
Which of the following statements is TRUE of a profit-sharing plan?
Under a profit sharing plan, employees receive a lump-sum payment in addition to their regular wages based on sales levels.
The ________ Act covers employees with federal contracts of over $10,000. It requires employers to pay overtime for any hours worked over eight per day at a rate of one and a half times the normal hourly rate.
Walsh-Healey
Arena bargaining is a collective bargaining practice in which a national industry or union strives to establish equal wages and benefits from several unions or employers in the same industry.
false
Union workers must receive more pay compared to nonunion workers on similar jobs.
false
Which of the following refers to a deferred wage increase in which a larger proportion of the total increase occurs in the first year of a multiyear contract?
front-end loading
According to the productivity theory, ________.
employees should share in increased profits achieved because of their efforts
COLAs are considered to be necessary because the real wage is eroded by inflation.
true
Which of the following statements is TRUE of a variable wage formula provision?
According to the variable wage formula provision, future wage rate increases depend on the employer's future ability to pay.
The ________ Act regulates employers who hold federal government contracts of $2,000 or more for federal construction projects. It provides that employees working on these projects must be paid the prevailing wage (PW) rate.
Davis-Bacon
Which of the following statements is TRUE regarding job evaluation?
Job evaluation procedures do not include analyzing employee performance.
________ agreements require an employee who voluntarily quits before a specified period of time to pay the employer the cost of certain benefits.
Payback
Which of the following terms refers to a doctrine that advoactes one standard wage rate for each job and all employees who perform it?
Pay equity
Which of the following terms refers to a group incentive plan in which accrued savings from increased efficiency are distributed among the workers and the employer?
Scanlon plan
Which of the following statements is TRUE of cost-of-living adjustments (COLAs)?
The value of the COLA is based on the consumer price index (CPI).
As per the Fair Labor Standards Act, an employee who is paid by the hour or who makes a salary of less than $455 per week is nonexempt from receiving overtime compensation regardless of the type of work performed.
true
Base compensation is an employee's general rate of pay per unit or hour, disregarding payments for items such as overtime, pension benefits, and bonuses.
true
If an employee is paid $455 per week and his/her primary duty is management of the organization, then the employee will be exempt from overtime provisions of the FLSA.
true
The Davis-Bacon Act of 1931 regulates employers who hold federal government contracts of $2,000 or more for federal construction projects. It provides that employees working on these projects must be paid the prevailing wage (PW) rate.
true
The direct increase in benefits caused by a negotiated wage increase is referred to as the roll-up.
true
A ________ wage system is a wage system that pays newly hired workers less than current employees performing the same or similar jobs.
two-tier
A piece-rate system is a wage system that pays newly hired workers less than current employees performing the same or similar jobs.
false
Unions generally bargain for pay systems based on output, such as a merit or piece-rate systems or merit evaluations by supervisors, rather than wages based on time.
false
In which of the following wage systems do employees receive a standard rate of pay per unit of output?
Piece-rate system
under a piecework system, employees are paid depending on _______
the number of units produced
Which of the following statements is TRUE of lump-sum payments?
It is a method of providing a general wage increase as a onetime payment rather than adding the increase to the hourly or annual salary of the employee.
Which of the following statements is TRUE of back-loaded contracts?
a back-loaded contract provides a lower wage adjustment in the first year wtih higher increases in later years of a multiyear contract
Which of the following terms refers to a bargaining process during which management meets with representatives of all the bargaining units at one time to discuss difficult economic issues?
arena bargaining
A 10 percent three-year wage increase is provided as a 2 percent increase in the first year, 3 percent in the second year, and 5 percent in the third year. This is an example of a ________ contract.
back-loaded
A ________ contract provides a lower wage adjustment in the first year with higher increases in later years of a multiyear contract.
back-loaded
Which of the following is usually the largest single cost incurred by most corporations?
labor costs
Contract costs for retiree benefits increases in retirement and health care provided in earlier contracts are known as _______ costs.
legacy
Which of the following benefits is most likely to be included in a payback agreement?
relocation costs of new employees
According to the value-added concept, wages paid to the employees should be equal to their contribution of labor to the final product.
true
Add-on refers to the other costs that rise when wage rates are increased.
true
Job evaluation is a systematic method of determining the worth of a job to an organization.
true
The amendments to the Fair Labor Standards Act provide for a training wage for employees less than 20 years of age set at 85 percent of the minimum wage.
true
Wage surveys are used to determine the average salary for specified positions in the job market.
true
According to the ________ Act, certain employees must receive overtime pay of one and a half times the normal rate when they work over 40 hours per week.
Fair Labor Standards
The first step in determining compensation costs is to determine the value of the ________.
base compensation
Which of the following terms refers to a type of bargaining that involves negotiating reductions in previously negotiated wages, benefits, or work rules, usually in exchange for management-guaranteed employment levels during the term of a contract?
concession bargaining
Roll-up is also known as ________.
creep
A collective bargaining provision, effective for the term of the contract, which provides for contract talks to be reopened only for the renegotiation of wage rates, is known as a severability provision.
false
A two-tier wage system is a wage system in which the wages received by the employees are directly proportional to their performance.
false
Organizations in highly labor-intensive industries are usually more able to provide wage increases than organizations that are in more capital-intensive industries.
false
Surface bargaining is a process of bargaining during which management meets with representatives of all the bargaining units at one time to discuss difficult economic issues.
false
The "pyramiding" of overtime pay is accepted in most of the contract agreements.
false
The FLSA stipulates that employees must receive overtime pay of one and a half times the normal rate when they work over 30 hours per week.
false
The base compensation includes overtime, pension benefits, and bonuses.
false
The variable wage formula provision is most commonly found in the private sector.
false
Union negotiators often prefer back-loaded contracts so that their members receive additional wages and realize a large increase in pay in the first year itself.
false
Which of the following terms refers to a systematic method of determining the worth of a job to an organization?
job evaluation
The primary goal for most management negotiators in bargaining is to ________.
minimize the cents-per-hour direct wage increase
Typically, during ________ bargaining, the union leaders choose what they perceive as the weakest company—the one most susceptible to granting wage increases—and begin negotiations. Once negotiations are completed, the union insists that other firms in the industry agree to equal wage and benefit increases.
pattern
Which of the following terms refers to the payment of overtime on overtime that occurs if the same hours of work qualify for both daily and weekly overtime payment?
pyramiding
Which of the following factors is considered when calculating base compensation?
rate of pay per unit
The direct increase in benefits caused by a negotiated wage increase is referred to as the ________.
roll-up
According to the Fair Labor Standards Act, under which of the following circumstances is an employee most likely to be considered eligible to receive overtime pay?
the employee is paid by the hour
Payback agreements require an employee ________.
to pay the employer the cost of certain benefits if he/she voluntarily quits before a specified period of time
A back-loaded contract provides a lower wage adjustment in the first year with higher increases in later years of a multiyear contract.
true
A job title is not a sufficient basis for exemption from the overtime provisions of the FLSA.
true
According to productivity theory, employees should share in increased profits gained by the greater productivity achieved because of their efforts
true
Contract costs for retiree benefits increases in retirement and health care provided in earlier contracts are known as legacy costs.
true
Employees earning over $100,000 per year do not receive overtime if their duties are executive, administrative, or professional.
true