MGT 470 UNR Exam 4

How many weeks of leave does the Family Medical Leave Act (1993) mandate for all workers at companies that employ 50 or more people?

12 weeks

HoldDesk, Inc. has an annual labor cost of $3,000,000. It has a turnover rate of 10 percent and a planned average increase of 5 percent. The turnover effect is

$15,000

Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to the Consolidated Omnibus Budget Reconciliation Act, how long can Larry continue his coverage through Steve's company after being laid off?

0 months

All of the following factors are reasons for the growth of benefits EXCEPT:

Foreign lawsuits

All of the following are advantages of flexible benefits EXCEPT:

decreased administrative expenses

The executive branch of the federal government

enforces laws through agencies and its other bodies

The typical employee can recall ________ percent of the benefits he or she receives

less than 15

Surveys show that the most highly valued employee benefit is:

medical insurance

A survey shows that most employers are responding to increased benefit costs by

requiring employees to pay higher deductibles and copays

The ________ often comes into play if organizations target reductions among higher paid employees because higher paid employees also tend to be older employees.

ADEA

The ________ prohibits use of several compensation programs, including, but not limited to bonuses, retention awards, and incentive pay, except where part of a preexisting employment contract, during the period Troubled Asset Relief Program funds are received.

American Recovery and Reinvestment Act

In the context of child labor, which of the following statements is true?

Child labor has decreased in most countries across the world in recent years.

________ has produced more comparable-worth pay increases than any other approach.

Collective bargaining

________, designed for employees or managers, explain compensation policies and practices, answer frequently asked questions, and explain how these systems affect their pay.

Communication portals

Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938?

Computer employees

Which of the following is a factor to control in order to manage labor costs in a simple labor cost model?

Employment

________ prohibits discrimination on the basis of race, color, religion, sex, or national origin.

Executive Order 11246

T or F: All employers with less than 20 employees must comply with the Consolidated Omnibus Budget Reconciliation Act.

False

T or F: An eligible unemployed person may now collect unemployment insurance benefits for 36 weeks in most states.

False

T or F: An individual employee cannot earn more pay than the maximum of the pay grade of their current job.

False

T or F: It is illegal to pay men and women who perform substantially equal work differently if the pay system is designed to recognize differences in performance, seniority, quality, and quantity of results.

False

T or F: Workers' compensation is covered by federal laws.

False

Which of the following statements about anchoring/framing is true?

It states that initial data strongly affect decisions/beliefs.

Who among the following has violated the Fair Labor Standards Act of 1938?

Jeremy, who employs his 16-year-old cousin in his meat-packing plant

Under the ________, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier.

Lilly Ledbetter Fair Pay Act

DrenchFort Corp. is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover has increased, so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover?

Medical coverage

A key provision of the ________ allows employees in publicly traded companies the freedom to sell off any employer stock purchased through deferrals or after-tax contributions.

Pension Protection Act

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving and is therefore not eligible for workers' compensation. What will be the outcome of the employer's challenge to her worker's compensation claim?

She will likely receive workers' compensation benefits.

________ allows employees who resign or are laid off through no fault of their own to continue receiving health coverage under their employer's plan at a cost borne by the employee.

The Consolidated Omnibus Budget Reconciliation Act (1984)

Which of the following requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship?

The Patient Protection and Affordable Care Act (2010)

Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time?

The Portal-to-Portal Act

Which of the following is a feature of defined contribution plans?

They are faster to vest than defined benefit plans.

Which of the following is an advantage of flexible benefit plans?

They increase the involvement of employees in choosing benefit plans

Which of the following is an objective of the unemployment insurance program?

To provide an incentive for employers to stabilize employment

________ is the budgetary approach that begins with an estimate from the highest-ranking executives of the pay increase budget for an entire organization.

Top-down budgeting

T or F: A McKinsey survey of chief executive officers found nearly 90 percent believe benefits are very important for attracting and retaining employees.

True

T or F: No strong data exist linking benefits level and employee productivity

True

T or F: The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content

True

The Web page for the compensation society is

WorldatWork.

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called a ________ plan.

a flexible benefit

Regarding pay differences for different jobs,

courts continue to uphold the use of market data to justify differences

Experts attribute the stabilization in the dollar cost of workers' compensation since 2010 to:

employer safety programs.

The rising costs of Social Security have been covered by:

increases in the maximum earnings base and the rate at which that base is taxed.

Various studies have found that only two specific benefits curtailed employee turnover, namely ________ and ________.

pensions; medical coverage

When employees are paid more than the maximum of their pay grade, these rates are called

red circle rates.

A major advantage of a ________ is that it reduces benefits costs, something that the other cost-cutting options ordinarily do not achieve.

reduction in force

Almost ________ percent of the companies offering child care assistance to employees also offer elder care assistance.

50

The ________ was enacted by the Congress to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events.

Consolidated Omnibus Budget Reconciliation Act

T or F: Jim was a full-time student for four years, but he could not find a job after graduating. Jim is eligible to collect unemployment insurance.

False

T or F: The CPI accurately reflects an individual employee's cost of living.

False

T or F: The first step in claims processing is to determine if the employee who is claiming the payment is eligible for the payment benefits.

False

T or F: The practice of administrative cost containment practice primarily focuses on providing accommodations for employees to return to work after illness or disability.

False

Which of the following statements is true of employee benefits?

Group insurance has relatively easy qualification standards.

T or F: Exit incentives are likely to result in the loss of high-performing employees.

True

The denominator for calculating the current year's pay rise is the

average pay at the beginning of the year.

A compa-ratio reflects the

relationship of the average actual salary in each range to the midpoint of the range

The Davis-Bacon Act

requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area.

One of the most preferred benefits is

stock plans

If red circle rates become common throughout an organization, then:

the design of the ranges and the evaluation of the jobs should be reexamined.

The denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of

access discrimination.

In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?

Disparate impact

Which of the following is true of the Age Discrimination in Employment Act?

It was amended in 1990 to include the Older Workers Benefit Protection Act.

Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario?

Michael is no longer eligible for unemployment benefits.

T or F: A compa-ratio is the average actual pay divided by the midpoint of the pay grade.

True

T or F: A major advantage of a reduction in force is that it reduces benefits costs.

True

T or F: As the lowest rates paid in the software, chemical, oil, and pharmaceutical industries are already well above minimum, any legislation to increase minimum wage would have little direct impact on them.

True

T or F: Employers who have frequent layoffs pay higher tax rates than those with few layoffs.

True

T or F: If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate.

True

T or F: Many employers achieve flexibility and control employment costs by utilizing contingent workers rather than expanding and contracting the core workforce.

True

T or F: One of the main contributors to career earnings is advancement, either at one's present company or another company.

True

Which of the following benefits communication methods allows for personalized communication methods and requires current contact information?

Use of materials

In the majority of states, unemployment insurance is financed exclusively by:

employers that pay federal and state unemployment insurance.

T or F: Outsourcing is a viable alternative as organizations struggle with activities that do not directly contribute to objectives.

True

T or F: The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered.

True

T or F: The inherent financial insecurity built into variable plans may adversely affect employees' financial well-being, especially for lower-paid workers.

True

In an extensive review of employee preference literature, Glueck traced patterns of group preferences for particular benefits. Identify the results of the study.

Among the benefits available, health/medical and stock plans are highly preferred benefits.

T or F: The Pension Benefit Guarantee Corporation guarantees payment of vested benefits to employees formerly covered by terminated pension plans.

True

T or F: The Social Security Act has been designed and amended to provide a foundation of basic financial security for American workers and their families.

True

T or F: There is some research to support the common assumption that benefits increase employee retention, and two studies found that higher benefits reduced employee mobility.

True

T or F: Worker's compensation costs have been declining since 2005 partly because of employer safety programs.

True