Compensation and Benefits

A man died suddenly at age 41. His family includes his wife and five children under the age of 12. Which of the following federally mandated benefits can the wife expect to receive? a. COBRA health continuation coverage for herself and all dependent children for up to 18 months. b. Social security death benefits of $255 and monthly income for herself and all dependent children under the age of 18 c. Unemployment insurance coverage for up to 26 weeks d. Medicare health care coverage for herself and all dependent children under the age of 18

b. Social security death benefits of $255 and monthly income for herself and all dependent children under the age of 18

An individual employee can contribute a maximum of $______________, in their Medical FSA in 2020. $1,580.00 $1,950.00 $1,550.00 $2,580.00 $2,750.00

$2,750.00

Which of the following acts requires organizations holding federal construction contracts to pay construction contractors and subcontractors the prevailing wage of the majority of the employees in the locality where the work is performed? a. Davis-Bacon Act b. Walsh Healey Act c. Copeland Act d. Fair Labor Standards Act

a. Davis-Bacon Act

The following is NOT a characteristic of incentive pay design issues: a. Design only rewards for the long term b. Keep the base pay structure and incentive program separate c. Connect incentives to employee performance d. Reward actions that are valued by the organization

a. Design only rewards for the long term

Social Security is funded by the ________ tax a. FICA b. FHA c. FDIC d. FDA e. FLSA

a. FICA

Money put away each year by an employee on a pretax basis for payment of such things and medical and child care expenses is called: a. Flexible spending account b. Core benefits c. None of the above d. IRA

a. Flexible spending account

An employee is earning $8 per hour. The employer has redesigned its pay structure, and the position has been classified as Clerk IV. The pay range for the grade is $9.10 to $12.75 per hour. What term would apply to the employee's pay rate? a. Green-circle job b. Career-banded c. Red-circle job d. Broad-banded

a. Green-circle job

Which of the following concerning benefits is of strategic importance and should be addressed by an organization? a. The cost of FMLA leave and other required leave. b. The mix between indirect and direct compensation. c. The provision of government mandated benefits. d. The tax consequences for employees of the benefits

b. The mix between indirect and direct compensation.

Educational assistance plans most often reimburse the employee on a. promotion potential. b. successful course completion. c. the type of school attended. d. the type of position an employee occupies

b. successful course completion.

Individual contributions for a 401k cannot exceed $ ______ a year in 2020. a. $17,500.00 b. $18,500.00 c. $19,500.00 d. $21,500.00 e. $23,500.00

c. $19,500.00

Under FLSA, payroll records should be retained for a minimum of _____ years a. 1 b. 2 c. 3 d. 4

c. 3

Cobra covers employment loss for 50-499 employees during a mass layoff, in which ___% of the employer's active workforce is impacted: a. 25%. b. 28%. c. 33% d. 35%. e. 40%.

c. 33%

At what age can an individual collect partial benefits, under Social Security? a. 59 b. 60 c. 62 d. 65 e. 67

c. 62

A 401-k plan is an example of: a. A defined benefit plan b. A defined pension plan c. A defined contribution plan d. A defined premium only plan e. A defined flexible spending account

c. A defined contribution plan

Which of the following employees must be paid overtime? a. A janitor who worked 30 hours during the workweek and was also paid for 12 hours of vacation time b. A dock worker who worked 40 hours, including 10 hours on Christmas c. A nonexempt employee who put in 45 hours last week d. A vice president in charge of operations who worked 50 hours last week

c. A nonexempt employee who put in 45 hours last week

What is the basic requirement for an incentive wage plan? a. Government approval b. Employee approval c. A quantifiable volume of work d. Union approval

c. A quantifiable volume of work

Which of the following is not a cause of salary compression? a. Recruitment of new employees at salaries above those of current employees b. Higher starting salaries c. All of these d. Increases in Union hourly pay that outpace supervisory and nonunion pay

c. All of these

Using the I.R.S 20 Factor Test, discussed in lecture, determine this individual's status: A person terminated their employment relationship with their employer - Heintz Inc. This person experienced economic liability because they terminated the relationship with Heintz Inc. Based upon the information provided, this person could be considered: a. An Employee at Will b. An Exempt Employee c. An Independent Contractor d. A Non-Exempt Employee

c. An Independent Contractor

Which of the following acts prohibits "kickbacks" from employees? a. Davis-Bacon Act b. Walsh Healey Act c. Copeland Act d. McNamara - O'Hara e. National Labor Relations Act

c. Copeland Act

Which of the following acts requires that organizations holding federal construction contracts pay laborers and mechanics the prevailing wages of the majority of the employees in the locality where the work is performed? a. Copeland Act b. Walsh-Healey Public Contracts Act c. Davis-Bacon Act d. Fair Labor Standards Act

c. Davis-Bacon Act

The pay differences among internal levels are referred to as a. Loosely Coupled b. Defined benefit c. Differentials d. Defined contributions

c. Differentials

The internal structure technique that has multiple layers and sends the message that the organization values differences in work content, is known as a. Tournament b. Loosely coupled c. Hierarchical d. Egalitarian

c. Hierarchical

Which of the following is not used as a method to segment a relevant labor market? a. Type of skill. b. Industry. c. Income level. d. Geographic.

c. Income level.

Under the FLSA, a non-exempt employee is one who: a. Cannot file a claim under FLSA b. Works as an executive c. Is paid overtime under the overtime provisions d. Earns more than $255.00 per week

c. Is paid overtime under the overtime provisions

Two consecutive years of mandated 10% increases in the minimum wage would probably result in which of the following? a. It would reduce the leverage of employees making one to two times the minimum wage in asking for larger pay increases. b. It would increase pressure for larger pay increases among employees making one to two times the minimum wage. c. It would cause compression between the lowest-paid workers and more skilled workers in a retail trade employer. d. It would increase pressure on the available pool of discretionary funds for pay increases for most employers who have minimum wage employees.

c. It would cause compression between the lowest-paid workers and more skilled workers in a retail trade employer.

A job that is comparable in content across firms is called: a. Measurable jobs b. Content jobs c. Key jobs d. Simple jobs

c. Key jobs

In translating the results of a salary survey into actual wage rates, what statistical technique would be most appropriate to use? a. Correlation method. b. Expected variance method. c. Least-squares method. d. Dispersion method.

c. Least-squares method.

Which job evaluation approach will probably best fit a small, growing software company, which needs to continually recruit talent? a. Linear regression b. Point factor c. Market-based d. Scored questionnaire

c. Market-based

Avalon Industries is reviewing its compensation strategies. Recent employee surveys have shown a growing dissatisfaction with their pay. The average employee at Avalon has a compa-ratio of 1.08. average compa-ratio is similar for both male and female employees. Has experienced some retention problems in recent years, particularly among middle managers. In the past, Avalon has not used incentive pay, so one of the avenues they are considering is the implementation of an incentive program to help its retention efforts. Based on the information given above, what is one likely reason behind employee dissatisfaction with pay? a. Pay secrecy b. Comparative worth c. Pay compression d. Not competitive at entry-level positions

c. Pay compression

Recalling the "Total Returns" diagram discussed in lecture: "legally required benefits" would include all of the following EXCEPT: a. Unemployment insurance b. Workers compensation c. Pension /401k plans d. Social Security

c. Pension /401k plans

Regarding Employee acceptance of the compensation system, ______________ refers to the process by which pay decisions are reached: a. Value based b. Exchange value c. Procedural Justice d. Distributive Justice e. All of these

c. Procedural Justice

Under FLSA, in order for an employee to be classified "Exempt", they must meet 3 requirements, including 1) minimum weekly pay, 2) paid on a salary basis and 3) meet the exemptions know as: a. The IRS Exemption Test b. The McNamara-O'Hara Duties test c. The Standard Duties Test d. The Incentive Exemption Test

c. The Standard Duties Test

COBRA allows employees: a. To receive 60-day notice of plant closing. b. To continue with their defined contribution plans. c. To continue with their health care insurance for up to 18 months, in the event that they lose their job. d. A defined Revenue Plan. e. To establish a retirement income account 18 month after hire.

c. To continue with their health care insurance for up to 18 months, in the event that they lose their job.

A sales representative who spends most of her time acquiring potential customers with the company's product line and providing technical assistance when they have difficulties should probably be paid: a. Based only on sales of new products. b. A base salary, which represents a large percentage of direct pay. c. Principally on a volume (sales) incentive. d. On an all-commission basis.

b. A base salary, which represents a large percentage of direct pay.

Which of the following is NOT an organization wide incentive plan: a. Cash profit sharing b. All of these are incentives c. Stock Ownership plans d. Deferred profit sharing

b. All of these are incentives

Which of the workers below is an independent contractor? a. A word processor who works part-time in the data processing department for $9 per hour b. An auditor who performs a two-week audit of the company's financial records each year c. A salesperson who has an office in his home but reports to the national sales manager d. An executive who has an employment contract with the company regarding change of control

b. An auditor who performs a two-week audit of the company's financial records each year

Which of the following acts mandates that employees on the same job be paid equally except for differences in seniority, merit, or other conditions unrelated to gender? a. National Labor Relations Act b. Equal Pay Act c. Social Security Act d. Age Discrimination in Employment Act

b. Equal Pay Act

ERISA imposes restrictions on compensation systems affecting (among other things): a. Complaint procedures. b. Funding and investment requirements. c. Competitive pay rates. d. System administrator training.

b. Funding and investment requirements.

403b are retirement plans designed for: I. Federal employees. II. Nonprofit employees III. State & local employees IV. For-profit employees a. I and II b. II c. II and IV d. III e. III and IV

b. II

_____________ is the process of achieving internal and external pay equity within an organization. a. Industry Pricing b. Job Pricing c. Published Surveys d. Market Pricing

b. Job Pricing

The systematic, rational assessment of jobs to determine their relative internal worth is called: a. Job analysis. b. Job evaluation. c. Job specification. d. Job description.

b. Job evaluation.

Which of the following is not a something that managers should be knowledgeable about in order to be effective in the global marketplace? a. Customs b. Marriage Laws c. Environment d. Laws

b. Marriage Laws

Which of the following factors is NOT related to pay compression? a. Recruitment of new college graduates at pay levels above those current job holders. b. Merit increases that reward existing employees for higher productivity. c. Unionized hourly pay increases that overtake supervisory and non-union hourly rates. d. Higher starting salaries dictated by increased market pressures.

b. Merit increases that reward existing employees for higher productivity.

Performance is one of the basic philosophies that represent both ends of the compensation spectrum. Which of the following is NOT a characteristic of the performance (or new wave approach) philosophy: a. Bonuses tied to performance results b. Seniority based pay c. Market adjusted pay structures d. No raises for length of service

b. Seniority based pay

A woman is working for a manufacturing company that employs 100,000 people. In an effort to restructure and reduce costs, the company announces that in six months they will close the plant where the woman is working. Which of the following federally or state-mandated benefits must the employer provide? a. Supplemental unemployment benefits for up to 26 weeks b. A severance compensation and benefits package c. Unemployment benefits if the employee is actively seeking work d. COBRA health continuation coverage for the employee for up to 36 months

c. Unemployment benefits if the employee is actively seeking work

Greater flexibility for employees can be built into a vacation leave program by: a. having supervisors assign leave time. b. reducing the advance notice period. c. allowing a carry-over of unused leave. d. providing more vacation time.

c. allowing a carry-over of unused leave.

An expatriate's expenses for home travel are deductible for U.S. tax purposes if the trip is made to a. the location of the last employment in the U.S. b. the U.S. c. the principal residence in the U.S. d. anywhere outside of the country of assignment

c. the principal residence in the U.S.

Jane Doe has worked full time for her company for 5 years in the state of Wisconsin. Jane has never used FMLA before, however this year (for the first time) Jane used 2 weeks of her leave for her own serious health condition. What is the maximum amount of time she would have remaining for her own serious health condition, under Federal FMLA? a. 2 weeks b. 4 weeks c. 6 weeks d. 10 weeks e. 12 weeks

d. 10 weeks

Avalon Industries is reviewing its compensation strategies.Recent employee surveys have shown a growing dissatisfaction with their pay. The average employee at Avalon has a compa-ratio of 1.08. average compa-ratio is similar for both male and female employees.has experienced some retention problems in recent years, particularly among middle managers.In the past, Avalon has not used incentive pay, so one of the avenues they are considering is the implementation of an incentive program to help its retention efforts. If the nature of the work at Avalon creates interdependence between co-workers; level of incentives should they implement in order to maximize performance? a. Organizational level b. Individual level c. Group level d. A combination of group level and individual level

d. A combination of group level and individual level

Having a statement in an Organization's handbook that states "employee wages are confidential, and discussing your wages with co-workers could lead to discipline up to and including termination" would be a violation of: a. Davis-Bacon Act b. Walsh Healey Act c. Copeland Act d. Fair Labor Standards Act e. National Labor Relations Act

e. National Labor Relations Act

The 4 universal Compensable Factors include __________,and ___________, and responsibility and working Conditions a. Seniority and Skill b. Seniority and Ability c. Skill and Ability d. Effort and Ability e. Skill and Effort

e. Skill and Effort

The internal structure technique that has well designed jobs with detailed steps or task and offers very small pay differentials among jobs is known as: a. Tournament b. Loosely coupled c. Hierarchical d. Egalitarian e. Tailored

e. Tailored

Jayson Technologies is trying to remain competitive in the market while at the same time maintaining internal equity. The challenge is that there is no real compensation structure in place right now and employees are starting to complain. Jayson Technologies has noticed that their competitors are trying to lure away their top employees, and worse yet, some of them are starting to leave. The company has hired a new HR director to identify an appropriate compensation system to implement at Jayson. The company has multiple facilities and one of the challenges facing the new director is to get buy-in across the entire workforce. Once a new system is identified, what would be an effective way to communicate the new system to Jayson employees? a. Have managers present uniform content to their employees in small group meetings and then allow for a question and answer period. b. Provide information to employees via social media outlets. c. Send out a company-wide e-mail explaining the system d. Put together a brochure highlighting the key aspects of the new system and distribute it to all employees

a. Have managers present uniform content to their employees in small group meetings and then allow for a question and answer period.

Knowledge, skills, and abilities are all items contained in ______________ a. Job specifications b. Employee records c. Security analysis d. Headhunters

a. Job specifications

A job that is comparable in content across firms is called: a. Key jobs b. Simple jobs c. Content jobs d. Measurable jobs

a. Key jobs

Which of the following factors is not related to salary compression? a. Merit increases that reward existing employees for higher productivity b. Recruitment of new college graduates at salaries above those of current jobholders c. Higher starting salaries that compress current employees' salaries d. Unionized hourly pay increases that overtake supervisory and nonunion hourly rates

a. Merit increases that reward existing employees for higher productivity

Avalon Industries is reviewing its compensation strategies.Recent employee surveys have shown a growing dissatisfaction with their pay. The average employee at Avalon has a compa-ratio of 1.08. average compa-ratio is similar for both male and female employees.has experienced some retention problems in recent years, particularly among middle managers.In the past, Avalon has not used incentive pay, so one of the avenues they are considering is the implementation of an incentive program to help its retention efforts. One key to a good compensation system is establishing the relative worth of the jobs. While a market pricing approach focuses on external equity; which of the following job evaluation methods is generally considered the most effective in determining the relative worth of jobs within the organization? a. Point method b. Job ranking method c. Job classification method d. Factor-comarison method

a. Point method

Which of the items below represents indirect compensation? a. Social Security benefits b. Differential pay c. Merit pay d. Short-term incentive pay

a. Social Security benefits

Which one of the following is not a type of reinforcement that is of primary concern to compensation managers when they are designing a compensation system? a. Stimulus b. Positive c. Negative d. Extinction

a. Stimulus

Jayson Technologies is trying to remain competitive in the market while at the same time maintaining internal equity.The challenge is that there is no real compensation structure in place right now and employees are starting to complain.Jayson Technologies has noticed that their competitors are trying to lure away their top employees, and worse yet, some of them are starting to leave. The company has hired a new HR director to identify an appropriate compensation system to implement at Jayson. The company has multiple facilities and one of the challenges facing the new director is to get buy-in across the entire workforce. One challenge for the HR director is to evaluate which threats to the retention of employees are most pressing for Jayson Technologies at this time. What should the new HR director do to gain a better understanding of the issue? a. The HR director should review the data from exit interviews with those leaving the organization as well as implementing "stay" interviews with those employees who remain with the organization. b. The HR director should meet with the other members of the top executive team to discuss their perceptions. c. Only a few people have left so far, so it might be prudent to wait a little while before taking any actions to make sure it is a significant trend. d. Attend a conference discussing the staffing challenges of the 21st century.

a. The HR director should review the data from exit interviews with those leaving the organization as well as implementing "stay" interviews with those employees who remain with the organization.

A quality control employee asked if you would re-evaluate their job to see if they could qualify for "exempt" status under current FLSA regulations. This employee earns $690.00 per week (gross income), has an advanced degree in Quality, and according to their job description, exercises independent judgement. Most likely, this employee a. Would qualify for exempt status b. Should be terminated for being so "pushy" c. Would not qualify for exempt status d. Should stop bothering you, because you skipped that class

a. Would qualify for exempt status

After implementing a new job evaluation plan, it is best to deal with red circle rates by a. freezing their salary until job grade maximum increases to catch up with the red circle rate. b. reducing the salary to the minimum of the range and providing the employee the amount of the decrease in the form of a bonus. c. allowing their base rate to increase as all others do in the same job grade. d. reducing their salary to the new maximum for their respective job grade.

a. freezing their salary until job grade maximum increases to catch up with the red circle rate.

Compensatory time off for non-exempt employees can be given in the private sector if: a. it is equivalent to the number of hours worked overtime within the same workweek. b. it is used within the next three months by the employee. c. the hourly wage is at least one and one-half times the minimum wage. d. it is used within the next six months by the employee.

a. it is equivalent to the number of hours worked overtime within the same workweek.

The Medicare tax is a. 1.45% divided equally between employee and employer b. 2.9% divided equally between employee and employer c. 6.8% divided equally between employee and employer d. 8.2% divided equally between employee and employer

b. 2.9% divided equally between employee and employer

Dodson Plumbing and Supply Company is striving to improve it turnover rate. There is a shortage of qualified labor in the local market so Dodson had made the decision to lead the market on salaries for plumbers. Despite this proactive attempt, Dodson is struggling to attract and retain new talent. Upon further review of their approach, Dodson realized that while their wages exceeded some competitors, the wages were not significantly greater. The bigger problem for Dodson Plumbing and Supply was that the company was significantly deficient when it came to benefits. Not only were competitors offering more, some of the benefits that Dodson employees had access to were being under-utilized. After the needs assessment information is gathered, HR must compare organizational needs, employee needs, and the existing set of benefits. This type of comparison is called: a. A cost-benefit analysis b. A utilization analysis c. A bridge analysis d. A gap analysis

d. A gap analysis

Avalon Industries is reviewing its compensation strategies. Recent employee surveys have shown a growing dissatisfaction with their pay. The average employee at Avalon has a compa-ratio of 1.08. average compa-ratio is similar for both male and female employees. Avalon has experienced some retention problems in recent years, particularly among middle managers. In the past, Avalon has not used incentive pay, so one of the avenues they are considering is the implementation of an incentive program to help its retention efforts. When constructing an incentive pay system Avalon should take care in how it structures the system. While there are many characteristics of an effective plan, the MOST important one is: a. A simple payout formula b. Top management support c. Goals that are measurable d. A strong link between pay and performance

d. A strong link between pay and performance

Some constraints that must be considered when creating a budget are: a. Internal labor market b. Ability to pay c. Legal constraints d. All of these

d. All of these

Under FLSA/Portal to Portal, which of the following employees must be paid overtime? a. An hourly janitor who worked 30 hours during their workweek (Monday - Sunday) and was paid for 12 hours of vacation time. b. An executive in charge of operations who worked 50 hours in a week c. An hourly word processor who works part-time in the data processing department for $9 per hour. They normally work 30 hours per week, but this week worked 38 hours. (Monday - Sunday) d. An hourly carpenter who worked 40 hours during their normal workweek (Monday - Sunday), and during that same week, worked an additional 10 hours on Saturday.

d. An hourly carpenter who worked 40 hours during their normal workweek (Monday - Sunday), and during that same week, worked an additional 10 hours on Saturday.

What would a compa-ratio of 110 indicate? a. Salary range is low in relation to market b. Salary range is competitive with market c. Salary range is high in relation to market d. Average salaries paid are ten percent above the midpoint of the salary range

d. Average salaries paid are ten percent above the midpoint of the salary range

Regarding Employee acceptance of the compensation system, ______________ refers to the fairness of the distribution. Receiving an equitable share - getting back as much as you put in. a. Value based b. Exchange value c. Procedural justice d. Distributive justice e. All of these

d. Distributive justice

Any plan, fund or program that establishes retirement income for employees or that allows deferral of income by employees up to and beyond termination income for employees is covered under: a. EPHA b. EMLA c. EDEA d. ERISA e. ERIPPA

d. ERISA

The internal structure technique that is delayered and values all employees equally, is known as a. Tournament b. Loosely coupled c. Hierarchical d. Egalitarian

d. Egalitarian

Which of the following is not an External Compensation Consideration: a. Labor Market b. Environment c. Competition d. Expectancy Theory

d. Expectancy Theory

Which of the following is not a legal remedy for discrimination under the Civil Rights Act? a. Reinstatement b. Remedial Training c. Punitive Damages d. Extra Vacation Time

d. Extra Vacation Time

Jayson Technologies is trying to remain competitive in the market while at the same time maintaining internal equity. The challenge is that there is no real compensation structure in place right now and employees are starting to complain. Jayson Technologies has noticed that their competitors are trying to lure away their top employees, and worse yet, some of them are starting to leave. The company has hired a new HR director to identify an appropriate compensation system to implement at Jayson. The company has multiple facilities and one of the challenges facing the new director is to get buy-in across the entire workforce. Given the growing criticism of employees, how can the HR director best go about obtaining support for the system that he/she puts into place? a. Put together a handbook of benefits so employees could easily reference the biggest advantages of working at Jayson Technologies. b. Identify the top performers in the organization and give them all a 10% increase in compensation in an effort to hold on to top talent. c. Ask the top management team to speak out in support of the new compensation system. d. Gather compensation data from reputable sources to benchmark how the organization's current compensation stacks up to the market and identify how the proposed system will be competitive.

d. Gather compensation data from reputable sources to benchmark how the organization's current compensation stacks up to the market and identify how the proposed system will be competitive.

457b are retirement plans designed for: I. Federal employees. II. Nonprofit employees III. State & local employees IV. For-profit employees a. I only b. II and III c. III and IV d. III only e. II and IV

d. III only

Which of the following is not used as a method to segment a relevant labor market? a. Type of skill. b. Industry. c. Geographic. d. Income level.

d. Income Level

The Hawthorne Effect basically said: a. Increasing pay will result in higher productivity. b. Increased attention from management does not improve productivity of workers. c. Increased attention from management should be avoided, as workers become paranoid. d. Increased attention from management can improve productivity of workers.

d. Increased attention from management can improve productivity of workers.

Job grades and pay ranges should reflect which of the following characteristics? a. Length of service, pay rates of employees b. Internal equity, pay rates of employees c. Pay philosophy, job design d. Internal equity, external competitiveness

d. Internal equity, external competitiveness

Avalon Industries is reviewing its compensation strategies. Recent employee surveys have shown a growing dissatisfaction with their pay. The average employee at Avalon has a compa-ratio of 1.08. average compa-ratio is similar for both male and female employees. has experienced some retention problems in recent years, particularly among middle managers. In the past, Avalon has not used incentive pay, so one of the avenues they are considering is the implementation of an incentive program to help its retention efforts. Given Avalon's average employee compa-ratio, what compensation strategy does it look like they have been using? a. Lag Strategy b. Two-Tiered Strategy c. Match Strategy d. Lead Strategy

d. Lead Strategy

Which of the following is not a guideline that assists managers in developing good job descriptions? a. Make sure the jobs title describes the position b. List principle responsibilities and tasks c. Include any disclaimers d. Make sure the job summary is long and detailed

d. Make sure the job summary is long and detailed

_______________ is giving an employee the typical wage paid for that job in the immediate labor market. a. Direct pricing b. Compensation c. Job pricing d. Market pricing

d. Market pricing

An organization choosing to compete based on being the lowest cost provider will be most apt to select which of the following compensation strategies? a. Lead the market in base pay to attract the very best people. b. Offer highly contingent incentives based on new product development. c. Provide the best benefits in the community. d. Offer incentive opportunities to those who contribute to cost-savings/effective cost-management.

d. Offer incentive opportunities to those who contribute to cost-savings/effective cost-management.

Managing compensation at the international level requires all of the following EXCEPT: a. An understanding of why special allowances must be made. b. A knowledge of laws, customs, environments, and employment practices. c. A familiarity with currency relationships and the effect of inflation on compensation. d. Recruitment of new college graduates at salaries above current jobholders.

d. Recruitment of new college graduates at salaries above current jobholders.

__________Act created a public accounting oversight board and mandates that senior management certify the accuracy of the reported financial statement. Additionally, employers should offer a minimum of 3 diversified investment options within Defined Contribution Plans a. Section 125 Act b. The Revenue Act c. Equity Act d. Sarbanes Oxley Act e. ADEA Act

d. Sarbanes Oxley Act

Which of the following reports must be automatically sent to employees? a. Compa-ratios b. Annual report (Form 5500) c. Workers' compensation notice d. Summary plan description (SPD)

d. Summary plan description (SPD)

How do employees tend to perceive the pay of their peers and top management when they do not know what the actual pay is? a. They underestimate the pay of their peers and overestimate that of top management. b. They underestimate the pay of both their peers and top management. c. They overestimate the pay of both their peers and top management. d. They overestimate the pay of their peers and underestimate that of top management.

d. They overestimate the pay of their peers and underestimate that of top management.

The legislative act that bars discrimination in all activities, including hiring, training, promotion, pay, employee benefits, and any other term or conditions of employment, is known as the: a. Equal Pay Act b. Equal Employment Act c. Fair Labor Standards Act d. Title VII - Civil Rights Act e. Section 7 - National Labor Relations Act

d. Title VII - Civil Rights Act

Why is employee communication of compensation packages, particularly benefits, so important? a. To maximize the organization's return on its considerable investment b. To minimize confusion over such issues as which vacation policy to accept c. To ensure that employers are giving away all that they can d. To increase employee awareness of the employer's attempt to create internal equity

d. To increase employee awareness of the employer's attempt to create internal equity

Under Portal to Portal, "suffered and permitted" means a. covered employee can initiate a complaint regarding wages b. Dept. of Labor can enforce minimum wage and overtime provisions c. defined "Blue Collar workers as those performing work involving repetitive operations d. employer knew the employee was working, either before or after scheduled work, for the benefit of the organization

d. employer knew the employee was working, either before or after scheduled work, for the benefit of the organization

The Equal Pay Act of 1963 prohibits employers from discrimination in pay based on: a. race. b. religion. c. age. d. gender.

d. gender

A primary employer advantage of implementing a skill-based pay system is: a. increased compensation costs. b. reduction of training and development expenses. c. ease of administration. d. increased adaptability of the organization and its employees.

d. increased adaptability of the organization and its employees.

Section 125 of the Revenue Act of 1978 allows employees: a. the option of having medical coverage regardless of employment status b. 12 weeks unpaid leave for the birth or adoption of a child c. the ability to be eligible for insurance coverage in a new job d. the ability to convert a taxable cash benefit (salary) into non-taxable benefits

d. the ability to convert a taxable cash benefit (salary) into non-taxable benefits

For employees born after 1960, how old does an employee have to be, to retire with full social security benefits: a. 59 b. 60 c. 62 d. 65 e. 67

e. 67

In a 401(k) plan: a. An employee can defer current income into the future b. Deferred income is sheltered from taxes until it is withdrawn at retirement c. Money can be withdrawn early if the employee can prove hardship d. You can roll over your vested earnings into another plan if you change employers. e. All of these

e. All of these

The Portal to Portal Act is concerned with: a. Defining the IRS 20 Factor test b. Defining the 6 Standard Duties Exemptions for overtime c. The prohibition of "kickbacks" in the workplace d. Defining prevailing wages e. Defining hours worked

e. Defining hours worked

_________________ often called internal equity, refers to the relationships among different jobs within a single organization a. Loosely coupled b. Institutional Model c. Graded vesting d. Exchange value e. Internal alignment

e. Internal alignment