Compensation Final

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.

Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true?

Jacob is not eligible for pension as he is not over 21.

________ relieve an employer's liability when a preemployment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.

Second-injury funds

________ use cash or stock award that is determined by increase in stock price during any time chosen (by the executive) in the option period.

Stock appreciation rights

What is the first question that should be asked when determining the amount of retirement income an employer should provide?

What level of retirement compensation would the employer like to set as a target, expressed in relation to preretirement earnings?

Executives, supervisors, and sales staff often receive special compensation treatment because

these jobs face conflicting demands.

The majority of defined benefit plans calculate average earnings over the last ________ years of service for a prospective retiree.

3-5

Which of the following is the most popular executive perk offered by most companies?

Executive physicals

Which of the following is one of the basic steps in establishing a comparable-worth pay plan?

Identifying the percentages of male and female employees in each job group

Which of the following actions is most likely to be favored by unions?

Introducing lump-sum awards

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

collective bargaining

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

computer employees

Contingent workers receive ________ benefits than regular workers; contingent workers' benefits cost ________ for employers than it does for regular workers.

fewer, less

A recent article analyzing the results from over 100 executive pay studies shows that the best predictor of executive pay is by far

firm size

An employer experiencing high turnover and seeking to reduce pension costs is likely to prefer:

full vesting after three years.

Which of the following is the least popular executive perk offered by most companies?

housing allowance

Pay-for-knowledge plans do all of the following EXCEPT

increase the probability of work being subcontracted out to nonunion organizations.

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore,

it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of a union, although the possibility exists.

In ________, employees who are evaluated more highly receive larger or more rapid increments than average or poor performers.

merit progression

The Davis-Bacon Act

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

When designing a sales compensation plan, it should be kept in mind that:

salespeople under an incentive system will view customer service as an imposition.

________ is defined by the Department of Labor as experience, training, education, and ability as measured by the performance requirements of a particular job.

skill

The Worker Economic Opportunity Act

states that income from most stock plans need not be included in calculating overtime pay.