Q&A Hero

Q: Nina works at Gia Inc., which provides her with a health care plan that contracts with health care professionals to provide services at a reduced fee. Which type of health care plan is Gia providing to its employees? A. Flexible spending account B. Preferred provider organization C. Health maintenance organization D. Consumer-driven health plan E. Managed care plan

Q: Sarah's employer provides her with an insurance plan that requires her to obtain approval before being admitted to the hospital for surgical procedures. Which type of health care plan is her company using? A. Managed care B. Health maintenance organization C. Preferred provider organization D. Flexible spending account E. Consumer-driven health plan

Q: Kelly is a new employee of a company, and her company provides a group insurance plan that she can enroll in. Her friend, Michael, suggests that Kelly would be able to save money if she chooses to purchase an individual insurance plan over the company's group insurance plan. Which of the following weakens Michael's argument? A. Individual plans are typically offered only to senior executives. B. Rates for group insurance are typically lower than that of individual policies. C. Kelly will not be eligible for other benefits if she does not enroll in a group insurance plan. D. Employees get more for their money when they receive insurance as a group benefit. E. Kelly will get more take-home pay if she opts for a group insurance plan.

Q: During a meeting to discuss ways to cut costs on benefit packages, the vice president of the company, Harold, suggests getting long-term disability insurance for all employees. Alexis, HR manager, disagrees with him stating that short-term disability coverage is more advantageous. Which of the following supports Alexis' statement? A. Short-term disability coverage is offered by few employers, which leads to a competitive advantage. B. Long-term disability coverage does not have any limits on the amount to be paid each month to employees. C. Short-term disability plans limit maximum coverage in a month, which makes them more affordable for the company. D. The nature of work is such that the level of risk involved is high and injuries could be permanent. E. The majority of the workforce is middle-aged and prefers long-term coverage.

Q: Which of the following is true about disability insurance? A. It benefits the disabled employee only for the first year of disability. B. Payments under short-term plans are lesser than that of long-term plans. C. It pays about 50% to 70% percentage of the employee's salary in case of disability. D. Most employers offer long-term disability plans. E. It offers coverage when the employee's dependent is disabled.

Q: Contrary to Western European countries, the United States has no legal requirements regarding employee _______. A. paid vacation time B. Social Security benefits C. unemployment insurance D. pension plans E. 401k contributions

Q: In the U.S., the amount of sick leave given to employees is often based on _____. A. length of service B. position within the company C. union contracts D. educational background E. prior job experience

Q: Sick leave programs: A. must be provided by all employers according to the law. B. are based solely on the age of employees. C. pay employees for days not worked due to illness. D. are mandatory forms of unpaid leave. E. are forms of floating holidays.

Q: Jack has to decide between two jobs that provide equal pay. He decides to compare the healthcare benefits provided by both jobs to arrive at a decision. He wants to choose the job that offers him a flexible spending account over the job that offers him managed care. Which of the following, if true, strengthens his decision? A. With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures. B. Money in flexible spending accounts is not taxed, so employees get more take-home pay. C. In flexible spending accounts, employees will get back the money they do not spend. D. Flexible spending account is not helpful if employees have unpredictable health care expenses. E. To avoid taxation of the money in a flexible spending account, the money must meet IRS requirements.

Q: Which of the following is a true of unemployment insurance? A. It provides payments to offset lost income during voluntary unemployment. B. Most funding for unemployment insurance is provided by employees. C. Unfavorable experience ratings of employers lead to higher premiums. D. Costs for unemployment insurance is standard across the country. E. It is a voluntary program based on number of employers in a specific state.

Q: Ryan was working as an engineer at a paint manufacturing company. A chemical spill at the factory caused an accident that left him permanently disabled. Which of the following programs is specifically designed to help employees like Ryan? A. Unqualified retirement plan B. Vested-benefit plan C. Social Security D. Defined-benefit plan E. Work-sharing plan

Q: Marshall finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. In this case, which of the following is true? A. He will receive full retirement benefits. B. He will receive retirement benefits only according to his earnings history. C. He will not be eligible for worker's compensation. D. He will receive benefits at a permanently reduced level. E. His exempt amount limits will be lifted.

Q: Linda, who is pregnant, works for an organization with more than 100 employees. She lives 20 miles away from work. By federal law, she is entitled to _____ of unpaid leave after her child is born. A. 12 days B. 56 days C. 12 weeks D. 30 weeks E. 11 months

Q: Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument? A. Unemployment insurance provides employers a competitive advantage in the talent market. B. The amount of an employer's unemployment insurance tax depends on the number of employees. C. Federal and state taxes paid by employers fund most of unemployment insurance. D. Unemployment insurance does not provide assistance to unemployed workers looking for new jobs. E. Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

Q: Under the Family and Medical Leave Act, which of the following criteria makes employees eligible to take unpaid family leave? A. They should be working for an organization with 50 or more employees within a 75-mile radius. B. They should have worked at least 15 hours per week. C. They should have worked for the employer for more than 5 years. D. They should belong to the top 10 percent of highest paid executives. E. They should be working for an organization with at least 100 employees.

Q: Which of the following is a similarity between unemployment insurance benefits and workers' compensation benefits? A. Both the programs are funded by the federal taxes on employees. B. Both the programs' costs depend on the organization's experience ratings. C. Both the programs have the same funding costs across the states. D. Both the programs replace the same percentage of an individual's previous earnings. E. Both the programs provide the same amount of compensation to the employees.

Q: In which of the following situations will workers become eligible for unemployment benefits? A. When they have worked only for a few days B. When they are out of work because they are sick C. When they are discharged because of willful misconduct D. When they are actively seeking work E. When they are out of work because of a labor dispute

Q: Which of the following is characteristic of benefits required by the Social Security Act? A. Workers receive no benefits until they reach the full retirement age. B. Workers are compensated according to their past earnings and retirement age. C. Workers receive increased benefits when they earn more than the exempt amount. D. The cost of the program is borne entirely by the employers, who pay a payroll tax. E. The program benefits persons who are financially dependent on current workers.

Q: On average, out of every dollar spent by a company on employee compensation, more than _____ cents goes to employee benefits. A. 75 B. 30 C. 50 D. 15 E. 20

Q: Which of the following is an advantage of providing benefits instead of cash compensation? A. It is simpler to pay compensation in benefits than in cash. B. Benefits give greater control to employees over cash compensation. C. All companies that provide benefits become eligible for tax breaks by state and federal agencies. D. Younger employees place more importance on benefits than cash compensation. E. Employers can assemble creative benefits packages that give them a competitive advantage.

Q: Ray Inc., a shoe manufacturer in Virginia, opens a new facility in Texas. Shelly, the operations manager, prefers to give the new employees better wages than benefit packages. Tanya, the HR manager, disagrees with her. Which of the following, if true, will strengthen Tanya's argument? A. The income tax rate is higher in Texas than it is in Virginia. B. Benefits are more complex to understand by employees than pay structures. C. Benefits give lesser control over the advantages they receive from them than wages. D. Higher cash compensation gives employees more purchasing power in Texas. E. Different employees look for different types of benefits, which makes HR's tasks complicated.

Q: Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument? A. Some benefits have become so common that today's employees expect them. B. Benefit packages are more complex than pay structures. C. The employees at Ocher are young adults who prefer cash compensation to benefits. D. Benefit packages do not affect the competitive nature of the labor market. E. The federal government does not have mandatory requirements for specific retirement plans.

Q: John is the owner of The Round, a restaurant. He decides to increase employee motivation by introducing benefit packages. However, Nina, the manager, suggests that employees will be more motivated if John increases their actual wages. Which of the following statements, if true, strengthens Nina's argument? A. John's competitor, Mark, gives many benefits to his employees. B. The state has introduced mandatory requirements for employee benefits. C. Benefit packages are more difficult to understand by employees than pay structures. D. Most of the employees at The Round belong to the age group that looks forward to pensions. E. Employees do not prefer cash compensation due to higher tax rates in the state.

Q: Which of the following benefits provided by employer is required by law in the United States? A. Paid vacation B. Personal leave C. Flextime D. Social Security E. Retirement savings plan

Q: To increase the likelihood of employees understanding messages about benefits, employers must limit communications.

Q: Employees and job applicants often have a poor idea of what benefits they have and what the market value of their benefits is.

Q: According to the Financial Accounting Standards Board (FASB), employers fund retirement benefits on a pay-as-you-go basis.

Q: Pay ranges are most common for _____. A. white-collar jobs B. piece-rate jobs C. jobs that are covered by union contracts D. automotive workers E. construction workers

Q: Which of the following is a set of possible pay rates defined by a minimum, maximum, and midpoint of pay for employees holding a particular job? A. Pay grade B. Pay range C. Pay differential D. Compa-ratio E. Compensation differential

Q: Which of the following is a drawback of pay rates? A. It increases the administrative burden of managing the compensation system. B. It results in decreased promotional opportunities for employees. C. It results in some jobs being underpaid and others being overpaid. D. It increases the costs of surveying the market. E. It groups jobs, which will result in rates of pay for individual jobs that precisely match the levels specified by the market.

Q: A pay policy line: A. shows the mathematical relationship between the minimum pay and the maximum pay in an organization. B. can be generated using a statistical method called regression analysis. C. requires market-pay-rate data on all jobs in the organization. D. can seldom provide information on the market pay level for a given job evaluation. E. reflects the pay structure in the market, which always matches rates in the organization.

Q: Which of the following statements is true about key jobs? A. Organizations usually have no survey data available for key jobs. B. These are jobs that have highly unstable content. C. These are jobs that are unique among organizations and are rare to obtain. D. Organizations make the process of creating a pay structure more impractical by defining key jobs. E. A job with a higher evaluation score than a particular key job would receive higher pay than that key job.

Q: John and Lisa hold the same position at Flyberry Electronics. However, John earns more than Lisa. In the context of pay structure, which of the following justifies the organization's decision to pay John more than Lisa? A. John works the night shift, and night hours are less desirable for most workers. B. John is a U.S. citizen; therefore his pay should be higher than non-Americans. C. Lisa is pregnant; therefore her productivity is assumed to be lower. D. John is physically disabled; therefore he should be paid more than Lisa. E. Lisa lives in a location where living expenses are higher.

Q: Kazuri Inc., a manufacturing company, bases employees' pay entirely on market forces. In this case, which of the following is a practical drawback faced by the company? A. Employees might conclude that the pay rates are unfair. B. Supervisors of the company will expect to receive lower pay because of less responsibility. C. The highly paid employees will likely be dissatisfied because of more work. D. The managers will participate in rotation of responsibilities because they receive lower pay. E. All employees will be categorized as exempt employees.

Q: Triano Brothers, an insurance firm, follows an administrative procedure for measuring the relative worth of its jobs. The organization does this by assembling and training a committee consisting of people familiar with the jobs. The committee includes a human resource specialist and, if the budget permits, an outside consultant is hired. Which of the following is exemplified in this scenario? A. Job rotation B. Job evaluation C. Merit pay system D. Job enrichment E. Work structure

Q: Which of the following statements is true of compensable factors? A. They are generally statistically derived. B. They are the characteristics of a job that a firm values and chooses to pay for. C. They refer to the factors that are important for setting the two-tier wage system. D. They describe all aspects of the jobs being evaluated. E. They are used to ensure equity among employees.

Q: Los Amigo Inc., a clothing manufacturer, believes that employees must be paid above the average market rate. The company aims to provide good customer service and to increase its sales. In this case, which of the following is most likely the reaction of employees working at Los Amigo? A. The employees will be motivated to work hard. B. The employees will put less effort at work. C. The employees will find their jobs less challenging. D. The employees will find a way to increase their outcomes by stealing. E. The employees will resign from their current jobs.

Q: Research on the effects of two-tier wage plans found that: A. lower-paid employees were less satisfied on average than higher-paid employees. B. lower-paid employees were more satisfied on average than higher-paid employees because they made comparisons with lower-paying alternatives for themselves. C. lower-paid employees expected to be promoted into the second tier in a short time span. D. equity theory did not come into play for either group and neither group experienced more or less job satisfaction than the other. E. both existing employees and new employees have a similar pay rate.

Q: Which of the following is an advantage of a two-tier wage system? A. It helps move jobs out of the country. B. It helps eliminate jobs without any legal hassles. C. It helps reduce labor costs without cutting employees' existing salaries. D. It helps provide more pay to new employees. E. It provides better standards for benchmarking.

Q: According to _____, people measure outcomes such as pay in terms of their inputs. A. expectancy theory B. equity theory C. retributive justice theory D. progressive justice theory E. economic theory

Q: Which of the following U.S. organizations conducts an ongoing National Compensation Survey measuring wages, salaries, and benefits paid to the nation's employees? A. Bureau of Labor Statistics B. Society for Human Resource Management C. American Management Association D. AFL-CIO E. Bureau of Economic Analysis

Q: Capnos Inc., an insurance company incurred losses of about $100 million. To analyze its losses and to overcome them, the company began comparing its own practices against those of its successful competitors. In this scenario, which of the following procedures is adopted by Capnos? A. Benchmarking B. Job evaluation C. Regression analysis D. Delayering E. Pay structuring

Q: Pay policies are one of the most important human resource tools for: A. reducing competition in the product market. B. automating routine activities. C. persuading customers that high quality is worth a premium price. D. making decisions about product pricing. E. encouraging desired employee behaviors.

Q: _____ holds that the most profitable pay level, all things being equal, would be at the market rate. A. Equity theory B. Economic theory C. Justice theory D. Wage theory E. Market theory

Q: Although labor and product markets limit organizations' choices about pay levels, there is a range within which organizations can make decisions. The size of this range depends on the: A. minimum and maximum wages fixed by the government. B. pay of federal contractors. C. organization's competitive environment. D. quality of employees. E. organization's global reputation.

Q: Which of the following statements is true about the Consumer Price Index (CPI)? A. The CPI helps organizations in the product markets decide an upper limit on the pay it will offer. B. Following and studying changes in the CPI helps employers prepare for changes in the demands of the labor market. C. The CPI helps organizations lure top-quality employees. D. The CPI helps control labor market's demand for pay increases. E. The CPI helps organizations to compete with companies in other industries that hire similar employees.

Q: Which of the following statements is true about labor markets? A. Organizations compete to sell labor in the labor market. B. Competition for labor establishes the minimum an organization must pay to hire an employee for a particular job. C. Changes in the CPI do not affect the labor market. D. Cost-of-living considerations have little impact on labor-market rates. E. An organization's competitors in labor markets only include companies with different products.

Q: Organizations under pressure to cut labor costs may respond by: A. retaining staff levels. B. providing pay increases to prevent employee turnover. C. postponing hiring decisions. D. requiring employees to bear less of the cost of benefits such as insurance premiums. E. avoiding automation of routine tasks.

Q: Inverness Inc., a manufacturing company, believes that pay is an investment that can generate returns in attracting, retaining, and motivating a high-quality workforce. In this case, which of the following statements is true about Inverness? A. It considers its employees as resources. B. It gives the least importance to profits. C. It is a customer-friendly firm. D. It tries to keep its labor costs minimal. E. It helps employees find higher-paying jobs.

Q: Trevor, a researcher, believes that having higher labor costs than competitors is not necessarily bad. His colleague, Nick, supports Trevor's opinion by stating that employees must be paid according to the market rate. Which of the following strengthens their statements? A. An organization may gain an advantage by paying above the market rate if it uses this method to attract top talent and uses employees' knowledge to be more innovative. B. High pay will encourage an employee to work on holidays and produce higher quality goods in order to balance the labor expense with high productivity. C. Employees can be forced to work long hours because they are paid higher than the market rate. D. The work environment is friendly when employees are paid higher than the market rate. E. Organizations can guarantee employee satisfaction if they increase employees' salaries above the market rate.

Q: Quasio Inc., a business consulting company, considers the cost of living of an employee while deciding the average pay. In this case, which of the following measures helps the company prepare for changes in the demands of the labor market? A. Consumer Price Index B. Wholesale Price Index C. Producer Price Index D. Retail Price Index E. Customer Interest Index

Q: Das Work and Edge Tech are electronics manufacturing companies competing to serve the same customers. The labor-related expenses per product for Das Work is $30 higher than that for Edge Tech. However, Das Work makes more profits than Edge Tech. In this case, which of the following actions has contributed to the profits made by Das Work? A. It produces high quality goods and charges more for these products than competitors. B. It does not provide overtime pay to employees who work more than 40 hours in one week. C. It has recently introduced the comparable-worth policy for employees. D. It provides free home delivery of purchased goods. E. It has a company website where customers can purchase goods online.

Q: Small Leaf Resort and Cresgrove Resort are established hotels in the hospitality industry. However, Small Leaf Resort has a larger net profit than that of Cresgrove Resort. In order to remain financially viable in the hospitality market, Cresgrove Resort decides to charge more for their rooms and other services. In this scenario, which of the following best explains the reason behind Cresgrove Resort incurring losses? A. Cresgrove Resort has high labor-related expenses. B. Cresgrove Resort hires employees belonging to the age group of 15 to 20. C. Cresgrove Resort has better quality and customer service than Small Leaf Resort. D. Cresgrove Resort considers its employees as resources. E. Cresgrove Resort's compa-ratio is less than 1.

Q: Which of the following statements is true about a product market? A. The cost of labor does not affect the product market because it is an insignificant part of an organization's costs. B. Product-market considerations are of particular concern to a company when its customers place greater importance on product rather than price. C. Organizations in a product market are competing to serve the same customers. D. Product markets typically place a lower limit on the pay an organization will offer its employees. E. Organizations in a product market must increase the cost of labor every quarter.

Q: An organization's choices about _____ are limited by its response to the economic forces of product markets and labor markets. A. pay rates B. pay structure C. pay differentials D. pay grades E. pay ranges

Q: Cliff Stiff Inc., a cement company, receives more than $2,000 in federal money. The company hires employees belonging to the age group of 25 to 40. The company is charged for violation of law under the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936. Which of the following best explains the reason for the company being sued? A. The employees of the company are not being paid at rates at least equal to the prevailing wages in the area. B. Cement industry employees are being paid only 15% above the minimum wage. C. The company hires employees belonging to the age group of 25 to 30, and they are being employed in hazardous environments. D. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate. E. Employees below the age of 25 are not being hired by the company.

Q: SalientVision Inc., a construction company, receives more than $2,000 in federal money. The company pays its employees at rates at least equal to the prevailing wages in the area. The calculation of prevailing rates by the company is based on 30% of the local labor force. In this case, which of the following laws does the company comply with? A. The Lloyd-La Follette Act of 1912 B. The Smith-Connally Act of 1943 C. The Julie Jargon Act of 1940 and the Eric Morath Act of 1945 D. The Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936 E. The Humphrey-Hawkins Full Employment Act

Q: Sapheda Inc., a heavy machinery company, has employees belonging to the age group of 17 to 30. Noah, a 17-year-old, is prohibited from working with heavy machinery tools. His work involves working in the mail room. Under the laws governing Fair Labor Standards Act (FLSA), which of the following will justify the organization's decision to forbid Noah from doing heavy machinery work? A. Noah cannot be employed in hazardous occupations because he is 17 years old. B. Noah is expected to work in a safe environment because he is male. C. Noah is not a U.S. citizen, therefore he is prohibited from working in a hazardous environment. D. Noah has not yet completed college, therefore he should only be given administrative duties. E. Noah comes from an economically weaker background, therefore he is expected to perform clerical duties.

Q: Spark Inc., a manufacturing company, hires employees belonging to the age group of 14 to 25. However, the company ensures that employees belonging to the age group of 14 to 18 are employed in nonhazardous environment and for limited time periods. In this scenario, which of the following laws is complied by the company? A. Laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. Laws governing prevailing wages E. Fair Labor Standards Act (FLSA) of child labor

Q: Blyrie Pharma is a pharmaceutical company based in Alabama. Blyrie Pharma expects its employees to work long hours and achieve increased production rates. Employees earn one and a half times the usual hourly rate for working more than 40 hours in one week. Which of the following laws is Blyrie Pharma abiding by in this scenario? A. Laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. Laws governing prevailing wages E. Product market laws

Q: John is the head of the insurance claims department. John works for longer hours than his subordinates. However, John is not paid overtime for working more than 40 hours per week. Under the FLSA, which of the following will justify the organization's decision not to give John overtime pay? A. John is not a U.S. citizen. B. John comes from an economically strong background. C. John is unmarried. D. John is considered as an exempt employee. E. John has lower educational qualifications than his subordinates.

Q: Scorla Automobiles is a manufacturing company based in Nevada. The employees of Scorla are paid the lowest amount under federal or state law, which is stated as an amount of pay per hour. Which of the following laws is the organization abiding by in this scenario? A. Laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. Laws governing prevailing wages E. Product market laws

Q: Pentrall, a healthcare company, provides a lower training rate to its employees belonging to the age group of 18 to 20 years. The rate is applicable for a period of 90 days. In this case, which of the following laws will justify the organization's decision to pay the lower pay? A. Laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. Laws governing prevailing wages E. Fair Labor Standards Act (FLSA) of child labor

Q: Teno Industries Inc. is a manufacturing company based in Texas. Teno Industries implemented the comparable-worth policy to establish equal pay for all employees. However, the organization incurred losses of about $20 million. In this scenario, which of the following is most likely the reason for the failure of the comparable-worth policy? A. The employer is at an economic disadvantage because of increased pay for some jobs. B. The policy overlooks the undervalued work performed by women. C. The policy uses job enrichment to establish pay structure based on market rate. D. The employer ignores consider the evaluation points for each job. E. The lower-paid jobs are encouraged to meet the goal of comparable worth.

Q: Ramon Inc., a software company, uses job evaluations to establish the value of its jobs in terms of criteria such as their difficulty and their importance to the organization. The company then compares the evaluation points awarded to each job with the pay for each job. If jobs have the same number of evaluation points, but are not paid equally, the pay of the lower-paid job is raised. Based on the scenario, identify the policy adopted by the company. A. Comparable-worth policy B. Minimum wage policy C. Average pay policy D. Merit pay policy E. Piecework rate policy

Q: The Walsh-Healy Public Contracts Act of 1936: A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. covers construction contractors that receive more than $2,000 in federal money. D. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. E. covers all government contractors receiving $10,000 or more in federal funds.

Q: The Davis-Bacon Act of 1931: A. requires that a lower "training wage" be paid to workers under the age of 20 for a period of up to 90 days. B. mandates that employers pay higher wages for overtime, defined as hours worked beyond 40 hours per week. C. requires general contractors performing services on prime contracts in excess of $2,500 to pay service employees in various classes no less than the wage rates found prevailing in the locality. D. covers all government contractors receiving $10,000 or more in federal funds. E. covers construction contractors that receive more than $2,000 in federal money.

Q: Which of the following statements is true according to the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936? A. Under these laws, individuals aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Federal contractors must pay their employees at rates at least equal to the prevailing wages in the area. C. The overtime rate applies to the hours worked beyond 45 in one week. D. Employers must pay a training wage to workers under the age of 15 for a period of up to 60 days. E. Organizations can defend themselves against claims of discrimination by showing that they pay the going market rate.

Q: Carbon Fine Inc., a mining industry, hires employees belonging to the age group of 16 to 30. The company provides overtime pay for its employees. The company is charged for violation of law under the FLSA. Which of the following best explains the reason for the company being sued? A. Individuals aged 16 and 17 are being employed as mine workers. B. Executive employees of the company are not being provided overtime pay. C. Employees are being paid overtime only if they work beyond 40 hours in one week. D. Mine workers are being paid only 25% above the minimum wage. E. Individuals eligible for overtime are being paid at one and a half times the employee's regular pay rate, including bonuses.

Q: Under the FLSA, which of the following statements is true of child labor? A. Children aged 18 and 19 may not be employed in hazardous occupations defined by the Department of Labor. B. Children aged 14 and 15 may not be employed in any work associated with interstate commerce. C. The FLSA's restrictions on the use of child labor apply to children younger than 18. D. Children aged 18 and 19 may work only outside school hours, in jobs defined as nonhazardous, and for limited time periods. E. All the states have laws requiring working papers or work permits for minors.

Q: According to the FLSA, which of the following individuals is most likely a nonexempt employee? A. The CEO B. A senior administrative employee C. An hourly paid employee D. An HR manager E. The director of marketing

Q: _____ means that an employee is paid a given amount regardless of the number of hours worked or quality of the work. A. Pay level B. Nonexemption C. Pay policy line D. Piecework rate E. Salary basis

Q: Under the FLSA, exempt status of employees depends on their: A. job responsibilities and salary. B. organizational commitment. C. job title. D. work experience. E. job qualifications.

Q: Which of the following statements is true about the Fair Labor Standards Act (FLSA)? A. The overtime rate under the FLSA is two and a half times the employee's hourly rate. B. The FLSA permits federal contractors to pay less than the prevailing wage rate. C. The FLSA permits a subminimum training wage equal to 95% of the minimum wage. D. Nonexempt employees are covered by FLSA and include most hourly workers. E. Under the FLSA, executive, professional, and administrative employees are considered nonexempt employees.

Q: Perlis Inc. is a whole food distributor. The hourly pay of employees working at Perlis is lower than the earnings required to rise above poverty level. In this scenario, which of the following laws is violated by the company? A. Laws governing equal employment opportunity B. Fair Labor Standards Act (FLSA) of minimum wage C. Fair Labor Standards Act (FLSA) of overtime D. Laws governing prevailing wages E. Product market laws

Q: Which of the following statements is true of the FLSA requirements for overtime pay? A. The overtime rate is one and a half times the employee's hourly rate, excluding any bonuses or piece-rate payments. B. Time worked includes hours spent on production or sales, but not on activities such as attending required classes, cleaning up the work site, and so on. C. Overtime must be paid whether or not the employer specifically asked or expected the employee to work the extra hours. D. Everyone is eligible for overtime pay. E. Most workers paid on an hourly basis are exempt and therefore not subject to the laws governing overtime pay.

Q: David earns a base rate of $12 an hour and receives a weekly attendance award of $20. He works 40 hours this week. What would be his total compensation for the week? A. $480 B. $600 C. $500 D. $520 E. $250

Q: Mark and Chloe hold the same position at Rue & West Bros. However, Mark earns more than Chloe. Which of the following will justify the organization's decision to pay Mark more than Chloe? A. Mark meets higher productivity targets than Chloe. B. Mark comes from an economically weaker background. C. Mark is more skilled than Chloe because he is male. D. Chloe is younger than Mark. E. Chloe is not a U.S. citizen.

Q: Which of the following is a drawback of a minimum wage in terms of social policy? A. It assumes people will take differences in pay into account when they choose a career. B. It is one and a half times the employee's usual hourly rate. C. It applies only to the hours worked beyond 40 in one week. D. It places the employer at an economic disadvantage relative to employers that pay the living wage. E. It tends to be lower than the earnings required for a full time worker to rise above the poverty level.

Q: Which of the following provisions is included in the Fair Labor Standards Act (FLSA)? A. Personal finance B. Minimum wage C. Wage discrimination D. Environmental hazards E. Retirement plans