Deck 21: The Employees Safety Nets: Unemployment and Workers Compensation, Social Security, and Retirement Plans

Question 1

Which of the following is not true regarding minimum standards under the Employee Retirement Income Security Act?

A)The minimum standards for pension plans must be met for the employee pension plans to  qualify for preferential tax treatment.
B)Preferential tax treatment enables an employer to deduct contributions to qualified benefit plans immediately.
C)ERISA does not consider the deductions as income to participating employees until they receive the payments after retirement.
D)Compliance to ERISA minimum standards by qualifying their benefit plans is mandatory.

Answer 1

D

Question 2

Workers' compensation, as it has been instituted in virtually every state, is a statutory trade-off.

Answer 2

True

Question 3

The Federal Employment Liability Act is a federal law designed to protect and compensate the injured:

A)disabled workers.
B)railroad workers.
C)war veterans.
D)minors in employment.

Answer 3

B

Question 4

The Federal Employment Liability Act (FELA)was enacted in recognition of the incredible number of casualties in the mining industry.

Question 5

Social Security is a state funded and administered program.

Question 6

Workers' compensation has been left primarily to the states to administer.

Question 7

The high level of fault which serves to disqualify an out-of-work worker from unemployment compensation is called:

A)employment-at-will.
B)negligence.
C)willful misconduct.
D)third-party recoveries.

Question 8

The Employee Retirement Income Security Act imposes standards of conduct and responsibility on fiduciaries of benefit plans established or maintained by employers and unions engaged in or affecting interstate commerce.

Question 9

In the case of a railroad worker accident brought to court in the 1900s, one of the defenses the railroad company used against the plaintiff was the "fellow-servant" doctrine. What does this refer to?

A)The claims for such incidents are usually settled out-of-court, as between fellows.
B)The company is not a separate entity above the employee, but a colleague and a caretaker.
C)The injured employee had assumed responsibility of the risks involved.
D)The accident is attributed to the negligence of the co-worker.

Question 10

The Federal Employment Liability Act (FELA)was passed in the year 1908.

Question 11

Unemployment compensation litigation starts with the active worker's application for benefits.

Question 12

Using the terminated employee's potential eligibility for unemployment benefits, and the company's ability to oppose the former employee's claim, presents some danger to the employer who abuses this leverage.

Question 13

Which of the following is not true of the Employee Retirement Income Security Act (ERISA)?

A)It sets standards of conduct and responsibility upon pension fund fiduciaries.
B)It applies to plans maintained solely for the purpose of complying with state workers'  compensation.
C)It requires pension plan administrators to disclose relevant financial information to  employees and the government.
D)It provides legal remedies to employees and their beneficiaries in the event of violations.

Question 14

Persons not normally considered fiduciaries, such as consultants or advisers, may be found to   be fiduciaries when their expertise is used in a managerial, administrative, or advisory  capacity by the plan.

Question 15

Benefits paid to employees out of work through no fault of their own and who are available for suitable work if and when it becomes available falls under the category of:

A)unemployment compensation.
B)workers' compensation.
C)welfare benefits.
D)pension plans.

Question 16

The two main features of the Employee Retirement Income Security Act (ERISA)-the  imposition of standards for fiduciary conduct and responsibility and the setting of minimum  standards for pension plan requirements-have different bases for their coverage.

Question 17

Younger people must earn some social security credits to qualify for disability benefits.

Question 18

Under the social security system, a worker is considered disabled when a severe physical or  mental impairment prevents that person from working for a year or more or is expected to  result in the victim's death.

Question 19

The provisions of Employee Retirement Income Security Act (ERISA)apply to employee  benefit plans established by federal government.

Question 20

For a person to be "fully insured" by social security, he or she must accrue a minimum of  thirty quarters of contributions.

Question 21

An employee who quits his job under normal conditions is not eligible to apply for:

A)pension benefits.
B)retirement insurance benefits.
C)workers' compensation.
D)unemployment benefits.

Question 22

Which of the following is not a contentious case of injury or illness covered under workers compensation?

A)Injuries resulting from faulty design of the machinery used in the production floor.
B)An employee killed by a stranger when the employee is on a vacation.
C)Injuries occurring when the employee is "on the road," especially if the trip began from  the employee's home.
D)Chronic illnesses such as lung disease, especially if contributing factors include  workplace hazards (e.g., dust)in combination with personal behavior (e.g., smoking).

Question 23

In the 1990 case of Adams Fruit Co., Inc. v. Barrett , the Supreme Court held that workers could bring suit for violations of specific federal legislation despite the fact that:

A)the employer has filed for bankruptcy protection.
B)the employer was willing to provide reemployment to retrenched employees.
C)the injury inflicted was not proven to be work-related.
D)they had received benefits under the state workers' compensation law.

Question 24

For a person to be "fully insured" by social security, he or she must accrue a minimum of _____ quarters of contributions.

A)twenty
B)forty
C)fifty
D)thirty-five

Question 25

Which of the following is not true of unemployment claims litigations?

A)Unemployment compensation litigation usually starts with a terminated worker's application for benefits.
B)The unemployment claim is usually evaluated in the first instance by an unemployment office or agency in the area where the worker resides.
C)Regardless of whether the decision is favorable or unfavorable, an appeal is not possible.
D)Unemployment benefits are paid for by a tax on the wages of the workers and an equal levy on the employer's total payroll.

Question 26

The disqualifications of an out-of-work employee include:

A)unemployment.
B)current welfare benefits.
C)willful misconduct.
D)whistleblowing.

Question 27

Under Part B of Medicare benefits, one-fourth of the premium is paid by the _____, whereas the other three-fourths are covered by the _____ general revenues.

A)employer; state government's
B)beneficiary; federal government's
C)state government; employer's
D)employer; pension commission's

Question 28

An employee's injury must be work-related in order to be eligible for:

A)medicare.
B)unemployment compensation.
C)workers' compensation.
D)insurance benefits.

Question 29

The original and the main purpose of the Social Security system is to provide partial replacement of earnings when:

A)an employee is discharged due to work-related injuries.
B)a worker decides it is time to retire.
C)a family loses an earning member to work-related accident.
D)a minority worker is unable to find "profitable" employment.

Question 30

Under the ACA:

A)Individuals would have to be covered by a group health insurance plan.
B)Unmarried children would be able to continue coverage under their parents' group health insurance plans to age 26, if they lack group health insurance of their own.
C)Individuals not covered by a health insurance plan might have to pay a penalty.
D)All of these answers.

Question 31

Under the Social Security system, monthly benefits are payable to a retired insured worker from age _____ onward.

A)fifty-five
B)fifty-eight
C)sixty-two
D)sixty-five

Question 32

The unemployment claim is usually evaluated in the first instance by an unemployment officer or agency in the area where the:

A)employee was terminated.
B)office is located.
C)employee was hired.
D)worker resides.

Question 33

In Meyer v. Burger King Corporation , the Washington Supreme Court declined to limit the child's remedy to the provisions of the:

A)Fair Labor Standards Act.
B)Workers' Compensation Act.
C)National Labor Relations Act.
D)Equal Employment Opportunity Act.

Question 34

The Social Security system was originally formed as:

A)a benefit and health insurance plan.
B)old age and survivor's insurance.
C)social welfare benefits for minorities.
D)a voluntary retirement and health insurance plan.

Question 35

Verona Meyer was employed by Sonrise at Burger King. On April 26, 1995 during the course of her employment, she lost her footing and struck her lower abdomen on the corner of a table. Later that evening, Verona went to the hospital and delivered a baby, Patricia. In April 1998, the Meyers, on behalf of themselves and their daughter filed a suit against Sonrise for negligence and unsafe working conditions. The Washington Supreme Court in this case, upholding Patricia's right to a remedy because she is a person exercising her retroactive right to recover for prenatal injuries:

A)did not recognize fetus as a person in the whole sense.
B)agreed that the fetus' injury occurred simultaneously with the mother's.
C)expressly agreed to allow the employer to bar pregnant employees from the workplace.
D)ruled her case as vexatious litigation against the employer.

Question 36

A worker who applies for social security benefits and is receiving them at age sixty-five is automatically covered under part A of:

A)Medicare benefits.
B)unemployment compensation.
C)workers' compensation.
D)disability benefits.

Question 37

In Label Systems Corp. v. Aghamohammadi , the defendants were terminated from employment alleging willful and felonious misconduct. The plaintiff filed a three-count complaint against the defendants and the defendants counterclaimed against the plaintiff by filing a third-party complaint. The jury in this case found that the plaintiffs were liable for vexatious litigation. The trial court denied several post-trial motions filed by both parties, awarded Label Systems $19,460.17 in punitive damages, and rendered judgment in accordance with the jury's verdict. The Supreme Court concluded that the trial court did not abuse its discretion by denying the plaintiffs':

A)default judgment.
B)punitive damages.
C)motion to dismiss.
D)motion for remittitur.

Question 38

The Jones Act is applicable to:

A)sailors.
B)retirees.
C)medical professionals.
D)war veterans.

Question 39

Which of the following is not a category under the Social Security system?

A)Retirement insurance benefits
B)Medicare
C)Unemployment benefits
D)Disability

Question 40

Although ERISA has sweeping preemptive impact on most state laws, it specifically exempts _____ from its preemptive powers.

A)state workers' compensation laws
B)retired pensioners' benefit laws
C)immigrant laborers' compensation laws
D)health care providers' compensation laws

Question 41

What are the two types of benefit plans established under the Employee Retirement Income Security Act (ERISA)?

Question 42

What is the purpose of Federal Employment Liability Act (FELA)?

Question 43

What is the main purpose of Social Security?

Question 44

The minimum standards for pension plans must be met for the plan to qualify for:

A)liquidity benefits.
B)preferential tax treatment.
C)federal accreditation.
D)FELA status.

Question 45

What can disqualify an out-of-work worker from receiving unemployment compensation?

Question 46

Define unemployment compensation.

Question 47

What constitutes disability under the Social Security system?

Question 48

In Baker v. Commissioner of Social Sec., the plaintiff was:

A)found disabled under the meaning of the Americans with Disabilities Act.
B)provided benefits after appeal.
C)denied benefits.
D)disabled under the meaning of the Social Security Act.

Question 49

Welfare plans usually provide participating employees and their beneficiaries with all of the following except :

A)unemployment benefits.
B)medical coverage.
C)pension benefits.
D)death benefits.

Question 50

Define willful misconduct.

Question 51

The fiduciary duties and conduct standards apply to any employee benefit plan established or maintained by an employer or in an industry or activity engaged in or affecting:

A)interstate commerce.
B)health care.
C)internal security.
D)international trade.

Question 52

What are the three major benefits that fall under the Social Security system?

Question 53

When are workers' compensation benefits awarded?

Question 54

How much should a worker be credited when he becomes disabled between the ages of thirty-one and forty-two?

A)Twenty-five quarters
B)Thirty-two quarters
C)Twenty quarters
D)Forty-five quarters

Question 55

Explain the concept of litigating unemployment claims.

Question 56

The Employee Retirement Income Security Act (ERISA)sets the standards for pension plans on all of the following aspects except :

A)fiduciary conduct.
B)asset management.
C)information disclosure.
D)plan taxation.

Question 57

Which one of the following is not true of the Employee Retirement Income Security Act (ERISA)?

A)It sets the minimum standards and requirements that the pension plan must meet.
B)It seeks to ensure that all employees covered by pension plans receive the benefits due them under the plans.
C)It does not apply to employee benefit plans that are established by federal, state, or local government employers.
D)It requires an employer to provide a pension plan for its employees.

Question 58

Which are the two enactments that predated the National Labor Relations Act and Workers'  Compensation laws?

Question 59

What kind of benefit is provided for disabled people under Social Security?

A)Subsidized housing
B)Legal assistance
C)Vocational rehabilitation
D)Anti-discriminatory privileges

Question 60

In Ruby v. Sandia Corp. , the plaintiff lost:

A)his disability benefits.
B)his pension.
C)his workers' compensation benefits.
D)All of these answers.

Question 61

Explain the role of the Employee Retirement Income Security Act (ERISA).

Question 62

Explain the three major categories of the Social Security system.

Question 63

Explain the concept of a fiduciary.

Question 64

Discuss workers' compensation.