Deck 16: Selected Employment Benefits and Protections

Question 1

Employers must display an Occupational Safety and Health Act (OSHA)poster in the workplace to keep employees informed of their rights under OSHA.

Answer 1

False
Explanation: Employees must be informed of their Occupational Safety and Health Act (OSHA) rights by their employer. This requirement may be met by displaying an OSHA poster in the workplace, but displaying this poster is not mandatory.

Question 2

Defined benefit plans are funded primarily by employee contributions.

Answer 2

False
Explanation: Contributions and defined contribution plans can come from employees, the employer, or both. Defined benefit plans comprise all other plans but generally refer to plans where the amount the employee receives at retirement is specifically designated at the time the employee enters the plan. Contributions to defined benefit plans generally only come from the employer, although some old plans also allow employee contributions.

Question 3

The advocates of the original minimum wage laws were trying to establish a wage that would provide workers with sufficient money on which to live while not causing harm to business owners.

Answer 3

True
Explanation: The minimum wage law was passed in 1938, nine years after the Wall Street crash of 1929, in hopes that it would avoid another Depression. The advocates of the law, primarily unions and other workers, believed that a minimum wage would provide everyone with sufficient money on which to live without causing economic harm to business owners.

Question 4

ERISA (the Employee Retirement Income Security Act)contains provisions affecting retirement and welfare plans.

Question 5

Steven,an environmental enthusiast,volunteers to work as an intern at Green Trees,a non-profit organization dedicated to environmental protection.Green Trees hires Steven without any pay.Which of the following is most likely to be true in this case?

A) Green Trees violated the Fair Labor Standards Act because it is legally required to pay all hired employees.
B) Green Trees did not violate the Fair Labor Standards Act because unpaid internships at non-profit charitable organizations are generally permissible.
C) Green Trees may not be required to pay Steven any overtime compensation, but it is required to pay him a minimum wage for his services.
D) Green Trees is required to guarantee Steven a job at the conclusion of his internship if he is not being paid during the internship period.

Question 6

Faye is a recent law graduate employed as an associate attorney at The Firm,a law firm with close to 200 employees.Faye is paid $98,000 per year.Like most associates,she regularly works 60 or more hours a week.She thinks she should be provided overtime compensation for all of the extra hours of work she puts in per week.Which of the following is most likely to be true in this case?

A) Faye will be eligible for overtime compensation under the Fair Labor Standards Act regulations because she makes less than $100,000.
B) Faye will not be eligible for overtime pay because as a professional, she is exempt from the overtime provisions of the Fair Labor Standards Act.
C) Faye will be eligible for overtime pay under the Fair Labor Standards Act because any firm with more than 150 employees is required to pay all of its employees for overtime.
D) Faye will not be eligible for overtime pay if it can be shown that she pays less than $25,000 toward income tax.

Question 7

Which of the following groups of employees are NOT covered by the FLSA?

A) Full-time and part-time employees of a business involved in interstate commerce
B) Federal, state and local government employees
C) Employees of a hospital making less than $500,000
D) Employees of a small business (generating $250,000 per year) producing goods for interstate commerce

Question 8

Welfare benefit plans covered by ERISA include payroll practices from the employer's general assets.

Question 9

If a state child labor law is stricter than the federal law,the federal law supersedes the state law.

Question 10

The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)applies to group health plans provided by employers with 20 or more employees on a typical working day in the previous calendar year.

Question 11

Which of the following is NOT a criteria for employment under the FLSA requiring an intern to be paid for an internship?

A) The intern does not displace regular staff, and works under the close supervision of existing staff.
B) The internship is similar to training that would be given in an educational environment.
C) The intern agreed to work without pay in exchange for the promise of full-time employment at the completion of the internship.
D) The intern is not necessarily entitled to a job upon completion of the internship.

Question 12

Employers are required to report workplace injuries due to assaults by family members or ex-spouses as a part of their recordkeeping requirements under the Occupational Safety and Health Act.

Question 13

Roger,a cashier at Mason's Mart located in Wyoming,is paid the minimum wage set by the state.The state minimum wage rate is less than the federal minimum wage rate.Which of the following holds true in this case?

A) Mason's has not violated the Fair Labor Standards Act of 1938 because the state wage rate supersedes the federal minimum wage rate.
B) Mason's has violated the Fair Labor Standards Act of 1938 because the federal minimum wage rate supersedes the state wage rate.
C) Mason's has not violated the Fair Labor Standards Act of 1938 because private employers are not covered under the act.
D) Mason's has violated the Fair Labor Standards Act of 1938 only if it can be shown that the employees are not paid any overtime compensation.

Question 14

Which of the following statements is true about the Fair Labor Standards Act (FLSA)?

A) The FLSA requires that domestic workers who reside in the employer's home either permanently or for an extended period of time be eligible for overtime pay.
B) The FLSA requires overtime pay in an amount no more than 1-1/2 (one and one-half) times the employee's regular rate of pay.
C) The FLSA sets the number of hours that constitute a "normal work week" for wage purposes.
D) The FLSA prohibits an employer from requiring an employee to work more than 40 hours a week.

Question 15

If an employer operates in a number of different states,it is subject to the federal minimum wage law and not the state laws.

Question 16

An employer may exclude employees who have not yet attained age twenty-one (21)from the company's retirement plan(s).

Question 17

Jason,who works as a taxicab driver for Transport Inc.,is paid on an hourly basis.He makes less than $20,000 a year and regularly works 10 to 15 hours overtime per week.However,he is not paid for overtime.Which of the following is most likely to be true in this case?

A) Jason is entitled to overtime pay under the Fair Labor Standards Act of 1938 because he earns less than $23,660 per year.
B) Jason is not entitled to overtime pay because non-professionals are exempt from the overtime provisions of the Fair Labor Standards Act of 1938.
C) Transport has to provide Jason overtime compensation only if it can be shown that its revenue crosses $100,000 per annum.
D) Transport does not have to provide Jason overtime compensation because under the Fair Labor Standards Act of 1938, taxicab drivers are not entitled to receive minimum wages or overtime compensation.

Question 18

Which of the following is true of an employee's right to be paid for time putting on or removing protective gear?

A) Employees must be paid time and a half for the period of time it takes to put on or remove protective gear.
B) Employees generally must be paid for the time that it takes to put on or remove protective gear, although it may be the subject of collective bargaining.
C) Employees are not entitled to be paid for the time that it takes to put on or remove protective gear.
D) Employees must be paid for the time that it takes to put on or remove protective gear, no exceptions.

Question 19

An employer will not be held responsible under the Occupational Safety and Health Act (OSHA)for workplace hazards or injuries where the harm is the result of reckless behavior by an employee.

Question 20

Workers' compensation laws are generally no-fault,which means that workers injured on the job are entitled to recover from their injuries without having to prove who is at fault.

Question 21

One category of OSHA violation is a willful violation.Pursuant to OSHA,each of the following constitutes a willful violation except:

A) the employer knows what he or she is doing constitutes a violation
B) there is a violation that the employer should have known about
C) there is a violation that was known to employees but not known to the employer
D) the employer is aware of a hazardous condition, but does not take steps to remedy it

Question 22

Raul is a cashier at a large chain of department stores.During the holiday season,he regularly works 60 hours per week.Which of the following holds most true in this case?

A) The stores satisfy the overtime provisions of the Fair Labor Standards Act of 1938 if they pay Raul overtime for the hours worked over 40 hours per week.
B) The stores satisfy the overtime provisions of the Fair Labor Standards Act of 1938 if they pay Raul overtime only for the hours worked over 50 hours per week.
C) The stores violate the Fair Labor Standards Act of 1938 if they employ Raul for less than 60 hours during a workweek.
D) The stores violate the Fair Labor Standards Act of 1938 if they require Raul to work overtime.

Question 23

A defined contribution plan is a retirement plan where:

A) the benefits payable to a participant are based on contributions and earnings on those contributions.
B) the amount an employee receives at retirement is specifically designated at the time the employee enters the plan.
C) contributions made by an employer to the plan are determined actuarially.
D) contributions to the plan generally only come from an employer.

Question 24

Piper has been working as a salesman at Cosmo Pools,a company with close to 55 employees,for the past five years.She becomes the legal guardian of her six-year-old nephew after her sister and her husband die in a car crash.She informs her supervisor that she would need the next couple of weeks off to arrange for hers nephew's care.Under the Family and Medical Leave Act of 1993,Cosmo Pools:

A) does not have to grant the leave because the act applies only to employers with more than 100 employees.
B) does not have to grant the leave because Piper did not give 60 days' notice.
C) is required to grant the leave only if Piper agrees to work overtime without any compensation after she returns to work from her leave.
D) is required to grant the leave because the act extends the right to care for a child to an employee who is acting as a parent.

Question 25

An employer is deemed to have constructive knowledge,as opposed to actual knowledge,of a recognized hazard if the:

A) employer is well aware of the hazard but has not informed OSHA about the hazard.
B) hazard is not too serious for the employer to take safety precautions.
C) hazard has previously resulted in one or two minor injuries to the employees.
D) industry recognizes the hazard even if the employer does not actually know of it.

Question 26

HIPAA's privacy provisions apply to covered entities.Covered entity is broadly defined,and may include all of the following,except:

A) An employer using a third-party provider to manage and administer its health plan.
B) A records storage facility housing protected health information.
C) A hospital or doctor's office.
D) A university's student health center.

Question 27

To prevent possible workplace violence,employers should develop a workplace violence policy which includes all of the following except:

A) a zero tolerance policy toward threats or acts of violence
B) an established process for receiving and investigating complaints
C) training of managers and employees to recognize workplace violence
D) disciplinary action against employees who may have recognized disabilities under the ADA, and who are suspected to be involved in workplace violence issues

Question 28

Under the continual-training requirement,the Occupational Safety and Health Act requires an employer to:

A) provide safety training to all employees, regardless of the work they do, at least once a week.
B) provide overtime pay to all trainees and interns working over 30 hours per week.
C) provide safety training every time an employee is hired or transferred into a new position, even if for just a day.
D) provide additional compensation over the minimum wage to employees who spend more than 15 hours per week in training.

Question 29

An employer may use the greater hazard defense to an Occupational Safety and Health Act (OSHA)violation:

A) where the harm was the result of reckless behavior by an employee.
B) where an employee knew of the hazard involved in the workplace, chose to chance not being injured, and was in fact injured.
C) where the employees refuse to adhere to the restrictions under the act.
D) where the hazards of compliance with the standard are more than the hazards of noncompliance.

Question 30

Which type of workplace injury must be reported to OSHA within eight (8)hours of occurrence?

A) An injury requiring an employee to change jobs
B) A workplace fatality
C) An injury requiring immediate transport to a hospital
D) An injury requiring any sort of medical treatment

Question 31

Grayco has close to 1,000 full-time and part-time employees who manufacture component parts for hand tools.The company policy states that part-time employees are not eligible for overtime pay,even if an employee works more than 40 hours during a particular week.Which of the following is most likely to be true in this case?

A) Grayco has not violated the Fair Labor Standards Act of 1938 because part-time employees are by definition exempt from overtime pay.
B) Grayco has not violated the Fair Labor Standards Act of 1938 because private employers are not covered under the act.
C) Grayco has violated the Fair Labor Standards Act of 1938 because all of its employees are covered by the act and are entitled to overtime pay.
D) Grayco has violated the Fair Labor Standards Act of 1938 because the law prohibits an employer from requiring employees to work over 40 hours per week.

Question 32

Before the passage of OSHA,several defenses allowed employers to escape liability for injuries in the workplace.One of these is the fellow servant rule which says:

A) The employee knew of the risk, and chose to work in an unsafe area anyway.
B) The employee's co-worker knew that an unsafe condition existed, but the employee decided to work in the unsafe area anyway.
C) The employee contributed to his injury by his own negligence.
D) The negligence was the fault of an employee rather than the employer.

Question 33

The purposes for the Health Insurance Portability and Accountability Act (HIPAA)include all of the following except:

A) to mandate access to continued health care coverage when changing jobs
B) to create a uniform system for processing, securing and retaining healthcare information
C) to prevent employers from restricting coverage due to pre-existing conditions
D) to protect the privacy of individuals in their protected health information

Question 34

Which of the following is a reporting and disclosure requirement under ERISA?

A) administer the plan in accordance with its terms
B) provide a participant with a summary plan description (SPD) within 90 days of becoming eligible for the plan
C) diversify the investment of plan assets
D) properly allocate contributions and investment gains or losses to participants' accounts

Question 35

Youssef has been an employee of HRG Industries for the past seven months.His wife was recently diagnosed with cancer and needs to undergo surgery.Youssef asks his supervisor,Robert,for four to six weeks of leave pursuant to the Family Medical Leave Act of 1993 (FMLA)for his wife's surgery and rehabilitation.Which of the following holds true in this case?

A) Robert is not required to grant the leave under the FMLA because the act is limited to employees at the executive level.
B) Robert is not required to grant the leave under the FMLA because Youssef has worked for HRG Industries for less than 12 months.
C) Robert is required to grant the leave under the FMLA because Youssef belongs to a protected class.
D) Robert is required to grant the leave under the FMLA because the condition of Youssef's wife is severe.

Question 36

Before reviewing a high-risk workplace for compliance with the Occupational Safety and Health Act's standards,a safety inspector:

A) must mail a search warrant to the employer at least five days prior to the inspection.
B) must check with the employer to fix a convenient day for the inspection.
C) must ensure that no unauthorized advance notice of the inspection was given to the employer.
D) must arrange a training program on the Occupational Safety and Health Act's standards for all employees.

Question 37

The tools used by OSHA to accomplish its purpose of enhancing workplace safety include all of the following,except:

A) undercover agents posing as employees
B) citations and penalties for violations
C) unannounced inspections
D) continual safety training requirements

Question 38

Under the Employee Retirement Income Security Act (ERISA),a fiduciary is required to:

A) exercise the care and judgment that a prudent person would exercise pursuing similar objectives under the same circumstances.
B) invest plan assets in funds that will generate a profit for the plan participants.
C) discharge his or her duties solely in the interest of his or her employer rather than in the interest of the participants in the pension and welfare plans.
D) invest an employee's contributions toward pension and welfare plans in an undiversified portfolio so as to limit the investment risk of the plans.

Question 39

Manhattan Tools takes all reasonable precautions to guard employees against known hazards in its production facilities.However,Curtis,an employee,found many of the precautions too cumbersome to follow.Curtis is injured when he circumvents these precautions.Which of the following is most likely to be true in this case?

A) Manhattan Tools will be liable for the harm because Curtis avoided the precautionary measures due to a legitimate reason.
B) Manhattan Tools will be liable because OSHA states that employers are insurers of employee safety, even in spite of an employee's disregard for safety precautions.
C) Manhattan Tools will not be liable as the harm was the result of reckless behavior on Curtis' part.
D) Manhattan Tools will not be liable for the harm as OSHA does not apply to private employers.

Question 40

Which of the following must an employee prove in order to establish retaliation under the Occupational Safety and Health Act (OSHA)?

A) The employee must prove that he or she is not an at-will employee of the firm.
B) The employee must prove that he or she did not engage in a protected activity.
C) The employee must prove that he or she is not part of any labor union.
D) The employee must prove that he or she was subjected to an adverse action by the employer.

Question 41

Portia,the chief administrator in charge of medical records at Flower Hospital,receives a request for copies of Vito's medical records from Vito's employer.Portia releases them without Vito's approval.Which of the following is most likely to be true in this case?

A) Portia has not violated the Health Insurance Portability and Accountability Act's privacy rule because she was lawfully required to disclose protected health information to Vito's employer.
B) Portia has violated the Health Insurance Portability and Accountability Act's privacy rule because Vito's employer is not included in the category that can receive protected health information without authorization from Vito.
C) Portia has not violated the Health Insurance Portability and Accountability Act's privacy rule because protected health information can be used by private employers to defend their retaliatory actions against employees.
D) Portia has violated the Health Insurance Portability and Accountability Act's privacy rule only if Vito's employer further disseminates the protected information to third parties.

Question 42

Under what circumstances might an employer NOT be held liable for an employee's workplace injury pursuant OSHA regulations?

Question 43

Which types of plans must purchase insurance from the Pension Benefit Guaranty Corporation (PBGC)?

A) defined contribution plans
B) defined benefit plans
C) defined benefit plans and defined contribution plans with assets of $25,000 or more
D) only defined benefit plans with assets in excess of $25,000

Question 44

Briefly describe the difference between the two types of pension or retirement plans that the Employee Retirement Income Security Act (ERISA)covers.

Question 45

If an employer is considering significant changes to a retirement plan,when must those changes (or potential changes)be communicated to employees and/or plan participants

A) Immediately.
B) When the changes are under serious consideration.
C) After the plan changes are approved.
D) There is no obligation to communicate plan changes to employees or participants.

Question 46

Corey,who works as a mechanic,falls off a ladder,breaks his arm,and loses consciousness.Upon returning to the company post-treatment,the company transfers him to a different position.Does the company need to make a report under the Occupational Safety and Health Act (OSHA)? If yes,what are the details to be included in the report? Explain.

Question 47

What are the fiduciary standards established by the Employee Retirement Income Security Act (ERISA)?

Question 48

Audrey,who has been diagnosed with multiple cysts in her kidney,has to undergo surgery.Two months after the diagnosis,she began employment with Mobile Chef,which has a three-month waiting period before new employees can enroll in its medical insurance plan.If Audrey enrolls in the insurance plan on the earliest date,she will be:

A) eligible because employers are prohibited from excluding employees from insurance coverage due to preexisting medical conditions.
B) ineligible because any employee should have been employed for at least five years with a company to claim benefits under his or her insurance plan.
C) eligible only if she can show that her medical condition is related to work.
D) ineligible because her medical condition was not diagnosed during the course of her employment with Mobile Chef

Question 49

Explain the general provisions of the Family and Medical Leave Act (FMLA).

Question 50

Which of the following best describes a defined benefit pension plan?

A) A plan in which each employee has his or her own account and the benefits are based only on the principal and income contributed
B) A plan that is established to provide health, vacation, or unemployment benefits through contributions solely made by employees
C) A plan where the amount payable to a participant is determined by a formula, the funding of which is determined actuarially
D) A plan in which the security comes from knowing the amount of principal that will be invested