Deck 17: Government and Legal Issues in Compensation

Question 1

To qualify for the administrative employee exemption,which of the following tests must be met?

A) The employee must be compensated on a salary or fee basis at a rate not less than $455 per week.
B) The employee's primary duty must be managing the enterprise.
C) The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.
D) The employee must have the authority to hire or fire other employees.

Answer 1

A

Question 2

The executive branch of the federal government _____.

A) enforces laws through agencies and its other bodies
B) passes laws
C) interprets laws and considers their constitutionality
D) changes existing laws or passes new ones

Answer 2

A

Question 3

All of the following except _____ are provisions of the 1938 Fair Labor Standards Act.

A) prohibition of hazardous work
B) the minimum wage
C) prohibition of child labor
D) hours of work

Answer 3

A

Question 4

Which of the following regarding child labor is not true?

A) Persons under 18 cannot work in hazardous occupations such as logging and mining
B) Persons under 16 cannot work in jobs involving interstate commerce unless working for a parent or guardian
C) The ILO finds that on a global basis child labor is increasing
D) The highest rates of child labor are in sub-Saharan Africa

Question 5

Which of the following is not true regarding minimum wage?

A) Nearly three-fourths of those earning minimum wage or less are in service occupations.
B) The percent of women and men earning minimum wage is approximately equal.
C) Minimum wages are more common in retailing than other industries.
D) The minimum wage directly affects only a small number of people.

Question 6

The Worker Economic Opportunity Act _____.

A) exempts stock options from the calculation of overtime
B) stiffens requirements for reporting executive pay
C) is unpopular with employers since it raises total wage costs
D) extends SEC pay disclosure requirements to highly paid executives

Question 7

The _____ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts.

A) Sarbanes-Oxley
B) Walsh-Healey
C) Fair Labor Standards
D) Davis-Bacon

Question 8

Under the _____ Act,executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition.

A) Worker Economic Opportunity
B) Davis-Bacon
C) Walsh-Healey
D) Sarbanes-Oxley

Question 9

The _____ Act requires workers be given a number of breaks during the workday.

A) Portal-to-Portal
B) Occupational Safety and Health
C) Fair Labor Standards
D) Equal Pay

Question 10

Which of the following is not true of the government's effect on the economy? Government _____.

A) indirectly affects labor demand via government purchases
B) affects labor supply via legislation
C) affects demand for labor via interest rates
D) immigration policy affects labor demand

Question 11

Compensatory time off would _____.

A) give employers and employees the option of trading overtime pay for time off
B) provide employees overtime pay after 8 hours for a 10-hour workday
C) allow an employer flexibility in the use of "on-call" employees
D) enable employers to monitor the employment practices of subcontractors

Question 12

Susan works in a sterile laboratory that requires her to scrub and put on protective clothing.Which of the following acts determines whether she should be paid for this time?

A) The Fair Labor Standards Act
B) The Occupational Safety and Health Act
C) The Portal-to-Portal Act
D) The Health Care Workers Protection Act

Question 13

Prevailing wage laws _____.

A) set pay for work done to produce goods and services contracted by the state government
B) are the maximum wages that must be paid for work done on covered government projects or purchases
C) require that contractors determine the "flat rate" for construction labor in an area
D) was passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression

Question 14

All of the following are criteria used in determining exempt status for executives regarding overtime pay provisions except _____.

A) engage in semi-routine activities
B) primarily undertake management duties
C) supervise two or more employees
D) authority to hire or fire other employees

Question 15

Which of the following is the least likely response companies would make to legislation?

A) Lobbying
B) Token compliance
C) Auditing their practices
D) Defending company practices in court

Question 16

A study of the effects of the living wage law in Los Angeles found all but the following _____.

A) employees covered by the law received a pay increase of 20 percent
B) one percent of covered jobs were lost
C) a higher proportion of new hires were female
D) turnover and absenteeism declined

Question 17

The Davis-Bacon Act _____.

A) states that income from most stock plans need not be included in calculating overtime pay
B) increases border of proof on employers to rebut some discrimination claims
C) requires that mechanics and laborers on public construction projects be paid the "prevailing wage" in an area
D) extends prevailing-wage concept to manufacturers or suppliers of goods for government contracts

Question 18

The government has interests in compensation decisions related to all but _____.

A) the fairness of pay procedures
B) safety nets for the unemployed and disadvantaged
C) earnings compared to foreign workers
D) overtime and child labor

Question 19

Which of the following occupational groups are not likely to be categorized as exempt?

A) Administrative
B) Professional
C) Executive
D) Clerical

Question 20

Employers were more likely to offer bonuses,gain-sharing,and stock options after the passage of the _____.

A) FLSA
B) Davis-Bacon Act
C) Sarbanes-Oxley Act
D) Worker Economic Opportunity Act

Question 21

Denial of jobs,promotions,or training opportunities to qualified women or minorities are examples of _____ discrimination.

A) access
B) valuation
C) disparate treatment
D) preferential treatment

Question 22

To determine pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and allows pay differences for jobs that are not comparable.This standard is _____.

A) job evaluation
B) comparable worth analysis
C) disparate impact analysis
D) point factor market comparison

Question 23

Experience,training,education,and ability as measured by the performance requirements of a particular job are the Department of Labor's definition of _____.

A) effort
B) skill
C) responsibility
D) working conditions

Question 24

_____ prohibits discrimination on the basis of race,color,religion,sex,or national origin.

A) Executive Order 11458
B) The FMLA
C) Executive Order 11246
D) The Rehabilitation Act

Question 25

The ADEA _____.

A) prohibits discrimination on the basis of sex,race,or color
B) was amended in 1990 to include the Older Workers Benefit Protection Act
C) typically focuses on differences in pay,promotions,pay raises,and performance reviews
D) prohibits discrimination on the basis of national origin in any employment condition

Question 26

A group of female employees have sued your company claiming their job is substantially equal to a job performed by men.Which of the following is your company's best defense?

A) The job classifications are different
B) Some factor other than sex
C) Men occasionally perform two additional small tasks
D) Most women were hired through a different source than men

Question 27

Regarding pay differences for different jobs,_____.

A) there is considerable acceptance of comparable worth
B) the courts favor reliance on use of unbiased job analysis results
C) court decisions have been inconclusive
D) courts continue to uphold use of market data to justify differences

Question 28

A(n)_____ is "a grouping of employees who perform similar work,and occupy positions with similar responsibility levels and involving similar skills and qualifications."

A) NOV
B) FCSS
C) SSEG
D) OWBPA

Question 29

Which of the following factors has not been suggested as an explanation of the earnings gap between the sexes and among minorities?

A) Personality and cultural differences
B) Industry and firm differences
C) Union differences
D) Work-related behavior differences

Question 30

Which of the following statements regarding wage differences in industries and firms is not true?

A) Men's wages are 54 percent higher in large firms than small
B) Women's wages are 37 percent higher in large firms than small
C) Female employment is more heavily concentrated in large than small firms
D) The pay premium for switching jobs accrues to white males,but not women and minorities

Question 31

Which of the following is not one of the steps in establishing a comparable-worth pay plan?

A) Adopt a single,"gender neutral" point job evaluation plan for all jobs within a unit.
B) All jobs with equal job evaluation points should be paid the same.
C) Identify the percentages of male and female employees in each job group.
D) Base the wage-to-job evaluation point ratio on wages paid for female-dominated jobs.

Question 32

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

A) Integrative bargaining
B) Win-win bargaining
C) Interest-based bargaining
D) Collective bargaining

Question 33

_____ is not a "factor other than sex" in the Equal Pay Act.

A) An employee's previous pay rate
B) Shift differential
C) Seniority
D) Business necessity

Question 34

Factors such as shift differential,temporary assignment,and training programs are examples of _____.

A) working conditions
B) "essential functions"
C) factors other than sex
D) bases of substantially equal

Question 35

Regarding gender pay gaps,which of the following is true?

A) The gap is largest for Asians
B) The gap between black and white women is more than between black and white men
C) Asian women earn less than white women
D) Overall,the gender gap has decreased

Question 36

The key factors explaining the gender pay gap are differences in _____.

A) qualifications and work/occupation
B) work/occupation and work-related behaviors
C) union membership and discrimination
D) discrimination and firm/industry

Question 37

Under Title VII _____.

A) pay discrimination is limited only to equal jobs
B) discrimination may be proved by indirect evidence of an employer's intent
C) intentional discrimination is prohibited whether or not the employees in question hold the same or different jobs
D) pay discrimination cannot occur in setting different rates for different jobs

Question 38

Which of the following is not a guideline for interpreting the Equal Pay Act?

A) Determination of substantially equal is based upon the content of actual work performed
B) Men and women may be paid differently if there are seniority differences
C) Men and women may be paid differently if there are performance differences
D) Men and women may be paid differently if customers prefer one sex over the other

Question 39

In _____ type cases,the focus is on the discriminatory consequences rather than the intent to discriminate?

A) Disparate treatment
B) Access discrimination
C) Disparate impact
D) Valuation discrimination

Question 40

Under Title VII,pay differences between dissimilar jobs will not be prohibited if the differences are based upon all of the following except _____.

A) content of the work
B) traditional pay patterns
C) value to the organization's objectives
D) the ability to attract employees in the external market

Question 41

Because relatively few people are paid minimum wage,raising the minimum wage does not affect pay structures.

Question 42

In practice,the "going rate" for construction labor is the union rate.

Question 43

While government affects the supply of labor through legislation,it has little effect on the demand for labor.

Question 44

The overall effect of immigration is an increase in wages for low skilled workers.

Question 45

The Mental Health Act of 1997 requires coverage of mental illness as any other medical condition.

Question 46

If federal and state minimum wage laws cover the same job,workers should be paid at or above the higher rate.

Question 47

All employees are covered by the Fair Labor Standards Act of 1938 and its amendments.

Question 48

The objective of the overtime provision of FLSA is to share available work by making it more costly for employers to schedule overtime for current employees than to hire additional workers.

Question 49

Minimum wage jobs are very rare in the software,chemical,oil,and pharmaceutical industries.

Question 50

The two types of discrimination recognized in law are valuation discrimination and disparate treatment.

Question 51

Sam is computer system troubleshooter.His company requires him to wear a beeper when he is not at the office during weekends,but not evenings.Sam is eligible to receive pay for his "on-call" time.

Question 52

A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

Question 53

The Schultz v.Wheaton Glass case ruled that for jobs to receive equal pay,they do not have to be identical but substantially equal.

Question 54

The purpose of prevailing wage laws is to assure that government projects do not waste tax dollars.

Question 55

Government employment is growing faster than the population.

Question 56

Prevailing wages protect foreign workers working as registered nurses.

Question 57

"Living wages" are generally four to five times the federal minimum wage.

Question 58

A "living wage" provides for a minimum wage tailored to living costs in a city or geographic area.

Question 59

The purpose of minimum wage legislation is to maximize the number of employed people.

Question 60

Legislation does not always achieve what it intends nor achieves what it achieves.

Question 61

A higher proportion of women are employed by small versus large firms.

Question 62

In Gunther v.County of Washington,the Supreme Court ruled that a wage discrimination suit could be brought under Title VII where the jobs were dissimilar.

Question 63

Pay differences for equal work may be justified for demonstrably business-related reasons.

Question 64

What are the four basic steps in establishing a comparable-worth plan?

Question 65

The best evidence of true pay discrimination are statistical studies that account for gender differences in pay using legitimate factors.

Question 66

Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities.

Question 67

What is the Fair Labor Standards Act of 1938? What are its major provisions?

Question 68

Compare and contrast disparate treatment and disparate impact.

Question 69

In cases of equal pay,the formal job description is more important than the actual work performed.

Question 70

What are the definitions of skill,effort,responsibility,working conditions according to the Department of Labor? What are the conditions that must be met for an employer to support a claim of unequal work?

Question 71

What are the three branches of the federal government In the United States? What are their functions?

Question 72

Women of all ethnic groups are less likely than men to seek part-time and flexible work arrangements.

Question 73

Distinguish between access discrimination and valuation discrimination.

Question 74

Of the four affirmative defenses for unequal pay for equal work,"a factor other than sex" has prompted the most court cases.

Question 75

The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.

Question 76

What are the sources of earnings gaps?

Question 77

How can a proactive compensation manager influence the nature of regulations?

Question 78

What are the tests that must be met to qualify for the executive employee exemption?

Question 79

Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2007.

Question 80

What does the Securities Exchange Act of 1934 do?