Deck 16: Selected Employment Benefits and Protections

Question 1

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.

Answer 1

True
Explanation:Under the Occupational Safety and Health Act, if an injury or illness is work-related and meets the general recording criteria or falls into specific categories, reporting is mandated. Employers also must report workplace injuries due to assaults by family members or ex-spouses as a part of their recordkeeping requirements.

Question 2

It is mandatory for employers to display an Occupational Safety and Health Act (OSHA)poster in the workplace so as to keep their employees informed of their rights under the act.

Answer 2

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 3

Employees of the Vibrant Infra Company work long hours during road construction projects to take advantage of good weather and to complete the work on schedule.During one particular week,a few employees worked close to 65 hours each.For such employees,Vibrant Infra Company must:

A) pay double time only for the time worked in excess of 60 hours.
B) pay a fine as the Fair Labor Standards Act (FLSA) prohibits employees from working over 60 hours per week.
C) pay only the minimum wages paid to other employees as federal contractors are exempt from the overtime regulations of the Fair Labor Standards Act of 1938.
D) pay time and a half for the time worked in excess of 40 hours.

Answer 3

D
Explanation:For the employees who worked close to 65 hours in one week, Vibrant Infra Company must pay time and a half for the time worked in excess of 40 hours.The Fair Labor Standards Act (FLSA) does not limit the hours that employees can work but merely states that if an employee works over 40 hours, he or she must be paid time and a half for the time worked in excess of 40 hours.

Question 4

Jude,a cashier at Dixie's Discount 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) Dixie's has not violated the Fair Labor Standards Act of 1938 because the state wage rate supersedes the federal minimum wage rate.
B) Dixie's has violated the Fair Labor Standards Act of 1938 because the federal minimum wage rate supersedes the state wage rate.
C) Dixie's has not violated the Fair Labor Standards Act of 1938 because private employers are not covered under the act.
D) Dixie'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 5

Kendall,an apprentice at Coral Kitchen Works (CKW),is learning how to assemble and install kitchen cabinets.CKW pays her $5.50 per hour,which is less than the government-approved minimum wage.Which of the following is most likely to be true in this case?

A) Coral Kitchen Works cannot pay Kendall less than the minimum wage because all employees, whether trainees or full-time employees, must be paid at least 10 percent above the minimum wage without exceptions.
B) Coral Kitchen Works can pay Kendall less than the minimum wage if it agrees to provide overtime compensation for time worked in excess of 60 hours per week.
C) Coral Kitchen Works can pay Kendall less than the minimum wage because interns and apprentices are not covered under the Fair Labor Standards Act of 1938.
D) Coral Kitchen Works can pay Kendall less than the minimum wage only if it obtains a certificate issued by the Department of Labor's wage and hour administrator.

Question 6

City News does not violate the child labor laws if it employs Anthony,a 15-year-old student,as a part-time newspaper delivery boy.

Question 7

Which of the following statements is true of internships?

A) Internships should be of a fixed duration, established prior to their outset.
B) Internships in the "for-profit" private sector cannot be viewed as employment as the internship experience is for the benefit of the intern and not the employer.
C) Interns receiving the same level of supervision as an employer's regular workforce should be viewed as receiving training.
D) Interns are legally entitled to a job at the conclusion of their internship.

Question 8

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 9

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 10

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

A) Under the FLSA, employers paying their employees on a piece-rate rather than an hourly rate are allowed to pay less than the minimum wage.
B) The FLSA does not limit the hours employees work but, rather, sets standards for the hours constituting a normal workweek for wage purposes.
C) Employees who earn at least $100,000 per year and perform some executive, professional, or administrative job duties are automatically covered under the overtime provisions of the FLSA.
D) The FLSA entitles domestic workers who live in the employer's home permanently or for an extended period of time who are employed by an individual, family, or household to overtime pay.

Question 11

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

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

Question 12

The Equal Pay Act set standards for the minimum age for workers and the minimum wages they can make.

Question 13

Payroll practices from an employer's general assets are welfare benefit plans covered by the Employee Retirement Income Security Act (ERISA).

Question 14

In the event of a state child labor law being stricter than the federal law,the federal law supersedes the state law.

Question 15

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 16

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

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

Question 17

The Health Insurance Portability and Accountability Act (HIPAA)preempts all state privacy laws.

Question 18

The Employee Retirement Income Security Act (ERISA)covers plans established and maintained by governmental entities and churches.

Question 19

Under the Employee Retirement Income Security Act (ERISA),an individual must be a named fiduciary to be declared a plan fiduciary.

Question 20

Rennie is a recent law graduate employed as an associate attorney at RN Associates,a law firm with close to 200 employees.Rennie 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) Rennie will be eligible for overtime compensation under the Fair Labor Standards Act regulations because she makes less than $100,000.
B) Rennie 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) Rennie 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) Rennie will not be eligible for overtime pay if it can be shown that she pays less than $25,000 toward income tax.

Question 21

Which type of workplace injury must an employer maintain records of to comply with the Occupational Safety and Health Act (OSHA)?

A) An injury that does not require medical treatment
B) An injury that causes loss of consciousness
C) An injury that occurs in the employee's home
D) An injury that causes loss of interest toward work

Question 22

Claire,who worked for a cosmetic surgeon's office in Hollywood,accessed the medical records of a number of celebrities and sold them to tabloids,which then revealed the information in their written publications,on television,and on the Internet.Which of the following enforcement actions will not be available for the HIPAA violations in this case?

A) Civil penalties of $100-$50,000 per failure to comply with HIPAA's privacy rules.
B) Criminal prosecution by the U.S. Department of Justice, which could result in up to 10 years of jail time.
C) A lawsuit claiming HIPAA violations, brought by the individuals whose private health information was revealed.
D) A private lawsuit borne under tort law or other state law.

Question 23

Grapple Industries 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) Grapple Industries has not violated the Fair Labor Standards Act of 1938 because part-time employees are by definition exempt from overtime pay.
B) Grapple Industries has not violated the Fair Labor Standards Act of 1938 because private employers are not covered under the act.
C) Grapple Industries 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) Grapple Industries 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 24

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 25

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 26

To prevent potential violence in the workplace,employers should:

A) create a homogenous workforce by avoiding employing individuals from the protected class.
B) restrict protected activities such as whistleblowing.
C) establish a complaint process for employees to be able to warn the employer of potential violence.
D) engage in nepotism when taking disciplinary actions against employees in response to their violent acts.

Question 27

The safety standards enforced by the Occupational Safety and Health Administration are researched and formulated by the:

A) National Center for Complementary and Integrative Health.
B) Occupational Safety and Health Review Commission.
C) National Institute for Occupational Safety and Health.
D) Equal Employment Opportunity Commission.

Question 28

In cases where employees refuse to work in environments that they believe are not safe,employers:

A) must apply the assumption of risk defense against the employees and force them to work.
B) must reprimand those workers harshly in their personnel files.
C) cannot punish the employees and must comply with their general duty.
D) cannot keep the workplace operational under any circumstances.

Question 29

Before the passage of the Occupational Safety and Health Act (OSHA),an employer could have tried to escape liability for an unsafe workplace by showing that the negligence of one employee caused injuries to another employee.Which of the following defenses would the employer try to assert?

A) The fellow servant rule
B) The assumption of risk
C) The greater hazard defense
D) The no-fault rule

Question 30

Which of the following is true of the provisions under the Health Insurance Portability and Accountability Act (HIPAA)?

A) The act provides a private right of action for individuals to sue covered entities for alleged violations.
B) The act exempts an employer from complying with other federal laws such as the Employee Retirement Income Security Act (ERISA), the Americans with Disabilities Act (ADA), and the Family Medical Leave Act (FMLA).
C) The act permits a covered entity to use and disclose protected health information without an individual's authorization for law enforcement activities pursuant to court orders and/or subpoenas.
D) The act supersedes state privacy laws in cases where it provides lesser privacy protections or limited individual rights than the state laws.

Question 31

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) file a summary plan description (SPD) with the U.S. Department of Labor (DOL).
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 32

An employer is deemed to have had 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 the Occupational Safety and Health Administration 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 33

A defined contribution plan is a retirement plan where:

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

Question 34

Salim has been an employee of Firewood Heavy Equipment for the past seven months.His wife was recently diagnosed with cancer and needs to undergo surgery.Salim asks his supervisor,Harris,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) Harris is not required to grant the leave under the FMLA because the act is limited to employees at the executive level.
B) Harris is not required to grant the leave under the FMLA because Salim has worked for Firewood Heavy Equipment for less than 12 months.
C) Harris is required to grant the leave under the FMLA because Salim belongs to a protected class.
D) Harris is required to grant the leave under the FMLA because the condition of Salim's wife is severe.

Question 35

In the Varity Corp.v.Howe case,the U.S.Supreme Court held that fiduciaries:

A) have to file a summary plan description (SPD) with the U.S. Department of Labor (DOL).
B) are required to discharge their duties solely in the interest of their employers.
C) have the duty not to mislead participants regarding their benefits in pension and welfare plans.
D) are required to invest participants' contributions toward pension plans in an undiversified portfolio to avoid risks.

Question 36

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 37

Lara is a cashier at Day2Night,a large chain of department stores.During the holiday season,she regularly works 60 hours per week.Which of the following holds most true in this case?

A) Day2Night satisfies the overtime provisions of the Fair Labor Standards Act of 1938 if it pays Lara overtime for the hours worked over 40 hours per week.
B) Day2Night satisfies the overtime provisions of the Fair Labor Standards Act of 1938 if it pays Lara overtime only for the hours worked over 50 hours per week.
C) Day2Night violates the Fair Labor Standards Act of 1938 if it employs Lara for less than 60 hours during a workweek.
D) Day2Night violates the Fair Labor Standards Act of 1938 if it requires Lara to work overtime.

Question 38

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 39

Bernard has been working as a salesman at Flipper Pools,a company with close to 55 employees,for the past five years.He becomes the legal guardian of his six-year-old nephew after his sister and her husband die in a car crash.He informs his supervisor that he would need the next couple of weeks off to arrange for his nephew's care.Under the Family and Medical Leave Act of 1993,Flipper 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 Bernard did not give 60 days' notice.
C) is required to grant the leave only if Bernard agrees to work overtime without any compensation after he returns to work from his 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 40

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

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

Question 41

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

Question 42

Calvin,who works as a mechanic at Unicorn Majorworks Company,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 Unicorn Majorworks 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 43

Lucy,the administrator of pension and welfare plans for the Gold Sea Corporation,invests all of the participants' funds in the stock of TechvaSys Inc.The stock price plummets,resulting in a loss for the participants.Thus,Lucy has:

A) violated her fiduciary duty of disclosure.
B) violated her fiduciary duty of diversification.
C) violated her fiduciary duty of selective purpose.
D) violated her fiduciary duty of transparency.

Question 44

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

Question 45

Sam,a 22-year-old delivery truck driver for Yumpin Yogurt,has been excluded from Yumpin's pension plan in spite of having worked continuously for the company for the past six months.Which of the following holds true in this case?

A) Sam's exclusion is illegal because there are no exceptions to employee benefit plans.
B) Sam's exclusion is legal because laws related to retirement and employee benefits apply only to individuals above the age 25.
C) Sam's exclusion is legal because employers may require one year of employment to be eligible for participation in a pension plan.
D) Sam's exclusion is illegal because discrimination based on age and seniority is prohibited under all circumstances.

Question 46

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

Question 47

Adriana,who has been diagnosed with multiple cysts in her kidney,has to undergo surgery.Two months after the diagnosis,she begins employment with Savory Meals Inc.,which has a three-month waiting period before new employees can enroll in its medical insurance plan.If Adriana 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 Savory Meals Inc.

Question 48

Under what circumstances can an employer's noncompliance with the Occupational Safety and Health Act's (OSHA)safety regulations not result in a violation?

Question 49

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

A) Pamela has not violated the Health Insurance Portability and Accountability Act's privacy rule because she was lawfully required to disclose protected health information to Victoria's employer.
B) Pamela has violated the Health Insurance Portability and Accountability Act's privacy rule because Victoria's employer is not included in the category that can receive protected health information without authorization from Victoria.
C) Pamela 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) Pamela has violated the Health Insurance Portability and Accountability Act's privacy rule only if Victoria's employer further disseminates the protected information to third parties.

Question 50

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