Deck 16: Selected Employment Benefits and Protections

Question 1

Employers with defined benefit plans are required to purchase insurance from the Pension Benefit Guarantee Corporation to cover potential losses of benefits on termination of a plan.

Answer 1

True

Question 2

Anthony has gotten a job delivering newspapers. He is 13 years old. The City News has not violated the child labor laws.

Answer 2

True

Question 3

The only legal way in which an employer can avoid having to pay an employee at one and one-half the employee's normal hourly rate for hours worked in excess of 40 hours per week is by having the employee sign a contract agreeing to waive the overtime rate.

Answer 3

False

Question 4

An employer can be liable for criminal penalties, under OSHA, if it commits a willful violation that results in the death of an employee.

Question 5

Beatrice sues her employer for a negligently incurred injury. The employer attempts to show that it was the act of one of Beatrice's coworkers that caused Beatrice's injuries. The employer is asserting:

A) the fellow servant rule.
B) assumption of the risk.
C) the greater danger defense.
D) contributory negligence.

Question 6

Employers must keep records of workplace injuries

A) even if the injury does not require medical treatment.
B) if the injury causes a loss of consciousness.
C) even if the injury does not result from a work related cause.
D) None of the choices are correct.

Question 7

COBRA gives qualified participants and beneficiaries the right to continue to receive health insurance benefits at the employer's expense after a change in circumstances such as termination or divorce for up to 18 months.

Question 8

Before reviewing a high-risk workplace for compliance with OSHA, a safety inspector must give the employer advance notice of not less than

A) 5 days.
B) 10 days.
C) 30 days.
D) None of the choices is correct.

Question 9

When OSHA issues citations or penalties for workplace safety violations, employers can challenge the citation or penalty directly in Federal District Court.

Question 10

Prior to the enactment of the Occupational Safety and Health Act, employers could avoid liability for workplace accidents by alleging the contributory negligence defense.

Question 11

Andrea is a 1^st grade teacher. She is new to the job and usually works until 5:30 p.m. every evening to prepare her lesson plans for the following day. Andrea is not paid overtime pay and her employer has violated the FLSA.

Question 12

The "greater hazard" defense is allowed by OSHA if the employer can show
I) A variance from the secretary of labor is unavailable.
II) Alternative means of protection are unavailable.
III) The employees refuse adhere to OSHA's restrictions.
IV) The hazards of compliance with the standard are greater than the hazards of noncompliance.

A) I and II.
B) II and III.
C) I, II, and III.
D) I, II, and IV.

Question 13

Pension plan assets may not be invested in the employer's own stock, as this creates a conflict of interest.

Question 14

NIOSH is the agency responsible for researching workplace safety and making recommendations to the Secretary of Labor.

Question 15

The OSHA requirement that employers provide safety training to all new employees and to all employees who have been transferred into new positions:

A) is the general duty rule.
B) is the safety training requirement.
C) is the continual training requirement.
D) is the safety standard duty.

Question 16

The FLSA preempts any state child labor laws that are stricter than the Federal Law.

Question 17

The FLSA, which is administered by the EEOC, has the authority to investigate, gather information, issue regulations, and enforce provisions of the FSLA.

Question 18

Under HIPAA, an employer may not request medical documentation to confirm illness pursuant to an employee's request for FMLA leave.

Question 19

Zola is a dancer at the Silver Fox gentleman's club. According to the ruling in Reich v. Circle C. Investments, Inc., she is an independent contractor and her employer is exempt from the FLSA.

Question 20

Herb refuses to perform dangerous work for his employer and the employer placed a written reprimand in Herb's personnel file. The employer has violated OSHA.

Question 21

In Varity Corp. v. Howe the court held that:

A) ERISA fiduciaries do not have any fiduciary duty to disclose truthful information on their own initiative.
B) ERISA's fiduciary standards were intended to protect the integrity of the plan, not the individual beneficiaries.
C) ERISA fiduciaries are required to discharge their duties with regard to the plan solely in the interest of the participants and beneficiaries.
D) ERISA's remedies for breach of fiduciary duty were limited to the plan itself and participants and beneficiaries have no claim.

Question 22

Grapple Industries has 1,000 full-time and part-time employees who manufacture parts for hand tools. 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. Grapple has

A) not violated the FLSA because part-time employees are by definition exempt from overtime pay.
B) not violated the FLSA if it has obtained an exemption for part-time employees from the Department of Labor's wage and hour administrator.
C) has violated the FLSA because all of its employees are covered by the FLSA and entitled to overtime pay.
D) not violated the FLSA because its part-time employees fall within artistic and creative exception to the overtime rules.

Question 23

Judson is a cashier at Dixie's Discount, located in Wyoming. Dixie's pays Judson the minimum wage set by the state. The state minimum wage rate is less than the federal minimum wage rate. Dixie's

A) has not violated FLSA because the state wage rate supersedes the federal minimum wage rate.
B) has violated FLSA because the federal minimum wage rate supersedes the state wage rate.
C) has not violated FLSA because cashiers are exempt from FLSA.
D) None of the choices is correct.

Question 24

Adriana injured her arm on July 11, 2007. She will require several surgeries over the next two years to restore full function. On September 3, 2007 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 is eligible:

A) HIPAA provides that her arm injury is not excludable as a preexisting injury.
B) HIPAA provides that her arm injury is excludable as a preexisting injury.
C) ERISA provides that her arm injury is not excludable as a preexisting injury.
D) ERISA provides that her arm injury is excludable as a preexisting injury.

Question 25

Defined contribution plans

A) define the amount of the employee contribution without a specific amount to be recovered at retirement.
B) are plans where the amount the employee receives at retirement is specifically designated at the time the employee enters the plan.
C) is a plan that provides medical, surgical or hospital benefits.
D) None of the choices are correct.

Question 26

Lucy is the plan administrator for the Golden Corporation. She has invested all of the funds in Techno stock. The stock price plummeted. Lucy has:

A) violated her fiduciary duty of loyalty.
B) violated her fiduciary duty of diversification.
C) violated her fiduciary duty of exclusive purpose.
D) None of the choices are correct.

Question 27

Noland Tools takes all reasonable precautions to guard against known hazards in one of its facilities; however, many of the precautions are frequently circumvented by employees, who find the precautions cumbersome. Employee Teal is injured when he circumvents these precautions. Noland Tools is:

A) liable for the harm, under the ruling in Horne Plumbing and Heating v. OSHRC.
B) liable for the harm, because the legislative history of the OSHA indicates that it is intended to make employers insurers of employee safety, even in spite of employee disregard for safety precautions.
C) not liable for the harm, under Horne Plumbing and Heating v. OSHRC.
D) not liable for the harm, by operation of the special duty rule.

Question 28

Candy Collins is an apprentice at World Kitchen Cabinets. She is learning to assemble the cabinets before installation. She is to be paid $5.50 per hour during her apprenticeship.

A) World has violated the FLSA by paying Candy less than minimum wage.
B) World can pay Candy less than minimum wage because she is in training.
C) World cannot pay Candy less than minimum wage unless she is under the age of 18.
D) World can pay Candy less than minimum wage because she is in training only if the employer obtains a certificate issued by the Department of Labor's wage and hour administrator.

Question 29

Major Energy has decided to adopt a new pension plan. Under the new plan, Major Energy owners will benefit greatly, but the employees will be significantly less well off than under the present plan, even though the owners of Major Energy inform the employees that the whole purpose of the plan is to make the employees better off. Major Energy's characterization of the effects of the change:

A) is legal, as long as the new plan is funded at level substantially equivalent to HIPAA standards.
B) does not violate section 404(a) of ERISA, as interpreted by the U.S. Supreme Court in Varity Corp. v. Howe, since it does not amount to a permanent termination of the availability of a pension benefits plan.
C) violates section 404(a) of ERISA, as interpreted by the U.S. Supreme Court in Varity Corp. v. Howe.
D) violates section 404(a) of ERISA, which prohibits any modification to a pension benefit plan once the first employee has enrolled in the plan.

Question 30

An employer may be liable for workplace bullying

A) only if serious physical harm results.
B) only if it constitutes discrimination under a federal or state law.
C) whether or not serious physical harm results or constitutes discrimination under a federal or state law.
D) None of the choices is correct.

Question 31

The general duty clause in the Occupational Safety and Health Act:

A) applies in addition to specific OSHA standards, and requires an employer maintain a workplace free of recognized hazards that are likely to cause death or serious physical injury to an employee.
B) applies in the absence of any specific OSHA standard and requires an employer maintain a workplace free of recognized hazards that are likely to cause death or serious physical injury to an employee.
C) applies only to industrial workplaces.
D) eliminates the availability of the fellow servant rule and the contributory negligence defenses in cases where the employer had a statutory duty.

Question 32

Fiduciary standards established by ERISA

A) require the plan manager to exercise care and judgment that a prudent person would exercise pursuing similar objectives under the same circumstances.
B) allow the plan manager to make loans to corporate officers from the employee pension fund.
C) allow the plan manager to divert investment opportunities for his own benefit.
D) None of the choices are correct.

Question 33

Pamela is Chief Administrator in charge of medical records at Sunshine County Hospital. She received a request for copies of Victoria's medical records from her employer and she released them without Victoria's authorization. Pamela has

A) not violated the HIPAA Privacy Rule because employers are included in the groups that can receive protected health information without an authorization.
B) violated the HIPAA Privacy Rule because employers are not included in the groups that can receive protected health information without an authorization.
C) not violated the HIPAA Privacy Rule because there is an exception in the Rule for the release of medical records by the head of the medical records department.
D) None of the choices are correct.

Question 34

The Occupational Safety and Health Administration will take complaints of OSHA safety violations from

A) employees.
B) grievances from sources other than employees, such as a union.
C) reports of fatal or multiple injuries.
D) All of the choices are correct.

Question 35

A "defined benefit plan" is

A) a pension plan in which each employee has his/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 death benefits.
C) a plan where the amount the employee will receive at retirement is stated at the time the employee joins the plan.
D) None of the choices are correct.

Question 36

An employer is deemed to have had constructive knowledge of a recognized hazard when:

A) past safety practices imply that the employer was aware of the hazard, and the hazard was so obvious that anyone would have been aware of it.
B) it has been the subject of a prior OSHA citation.
C) at least one prior injury has arisen out of the hazard.
D) the industry recognizes the hazard even if the employer doesn't actually know of the hazard.

Question 37

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

A) Congress.
B) state workplace safety agencies.
C) the National Institute for Occupational Safety and Health.
D) the National Labor Relations Board.

Question 38

To prevent potential violence in the workplace, employers should develop a workplace violence policy that includes:

A) training for customers and clients on recognizing workplace violence.
B) varied discipline in response to violent acts based on seniority, with more senior employees receiving lesser discipline than less senior employees.
C) a complaint process for employees to be able to warn the employer of potential violence.
D) All of the choices are correct.

Question 39

LaShonda Green works at the University of Northern Virginia's Medical Center. She accessed medical records of a number of celebrities and prominent persons and sold them to the tabloids, which then revealed the information in their written publications, on television and on the Internet. Green may be subject to

A) a federal lawsuit for HIPAA violations by the individuals whose private health information (PHI) was revealed.
B) criminal prosecution by the U.S. Department of Justice, which could result in up to 10 years of jail time.
C) a federal lawsuit under the Privacy Act by the individuals whose private health information (PHI) was revealed.
D) a private lawsuit for contributory negligence by the individuals whose private health information (PHI) was revealed.

Question 40

Under HIPAA, the Privacy Rule allows covered entities to use or disclose protected health information without the individual's permission for the following purposes:

A) treatment, payment and health care operations as defined in the rule.
B) to certain governmental authorities if abuse, neglect or domestic violence is at issue for law enforcement pursuant to a court order and/or subpoena.
C) to funeral directors, coroners or medical examiners to identify a deceased person or to determine the cause of death.
D) All of the choices are correct.

Question 41

Employees of the Hefner Concrete Company work long and hard when on road building projects in order to take advantage of good weather and to meet performance bonuses for completion of jobs ahead of schedule. During one week, a few of the crews work 65 hours per employee. For the employees who worked 65 hours in one week, Hefner

A) must pay its workers time and a half for all hours from 41 through 60 and double time for all hours over 60.
B) has violated the FLSA because workers are prohibited from working over 60 hours per week.
C) has violated the OSHA because workers are prohibited from working over 60 hours per week.
D) must pay its workers time and a half for all hours over 40.

Question 42

Under what circumstances can an employer's non-compliance with OSHA safety regulations not result in a violation?

Question 43

Corbett, a twenty-year-old delivery truck driver for the Yumpin Yogurt has been excluded from Bagel Barn's employee benefits plan. Corbett has worked continuously for Yumpin for three years. This exclusion is:

A) illegal because ERISA requires an employer to extend benefits to individuals regardless of age.
B) legal because COBRA does not require an employer to extend benefits to individuals under age 21.
C) legal because ERISA does not require an employer to extend benefits to individuals under age 21.
D) illegal because the ADEA requires an employer to extend benefits to individuals regardless of age.

Question 44

What are the "fiduciary standards" established by ERISA?

Question 45

Parminder has worked for Best Cable, Inc. for 3 years. She participates in the company's health care plan for herself and her family. She resigned last week. With regard to her health-care coverage:

A) under PITHON, Best is required to extend employee health insurance coverage for up to 18 months and may charge up to 104 percent of the rates originally charged to the employee.
B) under COBRA, Best is required to extend employee health insurance coverage for up to 18 months and may charge up to 102 percent of the rates originally charged to the employee.
C) under BOA, Best is required to extend employee health insurance coverage for up to 12 months and may charge up to 103 percent of the rates originally charged to the employee.
D) None of the choices is correct.

Question 46

Shawn works on a fishing boat in Myrtle Beach, S.C. in the summer. He is paid $5.00 per hour, and even though he works 10 hour shifts 6 days a week, he is not paid overtime.

A) Failure to pay Shawn overtime is a violation of the FLSA.
B) Failure to pay Shawn overtime and minimum wage is a violation of the FLSA.
C) Failure to pay Shawn minimum wage is a violation of the FLSA.
D) None of the choices is correct.

Question 47

Jillian works as a taxicab driver for Blue Cabs. She is paid hourly, makes less than $23,000 a year and regularly works 10 to 15 hours per week overtime. However, she is not paid overtime.

A) Blue Cabs has violated the FLSA by refusing to pay Jillian overtime because she makes less than $23,660.00 per year.
B) Blue Cabs has not violated the FLSA by refusing to pay Jillian overtime because she is a professional and therefore exempt.
C) Blue Cabs has not violated the FLSA by refusing to pay Jillian overtime because taxicab drivers are exempt.
D) None of the choices are correct.

Question 48

Lara is a cashier at the Piggy Wiggy Market. During the holidays, she regularly works 70 hours per week.

A) Piggy Wiggy has not violated FLSA, if it pays Lara overtime for the hours worked over 40 hours per week.
B) Piggy Wiggy has not violated FLSA, if it pays Lara overtime for the hours worked over 37.5 hours per week.
C) Piggy Wiggy has violated FLSA, if it requires Lara to work more than 65 hours in a week.
D) Piggy Wiggy has violated FLSA, if it requires Lara to work overtime.

Question 49

What are the five factors used to determine whether an individual is an employee for purposes of the FLSA?

Question 50

What are the eligibility requirements for an employee to request leave under the Family Medical Leave Act (FMLA)?

Question 51

Calvin was working as a mechanic to repair some processing equipment at the United Megaworks Company. He fell off a ladder, broke his arm and was knocked unconscious. Following medical treatment, he returned to the company which transferred him to an inspector position due to his broken arm. Does United need to make a report to OSHA? Explain.

Question 52

List five categories of employees exempt from the overtime provisions of the FLSA.

Question 53

Salim works at Harris Heavy Equipment. He has worked there for seven months as a Vice President of Federal Procurement. He has suffered with a herniated disc for years, but it has now become severe. His doctors have told him that he needs to have surgery soon or his condition will worsen. He needs 4-6 weeks off from work for surgery and rehabilitation. He asks the president for 4-8 weeks pursuant to FMLA.

A) Harris is not required to grant the FMLA leave because Salim has a pre-existing condition, which he had before he was hired at Harris.
B) Harris is not required to grant the FMLA leave because Salim has worked for Harris less than 12 months.
C) Harris is required to grant the FMLA leave because Salim is an executive.
D) Harris is not required to grant the FMLA leave because Salim's condition does not qualify as a serious illness under FMLA.

Question 54

Rennie Norquist is a recent law school graduate. She is employed at Dillard, Dobbs, Dooley and Duncan, a 200 lawyer firm. Rennie is well paid at $98,000 per year. However, she thinks she should be paid overtime for all the hours she works because all she does is do research the law and write legal memoranda.

A) Rennie is eligible for overtime under the new FLSA regulations because she makes less than $100,000.
B) Rennie is not eligible for overtime under the new FLSA because, as a professional worker, she is exempt from the overtime regulations.
C) Rennie is entitled to overtime because as a recent graduate, she is in training.
D) None of the choices are correct.

Question 55

Briefly describe the difference between the two types of pension or retirement plans.

Question 56

Under FLSA

A) executives making at least $125,000 per year are not entitled to overtime pay.
B) a salaried employee who makes $23,000 per year is automatically entitled to overtime pay.
C) a tipped worker must be paid direct wages of at least $3.03 per hour.
D) None of the choices is correct.

Question 57

Bernard has worked for Flipper Pools for 5 years as a salesman. He requests time off to be with his stepdaughter. Flipper
I) does not have to grant the request for leave under FMLA because Flipper has only 52 employees.
II) does not have to grant the request for leave under FMLA because he did not make the request 60 days prior.
III) does not have to grant the request for leave under FMLA because FMLA does not cover stepdaughters.
IV) does not have to grant the request for leave under FMLA because his stepdaughter is not ill.

A) I only
B) II and III
C) IV only
D) I, II, III, IV