Question 1

The ________ gave employees the right to organize,bargain collectively,and engage in concerted activities for the purpose of collective bargaining.

Accepted Answer

D)The National Labor Relations Act of 1935 (Wagner Act)and related legislation and court decisions legitimized the labor movement.It gave unions legal protection and granted employees the right to unionize,to bargain collectively,and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.

Question 2

Which of the following is true for employers who use independent contractors?

Accepted Answer

D)For employers,there are advantages to claiming that someone is an independent contractor.For one thing,the FLSA's overtime and most other requirements do not apply.For another,the employer does not have to pay unemployment compensation payroll taxes,Social Security taxes,or city,state,and federal income taxes or compulsory workers' compensation for that worker.

Question 3

Which of the following terms refers to a compensation plan that advances a firm's strategic goals?

Accepted Answer

B)The compensation plan should advance the firm's strategic aims,so management should produce an aligned reward strategy.This means creating a bundle of rewards-a total reward package including wages,incentives,and benefits-that aims to produce the employee behaviors the firm needs to support and achieve its competitive strategy.

Question 4

Which law makes it illegal to discriminate against any individual with respect to compensation because of race,color,religion,sex,or national origin?

Accepted Answer

B)Title VII makes it unlawful for employers to discriminate against any individual with respect to hiring,compensation,terms,conditions,or privileges of employment because of race,color,religion,sex,or national origin.

Question 5

Direct financial payments include all of the following EXCEPT ________.

Accepted Answer

B)Employee compensation refers to all forms of pay going to employees and arising from their employment.It has two main components: direct financial payments (wages,salaries,incentives,commissions,and bonuses)and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Question 6

Jason is an information systems technician in a town in North Carolina with a population of 100,000.He earns $35,000/year.He recently found out that a nearby town with a similar population pays people in the same position $40,000/year.Jason is concerned with the ________ form of equity.

Accepted Answer

D)Equity is a key factor in determining pay rates.Externally,pay must compare favorably with rates in other companies,or an employer will find it hard to attract and retain qualified employees.Internally,each employee should view his or her pay as equitable given other employees' pay in the organization.

Question 7

According to the Family and Medical Leave Act,eligible employees can take up to ________ weeks of unpaid,job-protected leave for the birth of a child or for the care of a child,spouse,or parent.

Accepted Answer

D)The Family and Medical Leave Act aims to entitle eligible employees,both men and women,to take up to 12 weeks of unpaid,job-protected leave for the birth of a child or for the care of a child,spouse,or parent.

Question 8

Internal equity refers to ________.

Accepted Answer

B)Equity is a key factor in determining pay rates.Externally,pay must compare favorably with rates in other companies,or an employer will find it hard to attract and retain qualified employees.Internally,each employee should view his or her pay as equitable given other employees' pay in the organization.

Question 9

Unions typically negotiate all of the following issues EXCEPT ________.

Accepted Answer

D)Historically,the wage rate has been the main issue in collective bargaining.However,unions also negotiate other pay-related issues,including time off with pay,income security,cost-of-living adjustments,and health care benefits.Unpaid medical leave is addressed by the Family and Medical Leave Act.

Question 10

According to the Fair Labor Standards Act,if a worker covered by the act works more than 40 hours,he or she will receive overtime pay at a rate of ________ of normal pay for any hours worked over 40 in a workweek.

Accepted Answer

D)A provision in the FLSA governs overtime pay.It says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek.

Question 11

Which of the following has historically been the primary issue in collective bargaining?

Accepted Answer

B)Historically,the wage rate has been the main issue in collective bargaining.However,unions also negotiate other pay-related issues,including time off with pay,income security,cost-of-living adjustments,and health care benefits.

Question 12

Jorge worked 6 hours of overtime this week but has decided to take time off instead of overtime pay.How many hours will Jorge receive in time off from work?

Accepted Answer

C)According to the FLSA,if an employee receives time off for overtime hours instead of money,the employer must compute the number of hours granted off at the one-and-a-half times rate.Jorge would get 9 hours off for the 6 hours of overtime.

Question 13

All of the following issues are addressed by the Fair Labor Standards Act EXCEPT ________.

Accepted Answer

A)The Fair Labor Standards Act,originally passed in 1938 and since amended many times,contains minimum wage,maximum hours,overtime pay,equal pay,record-keeping,and child labor provisions that are familiar to most working people.The termination of an employee is not addressed by the FLSA.

Question 14

________ refers to all forms of pay or rewards going to employees and arising from their employment.

Accepted Answer

B)Employee compensation refers to all forms of pay going to employees and arising from their employment.It has two main components: direct financial payments (wages,salaries,incentives,commissions,and bonuses)and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Question 15

Jill works as a cashier at a grocery store.She earns $10 an hour (or $400 for a 40-hour week).Last week,she worked 46 hours.What is the minimum amount that Jill earned last week?

Accepted Answer

C)The FLSA says employers must pay overtime at a rate of at least one-and-a-half times normal pay for any hours worked over 40 in a workweek.Jill worked 46 hours in one week,so she was paid for 6 of those hours at a rate equal to one-and-a-half times the hourly rate of $10.The 6 overtime hours were at a rate of $15,so Jill earned at least $490.

Question 16

Homelife,a national chain of high-end furniture stores,employs nearly 800 workers.In the past few years,the company's market share has dropped significantly,and employee turnover has increased.Upper management is considering the implementation of a new compensation policy in its efforts to turn the company around.Historically,the company has paid all employees similarly with some variation for seniority but no distinction between high and low performers. All of the following questions are relevant to Homelife's decision to develop an aligned reward strategy EXCEPT ________.

Accepted Answer

C)The compensation plan should advance the firm's strategic aims-management should produce an aligned reward strategy.This means creating a bundle of rewards-a total reward package including wages,incentives,and benefits-that aims to produce the employee behaviors the firm needs to support and achieve its competitive strategy.Questions about employee behaviors,company strategy,and compensation programs are relevant,but customer review ratings are not.

Question 17

External equity refers to ________.

Accepted Answer

A)Equity is a key factor in determining pay rates.Externally,pay must compare favorably with rates in other companies,or an employer will find it hard to attract and retain qualified employees.Internally,each employee should view his or her pay as equitable given other employees' pay in the organization.

Question 18

The ________ states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Accepted Answer

D)The Equal Pay Act,an amendment to the Fair Labor Standards Act,states that employees of one sex may not be paid wages at a rate lower than that paid to employees of the opposite sex for doing roughly equivalent work.

Question 19

Which of the following terms refers to pay in the form of financial benefits,such as insurance?

Accepted Answer

C)Employee compensation has two main components: direct financial payments (wages,salaries,incentives,commissions,and bonuses)and indirect financial payments (financial benefits like employer-paid insurance and vacations).

Question 20

Which compensation-related law contains provisions for minimum wage,maximum hours,overtime pay,equal pay,and child labor?

Accepted Answer

D)The Fair Labor Standards Act,originally passed in 1938 and since amended many times,contains minimum wage,maximum hours,overtime pay,equal pay,record-keeping,and child labor provisions that are familiar to most working people.It covers the majority of U.S.workers-virtually all those engaged in the production and/or sale of goods for interstate and foreign commerce.

Quiz 10: Developing Compensation Plans