Question 1

Curt has been offered a position with Premium Processing. As part of its benefits package, the firm offers child care, educational assistance, and relocation benefits. Which term best describes the benefits offered by Premium Processing?

Accepted Answer

C) Organizations offer a variety of benefits that can be termed "employee services." These benefits encompass a number of areas, including child care, educational assistance, food services/subsidized cafeterias, scholarships for dependents, and relocation benefits.

Question 2

Through her employer, Jillian is able to purchase vision and dental insurance at a reduced rate. Jillian's employer pays any administrative fees. Jillian's employer most likely offers ________.

Accepted Answer

A) As firms search for ways to reduce costs, many organizations are moving to voluntary benefits which are 100 percent paid by the employee but the employer typically pays the administrative cost. Common voluntary benefits include vision insurance, dental insurance, and long-term care insurance.

Question 3

Michael works as an engineer in Arizona, but he has been offered a better position with RayCo, a firm in Minnesota. RayCo will ship the family's belongings to Minnesota and will provide Michael and his family with temporary housing for three months. Which of the following best describes the type of compensation offered by RayCo?

Accepted Answer

B) Relocation benefits are company-paid shipments of household goods and temporary living expenses, covering all or a portion of the real estate costs associated with buying a new home and selling the previously occupied home. Relocation packages vary but most companies will pay for household moving and packing expenses and temporary living expenses for up to six months until the home sells.

Question 4

Jeff lost his job in November 2010. According to COBRA, Jeff may keep his employer's health care coverage until ________.

Accepted Answer

D) Under COBRA, individuals may keep their coverage, as well as coverage for their spouses and dependents, for up to 18 months after their employment ceases. The individual, however, must pay for this health insurance, and it is expensive.

Question 5

Eliot receives overtime compensation when he works on Sundays and holidays in his job as a warehouse manager. Which of the following does Eliot most likely receive?

Accepted Answer

C) Premium pay is compensation paid to employees for working long periods of time or working under dangerous or undesirable conditions. Some firms voluntarily pay overtime for hours worked beyond eight in a given day and pay double time, or even more, for work on Sundays and holidays.

Question 6

Which of the following permits employees to make yearly selections to largely determine their compensation package by choosing between taxable cash and numerous benefits?

Accepted Answer

B) Customized benefit plans permit employees to make yearly selections to largely determine their benefit package by choosing between taxable cash and numerous benefits. Customized plans permit flexibility in allowing each employee to determine the compensation components that best satisfy his or her particular needs.

Question 7

Which term refers to company-paid shipments of household goods and temporary living expenses?

Accepted Answer

B) Relocation benefits are company-paid shipments of household goods and temporary living expenses, covering all or a portion of the real estate costs associated with buying a new home and selling the previously occupied home. Relocation packages vary but most companies will pay for household moving and packing expenses and temporary living expenses for up to six months until the home sells.

Question 8

Which Act is a 1990 amendment to the ADEA and extends its coverage to all employee benefits?

Accepted Answer

C) The Older Workers Benefit Protection Act of 1990 (OWBPA), an amendment to the Age Discrimination in Employment Act, prohibits discrimination in the administration of benefits on the basis of age, but also permits early retirement incentive plans as long as they are voluntary.

Question 9

Which law gives employees the opportunity to temporarily continue their health insurance coverage if they are terminated from their job?

Accepted Answer

B) The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted to give employees the opportunity to temporarily continue their coverage, which they would otherwise lose because of termination, layoff, or other changes in employment status. The Health Insurance Portability and Accountability Act (HIPAA) of 1996 provide protection for Americans who move from one job to another, who are self-employed, or who have preexisting medical conditions.

Question 10

Sara works from midnight until 8:00 a.m. as a technician at a manufacturing facility and earns an extra $3.00 per hour for the inconvenience. Which of the following does Sara most likely receive?

Accepted Answer

B) Sara receives shift differential pay for the inconvenience of working undesirable hours. This type of pay may be provided as additional compensation per hour and is used extensively in the health care practitioners and technical occupations.

Question 11

Hazard pay and shift differential pay are types of ________.

Accepted Answer

D) Premium pay is compensation paid to employees for working long periods of time or working under dangerous or undesirable conditions. Additional pay provided to employees who work under extremely dangerous conditions is called hazard pay. Shift differential pay is for the inconvenience of working undesirable hours.

Question 12

Rodrigo is employed as a window washer for multiple skyscrapers in Chicago. Rodrigo receives additional pay for working under extremely dangerous conditions. Rodrigo most likely earns ________.

Accepted Answer

D) Additional pay provided to employees who work under extremely dangerous conditions is called hazard pay. Window washers of skyscrapers and military pilots often receive hazard pay for their precarious working conditions.

Question 13

The primary reason for enacting ERISA was to ________.

Accepted Answer

D) The Employee Retirement Income Security Act (ERISA) of 1974 strengthens existing and future retirement programs. Mismanagement of retirement funds was the primary spur for this legislation.

Question 14

Additional money paid to an employee for the inconvenience of working undesirable hours is known as ________.

Accepted Answer

D) Shift differential pay is for the inconvenience of working undesirable hours. This type of pay may be provided as additional compensation per hour and is used extensively in the health care practitioners and technical occupations. Additional pay provided to employees who work under extremely dangerous conditions is called hazard pay.

Question 15

Anne, who has a preexisting medical condition, recently changed jobs. Which legislation was passed to protect individuals such as Anne?

Accepted Answer

C) The Health Insurance Portability and Accountability Act (HIPAA) of 1996 provides protection for Americans who move from one job to another, who are self-employed, or who have preexisting medical conditions. The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted to give employees the opportunity to temporarily continue their coverage, which they would otherwise lose because of termination, layoff, or other changes in employment status.

Question 16

Educational assistance, subsidized cafeterias, and relocation benefits are examples of ________.

Accepted Answer

B) Organizations offer a variety of benefits that can be termed "employee services." These benefits encompass a number of areas, including child care, educational assistance, food services/subsidized cafeterias, scholarships for dependents, and relocation benefits.

Question 17

Which law provides protection for workers who are self-employed or move from one job to another?

Accepted Answer

A) The Health Insurance Portability and Accountability Act (HIPAA) of 1996 provides protection for Americans who move from one job to another, who are self-employed, or who have preexisting medical conditions. The Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 was enacted to give employees the opportunity to temporarily continue their coverage, which they would otherwise lose because of termination, layoff, or other changes in employment status.

Question 18

The intent of which Act is to ensure that when employees retire, they receive deserved pensions?

Accepted Answer

D) The Employee Retirement Income Security Act (ERISA) of 1974 strengthens existing and future retirement programs. Mismanagement of retirement funds was the primary spur for this legislation that intends to protect employee pensions.

Question 19

Which of the following employers must comply with the Family and Medical Leave Act?

Accepted Answer

C) The Family and Medical Leave Act (FMLA) of 1993 applies to private employers with 50 or more employees and to all governmental employers regardless of number. Therefore, only McKnight Publishing would be required to comply with FMLA guidelines.

Question 20

Which law prohibits discrimination in the administration of benefits on the basis of age, but also permits early retirement incentive plans as long as they are voluntary?

Accepted Answer

D) The Older Workers Benefit Protection Act of 1990 (OWBPA), an amendment to the Age Discrimination in Employment Act, prohibits discrimination in the administration of benefits on the basis of age, but also permits early retirement incentive plans as long as they are voluntary.

Quiz 10: Indirect Financial Compensation Benefits and Nonfinancial Compensation