Question 1

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child only applies to women.

Accepted Answer

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child applies to both men and women.

Question 2

While laws exist to protect against discrimination in compensation based on gender and age, no law protects against such discrimination against persons with disabilities.

Accepted Answer

The statement is incorrect. The Americans with Disabilities Act (ADA) prohibits discrimination in compensation based on disability status.

Question 3

________ seek to enable employees to better meet the demands of their family and work lives.
A) Sick leave
B) Family-friendly benefits
C) Pay plans
D) Benefit management systems

Accepted Answer

Family-friendly benefits are designed to help employees balance the demands of their family life with their work life. These benefits may include parental leave, flexible schedules, telecommuting options, and childcare assistance.

Question 4

An employee stock ownership plan is an incentive plan that ________.
A) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
B) focuses on the sharing of benefits between employer and employees
C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
D) involves the firm distributing total annual profits each year among employees based on their merit rating

Accepted Answer

An employee stock ownership plan (ESOP) is a type of retirement plan in which a company contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees. This allows employees to gain ownership in the company and benefit financially from its success.

Question 5

ESOP is an incentive plan that ________.
A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement
B) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
D) provides tax advantages for employees by deferring income taxes, often until the employee retires

Accepted Answer

The answer of ESOP is an incentive plan that ________.
A)...

Question 6

A defined contribution pension plan encourages employees to contribute a portion of their earnings to the fund with an employer contribution that is matched to that of the employee in whole or part is called a(n) ________.
A) savings and thrift plan
B) matching plan
C) deferred profit-sharing plan
D) employee stock ownership plan

Accepted Answer

A savings and thrift plan is a type of defined contribution plan where employees contribute a portion of their earnings, and employers often match these contributions in whole or part.

Question 7

Indirect payments that contribute to an employee's compensation include variable pay, such as commissions and bonuses.

Accepted Answer

Indirect payments refer to non-monetary benefits like health insurance, retirement plans, and paid time off, while variable pay like commissions and bonuses are considered direct compensation.

Question 8

When employees work more than 40 hours per week, employers must pay overtime at a rate of at least one and a half times the normal pay for any hours worked over 40 in a workweek.

Accepted Answer

This statement is true according to the Fair Labor Standards Act (FLSA) in the United States.

Question 9

Jenny's pension plan encourages her to contribute at least 5% of her annual salary in addition to the set amount that her company contributes. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, defined benefit

Accepted Answer

Jenny's pension plan is classified as contributory because she is encouraged to contribute at least 5% of her salary in addition to her company's contribution. It is also defined contribution because the amount she will have available at retirement will depend on her contributions and the rate of return on her investments, rather than a set amount promised by the plan (defined benefit).

Question 10

The Equal Pay 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.

Accepted Answer

The Equal Pay Act of 1963 prohibits gender-based wage discrimination between men and women in the same job who perform equal work, and it requires employers to provide equal pay for equal work.

Question 11

External equity refers to how fair the job's pay rate is, when compared to other jobs within the same company.

Accepted Answer

External equity refers to how fair the job's pay rate is, when compared to similar jobs in the market or industry, not within the same company. Internal equity refers to the fairness of pay rates among different jobs within the same company.

Question 12

Because the minimum wage is set by the Fair Labor Standards Act, all states adhere to that wage.

Accepted Answer

The answer of Because the minimum wage is set by...

Question 13

When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.
A) qualified
B) non-qualified
C) defined contribution
D) non-contributory

Accepted Answer

When an employer makes all of the contributions to the pension plan, it is called a non-contributory plan. In this plan, employees do not contribute any portion of their salary to the pension plan. This type of plan is also known as a fully funded plan or a non-elective plan.

Question 14

________ provide services like personal legal and financial counseling, child care referrals, elder care referrals adoption assistance, mental health counseling, and life event planning.
A) Social Security programs
B) Pension plans
C) Employee Assistance Programs
D) Family-friendly benefits

Accepted Answer

Employee Assistance Programs (EAPs) provide a range of services to employees, including legal and financial counseling, child care and elder care referrals, adoption assistance, mental health counseling, and life event planning. These services are designed to support employees' well-being and help them manage personal and work-related issues. Social Security programs and pension plans are government-sponsored retirement programs, while family-friendly benefits refer to policies that support work-life balance, such as flexible schedules and paid parental leave.

Question 15

Plans that put some portion of the employee's weekly pay at risk to encourage goal attainment are called ________ pay plans.
A) at-risk variable
B) Rucker
C) Improshare
D) Scanlon

Accepted Answer

At-risk variable pay plans are designed to motivate employees by putting a portion of their weekly pay at risk to encourage goal attainment. This type of pay plan is based on the principle of performance-based pay, where employees are rewarded based on their individual or team performance. Rucker, Improshare, and Scanlon are specific types of incentive programs that companies can adopt, but they do not necessarily involve putting pay at risk.

Question 16

Social Security provides all of the following benefits except:
A) income if retirement is at age 62 or later and individual is insured under the Social Security Act.
B) death benefits to surviving dependents for those insured under the Social Security Act
C) Medicare.
D) income if retirement is at age 55 or later.

Accepted Answer

Social Security does not provide income if retirement is at age 55 or later. The earliest age to receive retirement benefits from Social Security is 62, and the full retirement age is between 66 and 67 depending on the year of birth.

Question 17

Historically, the main issue in collective bargaining is wage rates.

Accepted Answer

Wage rates have historically been the main issue in collective bargaining negotiations between workers and management. However, over time other issues such as working conditions, benefits, and job security have also become important bargaining topics.

Question 18

Financial benefits like employer-paid insurance and vacations are not a part of employee compensation.

Accepted Answer

Financial benefits like employer-paid insurance and vacations are part of employee compensation. They are additional forms of payment beyond the employee's base salary or wage.

Question 19

Some employers may misclassify employees as independent contractors to reduce the taxes they must pay.

Accepted Answer

Misclassifying employees as independent contractors can reduce the employer's tax liability, but it is illegal and can result in penalties and fines.

Question 20

Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, qualified

Accepted Answer

The pension plan is non-contributory because the company makes all contributions, and it is a defined benefit plan because the benefit is based on a formula linked to pay and years of service.

Quiz 7: Compensating Employees

The provision of the Family and Medical Leave Act that entitles employees to take up to 12 weeks of unpaid, job-protected leave for the birth of a child only applies to women.

While laws exist to protect against discrimination in compensation based on gender and age, no law protects against such discrimination against persons with disabilities.

________ seek to enable employees to better meet the demands of their family and work lives.

An employee stock ownership plan is an incentive plan that ________.

ESOP is an incentive plan that ________.

A defined contribution pension plan encourages employees to contribute a portion of their earnings to the fund with an employer contribution that is matched to that of the employee in whole or part is called a(n) ________.

Indirect payments that contribute to an employee's compensation include variable pay, such as commissions and bonuses.

When employees work more than 40 hours per week, employers must pay overtime at a rate of at least one and a half times the normal pay for any hours worked over 40 in a workweek.

The Equal Pay 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.

External equity refers to how fair the job's pay rate is, when compared to other jobs within the same company.

Because the minimum wage is set by the Fair Labor Standards Act, all states adhere to that wage.

When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.

________ provide services like personal legal and financial counseling, child care referrals, elder care referrals adoption assistance, mental health counseling, and life event planning.

Plans that put some portion of the employee's weekly pay at risk to encourage goal attainment are called ________ pay plans.

Social Security provides all of the following benefits except:

Historically, the main issue in collective bargaining is wage rates.

Financial benefits like employer-paid insurance and vacations are not a part of employee compensation.

Some employers may misclassify employees as independent contractors to reduce the taxes they must pay.