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Many Employers in the U

Question 17

Multiple Choice

Many employers in the U.S. pay significant amounts towards their employees' health insurance premiums. If the benefit cost per full-time employee rises (e.g. when the insurer raises premiums) and the employer does not want the total cost of the employees' compensation (wage + benefits) to rise, all of the following would represent valid options for the employer to consider, except


A) replacing some full-time employees with part-time workers.
B) laying off some of the full-time employees and instituting mandatory overtime for the remaining full-time employees (assuming overtime is paid at the same wage rate as regular work hours) .
C) prohibiting fulltime employees to work overtime and hire temporary part-time workers to work those extra hours instead (assuming overtime is paid at the same wage rate as regular work hours) .
D) increasing full-time employee's contribution towards premiums; not changing wages.
E) not changing full-time employee's contribution towards premiums; decreasing wages.

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