Chapter 11

Question 1

Employee Benefits

Answer 1

Nonwage compensation or rewards given to employees (indirect compensation)

Question 2

Family and Medical Leave Act of 1993 (FMLA)

Answer 2

One of the five mandatory benefits, requires most employers to provide employees up to 12 weeks (26 for military) of unpaid leave under specified circumstances

Question 3

Life Insurance

Answer 3

Pays a sum of money to the beneficiary or beneficiaries after the death of an insured individual

Question 4

Workers’ Compensation

Answer 4

One of the five mandatory benefits, pays for medical costs - and sometimes time off - if an employee suffers a job-related sickness or accident and pays survivor benefits in the case of an employee’s death

Question 5

Disability Insurance

Answer 5

Supplements workers’ compensation insurance to provide continued income in the event of an employee becoming disabled

Question 6

Defined Contribution Retirement Plan

Answer 6

The employer, employee, or both contribute to the employee’s individual account, and the contributions are invested on the participant’s behalf

Question 7

Health Insurance

Answer 7

Provides healthcare coverage for employees and their dependents

Question 8

Presenteeism

Answer 8

An employee physically comes to work but does not function at his or her full potential

Question 9

Total Compensation

Answer 9

(total rewards) the combined value of direct (pay and bonuses) and indirect (nonwage) compensation

Question 10

5 mandatory benefits

Answer 10

Social Security, unemployment insurance, workers’ compensation, family and medical leave act of 1993 (FMLA), and COBRA

Question 11

Flexible Spending Account

Answer 11

An employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax basis

Question 12

Flexible Benefits Plans

Answer 12

Give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer

Question 13

Employee Retirement Income Security Act of 1974 (ERISA)

Answer 13

A federal law that protects employees’ retirement benefits from mismanagement

Question 14

Customary Benefits

Answer 14

Commonly provided benefits that are viewed as an entitlement by employees

Question 15

Social Security

Answer 15

One of the five mandatory benefits, provides retirement income to qualified workers and their spouses after working a certain number of hours, employees and the employer both make required contributions

Question 16

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Answer 16

COBRA provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event

Question 17

Defined Benefit Retirement Plan

Answer 17

Promises participants a monthly benefit at retirement

Question 18

Customary benefits include:

Answer 18

Insurances related to wellbeing (health, life, dental, vision, disability, etc.), retirement plans, paid time off

Question 19

Total Compensation Statement

Answer 19

Communicating total compensation in detail through a written summary of employee direct and indirect compensation

Question 20

Domestic Partners

Answer 20

Two people who are not married but are in a same-sex or opposite sex arrangement similar to marriage

Question 21

Vesting

Answer 21

The point at which an employee earns a nonforfeitable right to benefits funded by employer contributions