Chapter 9

Question 1

Base Pay

Answer 1

Reflects the size and scope of an employee’s responsibilities

Question 2

Severance Pay

Answer 2

Given to employees upon termination of their employment

Question 2

Fixed Pay

Answer 2

Pays employees a set amount regardless of performance

Question 3

Indirect Financial Compensation

Answer 3

All the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time, and health insurance

Question 4

Exempt Employees

Answer 4

Meet on of the FLSA exemption tests, are paid on a fixed-salary basis, and are not entitled to overtime

Question 5

Direct Financial Compensation

Answer 5

Compensation received in the form of salary, wages, commission, stock options, or bonuses

Question 6

Labor Markets

Answer 6

All of the potential employees located within a geographic area from which the organization might be able to hire

Question 7

Pay Mix

Answer 7

The relative emphasis given to different compensation components

Question 8

Fair Labor Standards Act (FLSA)

Answer 8

A federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs

Question 9

Total Rewards

Answer 9

Everything an employee perceives to be of value that results from the employment relationship

Question 10

Workers’ Compensation

Answer 10

A type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee’s right to sue the employer for negligence

Question 11

Compensation

Answer 11

The financial and non-financial rewards for which employees exchange their labor

Question 12

Compensation Surveys

Answer 12

Surveys of other organizations conducted to learn what they are paying for specific jobs or job classes

Question 13

Nonexempt Employees

Answer 13

Do not meet any one of the FSLA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay, and hours worked

Question 14

Equal Pay Act

Answer 14

Basic Provisions and prohibitions against gender-based wage discrimination

Question 15

Wage Differentials

Answer 15

Differences in wages between various workers, groups of workers, or workers within a career field

Question 16

Nonfinancial Compensation

Answer 16

Rewards and incentives given to employees that are not financial in nature

Question 17

Variable Pay

Answer 17

Bases some or all of employee’s compensation on employee, team, or organizational performance

Question 18

Pay Grade

Answer 18

(or pay scale) the range of possible pay for a group of jobs