Compensation & Benefits

Question 1

enacted in 1932

Answer 1

FLSA

Question 2

must earn more than $684/week, salaried, or must perform certain duties.

Answer 2

Exempt employees

Question 3

passed in 1931 and first federal legislation to mandate that laborers and mechanics be paid the prevailing wage on public works projects

Answer 3

Davis-Beacon Act

Question 4

the usual wage, benefits, and overtime that are paid in the largest city in each county to the majority of workers on a public works projects

Answer 4

Prevailing wage

Question 5

protects employees working under government contracts from working for substandard wages. Many provisions incorporated into the FLSA

Answer 5

Walsh-Healy Public Contracts Act of 1936

Question 6

commute time is not compensable, but that employers must compensate workers for performing job-related tasks outside of work hours or during lunch breaks

Answer 6

Portal-to-Portal Act

Question 7

prohibits employers from discriminating against older employees when it comes to benefit plans

Answer 7

Older Worker Benefit Protection Act of 1990

Question 8

reduced the existing age limits restricting participation in pension plans. Also provided more protections for survivors or employees entitles to pensions, requiring that written approval be received from a spouse rejecting supervisor benefits and restricting conditions that could be placed on survivor plans

Answer 8

Retirement Equity Act of 1984

Question 9

protects employees when they are entitles to pension plans, but those do not have the funds necessary to provide the promised benefits. Also, employers permitted to enroll employees in 401K plans automatically and employees have to opt-out.

Answer 9

Pension Protection Act of 2006

Question 10

requires that insurers provide the same limits for mental health services. Does not require insurers to offer mental health benefits

Answer 10

Mental Health Parity Act of 1996

Question 11

extra pay, aka premium pay, given to a worker to compensate for the danger, inconvenience, or added cost of a specific job or assignment

Answer 11

differential pay

Question 12

pay 1.5x base pay for hourly workers who work 40+ hours per week

Answer 12

overtime

Question 13

additional pay given to compensate employees for working less desirable shifts, i.e. the second or third shift

Answer 13

shift pay

Question 14

additional pay to a worker who is “on call” - not actively working but available.

Answer 14

on-call pay

Question 15

extra money above the base rate, paid to workers who are called back to work after their regular work hours are over and they have left the workplace

Answer 15

call-back pay

Question 16

a minimum payment, required in some states but not by federal law, made to compensate workers who report for work but are not asked to put in a full day of work

Answer 16

reporting pay

Question 17

additional money paid to compensate employees who are assigned to work in a dangerous location or in hazardous conditions

Answer 17

hazard pay

Question 18

extra money paid to employees in one location to account for the higher cost of labor, or higher cost of labor, or higher cost of living, relative to other locations where the company has employees

Answer 18

geographic pay

Question 19

the use of a job grading structure with extremely wide salary bands

Answer 19

broadbanding

Question 20

employee’s compensation falls below the minimum of the compensation range

Answer 20

green circle

Question 21

employee’s compensation is above the maximum compensation for their salary range

Answer 21

red circle

Question 22

the inequity that arises when new employees demand, and receive, higher wages than current employees who are performing the same job

Answer 22

wage compression

Question 23

a measure of how an individual employee’s pay relates to the pay ranges established by the organization and the larger market. It is defined as the employee’s salary, divided by the midpoint of the salary range for that position

Answer 23

compa-ratio

Question 24

process that categorizes all jobs at a company according to the level of responsibility and skills required

Answer 24

job evaluation

Question 25

ensuring that the pay levels within an organization correspond to the level of responsibility and skills required for the job

Answer 25

internal equity

Question 26

the comparison of the pay levels of a company to other companies to ensure that the levels are comparable

Answer 26

external equity

Question 27

a federal law that establishes minimum standards for retirement and health plans

Answer 27

Employee Retirement Income Security Act (ERISA)

Question 28

pre-tax in the beginning

Answer 28

traditional IRAs

Question 29

taxed in the beginning

Answer 29

Roth IRAs

Question 30

retirement plan that involves employers setting aside money in retirement accounts for employees

Answer 30

Simplified employee pension plans (SEP)

Question 31

these tests ensure highly compensated employees do not benefit unduly from 401K plans at the expense of other employees

Answer 31

Actual Deferred Percentage Tests

Question 32

permits employees over the age of 50 to make greater contributions to 401k plans and make catch-up contributions

Answer 32

Economic Growth and Tax Relief Reconciliation Act (EGTRRA)

Question 33

legal orders that enforce alternative payee arrangements, which are directed by an employee

Answer 33

Qualified Domestic Relations Orders (QDRO)

Question 34

particular dollar amount is paid for each year of an employee’s service

Answer 34

flat dollar approach

Question 35

percentage of average pay multiplied by years of service

Answer 35

career average

Question 36

based on average annual earnings during a specified time at the end of their career

Answer 36

final pay approach

Question 37

employee’s total benefits are updated annually with a credit based on their earnings for the year, interest at a fixed or variable rate, or both.

Answer 37

cash balance plans

Question 38

for if you are 65+ years old, you have end stage renal disease, or you have been collecting disability for 2+ years

Answer 38

Medicare

Question 39

Medicare Part __: hospital insurance (mandatory, no fee)

Answer 39

Medicare Part A

Question 40

Medicare Part __: medical insurance (not mandatory, fee)

Answer 40

Medicare Part B

Question 41

AKA Medicare Advantage, alternative to parts A & B

Answer 41

Medicare Part C

Question 42

Medicare Part __: prescriptions (optional, fee, and must be eligible for A & enrolled in B)

Answer 42

Medicare Part D