Govt. Regulation of Bus: Other Fed. Laws and Regulations

Question 1

Federal Insurance Contributions Act (FICA)

Answer 1

1. FICA taxes paid by employers are deductible expenses for income tax purposes.
2. The frequency of FICA deposits depends on the amount of an employer’s payroll.
3. Employers must furnish employees with written statements of wages paid and FICA contributions withheld each year.

Question 2

Age Discrimination in Employment Act of 1967 (ADEA).

Answer 2

1. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment – including, but not limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training.
2. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on age or for filing an age discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the ADEA.

Question 3

Who does the ADEA protect?

Answer 3

1. The ADEA protects individuals who are 40 years of age or older from employment discrimination based on age.
2. The ADEA’s protections apply to both employees and job applicants.
3. The ADEA applies to employers with 20 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government.

Question 4

Americans with Disabilities Act (ADA)

Answer 4

1. An employer is required to make an accommodation to the known disability of an employee if it would not impose an “undue hardship” on the operation of the employer’s business
2. An employer is not required to provide personal use items.

Question 5

undue hardship (ADA)

Answer 5

an action requiring significant difficulty or expense when considered in light of factors such as an employer’s size, financial resources and the nature and structure of its operation.

Question 6

qualified employee w/disability (ADA)

Answer 6

individual who, with or without reasonable accommodation, can perform the essential functions of the job in question.

Question 7

reasonable accommodation (ADA)

Answer 7

may include making existing facilities used by employees readily accessible to and usable by persons with disabilities.

Question 8

Under the provisions of the Comprehensive Environmental Response, Compensation, and Liability Act – otherwise known as CERCLA or Superfund:

Answer 8

Through CERCLA, EPA was given power to:

1. Seek out those parties responsible for any release and assure their cooperation in the cleanup.
2. EPA cleans up orphan sites when potentially responsible parties cannot be identified or located, or when they fail to act.
3. EPA obtains private party cleanup through orders, consent decrees, and other small party settlements.
4. EPA also recovers costs from financially viable individuals and companies once a response action has been completed.

Question 9

Clean Water Act (CWA)

Answer 9

establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters.

Question 10

Under the CWA, the EPA has implemented pollution control programs including all of the following:

Answer 10

1. Setting wastewater standards for industry.
2. Setting water quality standards for all contaminants in surface waters.
3. Making it unlawful to discharge any pollutant into navigable waters unless a permit is obtained.

Question 11

Who must obtain the EPA’s National Pollutant Discharge Elimination System (NPDES) permit? When must they obtain this permit?

Answer 11

1. Industrial, municipal, and other facilities must obtain permits
2. if their discharges go directly to surface waters.

Question 12

Employee Retirement Income Security Act of 1974 (ERISA)

Answer 12

1. federal law that sets minimum standards for most voluntarily established pension and health plans in the private sector.
2. ERISA requires plans to provide participants with plan information, including important information about plan features and funding.

Question 13

What does ERISA do?

Answer 13

1. ERISA sets uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner.
2. ERISA is enforced by the Department of Labor’s Pension and Welfare Benefits Administration (PWBA) and by the Internal Revenue Service (IRS).
3. ERISA requires persons who control plan funds to manage plans for the exclusive benefit of participants and beneficiaries, and to provide certain documents to assure compliance with the law.

Question 14

To whom does FMLA apply?

Answer 14

To employers having at least 50 employees.

Question 15

Family Medical Leave Act (FMLA)

Answer 15

1. A husband and wife who are employed with the same company are only entitled to a combined total of 12 weeks leave.
2. An employee can ask to use FMLA to care for a family member, for their own physical/mental health care, and after the birth or adoption of a child.

Question 16

eligible employee (FMLA)

Answer 16

employee that has been employed with a company for at least 1,250 hours during a 12 month period prior to the start of the leave.

Question 17

Can an employer ask the employee to provide a medical certification from a health care provider to substantiates the need to use FMLA?

Answer 17

Yes.

Question 18

The Occupational Safety Health Act (OSHA) requires employers to:

Answer 18

1. Provide a workplace that is free from recognized hazards;
2. AND to keep records of accidents and to report serious accidents to OSHA.

Question 19

Does OSHA allow employers to insist upon a search warrant? Does OSHA allow employers to accompany OSHA inspectors during job site inspections?

Answer 19

Yes and Yes.

Question 20

Are court orders normally necessary for OSHA inspections?

Answer 20

Business premise inspections are typically permitted by employers without a court order.

Question 21

The four basic programs of the Social Security Act are:

Answer 21

1. unemployment insurance,
2. hospital insurance (Medicare),
3. survivors and disability insurance,
4. AND old age benefits.

Question 22

If A is injured when working for B, and B’s employees are covered by a standard workers compensation policy, then who is liable for A’s injury? A, B, or the worker’s compensation carrier?

Answer 22

B is liable for A’s lost wages.

Question 23

An employee who is injured in connection with his/her employment is entitled to prompt compensation for his/her injuries except when…

Answer 23

the injuries are sustained going to or from work

Question 24

An employee who is injured in connection with his/her employment will receive what?

Answer 24

Workers’ compensation benefits will be awarded regardless whether the employee was negligent.

Question 25

An employee who is injured in connection with his/her employment due to a reckless 3rd party will receive what?

Answer 25

If a third party was negligent, Cory will have rights to both workers’ compensation recovery as well as a personal injury claim against the third party, but cannot obtain double recovery.

Question 26

Does workers’ comp pay for pain and suffering?

Answer 26

No.

Question 27

Does workers’ comp pay for lost wages?

Answer 27

The lost wage portion of workers’ compensation amounts to 2/3 of regular pay for up to 500 weeks.

Question 28

Does workers’ comp pay for prosthetic devices needed as a result of the work-related injury?

Answer 28

No. Prosthetic devices, if required, are covered under workmens’ compensation.

Question 29

Endangered Species Act

Answer 29

provides for the conservation of the habitats in which endangered species are found.

Question 30

Who manages the list of endangered species?

Answer 30

1. The U.S. Fish and Wildlife Service (FWS).
2. Species include birds, insects, fish, reptiles, mammals, crustaceans, flowers, grasses, and trees.
3. Anyone can petition FWS to include a species on this list.
4. The Act provides in some instances for the purchase of lands to protect certain habitats. 5. The Act establishes both civil and criminal penalties for violations.

Question 31

How is the imposition of self-employment taxes and social security taxes handled for C Corporations? For S Corporations? For partnerships?

Answer 31

1. In a C Corporation, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions.
2. In S Corporations, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions (as long as reasonable wages are paid).
3. In a partnership, earnings are generally subject to self-employment taxes, except for earnings distributed for limited partnership interests.

Question 32

open shop

Answer 32

does not discriminate based on union membership in employing or keeping workers.

Question 33

Does workers’ comp cover burial expenses for employees killed on the job?

Answer 33

Yes.

Question 34

When are employees injured on the job not covered by workers’ comp?

Answer 34

1. Employees are not covered while traveling to and from work, are not covered if they were intoxicated,
2. AND, employees are not compensated for pain and suffering.

Question 35

National Labor Relations Act (Wagner Act)

Answer 35

It specifies the rights that employees have to join or form labor organizations.

Question 36

Are unemployment taxes are deductible by the employer, employee, or both?

Answer 36

Employer.

Question 37

When is an employer required to pay taxes under FUTA?

Answer 37

if it employs at least one person for any part of a day for twenty weeks and pays at least $1,700 in wages during a quarter.

Question 38

Are employers subject to tax credits against federal unemp. taxes?

Answer 38

Yes, for state unemp. taxes paid.

Question 39

Do employers may receive higher or lower state unemployment tax rates based upon employment history?

Answer 39

Yes.

Question 40

Dodd-Frank Act: clawback provisions

Answer 40

The Dodd-Frank Act does provide for certain clawback provisions to reclaim 3 yrs. of certain executive incentive compensation in the event of failure to comply with federal reporting requirements.

Question 41

Dodd-Frank Act: Independence of Board requirement

Answer 41

The act also adds the requirement of independence of the board’s executive compensation committee and requires votes by shareholders on executive compensation matters at least every three years.

Question 42

Whistle blowers may be entitled to compensation from the SEC of ___ - ___% of the total monetary sanction, if such sanctions exceed ________.

Answer 42

1. 10-30%

2. $1 million

Question 43

The Dodd-Frank Act requires that mortgage originators and securitors to retain what % in the credit risk?

Answer 43

5%.

Question 44

JOBS Act (Dodd-Frank Act)

Answer 44

Expanded certain exclusions for emerging growth companies.

Question 45

emerging growth companies

Answer 45

company with an initial public offering after December 2011 with less than $1 billion in gross revenues in the last fiscal year.

Question 46

Aside from Corporate America, what other industries does the Dodd-Frank Act regulate?

Answer 46

1. Insurance industry.
2. Certain equity an hedge fund advisors.
3. Created the Bureau of Consumer Financial Protection.

Question 47

A company is subject to Title VII of the ‘64 Civil Rights Act if it has at least ___ employees?

Answer 47

15.

Question 48

Can an employer be exempt from Title VII of the ‘64 Civil Rights Act if s/he can argue a bona fide occupational qualification based upon gender, race, color, etc.?

Answer 48

Never.

Question 49

1936 Robinson-Patman Act

Answer 49

price discrimination is prohibited if it would tend to harm competition or create a monopoly.

Question 50

How can a plaintiff succeed in a case based on the Robinson-Patman Act?

Answer 50

1. Prove that the price difference could reasonably harm competition, not actual damage to competition.
2. Show that there is not a cost-justified reason for the price difference (such as buying in bulk).

Question 51

Clean Air Act

Answer 51

1. Required that the EPA set the NAAQS.
2. Any new stationary emissions source is required to show it utilizes the best available technology to reduce emissions.
3. Areas that have met the NAAQS are required to prevent any significant deterioration of the air quality levels.

Question 52

Sanctions the EPA can impose under the CLean Air Act

Answer 52

EPA may impose sanctions equal to violator’s cost savings in intentionally violating the provisions of the Clean Air Act.

Question 53

Who can sue emissions sources under the Clean Air Act?

Answer 53

Private citizens.

Question 54

punishment for stealing someone else’s patent

Answer 54

Treble damages.

Question 55

How long does the inventor have to sell his/her product before s/he is barred from applying for a patent?

Answer 55

1 year.

Question 56

Under U.S. patent law, is the inventor or the first party to file granted the patent?

Answer 56

The inventor.

Question 57

Paris Convention & filing a patent in a foreign country

Answer 57

There is typically a one-year grace period for inventors to apply for a foreign patent after applying in the first country.

Question 58

money laundering

Answer 58

1. disguising the source of illegal income in seemingly legitimate assets.
2. This is often accomplished by creating fictitious transactions at legitimate financial institutions, then sending funds to offshore accounts.
3. These funds may be repatriated to purchase legitimate assets or investments.

Question 59

The Bank Secrecy Act covers which financial institutions?

Answer 59

banks, brokers, currency exchanges, casinos, entities that perform wire transfers, etc.

Question 60

What does the Bank Secrecy Act require of covered financial institutions?

Answer 60

to report suspicious activity to the federal government.

Question 61

Fair Credit and Charge Card Disclosure Act

Answer 61

provides a $50 limit for fraudulent credit card charges

Question 62

Equal Credit Opportunity Act

Answer 62

prohibits discrimination based on sex, age, religion, national origin, receipt of welfare payments, and invocation of rights under law

Question 63

Fair Credit Billing Act

Answer 63

requires creditors to correct billing errors

Question 64

Fair Debt Collections Act

Answer 64

collection agencies must cease collection activities when a creditor contests a debt, until such time that the collector provides verification to the debtor.