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HR Final exam Focused Flashcards

1
Q

What are the three parts of Total Compensation?

A
  • Base compensation (salary or hourly wage)
  • Pay incentives (bonuses, commissions, etc.)
  • Indirect compensation/benefits (health insurance, vacations — about 42% of total compensation)
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2
Q

What does the Davis-Bacon Act (1931) require?

A

Requires federal contractors and subcontractors on public works projects (such as roads, bridges, and buildings) to pay workers at least the local prevailing wage rates (typically determined by the Department of Labor) for similar projects in the area. This is designed to ensure fair wages and prevent undercutting local wage standards on government-funded construction projects.

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3
Q

What does the Copeland Act (1934) prohibit?

A

Contractors from demanding wage kickbacks from employees on federal projects

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4
Q

What is the Fair Labor Standards Act (FLSA, 1938) known for?

A

Setting minimum wage ($7.25 federal baseline), overtime pay, and defining exempt vs nonexempt workers

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5
Q

What is the exempt threshold set by the Fair Labor Standards Act (FLSA)?

A

$684/week

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6
Q

What does the Equal Pay Act (1963) require?

A

Equal pay for substantially equal work, allowing exceptions (seniority, performance, etc.)

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7
Q

What is the purpose of the Portal-to-Portal Act?

A

The Portal-to-Portal Act defines what time is compensable under the FLSA. It excludes commuting time and certain pre- and post-work activities, unless required by the employer.

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8
Q

What does the Age Discrimination in Employment Act (ADEA) protect?

A

The ADEA protects employees 40 years and older from discrimination based on age in hiring, promotions, firing, and other employment practices. It applies to employers with 20 or more employees.

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9
Q

What is the Work Opportunity Tax Credit (WOTC)?

A

Tax credits for hiring from targeted groups (veterans, long-term unemployed, SNAP recipients)

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10
Q

What is the federal minimum wage as per the Fair Labor Standards Act?

A

$7.25/hr

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11
Q

Define Internal Equity.

A

Fairness compared to others inside the same organization

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12
Q

Define External Equity.

A

Fairness compared to other organizations (market wages)

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13
Q

What are the three compensation strategies?

A
  • Lead the market: Pay above average
  • Match the market: Pay at market rate
  • Lag the market: Pay below market rate
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14
Q

What is a single-rate pay system?

A

A single-rate pay system means everyone in a specific job is paid the same wage rate, regardless of experience, performance, or tenure.

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15
Q

What is merit/performance pay?

A

Merit/performance pay refers to raises or bonuses given to employees based on individual performance appraisals. Employees receive higher pay as a reward for meeting or exceeding job expectations and performance goals.

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16
Q

What does productivity-based pay depend on?

A

Productivity-based pay depends on the output an employee produces, such as the number of units manufactured or the volume of work completed. Employees are compensated based on their level of productivity, often with a direct link between the amount of work done and the pay received.

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17
Q

What are the types of incentive pay plans?

A
  • Individual: Piecework, commissions, bonuses
  • Group: Gainsharing, group bonuses
  • Organization-wide: Profit-sharing, performance-sharing plans
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18
Q

What is broadbanding in compensation?

A

Combining multiple narrow pay grades into wider salary bands

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19
Q

What is the risk of open pay systems?

A

Can cause jealousy/conflict

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20
Q

What are golden parachutes?

A

Golden parachutes are large severance packages given to executives if they are terminated, often due to company restructuring, mergers, or acquisitions. These packages typically include severance pay, stock options, bonuses, and other perks to provide financial security upon job loss

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21
Q

What is the free-rider effect?

A

When low performers in team-based systems benefit from the efforts of high performers

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22
Q

What does the Family and Medical Leave Act (FMLA) provide?

A

Up to 12 weeks of unpaid leave for qualifying family and medical reasons

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23
Q

What is COBRA?

A

Allows employees to continue health insurance coverage after leaving a job

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24
Q

What are mandated benefits?

A

Mandated benefits are benefits required by law that employers must provide to their employees. These include programs like Social Security, Workers’ Compensation, unemployment insurance, and Family and Medical Leave (FMLA). These benefits are designed to provide employees with basic financial protection in specific circumstances, such as injury, illness, or job loss.

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25
What is a defined benefit plan?
Guaranteed income at retirement, based on salary and years of service
26
What is a defined contribution plan?
Retirement plan where contributions are made by employee and employer, final amount depends on investment performance
27
What does the Americans with Disabilities Act (ADA) require?
Employers to provide reasonable accommodations to employees with disabilities
28
What does Title VII of the Civil Rights Act of 1964 protect against?
Discrimination based on race, color, religion, sex, or national origin
29
What does the National Labor Relations Act (NLRA) protect?
The right to organize into unions and engage in collective bargaining
30
What is constructive discharge?
When an employee resigns due to a hostile or intolerable work environment
31
What does the Fair Labor Standards Act (FLSA) regulate?
Overtime pay requirements, minimum wage standards, exempt vs nonexempt classifications
32
What is a Cafeteria Plan?
A flexible benefits plan that allows employees to choose from a variety of benefits
33
What is the purpose of the psychological contract?
The psychological contract defines the unwritten expectations between an employer and an employee, particularly regarding job security, benefits, and mutual obligations. It represents the trust and understanding about what each party expects from the other, beyond the formal written contract.
34
What does the Genetic Information Nondiscrimination Act (GINA) prohibit?
GINA prohibits discrimination by employers and health insurers based on genetic information, including an individual’s genetic tests, family history, or participation in genetic testing. It protects individuals from being treated unfairly regarding hiring, promotion, firing, and health insurance due to their genetic makeup.
35
True or False: The Family and Medical Leave Act (FMLA) requires paid leave.
False
36
What is the main risk associated with pay-for-performance systems?
The main risk of pay-for-performance systems is that they can encourage unethical behavior and low morale. Employees may focus on short-term results at the expense of long-term goals, or engage in unfair practices to meet performance targets, leading to increased competition and decreased teamwork.
37
What are the advantages of pay-for-performance systems?
* Increases motivation * Rewards high performers * Aligns company goals with employee actions
38
What does the Fair Labor Standards Act (FLSA) require for nonexempt employees?
Overtime pay for working over 40 hours/week ## Footnote The FLSA also establishes minimum wage standards and differentiates between exempt and nonexempt employee classifications.
39
What does the Family and Medical Leave Act (FMLA) provide?
Unpaid leave for medical or family emergencies with job protection ## Footnote FMLA does not require paid leave, although some employers may choose to offer it voluntarily.
40
What categories does Title VII protect against discrimination?
* Race * Sex * Religion * National origin * Retaliation for participating in investigations or filing complaints
41
What are employee rights under the Americans with Disabilities Act (ADA)?
* Reasonable accommodations for employees with disabilities * Protection from discrimination due to disability
42
True or False: Employers can punish employees for participating in protected activities under Title VII.
False ## Footnote Title VII prohibits retaliation against employees for engaging in protected activities.
43
Define Constructive Discharge.
A situation where an employee is forced to leave their job due to intolerable working conditions created by the employer.
44
What is retaliation in the context of employment?
Adverse actions taken by an employer against an employee for engaging in protected activities.
45
What is the National Labor Relations Act (NLRA)?
Protects employees’ rights to unionize and engage in collective bargaining.
46
What does Title VII prohibit?
Discrimination based on race, religion, sex, national origin, and protects against retaliation.
47
What is the purpose of OSHA?
To ensure safe work environments and reduce hazards that can harm employees.
48
What is a key goal of employee relations?
Effective communication between management and employees to foster understanding and engagement.
49
What is constructive discharge?
When an employee resigns due to hostile work conditions created by the employer.
50
What is a grievance procedure?
A formal process for employees to express concerns or conflicts and for those issues to be addressed.
51
Fill in the blank: The _____ Act provides up to 12 weeks of unpaid leave for medical or family reasons.
Family and Medical Leave Act (FMLA)
52
What is the role of the National Labor Relations Board (NLRB)?
Enforces the NLRA, oversees union elections, and addresses unfair labor practices.
53
List the types of union security agreements.
1. Closed Shop: Requires employees to be union members before being hired (illegal under the Taft Hartley Act). 2. Union Shop: Requires employees to join the union after being hired. 3. Agency Shop: Requires employees to pay union dues, but they don’t have to join the union. 4. Open Shop: Employees are not required to join the union or pay dues. 5. Right-to-Work Laws: Laws that prohibit employers from requiring employees to join a union or pay union dues as a condition of employment.
54
What does PPE stand for?
Personal Protective Equipment
55
What are workplace hazards?
Any risk or danger in the workplace that can cause injury or illness.
56
What is ergonomics?
The study of workplace design to minimize physical strain and prevent injuries.
57
What does the Occupational Safety and Health Act (OSHA) require?
Employers to provide a safe workplace and comply with health and safety standards.
58
True or False: Right-to-Work Laws allow employers to require union membership as a condition of employment.
False ## Footnote Right-to-Work Laws prohibit such requirements.
59
What is the purpose of health and safety programs?
To educate employees on safety protocols and ensure compliance with safety standards.
60
List common employee relations issues.
* Disputes over wages and hours * Harassment * Discrimination * Workplace safety concerns
61
What is a Scanlon Plan?
A gainsharing plan that focuses on employee participation and cost-saving suggestions to increase productivity.
62
What is a Rucker Plan?
A gainsharing plan that ties bonuses to the value added by employees, based on a predetermined formula linking labor costs to production value.
63
What is Imposhare?
A gainsharing plan that rewards employees for measurable improvements in productivity, usually based on reducing the time it takes to produce goods or services.

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