People (from book)

Question 1

Davis Bacon Act (1931)

Answer 1

Who: contractors and subcontractors working on federally funded contracts in excess of $2,000

What: Requires employers to pay al laborers at construction sights at least the prevailing wage and fringe benefits that individuals working in similar projects in the area are receiving.

Question 2

Walsh-Healey Public Contracts Act (1936)

Answer 2

Who: Contractors working on federally funded supply contracts in excess of $10,000

What: Employers must pay employees at least the federal minimum wage and overtime pay (1.5x the individual’s regular rate of pay) - overtime defined as more than 8 hours in a day, 40 in a week.

Also: employment of youth (under 16) and convicts is prohibited. Also calls for job safety and sanitation protocols.

Question 3

Fair Labor Standards Act (1938)

Answer 3

Wage and Hour law

Established employee classification and regulates minimum wage, overtime pay, on-call pay, associated record keeping, and child labor.

Question 4

Non-exempt employees

Answer 4

Fall directly under FLSA regulations

Earn a salary of less than $23,600 per year ($455/week)

Do not involve the supervision of others or the use of independent judgment

They also do not require specialized education

Question 5

Exempt employees

Answer 5

Do not fall under the FLSA regulations

Paid on a salary basis

Spend more than 50% of their work time performing exempt duties.

Question 6

Executive employees

Answer 6

Responsible for directing the work of two or more FT employees.

Management is a key focus of their role, and they have direct input into the job status of other employees, such as hiring and firing.

Question 7

Professional employees

Answer 7

Their positions require knowledge in a specific field of science or learning (e.g. doctors, lawyers, engineers, and accountants).

Can also fall into the category of creative professionals, meaning their positions involved the invention, imagination, originality, or talent in a recognized field of artistic or creative endeavor (e.g. writing, acting, and graphic arts).

Question 8

Administrative employees

Answer 8

Responsible for exercising discretion and judgment with respect to matters of significance, which can be directly related to management of the general business or in dealings with the customers of the business.

Question 9

Portal-to-Portal Act (1947)

Answer 9

Amendment to the Fair Labor Standards Act (FLSA) - deals with preliminary tasks prior to the start of principal workday activities (e.g. on-call or standby time, meals and breaks, travel time, or training time).

Requires employees who are covered under FLSA to be paid for time spent traveling to perform job-related tasks, if that travel is outside of the employees’ regular work commute.

Question 10

Equal Pay Act (1963)

Answer 10

Requires employers to pay equal wages to both men and women who perform equal jobs in the same establishment. Equivalent jobs are required to have equal skill, working conditions, effort, and responsibility as defined as follows:

Skill: the educational and professional background of the employee performing the job, combined with his or her ability and training

Working conditions: The physical surroundings in which the work is performed, along with any associated hazards

Effort: A measurement of the physical or mental exertion that an employee needs to have in order to perform his or her job

Responsibility: the employee’s degree of accountability in performing his or her job

Question 11

Employee Retirement Income Security Act (1974)

Answer 11

Establishes minimum standards for benefit plans of private, for-profit employers.

In order to receive tax advantages, these plans must conform to the Internal Revenue Code’s requirements.

Question 12

Vested benefits

Answer 12

Benefits from a retirement account or from a pension plan belonging to an employee that they get to keep regardless of whether they remain employed at the company.

Question 13

Graded vesting

Answer 13

A set schedule where employees are vested at a percentage amount less than 100% each ear, until they accrue enough years of service to be considered 100% vested.

Question 14

Cliff vesting

Answer 14

Refers to employees becoming 100% vested after a specific number of years of service.

Question 15

Older Workers Benefit Protection Act (1990)

Answer 15

Under this act, it is illegal for employers to discriminate based on an employee’s age in the provision of benefits, such as pension programs, retirement plans, or life insurance.

Question 16

Retirement Equity Act (1984)

Answer 16

Passed to address concerns around the needs of divorced spouses, surviving spouses, and employees who left the workforce for some period of time to raise a family.

Automatic survivor benefits were now required of qualified pension plans in the event of a plan participant’s death, and the waiver of these benefits could only occur with the consent of both the plan participant and the participant’s spouse.

Question 17

Pension Protection Act (2006)

Answer 17

Increased the minimum funding requirements for pension plans, thereby eliminating existing loopholes that previously allowed missed payments for underfunded plans.

Question 18

Consolidated Omnibus Budget Reconciliation Act (1986) - COBRA

Answer 18

Allows for the continuation of healthcare coverage in the event that such coverage would end due to certain situations, such as the termination of employment, a divorce, or the death of an employee.

Covers employers with 20+ employees.

Employees can pay to continue group medical insurance coverage for a period of up to 18-36 months, if they elect to do so in a timely manner and pay the full costs of coverage.

Can be charged a 2% admin fee.

Question 19

Patient Protection and Affordable Care Act (2010)

Answer 19

If individuals do not have access to employer-sponsored healthcare coverage, medicare, or Medicaid, they are now able to purchase healthcare from an insurance exchange and possibly receive a subsidy.

One of the goals is to keep the overall cost of healthcare coverage down by having individuals take advantage of preventative care (well-woman visits, blood pressure and cholesterol screenings, etc.)

Allows children to stay under their parents insurance until 26

Individuals with preexisting medical conditions cannot be denied coverage.

Every American citizen now required to have health insurance.

Employer mandate: all companies with 50+ FT employees provide at least 95% of those employees and their dependents with affordable health insurance``

Question 20

Mental Health Parity Act (1996)

Answer 20

Put into place to ensure that large group health plans provide coverage for mental health care in the same manner that they provide coverage for physical health care.

Applies to employers with 50+ employees

Question 21

Family Medical Leave Act (1993)

Answer 21

12 weeks of job-protected, unpaid leave due to family/medical reasons.

For employers with 50+ employees (FT or PT) working within 75 miles of a given workplace.

Employees must have worked for their employer at least 12 months and for a total of 1,250 hours.

Question 22

Qualifying events for FMLA

Answer 22

• The birth of a child, adoption, or foster-care placement
• The serious health condition of a spouse, child, or parent
• The serious health condition of the employee, one requiring inpatient care or continuing treatment by a healthcare provider
• Qualifying exigency leave for military (e.g. making financial and legal arrangements or arranging for alternative childcare)
• Military caregiver leave to care for a covered service member with a serious injury or illness. Granted up to 26 weeks

Question 23

Uniform Services Employment and Reemployment Rights Act (1994)

Answer 23

Requires covered employees to provide their employers with at least thirty days’ notice of their need for leave, if possible, and covers them for up to five years of unpaid leave.

Employer requirements:
- Pay exempt employees their full salary while out on leave, less any compensation that they receive for serving in the military.
- Employees continue to receive seniority-based benefits as though they were not on leave (paid vacation time, 401k contributions)
- For leaves less than one month, employers must continue healthcare coverage under the same terms as if the employee wasn’t on leave.

Question 24

Old Age, Survivor, and Disability Insurance Program

Answer 24

Social Security Act of 1935 designed this program to ensure a continuation of income for individuals who are retired, spouses and dependent children of employees who are deceased, and individuals who qualify for social security disability.

Question 25

Federal-State Unemployment Insurance Program

Answer 25

Was created as a way to provide partial income replacement for a period of time to individuals who find themselves unemployed involuntarily.

State eligibility requirements:
- Employee having worked a minimum number of weeks
- Not being terminated for misconduct
- Not having left their job voluntarily
- Not finding themselves unemployed due to a labor dispute
- Actively seeking work
- Not refusing suitable employment

Question 26

Medicare (1965)

Answer 26

Providing healthcare for individuals 65+

Question 27

Medicare Part A

Answer 27

Hospital insurance, which is considered mandatory, and most individuals do not have to pay for this coverage

Question 28

Medicare Part B

Answer 28

Medical insurance and covers such health care expenses as physicians’ services and outpatient care.

Optional, and most individuals pay a monthly fee to have this coverage

Question 29

Medicare Part C

Answer 29

Medicare Advantage Plans

HMOs or PPOs that are offered by private companies and approved by Medicare.

Includes additional coverage (dental, vision, hearing)