PHR-Legislation and Case Law-Chapter 6 (Compensation and Benefits)

Question 1

Required employers and employees to pay Social Security taxes.

Answer 1

Federal Insurance Contributions Act (FICA/Social Security Act)
1935

Question 2

Required employers to contribute a percentage of payroll to an unemployment insurance fund

Answer 2

Federal Unemployment Tax Act (FUTA)

1936

Question 3

Required contractors to pay prevailing wage rates

Answer 3

Public Contracts Act (PCA/Walsh-Healey Act)

1936

Question 4

Defined exempt and nonexempt employees; required and set the minimum wage to be paid to nonexempt workers; required time-and-a-half to be paid for nonexempt overtime hours; limited hours and type of work for children; established record-keeping requirements

Answer 4

Fair Labor Standards Act (FLSA)

1938

Question 5

Clarified the definition of “hours worked” for the FLSA

Answer 5

Portal-to-Portal Act

1947

Question 6

Required that employees performing substantially similar or identical work be paid the same wage or salary rate

Answer 6

Equal Pay Act

1963

Question 7

Required government contractors to pay prevailing wages and benefits

Answer 7

Service Contract Act

1965

Question 8

Limited garnishment amounts on employee wages; prohibited discharge of employees for a single garnishment order

Answer 8

Consumer Credit Protection Act (CCPA)

1968

Question 9

Established requirements for pension, retirement, and welfare benefit plans including medical, hospital, accidental death and dismemberment (AD&D), and unemployment benefits

Answer 9

Employee Retirement Income Security Act (ERISA)

1974

Question 10

Created the Senior Executive Service, the Merit Systems Protection Board (MSPB), the Office of Personnel Management (OPM), and the Federal Labor Relations Authority (FLRA)

Answer 10

Civil Service Reform Act

1978

Question 11

Established Section 125 and 401(k) plans for employees

Answer 11

Revenue Act

1978

Question 12

Lowered the age limits on participation and vesting in pension benefits; required written spousal consent to not provide survivor benefits; restricted conditions placed on survivor benefits

Answer 12

Retirement Equity Act

1984

Question 13

Provided continuation of group health coverage upon a qualifying event

Answer 13

Consolidated Omnibus Budget Reconciliation Act (COBRA)

1986

Question 14

Amended ADEA to prevent discrimination in benefits for workers 40 years of age and older; added requirements for waivers

Answer 14

Older Worker Benefit Protection Act (OWBPA)

1990

Question 15

Reduced rollover rules for lump-sum distributions of qualified retirement plans; required 20 percent withholding for some distributions

Answer 15

Unemployment Compensation Amendments

1992

Question 16

Allowed employers to provide a non-taxable fringe benefit to employees engaged in qualified commuter activities such as bicycling and mass transit

Answer 16

Energy Policy Act of 1992

1992

Question 17

Required qualifying employers to provide 12 weeks of unpaid leave to eligible employees for the birth or adoption of a child or to provide care for defined relatives with serious health conditions or to employees unable to perform job duties due to a serious health condition

Answer 17

Family and Medical Leave Act (FMLA)

1993

Question 18

Revised rules for employee benefits; set the maximum deduction for executive pay at $1,000,000; mandated some benefits for medical plans

Answer 18

Omnibus Budget Reconciliation Act (OBRA)

1993

Question 19

Required insurers to provide the same limits for mental health benefits that are provided for other types of health benefits

Answer 19

Mental Health Parity Act (MHPA)

1996

Question 20

Prohibits discrimination based on health status; limited health insurance restrictions for preexisting conditions; required a Certificate of Group Health Plan Coverage upon plan termination

Answer 20

Health Insurance Portability and Accountability Act (HIPAA)

1996

Question 21

Required employers to provide information about all new or rehired employees to state agencies to enforce child-support orders

Answer 21

Personal Responsibility and Work Opportunity Reconciliation Act
1996

Question 22

Redefined highly compensated individuals; detailed minimum participation requirements; simplified 401(k) tests; corrected qualified plan and disclosure requirements

Answer 22

Small Business Job Protection Act

1996

Question 23

Established that employees who violate company rules while on FMLA leave may be terminated

Answer 23

Pharakhone v Nissan North America, Inc.

2003

Question 24

Amended ERISA financial obligations for multi-employer pension plans; changed plan administration for deferred-contribution plans

Answer 24

Pension Protection Act (PPA)

2006

Question 25

Established that employees on FMLA may be legally terminated for legitimate, nondiscriminatory reasons, including violations of company policy if the reason is unrelated to the exercise of FMLA rights

Answer 25

Sista v CDC Ixis North America, Inc.

Question 26

Established that the waiver of FMLA rights in a severance agreement is invalid. FMLA clearly states that “employees cannot waive, nor any employers induce employees to waive, any rights under the FMLA.”

Answer 26

Taylor v Progress Energy, Inc.

2007

Question 27

Established that when an employee on FMLA leave is receiving employer-provided disability payments, they may not be required to use accrued sick leave or vacation leave during the FMLA absence.

Answer 27

Repa v Roadway Express, Inc.

2007

Question 28

Created new requirements for employer-sponsored healthcare plans. Amended the FLSA to require large employers to provide lactation breaks and facilities for employees who are breastfeeding.

Answer 28

Patient Protection and Affordable Health Care Act

2010