Test 4 Flashcards
Payments calculated directly on the basis of the time worked by employees are called _____
wages
According to the Fair Labor Standards Act, if a state’s minimum wage is higher than the federal minimum wage, _____
employers must pay the higher wage
The FLSA established overtime pay requirements for nonexempt employees at 1.5 times the regular pay rate for all hours worked over _____
40 in a week
The act that does not require employers to pay overtime for salaried exempt jobs is the _____
Fair Labor Standards Act
The rate paid for a job by a majority of the employers in the appropriate geographic area determines _____
prevailing wages
Most federal and state entities rely on the criteria for independent contractor status identified by the _____
Internal Revenue Service
A court order that directs an employer to set aside a portion of an employee’s wages to pay a debt owed to a creditor is known as _____
garnishment
The right of employers to terminate employees whose pay is subject to a single garnishment order is restricted by the _____
Consumer Credit Protection Act
Which of the following is typical of the entitlement philosophy of compensation?
Pay and raises based on length of service
Which of the following is typical of the performance philosophy of compensation?
No raises for poorly performing employees
In the context of worker motivation, which of the following is classified as an input in equity theory?
Loyalty
In the context of worker motivation, which of the following is classified as an outcome in equity theory?
Praise
Which of the following is true of an employer who uses the first-quartile strategy of compensation?
The employer pays the employees below market levels.
Which of the following is true of an employer who uses the second-quartile strategy of compensation?
The employer pays the employees on par with the market levels.
Which of the following is true of an employer who uses the third-quartile strategy of compensation?
The employer pays the employees above market levels.
Which of the following is true of the point factor method of job evaluation?
It looks at compensable factors in a group of similar jobs and assigns weights to them.
In the context of job evaluation, external pay data are used to identify the relative value of jobs based on what other employers pay for similar jobs in the _____
market pricing method
A collection of data on compensation rates for workers performing similar jobs in other organizations is known as a _____
pay survey
Groupings of individual jobs that have approximately the same value to the organization, used when establishing a pay structure, are called _____
pay grades
The relationship between job value as determined by job evaluation points and job value as determined by pay survey rates is shown by a _____
market line
Grouping jobs into pay grades based on similar market survey amounts is known as _____
market banding
Which of the following is true of red-circled employees?
They are paid above the range set for a job.
Which of the following is true of green-circled employees?
They are paid below the range set for a job.
Which of the following is true of pay compression?
It is frequently a result of labor market pay levels increasing faster than current employees’ pay adjustments.
