Topic 10: Employment Benefits and Protections Flashcards
What was the main issue with workplace safety before OSHA?
There were no national safety standards, and injured workers had limited legal remedies due to defenses like contributory negligence and assumption of risk.
When was the Occupational Safety and Health Act (OSHA) enacted, and why?
1970, to establish workplace safety regulations and protect workers from injury.
What agency did OSHA create, and what is its purpose?
The Occupational Safety and Health Administration (OSHA), which establishes and enforces workplace safety standards.
What is the research arm of OSHA, and what does it do?
The National Institute for Occupational Health and Safety (NIOSH) develops workplace safety standards.
What are the two basic employer requirements under OSHA?
1) Compliance requirement – Employers must follow all DOL safety & health standards.
2) General duty clause – Employers must provide a workplace free from recognized hazards.
What does the compliance requirement mandate?
Employers must follow specific safety standards, such as:
Emergency exits
Chemical storage training
Proper ventilation
Protective gear (eyewear, masks, etc.)
Medical exams
What is the most frequently violated OSHA regulation?
Failure to provide periodic safety training, especially when hiring or transferring employees.
What is the general duty clause, and why is it important?
Employers must provide a workplace free from known hazards, even if no specific OSHA rule exists for that hazard.
How does OSHA ensure compliance?
Spot inspections
Fines for violations
Worker training enforcement
Can employees report safety violations to OSHA?
Yes, and OSHA protects whistleblowers from retaliation.
Which of the following was not one of the defenses employers could use to withhold relief from injured workers?
The fellow servant rule
The reasonable person rule
Assumption of the risk
Contributory negligence
The reasonable person rule
Three employer defenses severely limited the relief an injured worker could obtain: 1) contributory negligence; 2) assumption of the risk; and 3) the fellow servant rule.
What is contributory negligence in the context of a workplace injury?
The injury was caused by a natural disaster
A customer or client’s negligence caused the injury
The worker’s errant conduct contributed to the injury
Another employee, not the employer causes the injury
The worker’s errant conduct contributed to the injury
In cases of contributary negligence, the worker is said to have “contributed” to his/her own injury.
What are the two basic requirements that OSHA places upon employers?
General duty clause : safety first training
Compliance requirement : General duty clause
General safety planning : safety complaint system of evaluation
Health plan requirements : natural disaster certification
Compliance requirement : General duty clause
The employer has a general duty to provide a safe workplace and a specific duty to follow regulations designed specifically for its workplace.
Under the compliance requirement, this is the most violated OSHA regulation:
Workplace violence training
Safety complaint system
Natural disaster planning
Continual training
Continual training
Under the compliance requirement, “employers are required to provide training to workers on a periodic basis and whenever an employee is hired or transferred to a new job assignment. This continual training requirement is the most frequently violated OSHA regulation.”
Which of the following is not a method OSHA uses to ensure compliance to OSHA standards?
Spot workplace inspections
Ensuring that continual training is taking place
Secret investigations without the employer’s knowledge
Imposing fines for rule violations
Secret investigations without the employer’s knowledge
From the text, “In order to ensure compliance, the OSHA conducts spot workplace inspections, imposes fines for rule violations, and ensures that continual training is taking place.”
What is the purpose of worker’s compensation?
To provide wage replacement and medical benefits to employees injured in the course of employment, in exchange for giving up the right to sue the employer for negligence.
How does worker’s compensation benefit employers?
It provides reduced liability and cost predictability by offering a limited, assured benefit instead of facing the unpredictability of a lawsuit.
Are worker’s compensation programs mandatory for employers?
Yes, in most states, employers must contribute to a state worker’s compensation fund, buy private insurance, or self-insure for larger firms.
What is the exclusive remedy for work-related injuries and illnesses?
Worker’s compensation is the exclusive remedy for injuries or illnesses that occur in the course of employment.
What does “arising out of and in the course of employment” mean in worker’s compensation?
There must be a causal link between employment and the injury, such as the time, place, manner, and cause of the injury.
Are commuting injuries covered by worker’s compensation?
Generally no, unless the employee is driving a work vehicle or performing work tasks while commuting. Entering or leaving work property is covered.
Are injuries caused by reckless horseplay covered by worker’s compensation?
No, if the employee engaged in reckless horseplay, but may be covered if:
The employee was injured by someone else engaging in horseplay.
Horseplay was a common practice not prohibited by the employer.
Are injuries resulting from drugs or alcohol use at work covered?
No, using drugs or alcohol at work is considered abandoning the job, and worker’s compensation does not apply in these cases.
How are heart attacks and strokes covered by worker’s compensation?
Only if the injury happens during unusual exertion at work, according to the exertion rule.
Is psychological injury covered by worker’s compensation?
Yes, but only if it results from a single traumatic event at work.
What are the typical benefits provided by worker’s compensation?
Replacement income (usually two-thirds of normal pay)
Medical costs for injury and rehabilitation
Do worker’s compensation benefits replace other medical benefits?
No, worker’s compensation benefits are separate from other medical benefits the employee may receive.
How are income payments affected by the type of disability?
Payments vary depending on whether the worker is partially or permanently disabled.
When injuries occur in the workplace as part of the normal course of business, the process of providing remedy is governed by state law and is called:
Unemployment
OSHA
Remedial welfare
Worker’s compensation
Worker’s compensation
Worker’s compensation is an insurance system designed to spread risk and reduce costs.
With worker’s compensation, an injured employee receives wage replacements and medical benefits in exchange for relinquishing his/her rights to:
Demand future raises
Inform the general public about the incident
FMLA time off
Sue the employer
Sue the employer
From the text, “Worker’s compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for relinquishment of the employee’s right to sue the employer for negligence.”
In most states, worker’s compensation programs are mandatory for:
Employers
Employees
Employers and employees
Federal employers and employees
Employers and employees
From the text, “In most states, worker’s compensation programs are mandatory for employers and employees. By law, employers must make plans to compensate workers by contributing to a state worker’s compensation fund, buying private insurance, or, for large firms, self-insuring.”
Which of the following situations would not be covered by worker’s compensation?
Horseplay at work
Injuries that occur while entering or leaving work property
Performing work tasks while on the way to work
Commuting in a work vehicle
Horseplay at work
From the text, “If an employee is engaging in reckless horseplay and blatantly disregarding safety precautions, he or she is not covered.”
True or False. The benefits received for worker’s compensation are separate from any other medical benefits the worker may receive.
From the text, “Coverage is separate from any other medical benefits the worker may receive.”
What is the purpose of the Fair Labor Standards Act (FLSA)?
To protect workers from unfair wages, limit abusive overtime practices, and prevent child labor.
When was the FLSA enacted?
In 1938, during the same period as the National Labor Relations Act (NLRA).
What is the federal minimum wage under the FLSA (as of 2017)?
$7.25 per hour.
How is the minimum wage calculated?
By dividing the total gross pay for a workweek by the number of hours worked.
What is the exception to the minimum wage for employees under 20?
The opportunity wage, allowing employers to pay $4.25/hour for the first 90 days of employment.
What does the FLSA require for overtime pay?
Employers must pay “time and a half” wages for hours worked beyond 40 hours per week.
Does the FLSA restrict the number of hours an employee can work per day or week?
No, it only requires overtime pay for hours worked beyond 40 hours per week.
Is compensatory time off allowed for overtime pay in the private workplace?
No, it is only allowed for public employers.
How does the FLSA treat employees who receive tips?
Employees who receive more than $30/month in tips can be paid $2.13/hour, as long as the total earnings meet the minimum wage requirement. Employers must make up any deficit.
Is tip pooling allowed under FLSA?
Yes, tip pooling is allowed.
At what age can minors work under the FLSA, and what are the restrictions?
14 years old for certain retail jobs with restrictions on hours.
16 years old for non-hazardous jobs, with state law setting specific standards.
Are farm workers subject to the FLSA?
No, most farm workers are exempt from FLSA provisions, including child labor protections.
Who is typically exempt from the FLSA’s wage and hour provisions?
White-collar professionals with a high degree of responsibility, long work hours, and high pay.
How can an employer exempt an employee from FLSA provisions?
Employers must prove that the employee’s duties and responsibilities qualify for exemption, not just their title.
What can happen if an employer misclassifies an employee as exempt from the FLSA?
Employers can face large fines for misclassification. Accurate job descriptions must support the exemption.
To protect workers from unfair wages, limit abusive overtime practices, and prevent child labor:
Congress enacted the Equal Pay Act
Congress enacted the Fair Labor Equality Act
Congress enacted the National Labor Relations Act
Congress enacted the Fair Labor Standards Act
Congress enacted the Fair Labor Standards Act
The FLSA protects workers from unfair wages, limits abusive overtime practices, and prevents child labor.
There is an exception to minimum wage rules called the _______________, which applies to employees under twenty years of age, who may be paid $4.25/hour for the first 90 days of employment.
Incremental growth wage
Opportunity wage
Underage wage
Development wage
Opportunity wage
From the text, “There is an exception called the opportunity wage, which applies to employees under twenty years of age, who may be paid $4.25/hour for the first 90 days of employment.”
Which department administers FLSA rules?
Department of Standardized Labor Requirements
OSHA
The Department of Workforce Services
Department of Labor
Department of Labor
FLSA rules are administered by the Department of Labor.
Paying for overtime work with compensatory time is:
Allowed for both public and private employers
Not allowed for private employers but is allowed for public employers
Allowed for private employers and not allowed for public
Not allowed for both public and private employers
Not allowed for private employers but is allowed for public employers
From the text, “Paying for overtime time work with compensatory time – allowing time off instead of payment– is not allowed in the private workplace. It is allowed for public employers. Congress made this distinction to save the public coffers from the burdens of overtime payments.”
What is the youngest permitted working age?
12
14
18
16
14
There are, however, restrictions on the nature and hours of work permitted for minors of this age.
When was the Family and Medical Leave Act (FMLA) signed into law?
In 1993, by President Clinton.
Who is covered by the FMLA?
It applies to all government employers and private employers with 50+ employees.
How much unpaid leave does an employee get under the FMLA?
12 weeks of annual unpaid leave, provided the employee has worked 1,250 hours in the previous 12 months.
How long is the leave period for a seriously injured veteran’s family member under FMLA?
26 weeks, as per an 2008 amendment.
What are qualifying events under the FMLA?
Birth, adoption, or placement of a foster child
A serious health condition of the employee, or the employee’s spouse, son, daughter, or parent.
Does FMLA cover all family obligations?
No, it specifically applies to the events listed above, not other family obligations.
Can both men and women take leave under the FMLA?
Yes, FMLA applies equally to both men and women.
What is a serious health condition under the FMLA?
Conditions that may include:
Three or more days of incapacitating illness with ongoing treatment.
Incapacity due to risky pregnancy.
Long-term illness (e.g., cancer, heart disease).
Absence for treatment of serious physical or mental health conditions.
What must an employee provide to support their FMLA leave for a serious health condition?
Health care provider certification confirming the condition.
Can the employer request a second opinion on the health condition?
Yes, the employer can require the employee to see a company-paid physician for a second opinion.
What is the difference between continuous and intermittent FMLA leave?
Continuous leave: Typically for birth or adoption.
Intermittent leave: For ongoing treatments or doctor visits, can be taken in short bursts.
Why is intermittent leave frustrating for employers under the FMLA?
It’s difficult to schedule and may be easily abused.
Can employers require employees to use accrued leave (sick, vacation) before using FMLA leave?
Yes, employers can require employees to take accrued leave first.
What must an employer do when an employee is on FMLA leave regarding health benefits?
The employer must continue health benefits during the leave period.
Does an employee accrue seniority during FMLA leave?
No, employees do not accrue seniority or benefits related to service during leave.
What must an employer do when the employee returns from FMLA leave?
The employer must restore the employee to substantially the same position they held prior to the leave, with exceptions for key employees.
What happens if an employee’s FMLA leave purpose no longer exists (e.g., if the family member dies)?
The employee must return to work if the purpose of the leave no longer exists.
Does FMLA cover bereavement leave?
No, bereavement is not covered under the FMLA.
Does the FMLA protect employees from being laid off or terminated for cause during leave?
No, employees can still be laid off or terminated for cause during FMLA leave.
The FMLA governs leave for employees due to ____________ and ____________ necessity.
Parental : medical
Logical : economic
Fiscal : parental
Medical : situational
Parental : medical
From the text, “The FMLA governs leave for employees due to parental and medical necessity and applies to all government employers and private employers with fifty or more employees.”
Under FMLA provisions, how many weeks of unpaid leave is a qualified employee entitled to?
Four weeks
Ten weeks
As many weeks as are needed
Twelve weeks
Twelve weeks
Under FMLA provisions, an employee is entitled to twelve weeks annual unpaid leave, subject to meeting certain requirements.
Which of the following is not a criterion needed to receive twelve weeks of FMLA leave?
Direct approval from upper management
Provided timely notice to the employer
Worked for the firm for 1,250 hours in the twelve months prior to taking leave
Experienced a qualifying event
Direct approval from upper management
From the text, “Under the FMLA provisions, an employee is entitled to twelve weeks annual unpaid leave if the employee has worked for the firm for 1,250 hours in the twelve months prior to taking leave, experiences a qualifying event, and provides timely notice to the employer.”
A 2008 amendment to the FMLA allowed for a twenty-six week period of leave for:
Individuals attempting to adopt a child from a foreign country
Individuals involved in a paralyzing accident
Qualifying family members of veterans seriously injured in the line of duty
Individuals battling cancer or assisting family members in overcoming cancer
Qualifying family members of veterans seriously injured in the line of duty
From the text, “A 2008 amendment [to the FMLA] allowed for a twenty-six week period of leave for qualifying family members of a veteran seriously injured in the line of duty.”
When an employee desires to take FMLA leave, the employee has a burden to provide:
Health care provider certification of a serious health condition
Information on whether the leave will be continuous or intermittent
Information on whether he/she will continue to work after his/her leave
A plan of action for return
Health care provider certification of a serious health condition
From the text, “The employee has a burden to provide the employer with health care provider certification that a serious health condition exists.”
What does ERISA stand for, and when was it enacted?
Employee Retirement Income Security Act, enacted in 1974.
What is the primary purpose of ERISA?
To protect workers’ interests in health, retirement, and other benefits, and to ensure careful employer management of retirement funds.
What is unique about ERISA compared to other federal laws?
ERISA preempts state law, meaning it overrides state laws concerning employee benefits, unlike other laws that allow stricter state versions.
What does ERISA require employers to provide to employees about benefits?
Employers must provide accurate information about benefits, deliver on promised benefits, allow for dispute review, and specify premiums, copays, and the benefits administrator.
What document must an employer provide to an employee under ERISA?
The Summary Plan Document (SPD), which interprets employee benefits and must be given within 90 days of coverage.
Can employees rely on oral representations regarding benefits under ERISA?
No, the SPD is the controlling document, and oral misrepresentations of benefits violate ERISA.
Who are considered fiduciaries under ERISA?
Those who manage benefit funds, including pension plans, and must act with skill, due care, and prudence.
What responsibilities do fiduciaries have under ERISA?
Operate according to the written benefits plan
Diversify investments
Monitor investments
Avoid conflicts of interest
Properly fund pension plans
What happens if fiduciaries fail to meet their duties under ERISA?
They may face liability and ERISA sanctions.
Can employees dispute a denial of coverage under ERISA?
Yes, employees can dispute a denial, typically in the context of medical benefits.
How must employers handle discretion when denying claims under ERISA?
Employers cannot act in an “arbitrary and capricious” manner and must comply with the terms of the benefit agreement.
What are the two main types of pension plans under ERISA?
Defined Benefit Plans
Defined Contribution Plans
How does a defined benefit pension plan work?
Employers provide a fixed amount of retirement income, with the firm maintaining a separate fund to pay pensions. If the fund does poorly, the firm must make up the difference.
What happens if a defined benefit pension plan fails?
The Pension Benefit Guaranty Corporation (PBGC) steps in to pay partial benefits to retirees.
How does a defined contribution pension plan work?
Employers contribute a fixed amount to an employee’s account (e.g., 401(k), profit-sharing), with the amount at retirement depending on the contributions and performance.
ERISA, unlike other federal laws,:
Allows for states to craft stricter versions
Only has to be followed in thirty-six states
Has an expansive preemption of any state law
Allows states to ignore it completely
Has an expansive preemption of any state law
From the text, “Unlike other federal laws which allow for states to craft stricter versions, ERISA is unique in its expansive preemption of any state law.”
Under ERISA, when benefits are provided by a company, the company must:
Provide correct information about benefits
Actually deliver on promised benefits
Allow for a review mechanism for disputes
All of the above
All of the above
From the text, “…employers must provide correct information about benefits, actually deliver on the promised benefits, allow for a review mechanism for disputes, manage employee funds to a high level of care, abstain from interfering with the employees’ benefit rights, specify premiums and copays, identify the benefits’ administrator and other factors which could reasonably and substantially impact benefits.”
An employer provides all the employee’s benefit information to the employee in a document called the:
Benefits summary plan
Summary of company benefits
Employee benefits schedule
Summary plan document
Summary plan document
This document, the SPD, “becomes the controlling document interpreting employee benefits, and oral representations may not be relied upon by employees. However, a business that orally misrepresents the terms of its benefit plan will have violated ERISA.”
What does it mean to engage in an abuse of discretion?
Withhold someone’s rights for financial gain
Relay information that is privately held
Act in an arbitrary and capricious manner
The act of blackmail
Act in an arbitrary and capricious manner
Abuse of discretion is clarified as acting in an “arbitrary and capricious manner” in the text.
After a specified period of time, an employee’s interests in a pension plan may not be forfeited. What is this known as?
Divesting
Investing
Allotment
Vesting
Vesting
ERISA requires the employers’ plan to provide for vesting of firm benefits. This means that after a specified period of time an employee’s interests in a pension plan may not be forfeited. An employee’s personal contributions to any plan are always vested in the employee.
What is the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
COBRA is a federal law that allows employees to continue their group health insurance coverage for up to 18 months after leaving a job, at their own expense.
Which employers are required to comply with COBRA?
COBRA applies to employers with 20 or more employees.
What are qualifying events under COBRA?
Qualifying events are situations that cause an employee to lose group health coverage, such as termination or a reduction in hours.
How long does COBRA coverage typically last after a qualifying event?
18 months, though in some cases it can be extended to 36 months.
Can a COBRA plan provide longer than the minimum continuation coverage?
Yes, each plan can provide longer periods of continuation coverage beyond the minimum requirements.
How much does an employee pay for COBRA coverage?
Employees pay the full cost of their health coverage, plus an additional 2% premium for administrative costs.
Who supervises compliance with COBRA?
The Department of Labor and the Internal Revenue Service (IRS) jointly supervise COBRA compliance.
What is the employer’s responsibility regarding COBRA notifications?
Employers must notify exiting employees of their COBRA rights and failure to do so can result in penalties and excise taxes.
How long does an employee have to exercise COBRA coverage rights after leaving a job?
Employees must exercise their COBRA rights within 60 days.
How might the Patient Protection and Affordable Care Act (Obamacare) affect COBRA?
It is anticipated that insurance marketplaces will replace COBRA coverage, potentially saving employers billions in extended coverage costs for exiting workers.
COBRA allows that when an employee leaves a firm he/she may carry the firm’s health care plan – at the employee’s expense – for ____ months?
Twenty-four
Twelve
Eighteen
Six
Eighteen
From the text, “(COBRA) is the federal act that allows an employee – at his or her own expense – to continue company health care benefits for up to eighteen months when he or she leaves a job.”
COBRA applies to firms with ___________ or more employees.
Thirty
Twenty
One hundred
Fifty
Twenty
From the text, “The COBRA law, which applies to firms with 20 or more employees, provides that benefit coverage extends 18 months from the date of a qualifying event. Qualifying events are those that cause an employee to lose group health coverage.”
An exiting employee must exercise his/her COBRA rights within how many days?
90
50
30
60
60
From the text, “Employers must notify exiting employees of their rights under COBRA and may face penalties in the form of excise taxes. An exiting employee must exercise coverage rights within sixty days.”
The Department of Labor and the _______________ jointly supervise COBRA compliance.
Department of Workforce Services
Internal Revenue Service
OSHA
Human services agency
Internal Revenue Service
From the text, “The Department of Labor and the Internal Revenue Service jointly supervise COBRA compliance.”
True or False. The effect of the Affordable Care Act on COBRA could save the U.S. employers billions of dollars in expenses that they now pay for exiting workers’ extended coverage.
True
Assuming insurance marketplaces will replace COBRA coverage, “the changes could save U.S. employers billions of dollars in expenses that they now pay for exiting workers’ extended coverage.”
What does HIPAA stand for, and when was it passed?
HIPAA stands for the Health Insurance Portability and Accountability Act, passed in 1996 as an amendment to ERISA.
What is the primary purpose of HIPAA?
The primary purpose of HIPAA is to establish standards for the gathering, processing, retention, and disclosure of private health information.
Which agency administers HIPAA?
HIPAA is administered by the Office for Civil Rights in the Health and Human Services Agency.
What is a key feature of HIPAA regarding private medical data?
HIPAA prohibits the release of private medical data without the individual’s permission.
How is permission to release private health information obtained under HIPAA?
Permission is obtained through an authorization form signed by the individual, specifying what information is being disclosed, the duration of the permission, who may disclose it, and for what purpose.
Who is subject to the HIPAA disclosure rules?
The rules apply to all entities that process medical information electronically or deliver health care services or benefit plans.
Under HIPAA, when can private health information be released without individual consent?
Information can be released if required by law, such as under a court order, a federal compliance review, or a medical examiner inquiry.
What must HIPAA-covered entities do to comply with privacy rules?
Entities must adopt privacy policies, inform employees of these rules, and provide specific training for employees handling sensitive medical data.
How should HIPAA-covered entities protect the security of health records?
Entities must implement electronic, physical, and other security measures to protect health records, and are subject to reviews by the Office for Civil Rights.
What are the penalties for violating HIPAA privacy rules?
Entities and individuals may face criminal and civil penalties, including fines and prison time, for willfully disclosing private health information.
What does HIPAA restrict in terms of pre-existing medical conditions?
HIPAA restricts employers from using pre-existing medical conditions to exclude coverage or charge more for medical benefits.
How does HIPAA define the period for excluding a pre-existing condition from health benefits?
A condition cannot be excluded if medical advice, diagnosis, care, or treatment was received within the 6-month period ending on the enrollment date.
Can pregnancy be considered a pre-existing condition under HIPAA?
No, pregnancy cannot be considered a pre-existing condition under HIPAA.
How do state laws interact with HIPAA privacy rules?
If a state has stricter privacy or compliance rules, they usually override the lesser federal rule under HIPAA.
What government agency administers HIPAA?
Internal Revenue Service
Department of Labor
The Office for Civil Rights in the Health and Human Services Agency
Department of Workforce services
The Office for Civil Rights in the Health and Human Services Agency
From the text, “The Health Insurance Portability and Accountability Act was passed in 1996 as an amendment to ERISA for the purpose of establishing standards in the health industry for the gathering, processing, retention, and disclosure of private health information. It is administered by the Office for Civil Rights in the Health and Human Services Agency.”
One of the main features of HIPAA is its prohibition against:
The advancement of employees based on romantic relationships and not merit alone
Workplace violence
The release of private medical data without the permission of the individual covered
The punishment of employees expressing themselves through social media
The release of private medical data without the permission of the individual covered
From the text, “One of the main features of HIPAA is its prohibition against the release of private medical data without the permission of the individual covered.”
Under HIPAA, personal medical information is obtained by an authorization form that:
Is signed by the individual
Identifies which information is sought to be disclosed
Details how long the permission is requested
All of the above
All of the above
From the text, “Permission is obtained by an authorization form, signed by the individual, that identifies what information is sought to be disclosed, how long the permission is requested, who may disclose it and to whom, and for what purpose it is needed.”
Which of the following is not an approved internal purpose to use personal health care information of employees?
Obtaining payment for services
Predicting employment replacement needs
Treating a patient
Research into internal systems and processes in the delivery of services
Predicting employment replacement needs
Internal purposes include “treating a patient, obtaining payment for services, and researching internal systems and processes in the delivery of services.”
Individuals who willfully disclose private health information may face:
Public rebuke
IRS audits
National boycotting
Criminal sanctions
Criminal sanctions
From the text, “…individuals who willfully disclose private health information may face, in addition to civil liability, criminal sanctions, which could include fines and prison time.”
What is whistleblowing?
Whistleblowing occurs when an employee reports the wrongdoing of an employer.
When was whistleblowing codified in U.S. law?
Whistleblowing was codified in 1863 through the False Claims Act (FCA).
What does the False Claims Act (FCA) prohibit?
The FCA prohibits fraud against government programs, such as presenting false payment claims, using false records/statements, or conspiring to violate the act.
What industries are most frequently involved in FCA violations?
Defense contractors and the healthcare industry are the most frequent offenders.
What reward do whistleblowers receive under the FCA?
Whistleblowers can receive 15–25% of the recovered damages from the fraud they reported.
Why is whistleblowing potentially lucrative?
Whistleblowing can be lucrative because it can involve large amounts of money being recovered from fraudulent claims.
What is the Federal Whistleblower Statute of 1982?
The Federal Whistleblower Statute protects defense contractor employees from discrimination or retaliation for reporting violations of contracts or federal law.
What is the Whistleblower Protection Act of 1989?
The Whistleblower Protection Act protects federal employees from retaliation for reporting mismanagement, waste, abuse of public funds, or safety and health risks to the public.
What does Section 806 of the Sarbanes-Oxley Act (2002) do?
Section 806 protects employees of publicly-traded companies who disclose fraud or assist in investigating company fraud affecting shareholders.
Do states have their own whistleblower protection laws?
Yes, many states have whistleblower protection statutes for public and private employees reporting waste and abuse of public funds.
Why is whistleblower protection supported by public policy?
Whistleblower protection is important to prevent theft and safeguard financial systems, public health, and safety.
What is whistleblowing?
When an employee receives pay and benefits but does not perform his/her expected tasks
When an employee reports a wrongdoing of an employer
When an employer fires a model employee for no reason
None of the above
When an employee reports a wrongdoing of an employer
From the text, “Whistleblowing occurs when an employee reports on the wrongdoing of an employer.”
Which two industries are common offenders of the False Claims Act (FCA)?
The banking industry and the E-commerce sector
Defense contractors and the healthcare industry
Defense contractors and the E-commerce sector
The healthcare industry and the banking industry
Defense contractors and the healthcare industry
From the text, “The most frequent cases involve firms overcharging the federal government for goods or services or falsifying test information to meet government standards, with defense contractors and the healthcare industry as major offenders.”
An FCA provision allows whistleblowers to receive around ______% of any recovered damages.
25-40
5-10
40-50
15-25
15-25
From the text, “The FCA included a provision authorizing persons who report on violations of the act – whistleblowers – to receive a portion, usually about 15–25 percent, of any recovered damages.”
Who does the Federal Whistleblower Statute protect?
Defense contractor employees from retaliation when reporting violations
Private contractor employees from retaliation when reporting violations among other private contractors
The federal government from fake whistleblowers
Private employers from fake whistleblowers
Defense contractor employees from retaliation when reporting violations
From the text, “Congress, in 1982, passed the Federal Whistleblower Statute, whereby defense contractor employees were protected from employment discrimination or retaliation for reporting company violations of contracts or federal law.”
Section 806 of the 2002 Sarbanes-Oxley Act extended whistleblowing protection to any employee, or agent, of a/an:
internal government agency
non-profit organization
privately-traded company
publicly-traded company
publicly-traded company
From the text, “Section 806 of the 2002 Sarbanes-Oxley Act extended whistleblowing protection to any employee, or agent, of a publicly-traded company who discloses or assists in the investigation of company fraud upon shareholders.”
What is the Uniformed Services Employment and Reemployment Rights Act (USERRA)?
USERRA is a law that prevents discrimination against employees who are, or have been, in military service, ensuring job protection for military reservists and National Guard members.
Which employers are covered by USERRA?
USERRA applies to all employers, regardless of size, unlike some other federal statutes that have a minimum employee requirement.
Are employers required to pay employees while on military leave under USERRA?
No, employers are not required to pay employees while on military leave, but they must offer health insurance for both short and long leaves, with the option for employees to continue coverage at their own expense.
What rights do returning veterans have under USERRA?
USERRA entitles returning veterans to reemployment within five years of active duty in a position that is “substantially the same” in terms of position, pay, and benefits.
What protections does USERRA provide for veterans upon reemployment?
Veterans are entitled to prompt reinstatement, seniority, pension vesting, retraining, and special protections against discharge.
Under USERRA, when is an employer not required to rehire a returning veteran?
An employer may not rehire a veteran if:
The veteran fails to return within a specified time.
Reemployment is impossible or unreasonable due to circumstances.
The prior employment was brief and had no expectation of reemployment.
Re-employment would cause undue hardship due to the need for additional training.
What is the escalator principle under USERRA?
The escalator principle requires an employer to place a returning veteran in a position they may have attained had they not been on military leave, ensuring they are not disadvantaged.
How does USERRA prevent employers from circumventing reemployment requirements?
USERRA prevents sham rehires by requiring that veterans hired within the first 180 days of reemployment can only be terminated for cause, ensuring job security.
U.S. military defense personnel policy over the last fifty years has seen a shift in emphasis away from a _____________ and towards a ____________.
Reservist force : large standing army
Drafted army : volunteer
Large standing army : reservist force
Career army : reservist force
Large standing army : reservist force
From the text, “U.S. military defense policy over the last fifty years has seen a shift in emphasis away from a large standing army and towards a reservist force. This change has significantly impacted employers, as they have seen employee reservists called away from work for tours of duty. In recent years, these tours have been numerous and for lengthy periods.”
The Uniformed Services Employment and Re-Employment Rights Act (USERRA) applies to employers with how many employees?
All employers regardless of size
20
50
10
All employers regardless of size
From the text, “Unlike other federal statutes which have a minimum number of employee requirement, USERRA applies to all employers regardless of size.”
Under USERRA, employers are not required to:
Hold military employees’ jobs
Pay employees while on military leave
Offer health insurance for short leaves
Allow provisions of health coverage at the employee’s expense for long military leaves
Pay employees while on military leave
From the text, “Employers are not required to pay employees while on military leave, but must offer health insurance for short leaves and long leaves and allow for the provision of health coverage at the employee’s expense.”
Which of the following is not an exception to the rule for rehiring veteran employees?
The veteran fails to return to work within a specified time following military service
The veteran has sustained a physical disability during his/her tour of duty
Subsequent circumstances have made it “impossible or unreasonable”
The prior employment was brief and carried no expectation of reemployment
The employee need not rehire a returning veteran if: 1) the veteran fails to return to work within a specified time following military service; 2) subsequent circumstances have made it “impossible or unreasonable”; 3) the prior employment was brief and carried no expectation of reemployment; or 4) additional new training of the employee would place an undue hardship on the employer.
What is the escalator principle?
A military employee cannot be fired for one year after arriving back at his/her place of employment.
If too many veterans come from one business, the rules do not apply to all involved.
An employer must create an environment for disabled veterans to easily access.
An employer must place the returning veteran in positions that he or she may have attained, absent the military leave.
An employer must place the returning veteran in positions that he or she may have attained, absent the military leave.
From the text, “A somewhat controversial provision of USERRA is its requirement of the so-called escalator principle. The principle requires an employer to place a returning veteran in a position which he or she may have attained, absent the military leave.”
What is the fellow servant rule?
The employee understands the risks involved with his/her position
A customer or client injures the employee
Another employee, not the employer, caused the injury
The injury is caused by an unpaid volunteer
Another employee, not the employer, caused the injury
The fellow servant rule assumes that another employee, not the employer, caused the injury.
“To furnish to each of its employees…a place of employment which [is] free from recognized hazards that are causing or are likely to cause death or serious physical harm.” This is known as:
The compliance requirement
The reasonable person rule
Continual training
General duty clause
General duty clause
From the text, “OSHA requires, in what has become known as the general duty clause, the employer to “furnish to each of its employees… a place of employment which [is] free from recognized hazards that are causing or are likely to cause death or serious physical harm.”
For workers, worker’s compensation provides the exclusive remedy for illnesses and injuries which:
Arise out of and in the course of employment
Arise in the course of everyday life
Arise from personal negligence during work
Arise as an effect of getting older
Arise out of and in the course of employment
From the text, “Worker’s compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for relinquishment of the employee’s right to sue the employer for negligence.”
Worker’s compensation benefits are fixed by law and typically include replacement income of how much?
3/4 normal pay
1/2 normal pay
2/3 normal pay
5/8 normal pay
2/3 normal pay
2/3 of normal pay is generally the amount worker’s compensation will provide to an employee.
The FLSA requires that an employer pay “time and a half” wages for hours worked beyond __________ in the relevant workweek.
10
20
30
40
40
From the text, “The FLSA requires that an employer pay “time and a half” wages for hours worked beyond forty in the relevant workweek.”
Certain employees can be exempt from FLSA standards. What is the most common description of exempt employees?
A white-collar professional with low responsibilities, few working hours, and median pay
A blue-collar worker with minimum skill and a lower-paying position
A white-collar professional who has a high degree of responsibility, works long hours, and receives high pay
Middle-class wage workers in technical fields
A white-collar professional who has a high degree of responsibility, works long hours, and receives high pay
From the text, “The most commonly exempted employee is the white-collar professional who typically has a high degree of responsibility, works long hours, and receives high pay.”
The Family Medical and Leave Act (FMLA) applies to all government and private employers with how many employees?
5+
75+
50+
25+
50+
From the text, “The FMLA governs leave for employees due to parental and medical necessity, and applies to all government employers and private employers with fifty or more employees.”
A 2008 FMLA amendment allows for a ___________-week period of leave for qualifying family members of veterans seriously injured in the line of duty.
23
15
21
26
26
From the text, “A 2008 amendment [to the FMLA] allowed for a twenty-six week period of leave for qualifying family members of a veteran seriously injured in the line of duty.”
What is a “qualifying event” under FMLA?
The birth or adoption of a child
A serious health condition that makes the employee unable to perform the functions of his or her job
The care of a family member with a serious health condition
All of the above
All of the above
A qualifying event may be: 1) the birth or adoption of a child; 2) a serious health condition of an employee; or 3) the care of a family member with a serious health condition.
True or False. Under FMLA, an employer may require the employee to see a company-paid physician to make an additional assessment if it has concerns about the validity of a health certification provided.
True
From the text, “The employee has a burden to provide the employer with health care provider certification that a serious health condition exists. The employer may require the employee to see a company-paid physician to make an additional assessment if it has concerns about the validity of the certification provided.”
Designed to protect worker’s interests in the regulation of benefits and encourage the careful employer management of retirement funds, Congress enacted:
OSHA
FLSA
FMLA
ERISA
ERISA
From the text, “In order to protect worker’s interests in the regulation of these benefits and encourage the careful employer management of retirement funds, Congress enacted the Employee Retirement Income Security Act (ERISA) in 1974.”
Under ERISA, how many days from the beginning of benefits coverage does an employer have to provide a summary document plan to the employee?
60
120
90
30
90
From the text, “The employer provides this information to an employee within ninety days of the beginning of coverage in a document called a summary plan document (SPD).”
Under ERISA, _________________ are considered fiduciaries.
The people who develop benefits plans
Persons or entities which manage benefits funds
Particular employees skilled in assisting other employees in writing their wills
Company stock advisors
Persons or entities which manage benefits funds
From the text, “Persons or entities which manage benefits funds are fiduciaries – guardians or caretakers – and must act with a high level of skill, due care, and prudence in that task.”
What are the two different types of pension plans?
Defined benefit and actual contribution
Defined benefit and defined contribution
Undefined benefit and defined contribution
Defined benefit and contribution
Defined benefit and defined contribution
There are two kinds of pension plans: defined benefit and defined contribution.
___________________is the federal act that allows an employee – at his or her own expense – to continue company health care benefits for up to eighteen months when he or she leaves a job.
The Fair Labor Standards Act
The Family and Medical Leave Act
The Consolidated Omnibus Budget Reconciliation Act
The Employee Retirement Income Security Act
The Consolidated Omnibus Budget Reconciliation Act
From the text, “The Consolidated Omnibus Budget Reconciliation Act (COBRA) is the federal act that allows an employee – at his or her own expense – to continue company health care benefits for up to eighteen months when he or she leaves a job.”
The Health Insurance Portability and Accountability Act was passed in 1996 as an amendment to which act?
FLSA
ERISA
OSHA
FLMA
ERISA
From the text, “The Health Insurance Portability and Accountability Act was passed in 1996 as an amendment to ERISA for the purpose of establishing standards in the health industry for the gathering, processing, retention, and disclosure of private health information.”
HIPAA restricts employers’ use of an employee’s __________________________ to exclude coverage or charge more for medical benefits.
Race or national origin
Affinity orientation
Pre-existing medical condition
Age
Pre-existing medical condition
From the text, “Another important purpose of HIPAA is to restrict employers’ use of an employee’s pre-existing medical condition to exclude coverage or charge more for medical benefits.”
What is the purpose of the False Claims Act?
To require the scientific community to uphold the burden of proof when making claims
To impose liability on persons and firms who defraud governmental programs
To impose a burden on the government for making false claims to the general public
To protect the private sector against fake whistleblowing
To impose liability on persons and firms who defraud governmental programs
From the text, “In U.S. law, the concept of whistleblowing was codified in the False Claims Act (FCA) passed by Congress in 1863.”
Which Act prevents an employer from discriminating against a person who is, or has been, in military service?
FCA
HIPAA
USERRA
COBRA
USERRA
From the text, “The Uniformed Services Employment and Reemployment Rights Act (USERRA) prevents any employer from discriminating against someone who is, or has been, in military service.”
True or False. Under USERRA, an employer is required to place an employee returning from a military deployment in the exact same employment position he/she had prior to leaving.
False
There is no requirement that the returning employee be placed in exactly the same position, just “substantially the same.”
