Unit 3: Compensation & Benefits

Question 1

The Standard Hour Plan is a type of

Answer 1

Group incentive

Question 2

The two main objectives of consumer-directed healthcare

Answer 2

cost savings and more choice for employees

Question 3

The 3 objectives a sound wage-level policy is expected to achieve are:

Answer 3

1. attract an adequate supply of labor
2. to keep present employees satisfied with their compensation
3. to avoid costly turnover

Question 4

The MOST extensive government wage surveys are conducted by

Answer 4

Bureau of Labor Statistics

Question 5

What is a necessary condition for an effective merit pay program?

Answer 5

Sufficiently wide pay range to reward performance differences.

Question 6

According to HIPAA. if an employee has been continuously covered by another health-care policy for at least 12 months

Answer 6

then no preexisting conditions can be imposed

Question 7

Employees who are called back to work because of emergencies often receive an additional premium called

Answer 7

call-back pay

Question 8

The primary difference between a health reimbursement arrangement (HRA) and a health savings account (HSA) is

Answer 8

HRAs are funded by employers and unused money cannot be refunded to employees

Question 9

For DIY wage surveys to be effective, 4 conditions must be met. The survey must be:

Answer 9

1. Reciprocal
2. Anonymous
3. Low-cost
4. Timely

Question 10

Customarily and regularly directs the work of at least two or more full-time employees or their equivelant

Answer 10

executive exemption

Question 11

primary duty must be the performance of work requiring advanced knowledge defined as work which is predominantly intellectual in character

Answer 11

professional exemption

Question 12

primary duty includes the exercise of discretion and independent judgement with respect to matters of significance

Answer 12

administrative exemption

Question 13

The Fair Labor Standards Act (FLSA) restrictions on the employment of minors ends at what age?

Answer 13

18

Question 14

Whether an employee is classified as exempt or nonexempt under the FLSA is determined by

Answer 14

the employees’ duties and responsibilities

Question 15

The Pregnancy Discrimination in Employment Act requires employers to

Answer 15

treat pregnancy and child-birth related conditions like any other disability

Question 16

ERISA requires employers to communicate their benefits programs in

Answer 16

a summary plan description

Question 17

A medical plan emphasizing preventative medicine, which provides medical care on a continuous basis to employees, and for which employers pay a fixed monthly fee

Answer 17

Health Maintenance Organization (HMO)

Question 18

The incentive program where supervisors grant pay based on performance is called

Answer 18

merit pay

Question 19

Child labor is legislated by

Answer 19

Fair Labor Standards Act (FLSA)

Question 20

A total rewards statement is

Answer 20

a statement describing each employees compensation, benefits, and insurance.

Question 21

Private pension funds are regulated by the

Answer 21

Employee Retirement Income Security Act (ERISA) of 1974

Question 22

The idea that employees should be compensated according to the requirements of their jobs and how well they perform them is considered

Answer 22

a useful compensation maxim

Question 23

The MAJOR difference between straight piece work and differential piece-rates is that

Answer 23

differential piece-rates paid a higher rate to those who exceeded the standard

Question 24

Under a Halsey Premium Plan, workers would receive a bonus if

Answer 24

they completed a job faster than the standard time

Question 25

When using the point method, “key jobs” refers to

Answer 25

equitably paid jobs that are fairly well-defined

Question 26

An employer uses a pay range PRIMARILY to

Answer 26

reward employees for their overall performance and/or their length of service

Question 27

Gainsharing plan that’s well suited for organizations that don’t produce a physical product because it’s tied directly to productivity measures

Answer 27

Improshare

Question 28

Worker compensation laws have tried to

Answer 28

eliminate the need for lawsuits by providing compensation regardless of fault

Question 29

With an HMO, employees can visit a medical center

Answer 29

as often as they feel the need

Question 30

Compensation objective that competes with the objective of motivating employees to high performance?

Answer 30

Secure

Question 31

Comp time is only available to employees who work in

Answer 31

public sector of labor force

Question 32

Two non-quantitative methods of job evaluation:

Answer 32

Ranking & Classification

Question 33

Requires a separate account for each participant and typically both the employer and the employee contribute jointly to the pension fund

Answer 33

defined contribution

Question 34

Hay Guide Chart-Profile method uses which three compensable factors?

Answer 34

Know how, problem solving, and accountability

Question 35

What is a benefit an employer is required to provide?

Answer 35

Unemployment compensation