US Laws and Regulations (All in One)

Question 1

1-14 Employees

Answer 1

54 Laws

Question 2

15-19

Answer 2

+ 10 = 64

Question 3

20-49

Answer 3

+ 4 = 68

Question 4

50-99

Answer 4

+ 6 = 76

Question 5

100 or more

Answer 5

67 total laws

Question 6

Federal agencies

Answer 6

must comply with 6 specific laws

Question 7

Clayton Act
(Complete Competition)

Answer 7

• 1 or more employees
• Modified the Sherman Anti-Trust Act
• Prohibited M&A’s that would lessen competition
• Prohibited single person from being director of 2 or more competing corporations
• Restricts the use of injunctions for labor and legal peaceful strikes, picketing, and boycotts.

Question 8

Consumer Credit Protection Act
( key word = credit )

Answer 8

• 1 or more employees
• establishes the amount of garnishments allowed or withheld in one week
• prevents dismissal for indebtedness

Question 9

Copeland Antikickback
( Work related kickback )

Answer 9

• 1 or more employees
• prevents employers from inducing an employee from giving any part of their wages for the benefit of having a job

Question 10

Copyright Act

Answer 10

• 1 or more employees
• protects authors by preventing original works from being printed, duplicated, distributed, or sold as someone else work
• Extended the copyright protection for general copyrights to author’s life plus 70 years
• For hire work and work copyrighted before 1978 = 95 years

Question 11

Davis-Bacon Act
(“dough” and “benefits”)

Answer 11

• 1 or more employees
• requires contractors and subcontractors on certain federally funded or assisted construction projects over $2000, in the US, to pay wages and fringe benefits - at least equal to those prevailing in the local area where work is performed
• laborers and mechanics only
• allows apprentices and trainees to be paid less than the predetermined rates under certain circumstances

Question 12

Dodd-Frank Wall Street Reform and Consumer Protection Act
( Wall street collapse, Fraud )

Answer 12

• 1 or more employees
• wide range of mandates affecting all federal financial regulatory agencies and almost every part of the nations financial services industry
• includes nonbinding vote for shareholders on executive compensation, golden parachutes, and return of executive compensation based on inaccurate financial statements
• requirement to report CEO pay compared to average employee compensation
• provision of financial reward for whistleblowers

Question 13

Economic Growth and Tax Relief Reconciliation Act (EGTRRA)
( economic = IRS, Growth = )

Answer 13

• 1 or more employees
• modified IRS code that adjusts pension vesting schedules, increases retirement plan limits, permits pre-tax catch-up contributions by individuals over the age of 50 in certain plan, and modification of distribution and rollover rules

Question 14

Electronic Communications Privacy Act (ECPA)

Answer 14

• 1 or more employees
• composed of two legislations - Wiretap and Stored Communications Act
• provide access, use, disclosure, interpretation and privacy protections of electronic communications
• possibility of civil and criminal penalties for violations
• Example: “this call may be monitored ….” and cameras in the workplace to record employee or visitor activity
• Notices must be provided

Question 15

Employee Polygraph Protection Act

Answer 15

• 1 or more employees
• prohibits use of lie detector tests for job applicants and employees of companies engaged in interstate commerce
• exceptions are made for certain conditions - law enforcement and national security
• federal poster requirement
• many state laws also prohibit the use of lie detector tests

Question 16

Employee Retirement Income Security Act (ERISA)

Answer 16

• 1 or more employees
• governs how pension plans are managed
• establishes uniform minimum standards to ensure employee benefit plans are established and maintained in a fair and financially sound manner
• protects employee covered by pension plans from losses in benefits due to job changes, plant closings, bankruptcies, or mismanagement
• protects plan beneficiaries
• covers most employers engaged in interstate commerce
• public-sector and many churches are not subject to ERISA
• employers that offer retirement plans must follow IRS code for tax advantages

Question 17

Equal Pay Act (EPA)

Answer 17

• 1 or more employees
• amendment to the FLSA
• enforced by the EEOC
• prohibits pay discrimination on the basis of sex - for the same work by the opposite sex, requiring the same skill, effort, responsibility and performed under similar working conditions
• does not address comparable worth

Question 18

FAA Modernization and Reform Act
( key word = FAA )

Answer 18

• 1 or more employees
• amendment to the Railway Labor Act to change union certification election processes in the railway and airline industries
• imposes greater oversight of regulatory activities of the National Mediation Board (NMB)
• requires Government Accountability Office (GAO) to initially evaluate the NMB’s certification procedures and then audit NMB every (2) years

Question 19

Fair and Accurate Credit Transaction Act (FACT)

Answer 19

• 1 or more employees
• amendment to the Fair Credit Reporting Act (FCRA)
• certain requirements in 3rd party investigations of employee misconduct charges
• releases employers from disclosing requirements and obtain employee consent if the investigation involves suspected misconduct, violation of law or regulations, or a violation of preexisting written employer policies
• written plan for identity theft is required

Question 20

Fair Credit Reporting Act (FCRA)

Answer 20

• 1 or more employees
• regulates collection, dissemination, and use of consumer information, including consumer credit information
• requires written notification to individual if a credit report may be used in making an employment decision
• must get written authorization BEFORE asking a credit bureau for a credit report
• protects privacy of BG investigations
• provides methods for ensuring information is accurate
• employers who take adverse reactions against and applicant or current employee, based on the credit report, will have additional disclosures to make to the individual

Question 21

Fair Labor Standards Act (FLSA) #1

Answer 21

• 1 or more employees
• establishes foundation of employee treatment
• influences how people are paid, employment of young people, and how records are to be kept on employees such as hours of work
• introduced 44 hour, 7 day workweek
• established national minimum wage
• guaranteed “time and a half” for OT for certain jobs
• prohibited minor employment in oppressive child labor
• applies to employees employed in interstate commerce or in the production of goods for commerce (unless employer can claim an exemption from coverage
• ## first federal law to require employers maintain records on employee race and sex

Question 22

Fair Labor Standards Act (FLSA) #2:
Provisions and Protections

Answer 22

• employers covered under the “enterprise” provision of this law include public agencies, private employers with annual gross sales exceeding $500,000, operating a school, hospital for mentally or physically disabled or gifted child
• employee whose work regularly requires involves commerce between states, includes employees who work in communications or transportation, regularly use mail or telephone, employees who keep records of interstate transactions, shipping and receiving of goods in interstate commerce regularly cross state lines in the course of their employment, work for independent employers who contract to do clerical, custodial, maintenance or other work for firms engaged in interstate commerce or in production of goods for interstate commerce
• prohibits shipment of goods in interstate commerce that were produced in violation of the minimum wage, OT, child labor or special minimum wage provisions of law

Question 23

Fair Labor Standards Act (FLSA) #3:
Recordkeeping

Answer 23

• establishes methods for determining if a job is exempt or non-exempt; and the status attaches to the job
• exempt = incumbents can work as many hours of OT as the job requires w/o being paid OT
• Employers are permitted to have policies that calls for paying exempt employees when they work OT
• additional state law requirements
• non-exempt jobs must be paid OT according to the rate computation provided for in the act - typically, OT after 40 hours of regular time worked in a single week
• also outlines how a workweek is determined
• collective bargaining agreement, sales, purchase records = minimum 3 years
• time cards, piecework record, wage rate tables, and work and time schedules = minimum 2 years
• every employer covered under the FLSA must keep records for each non-exempt worker, which include:
  1.) Full name and SSN
  2.) Address including zip
  3.) DOB
  4.) Sex
  5.) Occupation
  6.) Time/Day when workweek begins
  7.) Hours worked each day and total hours worked each week - including record of time work began, left for breaks/lunch, returned from breaks/lunch, time work ended
  8.) Basis on which employees wages are paid (hourly, weekly, piecework)
  9.) Regular hourly rate
  10.) Total daily or weekly straight-time earnings
  11.) Total OT worked for the workweek
  12.) All additions or deductions from the employee’s wages
  13.) Total wages paid each period
  14.) Date of payment and pay period covered by payment

Question 24

Fair Labor Standards Act (FLSA) #4:
Age Limitations

Answer 24

• child labor laws enacted to ensure safe work that does not jeopardize their health, well-being, or educational opps.
• all these must be met or the US DOL can penalize the employer

18+ = allowed to work in any job hazardous or not

Until Age 18 = work permit from their school district necessary

18 and under (17 or less) = prohibited from working in one of the 17 most hazardous industries

16+ = no limit in the FLSA to the number of hours an employee may work in a workweek

Ages 14/15 = all work must be performed outside of school hours and workers may not work
- more than 3 hours on a school day; including Friday
- more than 18 hours per week when school is in session
- more than 8 hours per day when school is not in session
- more than 40 hours per week when school is not in session
- Before 7am or after 7pm on any day except June 1 through Labor Day (hours are extended until 9pm)

Under 14 (13 or less) = restricted to jobs such as newspaper delivery to local customers, baby sitting on casual basis, acting in movies, TV, radio, or theater, and working as a home worker gathering evergreens and making evergreen wreaths. Also (even if family owned) prohibited from working in any of the 17 most hazardous jobs

Question 25

Fair Labor Standards Act (FLSA) #5:
Hazardous Jobs

Answer 25

1.) manufacturing or storing of explosives
2.) driving a motor vehicle or working as an outside helper on motor vehicles
3.) coal mining
4.) forest fire fighting, forest fire prevention, timber tract, forestry service, occupations in sawmilling and logging
5.) using power-driven woodworking machines
6.) exposure to radioactive substances and ionizing radiation
7.) using power-driven hoisting apparatuses
8.) using power-driven metal-forming, punching, and shearing machines
9.) mining other than coal
10.) using power-driven meat processing machines, slaughtering, meat and poultry packing, processing, or rendering
11.) using power-driven bakery machines
12.) using balers, compactors, and power-driven paper-products machines
13.) manufacturing brick, tile, and related products
14.) using power-driven circular saws, band saws, guillotine shears, chain saws, reciprocating saws, wood chippers, and abrasive cutting discs
15.) working in wrecking, demolition, and ship-breaking operations
16.) roofing and work performed on or about a roof
17.) trenching or excavating

Question 26

Fair Labor Standards Act (FLSA) #6:
OT

Answer 26

• calculated at 1.5 the normal pay rate for all hours worked 40 in a single week
• employer can designate any day or hour for the workweek to start - and it continues until 7 days later
• once established the workweek definition must be maintained consistently until there is a legitimate business reason for making a change
• change must be clearly communicated in advance to all employees who will be affected by the change
• employer CANNOT forfeit pay resulting from the workweek definition change
• under FLSA, employer may compensate with time off if it’s given at the same rates required for OT

Question 27

Fair Labor Standards Act (FLSA) #7:
Enforcement

Answer 27

• provisions are enforced by DOL Wages and Hour Division
• agency can interact with employees on complains and follow up with employers by making an on-site visit if necessary
• if violations are found during an investigation, the agency has the authority to make recommendations for changes that would bring the employer into compliance
• retaliation against any employee for filing a complaint is subject to additional penalties
• willful violations may bring criminal prosecution and fines up to $10,000
• if an employer is convicted of a second willful violation, prison time is possible
• if DOL Wage and Hours division discovers products produced during violations of the act, prevent the employer from shipping products and may “freeze” shipments of any product manufactured while OT pymt requirements were violated
• 2 year limit applies to recovery of back pay
• for willful violations, 3 year limit/liability applies

Question 28

Foreign Corrupt Practices Act (FCPA)
( key word = foreign)

Answer 28

• 1 or more employees
• prohibits American companies from making bribery payments to foreign officials for the purpose of obtaining or keeping business
• training for employees involved with international negotiations should include a warning to avoid anything even looking like a bribery payment to a foreign company or it’s employees

Question 29

Health Information Technology for Economic and Clinical Health Act (HITECH)

Answer 29

• 1 or more employees
• requires that anyone with custody of personal health records send notification to affected individuals if their personal health records have been disclosed or the employer believes they have been disclosed to an unauthorized person
• made changes to HIPAA including establishment of notification for those whose PHI has been disclosed w/o authorization

Question 30

Health Insurance Portability and Accountability Act (HIPAA)

Answer 30

• 1 or more employees
• ensures individuals who leave or lose their jobs can obtain health coverage even if they or someone in their family has a serious illness or injury or is pregnant
• provides privacy requirements related to medical records for individuals as young as 12 years old
• limits exclusions for preexisting conditions and guarantees renewability of health coverage to employers and employees
• prohibits employers from imposing actively at work requirement as preconditions for health plan eligibility and a number of other benefits

Question 31

Immigration and Nationality Act (INA)

Answer 31

• 1 or more employees
• first law that pulled together all of these issues associated with immigration and is considered the foundation on which all following immigrations laws have been built and was a need to curtail immigration
• address employment eligibility and employment verification
• defines conditions for temporary and permanent employment of aliens in the US
• alien is defined as any person lacking citizenship or status as a national of the US

INA differentiates aliens:
1.) resident or nonresident
2.) Immigrant or nonimmigrant
3.) Documented or undocumented

Question 32

Immigration Reform and Control Act (IRCA)

Answer 32

• 1 or more employees
• first law to require new employees to prove both their identity and their right to work in the US
• implementation created the I-9 form
• ensure are using the most recent I-9 form
• ensure you are following document retention requirements
• law prohibits discrimination against job applicants on the basis of national origin or citizenship
• establishes penalties for employers who hire illegal aliens

Question 33

IRS Intermediate Sanctions

Answer 33

• 1 or more employees
• guidelines for determining reasonable compensation for executives of nonprofit organizations
• enacted by the IRS
• applied to nonprofit organizations that engage in transactions that inure to the benefit of a disqualified person within the organization
• allows IRS to impose penalties when it determines that top officials have received excessive compensation from their organizations
• sanctions may be imposed either in addition to or instead of revocation of the exempt state of the organization

Question 34

Labor-Management Relations Act (LMRA)

Answer 34

• 1 or more employees
• aka Taft-Hartley
• first legislation to place controls on unions
• prohibits unfair labor practices by unions and outlaws closed shops, where union membership is required in order to get and keep a job
• employers may not form closed-shop agreements with unions
• requires both parties to bargain in good fair
• covers nonmanagement employees to private industries who are not covered by the railway act

Question 35

Labor-Management Reporting and Disclosure Act

Answer 35

• 1 or more employees
• aka Landrum-Griffin Act
• law outlines procedures for redressing internal union problems, protects the rights of union members for corrupt or discriminatory labor unions, and applies to all labor organizations

Specific Requirements:
- union must conduct secret elections, the results of which can be reviewed by the US DOL
- a bill of rights guarantees union members certain rights, including free speech
- convicted felons and members of the communist party cannot hold office in unions
- annual financial reporting from unions to the DOL is required
- all union officials have fiduciary responsibility in managing union assets and conducting the business of the union
- union power to place subordinate organizations in trusteeship is limited
- minimum standards for union disciplinary action against it’s members are provided

Question 36

Mine Safety and Health Act #1

Answer 36

• 1 or more employees
• law converted the existing Mine Enforcement Safety Administration (MESA) to Mine Safety and Health Administration (MSHA)
• brought all coal, metal, and nonmetal mining operations under the same DOL jurisdiction
• regulations and safety procedures for the coal mining industry were not altered; just carried to the new agency for oversight

Question 37

Mine Safety and Health Act #2:
Provisions and Protections

Answer 37

• law requires the secretaries of labor and health, education, and welfare to create regulations governing the country’s mines
• all mines are covered if they are involved in commerce (which any active mine would be)
• regulations that implement this law specify that employees must be provided certain PPE while working in a mine (respiration, fire prevention, etc.)
• protecting against “black lung disease” is a chief concern

Question 38

Mine Safety and Health Act #3:
Recordkeeping Requirements

Answer 38

• employers engaged in mining operations must inspect their worksites and document the results, reflecting hazards and action taken to reduce or eliminate the hazards
• employees are to be given access to information related to accident prevention, fatal accident statistics for the year, and instructions on specific hazards they will face while working in the mine
• requirements detail content of written emergency response plan, emergency mapping, and rescue procedures
• individual employee exposure records must be maintained
• each mine operator is required to conduct surveys of mine exposures and hazards, have a plan to deal with those problems, and keep a record of the results
• information must be made available to the MSHA inspectors upon request

Question 39

Mine Safety and Health Act #4:
MSHA Standards

Answer 39

• agency enforces mine safety standards that involve ventilation, chemical exposure, noise, forklifts, and other mining equipment, mine shoring, and more
• MSDS’s (Material Safety Data Sheet’s) must be available to employees as they are in other industries overseen by OSHA

Question 40

Mine Safety and Health Act #5:
MSHA Enforcement

Answer 40

• MSHA has a team of federal inspectors that conduct onsite audits of mining operations
• MSHA has the authority to cite mine operators for violations of it’s regulations
• citations carry a $1000 per day penalty in some circumstances

Question 41

National Industrial Recovery Act

Answer 41

• 1 or more employees
• an attempt to help the country get out from the Great Depression
• proposed the creation of “Codes of Fair Competition” for each of several different industries
• every business would have to identify with and belong to a trade association - who would then be required to create a code of fair competition for the industry
• antitrust laws would be suspended in favor of the code
• code would need to be approved by the President of the US
• subsequently issuing federal licenses to every business in the country
• refusal to participate in the code would result in a company’s license being suspended and the business would need to cease all operations
• financial penalties as well for refusal
• law was declared unconstitutional by the US Supreme Court and replaced by the NLRA

Question 42

National Labor Relations Act (NLRA)

Answer 42

• 1 or more employees
• granddaddy of labor relations laws
• sometimes called the Wagner Act
• initially provided that employees have a right to form unions and negotiate wage and hours issues with employers on behalf of the union membership
• NLRA grants employees the right to organize, join unions, and engage in collective bargaining and other “concerted activities”
• protects against unfair labor practices by employers
• law stepped in to void and address both union and employer obligations in labor relations issues
• established the NLRB, National Labor Relations Board
• NLRB defines fair labor practices in the following decades
• NLRB has the power to accept and investigate complaints of unfair labor practices by either management or labor unions
• NLRB plays a judicial role within an administrative setting

Key provisions include:
1.) right of workers to organize into unions for collective bargaining
2.) requirement of employers to bargain in good faith when employees have voted in favor of a union to represent them
3.) requirement that unions represent all members equally
4.) covers non management employees in private industry who are not already covered by the railway labor act

Question 43

Needlestick Safety and Prevention Act

Answer 43

• 1 or more employees
• modifies the occupational safety and health act by introducing a new group of requirements in the medical community
• law and regulations provide rules related to the handling sharps (all kinds), disposing of them, and encouraging invention of new devices that will reduce or eliminate the risk associated with injury due to sharps
• recorded on the OSHA 300 log with privacy case listed
• there are communication requirements, including employment poster content requirements

Question 44

Norris-LaGuardia Act

Answer 44

• 1 or more employees
• 3 years before the NLRA came to pass

Key provisions
1.) prohibited “yellow-dog” contracts - agreements in which employees promised employers they would not join unions, determined such contracts to be unenforceable in any federal court
2.) prohibited federal courts from issuing injunctions of any kind against peaceful strikes, boycotts, or picketing when used by a union in connection with a labor dispute
3.) defined labor dispute to include any disagreement about working conditions

Question 45

Occupational Safety and Health Act (OSHA) #1

Answer 45

• 1 or more employees
• creative an administrative agency within the US DOL called the Occupational Safety and Health Administration (OSHA)
• also created NIOSH, National Institute of Occupational Safety and Health, resides in the CDC

Question 46

Occupational Safety and Health Act (OSHA) #2:
Provisions and Protections

Answer 46

• law holds employers accountable for providing a safe and healthy working environment
• “General Duty Clause” in OSHA regulations says employers shall furnish each employee with a place of employment free from recognized hazards that are likely to cause death or serious injury
• holds employees responsible for abiding by all safety rules and regulations in the workplace
• some provisions require notice be posted in the workplace covering some of OSHA requirements

Question 47

Occupational Safety and Health Act (OSHA) #3:
Recordkeeping

Answer 47

• necessary to conduct and document inspections of the workplace, looking for safety and health hazards
• necessary to document and make available to employees records about hazardous materials and how they must be properly handled
• employers with 10 or more employees on payroll must summarize all injury and illness instances and post that summary in a conspicuous spot within the workplace
• report must remain posted from Feb 1 to April 30th each year and should be classified by Standard Industrial Classification code (SIC)
• anytime there is a serious or fatal accident, a full incident report must be prepared by the employer and maintained in the safety file
• these records must be maintained for a minimum of 5 years from the date of incident
• log of occupational injury or illness. it must include a record of each incident resulting in medical treatment (other than first aid), loss of consciousness, restriction of work or motion, transfer or termination of employment
• medical, construction, manufacturing, or use of nuclear materials there are additional requirements
• Key to compliance with OSHA rules is communication with employees
• training is often provided by employers to meet hazard communication requirements

Question 48

Occupational Safety and Health Act (OSHA) #3:
Enforcement

Answer 48

OSHA inspections may include:
1.) Onsite visits that are conducted without advanced notice
2.) Onsite inspections or phone/fax investigations
3.) Highly trained compliance officers

Inspection priorities include:
a.) Imminent danger
b.) Fatalities/Catastrophes
c.) Worker complaints
d.) Referrals
e.) Follow-ups
f.) Planned or programmed investigations (aka targeted investigations)

Question 49

Occupational Safety and Health Act (OSHA) #2:
Two Standards

Answer 49

1.) Normal Standards = OSHA determines that a specific standard is needed, any of the several advisory committees may be called upon to develop specific recommendations
(2) standing and ad hoc committees that may be appointed to examine special areas of concern to OSHA
- all committees must have members representing management, labor, and state agencies, one or more designees from the secretary of Health and Human Services (HHS)

2.) Emergency Temporary Standards = under certain limited conditions, OSHA is authorized to set emergency temporary standards that take effect immediately
- OSHA must first determine if workers are in grave danger due to exposure to toxic substances or agents determined to be toxic or physically harmful or to new hazards and that an emergency standard is needed to protect them
- OSHA publishes emergency temporary standards in the Federal Register - services as a proposed permanent standard
- it’s then subject to usual procedure for adopting a permanent standard except that a final ruling must be made within 6 months
- validity may be challenged in the appropriate US Court of Appeals

Question 50

Omnibus Budget Reconciliation Act (OBRA)

Answer 50

• 1 or more employees
• reduces compensation limits in qualified retirement programs and triggers increased activity in nonqualified retirement programs
• calls for termination of some plans

Question 51

Pension Protection Act (PPA)

Answer 51

• 1 or more employees
• law requires that employers that have underfunded pension plans to pay a higher premium to the Pension Benefit Guarantee Corporation (PBGC)
• requires employers to terminate pension plans to provide additional funding to those plans
• impacted nearly all aspects of retirement planning
• includes changes to rules about individual retirement accounts (IRAs)

Question 52

Personal Responsibility and Work Opportunity Reconciliation Act

Answer 52

• 1 or more employees
• requires all states to establish and maintain a new hire reporting system designed to enhance enforcement of child support payments
• requires welfare recipients to begin working after 2 years of receiving benefits
• states may exempt parents with children younger than 1 from the work requirements, exemption may only be used once
• still subject to 5 year time limit for cash assistance

Question 53

Portal to Portal Act

Answer 53

• 1 or more employees
• an amendment to the FLSA
• defines hours worked and establishes rules about payment of wages to employees who travel before and or after their scheduled work shift
• minimum wages and OT are not required for traveling to and from the actual place of performance of the principal activity or activities; unless there is a custom or contract to the contrary

Question 54

Railway Labor Act

Answer 54

• 1 or more employees
• originally law was created to allow railway employees to organize into labor unions
• it has been expanded to include airline employees
• covered employees are encouraged to use the Board of Mediation - now known as the National Mediation Board (a permanent independent agency)

Question 55

Rehabilitation Act

Answer 55

• 1 or more employees
• replaced the Vocational Rehabilitation Act
• created support for states to create vocational rehabilitation programs
• term originally used was handicapped, later changed to disabled

Question 56

Rehabilitation Act: Section 501

Answer 56

• requires nondiscrimination and affirmative action in hiring disabled workers by federal agencies with the executive agencies

Question 57

Rehabilitation Act: Section 503

Answer 57

• requires nondiscrimination and affirmative action in hiring disabled workers by federal contractors and subcontractors with contracts valued at $10,000 or more

Question 58

Rehabilitation Act: Section 504

Answer 58

• requires employers subject to the law to provide reasonable accommodation for disabled individuals who can perform the major job duties with or w/o accomodation

Question 59

Retirement Equity Act (REA)

Answer 59

• 1 or more employees
• provides certain legal protections for spousal beneficiaries of qualified retirement programs
• prohibits changes to retirement plan elections, spousal beneficiary designations, or in-service withdrawals w/o the consent of the spouse
• changing withdrawal options does not require spousal consent
• permits plan administrators to presume spousal survivors annuity and reduce primary pension amounts accordingly
• specific written waivers are required to avoid spousal annuity

Question 60

Revenue Act

Answer 60

• 1 or more employees
• added two important sections to the IRS Tax Code relevant to employer benefits section: section , Cafeteria Benefit Plan, and section 401k
• added second plan opportunity knows as Roth IRA - which permitted funding with after-tax savings

Question 61

Sarbanes-Oxley Act (SOX) #1
Provisions and Protections

Answer 61

• 1 or more employees
• response to corrupt practices in the financial industry and economic disaster
• addressed the need for oversight and disclosure of information by publicly traded companies
• holds corporate officers accountable for proper recordkeeping and reporting of financial information; including internal control systems to assure systems are working properly
• required reporting any unexpected changes in financial condition, including potential new liabilities such as lawsuits - such as employee complaints of illegal employment discrimination
• requires administrators of defined contribution plans to provide notice of covered blackout periods and provides whistleblower protections
• law protects anyone who reports wrongdoing to a supervisor, appointed company officials who handle these matters, a federal regulatory or law enforcement agency, or a member or committee of Congress
• extends to claims that prove to be false as long as the employee reasonably believed the conduct was a violation of the SEC rules or federal law involving fraud against shareholders

Question 62

Sarbanes-Oxley Act (SOX) #2 - Which Case?

Answer 62

Lawson v. FMR LLC
- US Supreme Court voted 6-3 to hold that all contractors and subcontractors of publicly held companies are subject to SOX, even if they are not publicly held
- nearly everyone is now subject to the whistleblower provisions under SOX

Question 63

Sarbanes-Oxley Act (SOX) #3
Recordkeeping Requirements

Answer 63

• internal control systems are required to assure that public disclosure of financial information is done as required
• registered accounting firms responsible for reviewing the company’s financial report must attest to the proper implementation of internal control systems and procedures for financial reporting

Question 64

Sarbanes-Oxley Act (SOX) #4
SOX Enforcement

Answer 64

• enforcement of law is done by private-firm audits overseen by the PCAOB - Public Company Accounting Oversight Board - a nonprofit corporation created by the act to oversee accounting professionals who provide independent audit reports for publicly traded companies
• essentially audits the auditors
• Violations can result in fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, or falsifying records, documents, or tangible objects with the intent to obstruct, impede, or influence a legal investigation

Question 65

Securities and Exchange Act

Answer 65

• 1 or more employees
• provides governance in the secondary market (once companies go public and issue common stock for trading) which is all trading after the initial public offering
• created by the SEC - who has authority over the trading of stocks
• extends disclosure of investor protection to securities listed and registered for public trading on any of the US Exchanges

Question 66

Service Contract Act

Answer 66

• 1 or more employees
• applies to federal contractors and subcontractors offering goods and services to the government
• calls for payment of prevailing wages and benefit requirements to all employees providing service under the agreement
• contractors/subcontractors (other than construction) with contract values in excess of $2500 are covered
• safety and health standards also apply - enforced by OSHA
• compensation requirements are enforced by the Wage and Hour Division of the DOL

Question 67

Sherman Anti-Trust Act

Answer 67

• 1 or more employees
• concerns for monopolies in the marketplace and subsequently holding prices high just because they could
• John Sherman, Chairman of the Senate Financial Committee suggested the protections against monopolies and cartels
• law was created and used by federal prosecutors to break up the Standard Oil Company
• competition restriction, price fixing, and restraint of trade are all violations of this law

Question 68

Small Business Job Protection Act (SBJPA)

Answer 68

• 1 or more employees
• law increased federal minimum wage levels and provided some tax incentives to small business owners to protect jobs and increase take-home pay
• amended the portal-to portal act for employees who use employer-owned vehicles
• created SIMPLE 401k retirement plan to make pension plans easier for small businesses

Other tax incentives included:
1.) employee education incentive - exclusion up to $5250 from an employees taxable income for educational assistance provided by the employer
2.) increased max amount of capital expense allowed for a small business to $7000 per year
3.) replaced Target Jobs Tax Credit with Work Opportunity Tax Credit
4.) provided a tax credit to individuals who adopt a child (up to $5000) and $6000 for adopting a child with special needs

Question 69

Social Security Act

Answer 69

• 1 or more employees
• 1935, during heart of great depression
• designed to help senior citizens when the group was suffering a poverty rate of 50 percent
• currently includes social welfare and social insurance programs that can support disabled workers who are no longer able to earn their wages
• supported through payroll taxes with contributions from both the employee and the employer
• payroll taxes are set but the FICA (Federal Insurance Contributions Act

Programs currently under this act and in amendments:
1.) federal old-age benefits (retirement)
2.) survivor benefits ( spouse benefits, dependent children, and widow/widower benefits
3.) Disability insurance for workers no longer able to work
4.) Temp Assistance for needy families
5.) Medicare health insurance for aged and disabled
6.) Medicaid grants to states for medical assistance programs
7.) Supplemental Security Income (SSI)
8.) State Children’s Health Insurance Program (SCHIP)
9.) Patient Protection and Affordable Care Act (PPACA)

• currently a separate payroll deduction for Medicare health insurance which is funded by employee and employer
• Patient Protection and Affordable Care Act (Obamacare) is implemented
• congress continues to try to find ways to modify it so the cost of medical health insurance can be reduced to individuals
• personal SSN is used as a tax ID number for federal income tax, including bank records, and to prove work authorization in this country
• SSN can be used in completing the Form I-9 which is required for every new employee on payroll (aside from proof of identity)

Question 70

Tax Reform Act

Answer 70

• 1 or more employees
• law made extensive changes to the IRS tax code - including a reduction in tax brackets and all tax rates for individuals
• affected payroll withholdings
• passive losses and tax shelters were eliminated
• changes made to alternative minimum tax computation
• required all dependent children to have social security numbers
• provision reduced the number of fraudulent dependent children claimed on an income tax return
• questions about number of exemptions to claim on their W-4 form are influenced by this law

Question 71

Trademark Act

Answer 71

• 1 or more employees
• created federal protections for trademarks and service marks
• officially titled the Lanham (Trademark) Act
• set forth the requirements for registering a trademark or service mark to obtain legal protections

Question 72

Unemployment Compensation Amendments Act (UCA)

Answer 72

• 1 or more employees
• law established 20% as the amount withheld from payment of employee savings account when leaving an employer and not placing the funds (rolling over) into another tax-approved IRA or 401K

Question 73

Uniformed Services Employment and Reemployment Rights Act (USERRA)

Answer 73

• 1 or more employees
• provides instructions for handling employees who are in reserves and receive order to report for active duty
• law protects the employment, reemployment, and retention rights of anyone who voluntarily or involuntarily serves or has served in the uniform services
• requires employers continue paying for employees benefit to the extent they paid for those benefits before the call of duty
• employer must continue giving length of service as though the military service was equivalent to company service
• specific details regarding how long an employee may wait before engaging the employer in return-to work conversations after being released from active military duty

Question 74

Vietnam Era Veterans Readjustment Assistance Act (VEVRAA)

Answer 74

• 1 or more employees
• covered veterans include
  1.) disabled veterans
  2.) veterans who served on active duty in the US military during a war or campaign or expedition for which a campaign badge was awarded
  3.) veterans who, while serving on active duty in the armed forces, participated in a US military operation for which an armed forces service model was awarded pursuant to Executive Order 12985
  4.) recently separated veterans (veterans within 36 months from discharge or release from active duty
• apply to federal contracts with a contract valued at $25,000 or more, regardless of number of total employees
• veteran support legislation required all employers subject to the law to post their job openings with their local state employment service. With three exceptions: jobs that will last 3 days or less, jobs to filled by an internal candidate, jobs that are senior executive positions
• affirmative action outreach and recruiting of veterans is required for federal contractors meeting the contract value threshold

Question 75

Wagner-Peyser Act (amended by the Workforce Investment Act (WIA

Answer 75

• 1 or more employees
• created a nationwide system of employment offices known as Employment Service Offices
• run by US DOL Employment and Training Administration
• offices provide job seekers with assistance in their job search, assistance in searching jobs for unemployment insurance recipients, and recruitment services for employers
• WIA created “one stop” centers within Employment Service Offices
• federal government contracts with state to run the employment services offices and one stop centers
• funds are allocated to states based on a complicated formula

Question 76

Walsh-Healey Act (Public Contracts Act)

Answer 76

• 1 or more employees
• signed into law during the GD
• designed to assure the government paid a fair wage to manufacturers and suppliers of goods for federal govt contractors in excess of $10,000 each

Provisions Included:
-OT Pay Requirements for work done over 8 hours in a day or 40 hours in a week
- minimum wage equal to the prevailing wage
- prohibition on employing anyone under 16 years of age or a current convict
- Defense Authorization Act later excluded federal contractors from OT payments in excess of 8 hours in a day

Question 77

Work Opportunity Tax Credit (WOTC)

Answer 77

• 1 or more employees
• law provides federal income tax credits to employers who hire from certain targeted groups of job seekers who face employment barriers
• tax credit is adjusted from time to time and currently stands at $9600 per employee
• categories change from time to time

Targeted Groups Include:
- recipients of Temp Assistance to Needy Families
- veterans receiving food stamps (SNAP) or qualified veterans with a service connected disability - with a hire date that is not more than a year after having been discharged or released from active duty OR having aggregate periods of unemployment during the 1 year period ending on the hiring date that equals or exceeds 6 months
- WOTC also includes family members of a veteran who received food stamps for at least a 3 month period during the 15 month period ending on the hiring date or a disabled veteran entitled to compensation for a service related disability hired within a year of d/c or unemployed or a period totaling at least 6 months of the year ending on the hiring date
- ex-felons hired no later than 1 year after conviction or release from prison
- Designated Community Resident - an individual between ages 18 and 40 on the hiring date who resides in an empowerment zone, renewal community, or rural renewal county
- vocational rehabilitation referrals, including ticket holders with an individual work plan developed and implemented by an employer network
- qualified summer youth ages 16 through 17 who reside in an empowerment zone, enterprise community, or renewal community
- SNAP recipients between ages of 18 and 40 on the hiring date
- recipients of SSI
- long term family assistance recipients

Question 78

Labor-Management Reporting and Disclosure Act