MGT 461 Exam 4 Ch. 13-17

Some level of dental coverage is provided by about _____ percent of all employers with above 500 employees.
30
60
11
85

60

_____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition.
COBRA
OSHA
HIPPA
FMLA

HIPPA

T/F: Vesting refers to the length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan.

True

Which of the following is NOT a benefit that is required by statutory law?
Workers' compensation
Social Security
Pension and retirement benefits
Unemployment compensation

Pension and Retirement Benefits

Which of the following is a benefit under Social Security?
Lump-sum death payments
Job security
Work/life balance
Overtime pay

Lump-sum death payments

Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario?
Michael can cont

Michael is no longer eligible for unemployment benefits.

T/F: An eligible unemployed person may now collect unemployment insurance benefits for 36 weeks in most states.

False

T/F: A McKinsey survey of CEOs found nearly 90 percent believe benefits are very important for attracting and retaining employees.

True

Roughly _____ of all employees have access to paid life insurance.
three-fourths
half
one-third
a quarter

three-fourths

T/F: Most employers prefer defined contribution pension plans to defined benefit plans.

True

Which of the following types of workers are generally NOT covered by workers' compensation?
State government employees
Private sector employees
Railroad workers
Farm workers

Farm Workers

Maxford Corp. offers full vesting after two years. However, it does not offer portability of pension to its employees. Which of the following statements is true in this scenario?
Employees of Maxford will receive 20 percent of their pension if they quit a

Maxford does not have to provide vested benefits to employees who quit before six months.

T/F: Workers' compensation is covered by federal laws.

False

In the majority of the states, unemployment insurance is financed exclusively by:
joint contributions by employee unions.
the philanthropy of co-workers.
federal, state, and employee contributions.
employers that pay federal and state unemployment insuran

employers that pay federal and state unemployment insurance.

T/F: The Pension Benefit Guarantee Corporation guarantees payment of vested benefits to employees formerly covered by terminated pension plans.

True

A _____ plan is a hybrid health plan combining the benefits of HMO and _____.
point-of-service; preferred provider organization
POS; Blue Cross
managed care; POS
consolidated health; PPO

point-of-service; preferred provider organization

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving, and therefore she is not eligible for workers' compensation. What will be the outcome of the employer's challenge to her worke

She will likely receive workers' compensation benefits.

T/F: The Social Security Act has been designed and amended to provide a foundation of basic financial security for American workers and their families.

True

In a _____ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company.
defined benefit
noncontr

defined benefit

An employee who changes jobs four or more times during his or her career will likely receive a pension approximately _____ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary a

half the size

T/F: Employees prefer defined contribution (DC) plans over defined benefit plans because DC plans tend to vest faster.

True

Contingent workers receive _____ benefits than regular workers; contingent workers' benefits cost _____ for employers than it does for regular workers.
more; less
fewer; more
more; more
fewer; less

fewer; less

T/F: A major problem with Social Security is a rising number of retirees without a corresponding increase in the number of contributors.

True

T/F: A 401(k) is an example of a defined benefit plan.

False

The rising costs of Social Security have been covered by:
increases in the maximum earnings base and the rate at which that base is taxed.
reduction in Social Security benefits by providing market-driven options.
progressive reduction in the coverage.
wel

increases in the maximum earnings base and the rate at which that base is taxed.

Almost _____ percent of the companies offering child care assistance to employees also offer elder care assistance.
10
30
50
90

50

Data from WellPoint Inc shows that _____ percent of its 29 million customers account for over 60 percent of its medical costs.
7
17
27
37

7

Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true?
Jacob is eligible for full pension as he has worked for over a year at HoldVille.
Jacob

Jacob is not eligible for pension as he is not over 21.

T/F: Under the Economic Growth and Tax Reconciliation Act of 2001, employers have three hundred vesting schedule options.

False

T/F: Employees are the sole contributors to their cash balance plans.

False

T/F: A qualified deferred compensation plan offers tax advantages to employers.

True

_____ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.
Collateral funds
Second-injury funds
Insolvency funds
Pre-employment funds

Second-injury funds

Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:
increased variable component of base wage.
devaluation of the dollar.
employer safety programs.
relaxed federal regulations.

employer safety programs.

T/F: An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves.

True

Today, _____ percent of the workers participate in the pension plan coverage provided by their employers.
98
12
28
53

53

T/F: Employers who have frequent layoffs pay higher tax rates than those with few layoffs.

True

T/F: All employers with less than 20 employees must comply with the Consolidated Omnibus Budget Reconciliation Act.

False

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:
full vesting after three years.
full vesting after six years.
full vesting after seven years.
partial vesting after two years.

full vesting after three years.

Which of the following benefits is a federally administered program?
Workers' compensation
Social Security
Job security
Occupational Safety and Health Act

Social Security

T/F: Medicare is not part of Social Security.

False

T/F: Members of boards of directors are not categorized as candidates for special compensation.

False

When designing a sales compensation plan, it should be kept in mind that:
salespeople rank recognition as their number-one motivator.
salespeople under an incentive system will view customer service as an imposition.
compensation systems are independent o

salespeople under an incentive system will view customer service as an imposition.

The _____ component of executive compensation has grown the most since 2012.
long-term incentives
bonus
short-term incentives
base salary

long-term incentives

The most common approach to motivating executives to make decisions that are in the best interests of stockholders is _____.
high base salaries with few bonuses
average base salaries with significant firm performance bonuses
a long-term incentive plan usi

a long-term incentive plan using stock options

Annual bonuses often play a major role in executive compensation and are primarily designed to _____.
motivate better short-term performance
reduce overtime pay
decrease pay differentials between supervisors and subordinates
increase employee turnover

motivate better short-term performance

T/F: The best predictor of CEO pay is performance of the company.

False

A(n) _____ awards cash or stock if specific goals are achieved.
nonqualified stock option
incentive stock option
restricted stock plan
performance share plan

performance share plan

T/F: Independent contractors generally are less expensive for employers as they receive no benefits.

True

Which of the following is NOT a reason for companies to hire contingent workers?
Contingent workers help save costs.
Employees who accept the idea of bounded careers view contingent status as part of a fast-track developmental sequence.
Such employment of

Employees who accept the idea of bounded careers view contingent status as part of a fast-track developmental sequence.

Leah, the CEO of SteadyResults Corp., feels that she is underpaid, so she hires a compensation consultant to survey actual competitors of the company. According to agency theory, if SteadyResults performs poorly, her salary will most likely:
remain the sa

be increased in order to retain her.

The differential between supervisors' base pay and their highest paid subordinate is typically _____ percent.
0 to 5
5 to 30
30 to 50
50 to 90

5 to 30

T/F: Compensation committees of boards of directors typically set executive salaries.

True

The _____ theory argues that executive pay rises to maintain the same relative relationship with the salaries of lower-level employees.
economic approach
team production
social comparison
agency

social comparison

If improved account retention became a major focus of attention, the performance measure stressed would be _____.
gross margin on sales or price per unit
percentage account erosion
a volume measure
a customer satisfaction index

percentage account erosion

T/F: The 1993 Revenue Reconciliation Act limited employer deductions for executive compensation to $1 million and capped the amount of executive compensation used in computing contributions to and benefits from qualified retirement plans.

True

T/F: Compensation packages for salespeople must be competitive because salespeople tend to compare their pay with competitors.

True

Which of the following is NOT one of the clauses relating to the benefits employers can provide executives?
Benefit plans must cover 80 percent of employees.
Benefit plans must be determinable.
Benefit plans must meet specific vesting requirements.
Averag

Average value of benefits for low-paid employees must be at least 90 percent of that for highly paid employees.

A(n) _____ awards cash or stock that is determined by an increase in stock price at a fixed future date.
phantom stock plan
incentive stock option
restricted stock plan
nonqualified stock option

phantom stock plan

T/F: Independent contractors always earn less than their permanently employed counterparts.

False

T/F: A trend in sales force compensation is linking sales force compensation to customer satisfaction measures.

True

Executives, supervisors, and sales staff often receive special compensation treatment because _____.
these jobs face conflicting demands
these jobs are exempt under FLSA
recruitment and retention are always difficult for these jobs
these jobs are covered

these jobs face conflicting demands

Which of the following is NOT a reason for the recent decline in the use of stock options in executive pay?
There has been a growing pressure to expense stock options in annual reports.
In a falling market, stock options are underwater�the market price is

Financial Accounting Standard Number 313 raises the cost of using stock options.

T/F: In a recession environment, companies need to react to the decreasing level of sales by rewarding top-level performers that achieve high levels of sales despite the economic downturn.

True

T/F: In most cases, when a compensation consultant is called in to review the salary of a chief executive officer, regardless of how well the company is performing, the CEO's pay is raised.

True

Which of the following is the most popular executive perk offered by most companies?
Executive physicals
Payment of club dues
Family spousal travel
Corporate housing

Executive physicals

All of the following EXCEPT _____ would be considered a special compensation group.
sales staff
contingent workers
unpaid interns
professional employees

unpaid interns

T/F: In maturing markets, companies focus both on performance-based pay tied to customer satisfaction and on greater.

True

T/F: Unlike executives, scientists and engineers are less likely to receive lavish athletic facilities and large offices.

False

T/F: The most recent trend in executive compensation is an increased use of stock options.

False

With easily sold products:
companies prefer a more aggressive sales force.
the base compensation tends to be more important.
the incentives provided in the form of commissions tend to be more important.
companies tend to set lower sales targets.

the base compensation tends to be more important.

The biggest trend in supervisory pay centers on _____.
increased use of variable pay
payment of wages that equal subordinate pay
paying a wage that is above the highest paid superior
payment of higher wages without benefits

increased use of variable pay

A useful tool for determining the true worth of an entire executive compensation package is _____.
the program evaluation and review technique (PERT)
a tally sheet
a Gantt chart
the graphical evaluation and review technique (GERT)

a tally sheet

NaxWell Corp. sells a smart wristband that, apart from monitoring heart rate and blood pressure, also reminds users to stand and walk every half hour. As part of its promotional efforts, a celebrity starts wearing the wristband, thereby increasing its pop

NaxWell is likely to increase base salaries and decrease incentives.

_____ curve expresses the relationship between years since last degree, performance, and salary.
The Phillips
The marginal productivity
A tenure
A maturity

A maturity

Today, top executive pay is more than _____ times the pay of the average worker.
1,500
2,000
900
300

300

At the time it is granted, which of the following has no tax implications for an executive?
Phantom stock plans
Incentive stock options
Stock appreciation rights
Performance share/unit plans

Incentive stock options

Popular stereotypes of salespeople characterize them as being heavily motivated by _____.
financial compensation
personal growth and job security
recognition and appreciation
promotional opportunities

financial compensation

Hannah is the CEO of JF Corp., a steel manufacturing company. She finds that the market is exhibiting the signs of a maturing market. She wants to revise the compensation package for her sales employee to adapt to the changing market conditions. In this c

increase base pay.

T/F: Contingent workers are usually considered candidates for special compensation.

True

T/F: Organizations rely very heavily on external market data in pricing scientists' and engineers' base pay.

True

In a(n) _____ pay plan, a contract is negotiated which specifies that employees hired after a given target date will receive lower wages than their higher-seniority peers working on the same or similar jobs.
skill-based
efficiency-based
one-tier
two-tier

two-tier

Which of the following actions is most likely to be favored by unions?
Increasing the pricing of products to cover for increases in wages
Substituting wages with gain-sharing plans
Making each individual worker more expendable to the firm
Introducing lump

Introducing lump-sum awards

T/F: An alternative strategy for organizations hurt by intense competition is to control base wages in exchange for giving employees part ownership in the company.

True

Which of the following is the most likely reason for most unions to insist on group-based performance measures with equal payouts to members?
It enables employees to learn new skills.
It cuts down on strife and internal quarrels.
It encourages individual

It cuts down on strife and internal quarrels.

T/F: In a two-tier wage system, employees hired after a specific date are placed in a higher wage scale than those hired prior to that date.

False

Which of the following is a reason for unions opposing gain-sharing plans?
Reduced job security
Decreased peer pressure to perform
Decreased feeling of achievement or contributing to the organization
Reduced need for jobs due to increased productivity

Reduced need for jobs due to increased productivity

When compared to the impact of unions during periods of strong economies, the impact of unions during periods of higher unemployment is _____.
unknown
the same
smaller
larger

larger

T/F: A reopener clause specifies that wages will be renegotiated at a specified time or under certain conditions.

True

In the negotiation stage of a multiyear wage contract, Mark, the manager of SifCo Corp., specifies that changes will be made to the wage based on the changes in the consumer price index and mentions the effective dates of adjustment. Which of the followin

Escalator clause

Union employees in the public sector earn, on average, about _____ more than their nonunion counterparts.
40 percent
5 percent
14 percent
22 percent

22 percent

_____ is movement through the wage ranges where seniority is specified as the basis of the movement.
Length-of-stay progression
Automatic progression
Merit differential
Performance differential

Automatic progression

T/F: Unions respond relatively rapidly to wage increases during inflationary periods.

False

_____ are one-time cash payments to employees that are not added to an employee's base wages.
Relational returns
Merit increases
Lump-sum awards
Cost-of-living increases

Lump-sum awards

Increased global competition has caused unions to:
demand higher base wages than their international counterparts.
become more receptive to alternate reward systems that link pay to performance.
accept less variable pay in exchange for higher base pay.
de

become more receptive to alternate reward systems that link pay to performance.

T/F: Moving employees through pay ranges using merit increases is more popular than automatic progression.

False

A deferred wage increase _____.
specifies that wages will be renegotiated at a specified time
specifies that such nonwage items as pension and benefits will be renegotiated under certain conditions
is negotiated at the time of initial contract negotiation

is negotiated at the time of initial contract negotiations with the timing and amount specified in the contract

T/F: In automatic progression, seniority is used as the basis for movement through the job classifications.

True

Pay-for-knowledge plans do all of the following EXCEPT _____.
make employees less expendable to their firms
increase the probability of work being subcontracted out to nonunion organizations
make each individual employee more valuable
pay employees more f

increase the probability of work being subcontracted out to nonunion organizations

Which of the following is true regarding a gain-sharing plan?
It prevents union members from sharing the wealth.
It creates difficulty in maintaining employment levels in marginal organizations.
It becomes ineffective when union members participate in pla

Not all unions would be in favor of this type of plan.

With gain-sharing plans, the most common union strategy is to _____.
delay taking a stand until real benefits are more apparent
be very enthusiastic
have direct opposition to the plans as soon as they are suggested by the management
have no concern for th

delay taking a stand until real benefits are more apparent

Which of the following involves periodic adjustments based typically on changes in the consumer price index?
A COLA clause
A deferred wage increase
A reopener clause
An annual improvement adjustment

A COLA clause

Basically a phenomenon of the union sector, two-tier wage structures differentiate pay based upon the _____.
type of work
hiring date
place of work
length of contract, if applicable

hiring date

Research indicates that the presence of a union adds about _____ to employee benefits.
5 to 15 percent
20 to 25 percent
30 to 40 percent
50 percent

30 to 40 percent

The phenomenon where the nonunion management continues to enjoy the freedom from union "interference" in decision making, and the workers receive the rewards already obtained by their unionized counterparts is known as _____.
automatic progression
the spi

the spillover effect

Company A and Company B are in the same industry, but Company A is unionized and Company B is not. Therefore, _____.
it can be argued with assurance that any wage differences between the two firms are due to the presence of the union in Company A and the

it is difficult to argue with assurance that wage differences between the two firms are attributable to the presence of the union, although the possibility exists

A study of unions in 114 companies concluded that _____.
the impact of unions on wages is lesser during recession
the union-nonunion gap is the greatest during strong economies
unions make a difference in wages across all studies and time periods
unions a

unions make a difference in wages across all studies and time periods

T/F: Lump-sum awards are typically given because they are less costly to the employer than merit increases.

True

T/F: Lower-tier employees in a two-tier pay plan, those hired after the contract is ratified, receive wages 50 to 80 percent lower than employees in the higher tier.

True

For the past 10 years, a stable _____ of all major collective bargaining agreements in the private sector have contained a provision for lump-sum payouts.
three-fourths
one-half
one-quarter
one-third

one-third

T/F: Few contracts specify special rates for part-time and temporary employees.

True

T/F: There are numerous possible costs and benefits to union members for agreeing to a gain-sharing plan.

True

T/F: A deferred wage increase is negotiated at the time of initial contract negotiations.

True

T/F: A study shows that a 10 percent rise in import share has the effect of lowering the union wage differential by approximately 2 percent.

True

T/F: The vast majority of contracts specify that a job is to be compensated on an hourly basis.

True

T/F: Lump-sum awards are added to base wages.

False

Which of the following is a reason for unions favoring gain-sharing plans?
Increased peer pressure to perform
Increased involvement with job activities
Increased flexibility in moving employees quickly into high-demand areas
Increased clarity in bonus cal

Increased involvement with job activities

T/F: Introduction of a gain-sharing plan is particularly effective when union members participate in plan development.

True

Which of the following plans gives employees part ownership in the company?
ESOPs
Pay-for-knowledge plans
Gain-sharing plans
Profit-sharing plans

ESOPs

T/F: Many contracts specify a premium be paid above the worker's base wage for working nonstandard shifts.

True

T/F: About 60 percent of all U.S. collective bargaining agreements permit some alternative reward system that links pay to performance.

False

Which of the following statements regarding unions is NOT true?
Union membership has fallen from approximately 20 percent to 11 percent since 1983.
Unions peaked in the 1950s and 1960s.
Since 1997, there has been a consistent 2 percent annual decrease in

Since 1997, there has been a consistent 2 percent annual decrease in certification elections decided in favor of unionization.

Which of the following statements about ownership and financial markets is true?
In the United States, corporate ownership and access to capital is far more concentrated than in most other countries.
Ninety percent of American households own stock in comp

Recent tax law changes in many countries have made stock options more attractive, but limited ownership of many companies remains the rule.

T/F: Evidence indicates that MNCs are influenced by both the institutional pressures in their home country and in the local context.

True

T/F: Companies in the United States, United Kingdom, and some central European countries are most likely to have centralized wage bargaining.

False

T/F: It is easier and less complex to compare living costs across countries than total compensation.

False

A(n) _____ approach to compensation involves designing a total pay system at headquarters and applying it globally.
delayered
inpatriate
localizer
exporter

exporter

T/F: Unionization rates are higher in Europe than in Asia.

True

_____ is an example of a country with a highly decentralized approach to pay setting with higher wage flexibility.
Sweden
Germany
Belgium
The United States of America

The United States of America

A Japanese citizen working for Toyota in Georgetown, Kentucky, is a _____.
host-country national
third-country national
parent-country national
local country national

parent-country national

T/F: According to the Japan Institute of Labour, for most employees bonuses are variable pay that help control the employer's cash flow and labor costs.

True

_____ sets salaries according to the home-country system and simply offers employees lump sums of money to offset differences in standards of living.
The modified balance sheet approach
The localization approach
The cafeteria approach
The balance sheet ap

The cafeteria approach

When taxes are deducted from employees' earnings up to the same amount of taxes they would pay had they remained in their home country, it is known as _____.
expat tax
tax equalization
compensatory tax
tax protection

tax equalization

Which of the following is true of hiring LCNs?
Companies incur relocation expenses and other substantial expenses associated with the use of LCNs.
Companies have to be concerned about LCNs' adapting to the local culture.
Only rarely do organizations decid

Employment of LCNs satisfies nationalistic demands for hiring locals.

The base salary plus incentives for expatriates is usually determined by _____.
job evaluation
market pay
competitors' pay level in the host country
international pay schedules

job evaluation

T/F: Since the Japanese system is so seniority-based, labor costs decrease as the average age of the workforce increases.

False

T/F: In China, while state-owned enterprises employ two-thirds of all workers, wholly privately owned enterprises, joint ventures with foreign companies, and WOFEs account for half of all profits.

True

T/F: Generally, it is difficult to compare total compensation of a U.S. firm with a foreign competitor.

True

Which of the following is NOT true of the tariff agreements in Germany?
Small organizations use them as guidelines.
Managerial jobs are covered by the agreements.
Job evaluation methods are part of the agreements.
Tariff agreements are different for each

Managerial jobs are covered by the agreements.

T/F: Understanding international compensation begins with recognizing differences and similarities and figuring out how to best manage them.

True

The degree of discretion managers have to make total compensation a strategic tool is referred to as _____.
managerial accountability
democratic accountability
managerial autonomy
managerial liability

managerial autonomy

KYZ Inc., a U.S. firm, sends its manager, Ryan, to London to manage its operations there. Ryan's salary is still based on the U.S pay system, however KYZ offers him a lump-sum payment to offset the additional standards-of-living expense in London. In this

The cafeteria approach

Which of the following countries has the highest number of people in the workforce belonging to unions?
Japan
Sweden
Italy
South Korea

Sweden

Traditionally, Japan's employment relationships were supported by _____.
lifetime security within the company
performance-based pay systems alone
centralized unions representing workers across several companies within an industry
performance-based promoti

lifetime security within the company

Individualism is _____.
the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family
the distribution of emotional roles between the genders
the extent to which a culture programs individuals

the degree to which people are supposed to look after themselves or remain integrated into groups, usually around the family

A Korean citizen working for Toshiba, a Japanese company, in Canada is a _____.
host-country national
third-country national
parent-country national
local country national

third-country national

T/F: 77 percent of expats have less disposable income when they return home from overseas assignments.

True

T/F: Neither works councils nor co-determination are legally required in the United States and are quite rare.

True

In the comparison of the pay systems of two well-known Japanese companies Toyota and Toshiba, Toyota _____.
places greater emphasis on external market rates
places lesser emphasis on individual-based merit pay
uses far more levels in its structure
places

places greater emphasis on external market rates

Uncertainty avoidance is _____.
the distribution of emotional roles between the genders
the extent to which a culture programs its members to accept delayed gratification of their material needs
the extent to which the less powerful members of organizatio

the extent to which a culture programs its members to feel either uncomfortable or comfortable in unstructured situations

According to Hofstede's cultural dimensions, in Malaysia and Mexico, where there is high power distance, _____ pay structures are appropriate.
equitable
hierarchical
egalitarian
parallel

hierarchical

T/F: The country with the highest unionization rate in Europe is France, where 90 percent of workers are union members.

False

T/F: A study of both U.S. and Slovenian MBAs found that risk taking was higher among Slovenians.

True

T/F: Base pay for a Japanese employee is usually not based on job evaluation or market pricing.

True

Which of the following is NOT true of expatriates?
68 percent of expatriates do not know what their jobs will be when they return home.
Only five percent of expatriates believe their company values their overseas experience.
11 percent are promoted when t

49 percent of U.S. expatriates are women.

T/F: Approximately 20 percent of expats leave their company within a year of their return to the U.S.

False

Which of the following statements about evolution and change in the traditional German model is true?
Nearly one in 10 German adults owns stock.
High birth rates are pushing up the costs of the social support system.
A relatively flexible labor market mea

Many of the changes in Germany are the result of global competitive pressures and technological changes.

T/F: In Malaysia and Mexico, egalitarian pay structures fit best with the culture.

False

T/F: Japanese pay systems typically emphasize pay based upon competitors' market rates rather than internal alignment.

False

Which of the following is a factor determining base pay in the Japanese traditional national system?
Job evaluation
Career category
Market pricing
Specific job title

Career category

Prevailing-wage laws _____.
set pay for work done to produce goods and services contracted by the state government
specify that a government-defined prevailing wage is the maximum wage that must be paid for work done on covered government projects
give co

were passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression

Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of _____.
access discrimination
valuation discrimination
treatment discrimination
hostile environment

access discrimination

The _____ specifies the number of breaks that must be provided in an eight-hour workday.
Portal-to-Portal Act
Occupational Safety and Health Administration legislation
Walsh-Healey Public Contracts legislation
Equal Pay Act

Occupational Safety and Health Administration legislation

Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938?
Computer employees
Police and other first responders
Paramedics
Fire fighters

Computer employees

Which of the following statements regarding wage differences in industries and firms is NOT true?
Wages of men in large firms are 54 percent higher than wages of men in small firms.
Hispanic men are concentrated in construction and service firms.
Female e

Female employment is more heavily concentrated in large firms.

The _____ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts.
Sarbanes-Oxley
Walsh-Healey Public Contracts
Fair Labor Standards
Davis-Bacon

Walsh-Healey Public Contracts

The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the _____.
OSHA
EEOC
OFCCP
FCSS

OFCCP

T/F: A GAO study found that 9 of 10 cases brought by GAO undercover agents posing as workers were mishandled by the Wage and Hour division of the Labor Department.

True

T/F: The gender wage gap is moderate for recent college graduates and decreases as the cohort ages.

False

T/F: While government affects the supply of labor through legislation, it has no effect on the demand for labor.

False

Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time?
The Fair Labor Standards Act
The Occupational Safety and Health Administration

The Portal-to-Portal Act

The Worker Economic Opportunity Act _____.
states that income from most stock plans need not be included in calculating overtime pay
requires the value of all employee stock options to be expensed at estimates of fair value on financial statements
gives S

states that income from most stock plans need not be included in calculating overtime pay

The executive branch of the federal government _____.
enforces laws through agencies and its other bodies
passes new laws
interprets laws and considers their constitutionality
changes existing laws

enforces laws through agencies and its other bodies

In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate?
Disparate treatment
Access discrimination
Disparate impact
Valuation discrimination

Disparate impact

Which of the following is NOT one of the steps in establishing a comparable-worth pay plan?
Adopt a single gender neutral point job evaluation plan for all jobs within a unit.
All jobs with equal job evaluation points should be paid the same.
Identify the

Base the wage-to-job evaluation point ratio on the wages paid for female-dominated jobs.

An early study of the effects of the living wage law in Los Angeles found all of the following EXCEPT that _____.
7,735 of the employees covered by the law received an average wage increase of 20 percent
1 percent of covered jobs were lost
a higher propor

a higher proportion of new hires were female

The Davis-Bacon Act _____.
states that income from most stock plans need not be included in calculating overtime pay
increases the burden of proof on employers to rebut some discrimination claims
requires that mechanics and laborers on public construction

requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area

T/F: The two types of discrimination recognized by law are valuation discrimination and access discrimination.

True

Meltrop Corp. employs two store clerks, Sam and Stella. Stella sues Meltrop claiming unequal pay as she earns $500 a week less than Sam does despite doing the same work as Sam. Which of the following is most likely to be the result of the litigation?
Melt

Meltrop will lose the litigation as it has committed valuation discrimination.

The determination of pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and that allows pay differences for jobs that are not comparable. This standard is _____.
job evalua

job evaluation

T/F: As the lowest rates paid in the software, chemical, oil, and pharmaceutical industries are already well above minimum, any legislation to increase minimum wage would have little direct impact on them.

True

T/F: Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2013.

True

Under the _____, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier.
Sarbanes-Oxley Act
Lilly Ledbetter Fair Pay Act
Equal Pay Act
Fair Labor Standards Act

Lilly Ledbetter Fair Pay Act

MNTX University requires that all its female professors score higher than the male professors in their appraisal rating to qualify for a pay bonus as there are more female professors than male professors in the university. Which of the following statement

MNTX is liable for disparate treatment of women.

Which of the following regarding child labor is NOT true?
Persons under 18 cannot work in hazardous jobs such as logging and meat packing.
Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent

The ILO finds that child labor is increasing on a global basis.

T/F: In the Schultz v. Wheaton Glass case, the Supreme Court ruled that for jobs to receive equal pay, they do not have to be identical but substantially equal.

True

T/F: Prevailing wages protect foreign workers working as registered nurses.

True

T/F: Pay differences for equal work may be justified for demonstrably business-related reasons.

True

T/F: All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions.

False

T/F: The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content.

True

Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards?
The American Reco

The Dodd-Frank Wall Street Reform and Consumer Protection Act

Who among the following has violated the Fair Labor Standards Act of 1938?
Rachel, who pays all her workers a minimum wage of $13
Sally, who does not consider time her employees spend travelling to work as compensable time
Jeremy, who employs his 16-year-

Jeremy, who employs his 16-year-old cousin in his meat-packing plant

The ADEA _____.
prohibits discrimination on the basis of sex, race, or color
was amended in 1990 to include the Older Workers Benefit Protection Act
was amended in 2011 to ensure that workers get two months' notice before termination
prohibits discriminat

was amended in 1990 to include the Older Workers Benefit Protection Act

The highest rates of child labor are in _____.
China
India
Latin America
sub-Saharan Africa

sub-Saharan Africa

T/F: A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases.

True

T/F: One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees.

True

T/F: Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases.

True

Which of the following is NOT a provision of the Fair Labor Standards Act of 1938?
It requires that employers provide 15 weeks of medical leave to employees.
It sets minimum wage standards.
It prohibits child labor.
It requires payment at one-and-a-half t

It requires that employers provide 15 weeks of medical leave to employees.

_____ prohibits discrimination on the basis of race, color, religion, sex, or national origin.
Executive Order 11452
The FMLA
Executive Order 11246
The Rehabilitation Act

Executive Order 11246

Regarding pay differences for different jobs, _____.
courts continue to rely on the use of employer opinion surveys to justify differences
the courts favor reliance on the use of statistical models
court decisions have been inconclusive
courts continue to

courts continue to uphold the use of market data to justify differences

T/F: The gender pay gap is common across countries and is smaller in some countries than the U.S.

True