Chapter 2 TB

Strategic Compensation, 7e (Martocchio)
Chapter 2 Contextual Influences on Compensation Practice

1) This amendment to the U.S. Constitution gives Congress the power to regulate commerce with
foreign nations, individual states, and Indian Tribes.
A) The irst Amendment
!) The ourteenth Amendment, Section 1
C) The ifth Amendment
") Article I, Section #
Answer$ "
"ifficult%$ "ifficult
T%pe$ Concept
&earning 'b($ 1
)) *hich amendment to the U.S. Constitution made it illegal to restrict the freedom of religion,
speech, and press, as well as protect the right of people to peacefull% assemble+
A) Article 1, Section #
!) irst Amendment
C) ifth Amendment
") ourteenth Amendment, Section 1
Answer$ !
"ifficult%$ ,oderate
T%pe$ Concept
&earning 'b($ 1
-) *hich branch of the federal government is responsible for interpreting laws+
A) Service branch
!) &egislative branch
C) ./ecutive branch
") 0udicial branch
Answer$ "
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
1) These programs granted income to wor2ers who were unable to wor2 due to in(uries sustained
while on the (ob.
A) sic2 leave
!) ,&A
C) wor2force restitution
") wor2ers3 compensation
Answer$ "
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
1
Cop%right 4 )51- 6earson .ducation, Inc. publishing as 6rentice 7all
8) *hich one of these issues is 9'T addressed b% the air &abor Standards Act of 1:-#+
A) minimum wage
!) overtime pa%
C) e/ecutive compensation
") child labor provisions
Answer$ C
T%pe$ Concept
&earning 'b($ 1
;) An emplo%ee has a regular hourl% rate e<ual to =1). According to &SA, how much should
her>his emplo%er pa% this emplo%ee for each additional hour wor2ed be%ond the regular 15 hours
within a period of ? consecutive da%s+
A) =1)
!) =11
C) =1;
") =1#
Answer$ "
T%pe$ Application
&earning 'b($ 1
?) An emplo%ee has a regular hourl% rate e<ual to =15+ S>he wor2s 18 hours within a period of ?
consecutive da%s. 7ow much should her>his emplo%er pa% this emplo%ee for 18 hours in total+
A) 1)8
!) 185
C) 1?8
") 855
Answer$ C
T%pe$ Application
&earning 'b($ 1
#) *hat are the revised guidelines introduced in )551 for determining whether (obs are e/empt
from &SA overtime pa% provisions called+
A) @lass Ceiling Act
!) 'vertime 9one/empt Aules
C) !ennett Amendment
") air 6a% Aules
Answer$ "
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
)
:) *hich of the following e/ample is 9'T considered as a compensable wor2 activit%+
A) a fireman who pla%s chec2ers while waiting for an alarm
!) an emplo%ee attends an emplo%erBmandated training
C) an emplo%ee travels from home before the regular wor2da% and returns to his>her home at the
end of the wor2da%
") an emplo%ee ta2es a 18Bminute rest during wor2 time
Answer$ C
T%pe$ Application
&earning 'b($ 1
15) !ased upon the &SA child labor provisions, what is the minimum age that a child must be
in order to be legall% emplo%ed+
A) 15
!) 1)
C) 11
") 1:
Answer$ C
T%pe$ Concept
&earning 'b($ 1
11) *hich of the following is 9'T a protected characteristic b% Title CII of the Civil Aights Act
of 1:;1+
A) se/ual orientation
!) race
C) national origin
") gender
Answer$ A
T%pe$ Concept
&earning 'b($ 1
1)) Intentionall% treating women less favorabl% than men solel% based upon their gender would
be what form of discrimination+
A) disparate treatment
!) disparate impact
C) disparate causalit%
") situational discrimination
Answer$ A
T%pe$ Concept
&earning 'b($ 1
-
1-) A polic% that applies to all compan% emplo%ees, but unintentionall% hurts a protected group
disproportionatel% would be what form of discrimination+
A) disparate treatment
!) disparate impact
C) disparate causalit%
") situational discrimination
Answer$ !
T%pe$ Concept
&earning 'b($ 1
11) This act strengthened the .<ual 6a% Act of 1:;- b% now re<uiring emplo%ers to show that
pa% disparities are (ob related rather than se/Bbased. This act also prohibits emplo%ers from
retaliating against emplo%ees who share their salar% information.
A) The 6a%chec2 airness Act
!) The Civil Aights Act of 1:;1
C) The Age "iscrimination in .mplo%ment Act of 1:;?
") The "avis Act
Answer$ A
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
18) The De<ual benefit or e<ual cost principleD is part of which Act+
A) The 'lder *or2ers !enefits 6rotection Act E'*!6A)
!) The Americans with "isabilities Act EA"A)
C) The .mplo%ee Aetirement Income Securit% Act of 1:?1 E.AISA)
") The air &abor Standards Act of 1:-# E&SA)
Answer$ A
T%pe$ Concept
&earning 'b($ 1
1;) As a result of this law enacted b% Congress, emplo%ers must now show that emplo%ment
practices that create disparate impact are a business necessit%. This law also made it legal for
U.S. citiFens wor2ing abroad for U.S. companies to file suit.
A) Americans with "isabilities Act of 1::5
!) ./ecutive 'rder 11)1;
C) The Civil Aights Act of 1::1
") The 'lder *or2ers !enefit 6rotection Act
Answer$ C
T%pe$ Concept
&earning 'b($ 1
1
1?) This law ma2es it illegal to discriminate against people with ph%sical and mental disabilities
both within and outside emplo%ment settings, including public transportation, public
accommodations, and emplo%ment.
A) Americans with "isabilities Act of 1::5
!) ./ecutive 'rder 11)1;
C) The Civil Aights Act of 1::1
") The 'lder *or2ers !enefit 6rotection Act
Answer$ A
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
1#) The Americans with "isabilities Act of 1::5 EA"A) applies to companies that emplo% at
least how man% wor2ers+
A) 85
!) )8
C) 18
") 155
Answer$ C
T%pe$ Concept
&earning 'b($ 1
1:) 0ennifer wor2s as a cler2 in a compan%. The essential function of her (ob is producing
memoranda using word processing software. If she develops crippling arthritis, which act
re<uires her emplo%er to ma2e reasonable accommodations such as providing a voiceB
recognition input device+
A) amil% and ,edical &eave Act of 1::-
!) Americans with "isabilit% Act of 1::5
C) "avisB!acon Act of 1:-1
") 'ccupational Safet% and 7ealth Act of 1:?5
Answer$ !
"ifficult%$ .as%
T%pe$ Application
&earning 'b($ 1
)5) Construction contractors, wor2ing on government contracts valued at more than =),555,
must pa% their laborers and mechanics what t%pe of local area based wage according to the
"avisB!acon Act of 1:-1+
A) minimum wage
!) prevailing wage
C) prevalent wage
") discretionar% wage
Answer$ !
T%pe$ Concept
&earning 'b($ 1
8
)1) This law was established in order to regulate the implementation of various emplo%ee
benefits and pension programs.
A) The 'lder *or2ers !enefit 6rotection Act E'*!6A)
!) The Americans with "isabilities Act of 1::5 EA"A)
C) The .mplo%ee Aetirement Income Securit% Act of 1:?1 E.AISA)
") The air &abor Standards Act of 1:-#
Answer$ C
T%pe$ Concept
&earning 'b($ 1
))) ,elissa has been wor2ing in GHI Compan% for the last # %ears. She got a ver% attractive (ob
offer from another compan% in the same industr% and decided to leave her current compan%. She
is one hundred percent vested. *hich of the following acts guarantees that she cannot lose the
pension benefits after she leaves her (ob in GHI Compan%+
A) 7I6AA
!) A"A
C) C'!AA
") .AISA
Answer$ "
T%pe$ Application
&earning 'b($ 1
)-) This was enacted in order to allow emplo%ees who are terminated, laid off, or have a change
in their emplo%ment status to temporaril% remain on the emplo%erBsponsored medical insurance
plan.
A) The Consolidated 'mnibus !udget Aeconciliation Act of 1:#8 EC'!AA)
!) The 'lder *or2ers !enefit 6rotection Act E'*!6A)
C) The Americans with "isabilities Act of 1::5 EA"A)
") The Civil Aights Act of 1::1
Answer$ A
T%pe$ Concept
&earning 'b($ 1
)1) Title CII and A".A do not protect federal government emplo%ees. *hich one of the
following e/ecutive orders and>or laws gives similar protection to federal government
emplo%ees+
A) amil% and ,edical &eave Act of 1::-
!) ./ecutive 'rder 111?#
C) ./ecutive 'rder 11:-8
") The Aehabilitation Act
Answer$ !
T%pe$ S%nthesis
&earning 'b($ 1
;
)8) This provision mandates that federal government agencies ta2e affirmative action in
providing (obs for individuals with disabilities.
A) The Aehabilitation Act
!) A"A
C) ./ecutive 'rder 111?#
") The @overnment .mplo%ee Aights Act of 1::1
Answer$ A
T%pe$ Concept
&earning 'b($ 1
);) 66ACA and its amendment 7ealth Care and .ducation Aeconciliation Act of )515 are
considered to be the basis for health care reform in the United States. *hich of the following is
9'T considered to be one of the goals of this health care reform+
A) to reduce the number of uninsured U.S. residents
!) to help more children get health coverage
C) to increase the fund for the ,edicare program
") to give patients access to recommended preventive services without cost
Answer$ C
T%pe$ Critical Thin2ing
&earning 'b($ 1
)?) *hat is it called when the compensation practices in nonBunioniFed companies mirror those
found in unioniFed settings+
A) progressive compensation
!) the spillover effect
C) concessionar% bargaining
") interBindustr% compensation differentials
Answer$ !
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ -
)#) *hich of these was given as a reason wh% union influence has diminished+
A) foreign automobile manufacturers producing higher <ualit% vehicles
!) union companies demonstrating lower profits than nonBunion companies
C) technological advances
") all of the above
Answer$ "
T%pe$ Concept
&earning 'b($ -
?
):) This t%pe of bargaining occurs when unions shift from bargaining for large pa% increases to
simpl% bargaining for greater (ob securit%.
A) guarded
!) concessionar%
C) heightened
") compensationar%
Answer$ !
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ -
-5) *hich of the following factors e/plain interBindustr% wage differentials+
A) the industr%3s product mar2et
!) the degree of capital intensit%
C) a large labor mar2et
") all of the above
Answer$ "
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
-1) Congress creates and passes laws within the JJJJJJJJ branch of the American government.
Answer$ legislative
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
-)) "uring the JJJJJJJJ, which too2 place in the 1:-5s, a great number of businesses failed and
unemplo%ment soared, forcing the government to intervene.
Answer$ @reat "epression
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
--) The &SA re<uires that overtime be paid on all hours wor2ed in e/cess of JJJJJJJJ hours
within a period of ? consecutive da%s.
Answer$ 15
fort%
T%pe$ Concept
&earning 'b($ 1
#
-1) The JJJJJJJJ of 1:;- ma2es it illegal to pa% one se/ more than the other for e<ual wor2
performed.
Answer$ .<ual 6a% Act
T%pe$ Concept
&earning 'b($ 1
-8) The JJJJJJJJ Amendment allows female emplo%ees to charge emplo%ers with Title CII
violations regarding pa% onl% when the emplo%er has violated the .<ual 6a% Act of 1:;-.
Answer$ !ennett
T%pe$ Concept
&earning 'b($ 1
-;) The JJJJJJJJ in .mplo%ment Act of 1:;? was passed b% Congress in order to protect
wor2ers 15 %ears of age and older from unlawful discrimination.
Answer$ Age "iscrimination
T%pe$ Concept
&earning 'b($ 1
-?) The JJJJJJJJ generation was born between roughl% 1:1; and 1:;1, and represents a big
swell in the American population as the wor2force gets progressivel% older.
Answer$ bab% boom
T%pe$ Concept
&earning 'b($ 1
-#) The JJJJJJJJ of 1:?# was put in place to prohibit disparate impact discrimination from
occurring against pregnant women in all emplo%ment practices, as well as to ensure that
pregnanc% was treated the same as an% other form of disabilit%.
Answer$ 6regnanc% "iscrimination Act
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
-:) The JJJJJJJJ of 1::- sought to provide emplo%ees with (ob protection in case of a famil%
or medical emergenc%.
Answer$ amil% and ,edical &eave Act
,&A
T%pe$ Concept
&earning 'b($ 1
:
15) JJJJJJJJ refers to an emplo%ee ac<uiring non forfeitable rights to an emplo%er3s
contribution to fund benefits.
Answer$ Cesting
"ifficult%$ .as%
T%pe$ Concept
&earning 'b($ 1
11) 7ow would the compensation s%stem change if the minimum wage provision of the air
&abor Standards Act of 1:-# were repealed+
Answer$ The air &abor Standards Act addresses three broad issues$ the minimum wage,
overtime pa%, and child labor provisions. Clearl%, in the absence of such legislation, emplo%ers
ma% return to the da%s where substandard pa% was the norm. 'n one hand, without a minimum
wage provision, emplo%ers would li2el% lower the wage for man% of these (obs. urther, specific
&SA e/emptions alread% allow emplo%ers to pa% some wor2ers less than the minimum wage.
'n the other hand, emplo%ers ma% have difficult% recruiting emplo%ees to fill these positions,
especiall% in geographic areas where the cost of living is higher than the national average.
T%pe$ Critical Thin2ing
&earning 'b($ 1
1)) "istinguish between disparate treatment and disparate impact in a compensation conte/t.
Answer$ "isparate treatment refers to intentional discrimination b% emplo%ers in treating some
wor2ers less favorabl% than others because of their race, color, se/, religion, or national origin.
6a%ing African Americans less than whites for the same (ob, other factors being e<ual, is an
e/ample of disparate treatment. "isparate impact refers to unintentional discrimination in which
an emplo%ment practice geared toward all emplo%ees leads to une<ual treatment of protected
emplo%ee groups. Awarding seniorit% pa% could lead to disparate impact if females had less
seniorit%, on average, than men.
T%pe$ Application
&earning 'b($ 1
15
1-) ./plain interindustr% wage differentials and discuss the role of unioniFation on the
interindustr% differentials.
Answer$ There are differences in wages across industries, which are 2nown as interindustr%
wage differentials. or instance, wor2ers in different industries such as mining, construction,
manufacturing, and services earn different wages on average. There are a variet% of factors that
could e/plain the wage differentials among different industries. UnioniFation is considered as
one of the important factors of interindustr% differentials. 'n average, highl% unioniFed
industries tend to pa% higher wages than do nonunion industries. ,ost highl% unioniFed
industries such as manufacturing, construction, and mining are capital intensive therefore,
re<uires emplo%ees to learn and use comple/ production technolog%. 7owever, we should also
consider the fact that unions3 influence has been declining since 1:#5s. In order to promote (ob
securit%, man% unions focus more on promoting (ob securit% than securing large pa% increases
E2nown as concessionar% bargaining). or instance, the union that represents the pilots of "elta
Airlines agreed to substantial cuts in base pa% and in future retirement income to help the
compan% avoid dissolution. Substantial cuts li2e the one in this e/ample was ver% unli2el%
before the 1:#5s.
T%pe$ S%nthesis
&earning 'b($ -, 1
11

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Strategic Compensation, 7e (Martocchio)

Chapter 2 Contextual Influences on Compensation Practice

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