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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which statement is most accurate regarding the effect of taxation on the benefits that employers offer?

A) Taxation affects the level of benefits offered, the source of benefits and the employer/employee cost- sharing basis.
B) Taxation has no effect on employee benefits; employers offer benefits for competitive reasons only.
C) Taxation is the primary reason that employers offer benefits; in the absence of tax incentives, employers would be unlikely to offer them.

2. What was the Bennett Amendment intended to do?

A) Make it easier to enforce the Equal Pay Act
B) Prohibit gender-based discrimination
C) Eliminate the potential conflict between Title VII and EPA
D) Make the regulations covered under Title VII of the Civil Rights Act of 1964 more strict

3. To qualify for the executive exemption from the minimum wage and overtime provisions of the FLSA, among other things what must an employee do?

A) Devote less than 15% of his/her time to nonexempt work
B) Possess knowledge of an advanced type in business administration
C) Perform work that is intellectual and varied
D) Customarily and regularly direct the work of at least two full-time employees

4. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working in locations other than the corporate office
B) When working in more than one department
C) When working a holiday or weekend
D) When working less time than his or her normal schedule

5. Which of the following statements regarding the Worker Economic Opportunity Act is most accurate?

A) Employees are not required to participate
B) Employers must include stock profits in overtime calculations.
C) Employees must hold options for at least 3 months.
D) Stock options may be granted at a 20% discount

Solutions: