1. An entitlement culture is appropriate for a business that needs what type of workforce?
A) One that has a line of sight to retirement B) One that continues to show productivity increases over time C) One that has a skill set that's in high demand D) One that is highly competitive in completing daily assignments
2. Which of the following Acts requires employers to pay nonexempt employees who perform regular duties before or after their regular hours or for working during their lunch period?
A) Davis Bacon Act B) Portal to Portal Act C) Equal Pay Act (EPA) D) Service Contract Act
3. A summary plan description is not required for which of the following?
A) Flexible spending accounts B) AD&D insurance C) Defined-contribution plans D) Defined-benefit plans
4. The Older Worker Benefit Protection Act requires that an employee age 40 or older who is asked to waive their rights under the act must be given what?
A) 21 days to consider the agreement before signing it B) 45 days to consider the agreement before signing it C) 60 days to consider the agreement before signing it D) 7 days to consider the agreement before signing it
5. require which of the following?
A) Group health plans honor qualified medical child-support orders B) Tax deductions for executive pay be capped at $1,000,000 per year C) Income tax be withheld from some distributions to rollover accounts D) Group health coverage be offered for children placed for adoption before the adoption is final
1. Right Answer: B Explanation: Answer option B is correct.An entitlement culture rewards longevity in the job. If increased productivity is a function of time on the job, an entitlement culture will encourage employees to stay with the company. Line of sight (A) occurs when employees know that their performance impacts their pay. A highly competitive workforce (D) is more likely to exist in a pay-for-performance culture. A workforce with a highly desired skill set (C) would be better served by a pay-for-performance culture.Chapter: Compensation and BenefitsObjective: Review Questions
2. Right Answer: B Explanation: Answer option B is correct.Chapter: Compensation and BenefitsObjective: Compensation
3. Right Answer: B Explanation: Answer option B is correct.Summary plan descriptions are required only for group health plans, and not for defined contribution plans, defined benefit plans, or FSAs.Chapter: Compensation and BenefitsObjective: Review Questions
4. Right Answer: A Explanation: Answer option A is correct.Workers age 40 or older who are asked to sign a waiver of their rights must be given 21 days to consider the agreement before signing it, unless they are part of a group termination or layoff. In that case, they must be given 45 days to sign the agreement (B). In both instances, they may revoke the agreement within 7 days(D). The OWBPA does not require 60 days to consider the agreement (C).Chapter: Compensation and BenefitsObjective: Review Questions
5. Right Answer: C Explanation: Answer option C is correct.The Unemployment Compensation Amendments of 1992 required 20 percent withholding from some distributions. OBRA capped executive pay (B), required that group health coverage be offered when children are placed for adoption before the adoption is finalized (D), and required health plans to honor qualified medical child-support orders (A).Chapter: Compensation and BenefitsObjective: Review Questions
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