68) ________ provides benefits if a person is unable to work through no fault of
his or her own.
A) Supplemental pay benefits
B) Unemployment insurance
C) Retirement
D) Health insurance
69) Who contributes funds to workers’ compensation benefits?
A) each state
B) federal government
C) employers
D) All of the above.
70) The goal of ________ is to provide sure, prompt income and medical benefits
to work-related accident victims or their dependents, regardless of fault.
A) severance pay
B) sick leave
C) workers’ compensation
D) the Health Insurance Portability and Accountability Act
71) Which of the following benefits could be awarded as workers’ compensation?
A) cash benefit
B) medical services
C) time off with pay
D) Both A and B.
72) Which of the following conditions must be met for an injured employee to
earn workers’ compensation from his or her employer?
A) The injury must have occurred while the employee was on the job.
B) The employee suffered the injury through no fault of his or her own.
C) The employee must have worked for a minimum of 1250 hours during the past
twelve consecutive months.
D) All of the above.
73) Which health benefit listed below is offered by almost all employers?
A) mental health insurance
B) chiropractic insurance
C) medical care insurance
D) wellness program
74) A(n) ________ is a medical organization consisting of specialists operating
out of a community-based health care center that provides routine medical
services to employees who pay a nominal fee.
A) PPO
B) HMO
C) DMO
D) hospital
75) ________ are groups of health care providers that contract with employers,
insurance companies, or third-party payers to provide medical care services at a
reduced fee.
A) PPOs
B) HMOs
C) DMOs
D) Hospitals
76) The ________ requires employers to treat women affected by pregnancy,
childbirth, or related medical conditions the same as any employee not able to
work, with respect to all benefits, including sick leave and disability benefits,
health and medical insurance.
A) Family and Medical Leave Act
B) Pregnancy Discrimination Act
C) Comprehensive Omnibus Budget Reconciliation Act
D) American Disabilities Act
77) Which regulation listed below requires that most private employers continue
to make health benefits available to terminated or retired employees and their
families for a period of time?
A) Family and Medical Leave Act
B) Pregnancy Discrimination Act
C) Comprehensive Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act
78) The Pregnancy Discrimination Act ________.
A) requires employers to treat women affected by pregnancy, childbirth, or
related medical conditions the same as any employee not able to work, with
respect to all benefits, including sick leave and disability benefits, health and
medical insurance
B) covers pension plans and requires employers to have written plan documents
that establish terms such as eligibility and participation
C) prohibits an employer’s health plan from using incentives to encourage
employees to leave the hospital after childbirth after less than the legislatively–
determined minimum stay
D) sets minimum requirements for protecting individuals’ health-care data
accessibility and confidentiality
79) The Comprehensive Omnibus Budget Reconciliation Act requires most
private employers to continue to make health benefits available to terminated or
retired employees and their families for a period of time, generally ________.
A) 6 months
B) 12 months
C) 18 months
D) 24 months
80) The full retirement age according to Social Security for individuals born in
1960 or later is ________.
A) 62
B) 65
C) 67
D) 70
81) Social Security provides all of the following benefits except:
A) income if retirement is at age 62 or later and individual is insured under the
Social Security Act.
B) death benefits to surviving dependents for those insured under the Social
Security Act
C) Medicare.
D) income if retirement is at age 55 or later.
82) When an employer makes all of the contributions to the pension plan, the
pension plan is classified as ________.
A) qualified
B) non-qualified
C) defined contribution
D) non-contributory
83) Malcolm is interviewing for a new job and he is evaluating the quality of the
pension plans offered for each company he is considering. One company offers a
pension plan in which the company will make all contributions to the plan and
will base his pension benefit on a formula linked to his pay at the time of
retirement and the number of years he was with the firm. This pension plan could
be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, qualified
84) Jenny’s pension plan encourages her to contribute at least 5% of her annual
salary in addition to the set amount that her company contributes. She is given
choices regarding how the money is invested. When she retires, the amount she
has available will depend on how much she invested herself, and the rate of return
on the investments she chose. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, defined benefit
85) A defined contribution pension plan encourages employees to contribute a
portion of their earnings to the fund with an employer contribution that is matched
to that of the employee in whole or part is called a(n) ________.
A) savings and thrift plan
B) matching plan
C) deferred profit-sharing plan
D) employee stock ownership plan
86) ________ provide services like personal legal and financial counseling, child
care referrals, elder care referrals adoption assistance, mental health counseling,
and life event planning.
A) Social Security programs
B) Pension plans
C) Employee Assistance Programs
D) Family-friendly benefits
87) ________ seek to enable employees to better meet the demands of their
family and work lives.
A) Sick leave
B) Family-friendly benefits
C) Pay plans
D) Benefit management systems
88) ESOP is an incentive plan that ________.
A) uses a trust to hold stock in individual employee accounts and distributes it to
employees upon retirement
B) engages many or all employees in a common effort to achieve a company’s
productivity objectives with any resulting cost-savings gains shared among
employees and the company
C) contributes company shares of its own stock or cash to be used to purchase
company stock to a trust established to purchase shares of the firm’s stock for
employees
D) provides tax advantages for employees by deferring income taxes, often until
the employee retires
89) An employee stock ownership plan is an incentive plan that ________.
A) engages many or all employees in a common effort to achieve a company’s
productivity objectives with any resulting cost-savings gains shared among
employees and the company
B) focuses on the sharing of benefits between employer and employees
C) contributes company shares of its own stock or cash to be used to purchase
company stock to a trust established to purchase shares of the firm’s stock for
employees
D) involves the firm distributing total annual profits each year among employees
based on their merit rating
90) Plans that put some portion of the employee’s weekly pay at risk to encourage
goal attainment are called ________ pay plans.
A) at-risk variable
B) Rucker
C) Improshare
D) Scanlon
91) Financial benefits like employer-paid insurance and vacations are not a part of
employee compensation.
92) Historically, the main issue in collective bargaining is wage rates.
93) Indirect payments that contribute to an employee’s compensation include
variable pay, such as commissions and bonuses.
94) When employees work more than 40 hours per week, employers must pay
overtime at a rate of at least one and a half times the normal pay for any hours
worked over 40 in a workweek.
95) Because the minimum wage is set by the Fair Labor Standards Act, all states
adhere to that wage.
96) The Equal Pay Act states that employees of one sex may not be paid wages at
a rate lower than that paid to employees of the opposite sex for doing roughly
equivalent work.
97) While laws exist to protect against discrimination in compensation based on
gender and age, no law protects against such discrimination against persons with
disabilities.
98) The provision of the Family and Medical Leave Act that entitles employees to
take up to 12 weeks of unpaid, job-protected leave for the birth of a child only
applies to women.
99) Some employers may misclassify employees as independent contractors to
reduce the taxes they must pay.
100) External equity refers to how fair the job’s pay rate is, when compared to
other jobs within the same company.
101) The Equal Pay Act focuses on three compensable factors—know-how,
problem solving, and accountability.
102) The Sarbanes-Oxley Act of 2002 makes board members personally liable for
violating their fiduciary responsibilities to their shareholders.
103) All merit increases are cumulative in that they become a part of an
employee’s base salary.
104) A key advantage of employee stock ownership plans is that the company
gets a tax advantage equal to the fair market value of the shares that are
transferred to the trustee and can also claim an income tax deduction for
dividends paid on ESOP-owned stock.
105) The Scanlon plan is a type of gainsharing plan.
106) Scanlon plans involve putting some portion of an employee’s weekly pay at
risk for the opportunity to earn incentives if the employee meets or exceeds his or
her goals.
110) Job classification is the simplest of the job evaluation methods.
107) Competencies are demonstrable characteristics of a person including
knowledge, skills, and behaviors that enable performance.
108) The primary advantage of broadbanding is that it provides greater flexibility
into employee assignments.
109) About 99% of employers in the United States offer some form of health
insurance coverage.
110) Employee benefits account for about one-third of wages and salaries.
111) Workers’ compensation benefits can be medical or monetary.
112) If an employee is injured at work due to a blatant disregard for company
safety policies, the company is not required to pay workers’ compensation.
113) Women affected by pregnancy and childbirth are eligible for the same
benefits as disabled employees.
114) The American Disabilities Act makes it illegal for employers to discriminate
against women by providing benefits of a lower amount or duration for
pregnancy, childbirth, or related medical conditions.
115) The Comprehensive Omnibus Budget Reconciliation Act ensures that
employers are not responsible for making health benefits available to terminated
or retired employees and their families.
116) There is no limit to the amount an employee can contribute pre-tax into a
401(k) plan each year.
117) Broadbanding refers to the requirement to pay men and women equal wages
for jobs of comparable value to the employer.
118) List the steps used to establish pay rates while ensuring external, internal,
and procedural equity.
119) List the steps used in the job ranking method of job evaluation.
120) What are the steps for pricing jobs with a wage curve?
121) Explain the advantages of employee stock ownership plans.
122) Explain the purpose of sick leave and why sick leave pay causes difficulties
for many employers.
123) Why do employers provide severance pay to employees who are being
terminated? Offer at least three reasons. What standards guide the amount of
severance pay offered?
124) Explain the three types of benefits provided by Social Security.
125) Explain the three classifications that apply to basic pension plans.
126) Why are family-friendly benefits increasingly valuable to employees? What
are some examples of family-friendly benefits?
127) Briefly explain how an at-risk variable pay plan works.
