78) According to the FLSA, agricultural employees, live-in maids, and taxi drivers are always
eligible for overtime pay.
79) 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.
80) Portability rights refer to an employee’s ability to transfer his or her vested rights from one
organization to another.
81) While laws exist to protect against discrimination in compensation based on gender and age,
no law protects against such discrimination against persons with disabilities.
82) 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.
83) According to the court system, the test that distinguishes an independent contractor from an
employee is whether or not the firm provides the worker with health insurance benefits.
84) Wage rate has been the main issue negotiated by unions in collective bargaining.
85) A union is entitled to know the salary of each employee it is representing.
86) External equity refers to how fair the job’s pay rate is, when compared to other jobs within
the same company.
87) Studies indicate that paying employees too little reduces morale, while overpaying people
improves morale.
88) Salary surveys are used by firms to collect data on employee benefits as well as wage rates
for the purpose of pricing jobs.
89) The Equal Pay Act focuses on three compensable factors—know-how, problem solving, and
accountability.
90) An advantage of the job classification method is that the objective nature of the system
makes it easy to write the class and grade descriptions.
91) If a job evaluation committee uses the ranking method, then the pay grade consists of all jobs
that fall within two or three ranks.
92) Job evaluations are used to determine the pay scale of all employees in an organization from
hourly workers to the CEO.
93) Most organizations use a market-pricing approach when determining compensation for
professional employees such as engineers and scientists.
94) Advocates of competency-based pay assert that the system encourages employees to develop
the knowledge, skills, and behaviors a firm needs to achieve its strategic goals.
95) The primary advantage of broad banding is that it provides greater flexibility into employee
assignments.
96) In the broadest sense, comparable worth may mean comparing jobs that are very dissimilar
such as nursing to fire fighting.
97) A key issue in comparable worth is whether women should be paid equal wages for jobs that
are truly equal to men’s or just comparable to men’s jobs.
98) Large corporations are more likely than small businesses to use a market-based approach to
setting pay rates because it is easier for a large firm to conduct formal job evaluations.
99) Due to federal legislation, greater opportunities for higher learning, and more women in the
workforce, women in the U.S. earn approximately 90% as much as men.
100) Competency-based pay systems offer employers more flexibility but are less efficient than
traditional job evaluation methods.
101) What are the two primary ways to make direct financial payments to employees? How does
compensation for managers or professionals differ from compensation for clerical or production
workers at a firm?
102) What are the advantages for employers of claiming that someone doing work for them is an
independent contractor rather than an employee?
103) What are your compensation options if you are an employer who needs to transfer an
employee from a low cost-of-living area to a high cost-of-living area?
104) Explain the equity theory of motivation. What are the four forms of equity?
105) In a brief essay, discuss the purpose of job evaluations. Discuss the similarities and
differences between job evaluations conducted for managerial positions and lower level positions
at a firm.
106) The point method of job evaluation is the most frequently used job evaluation method, but
it is also associated with lawsuits involving comparable worth. In a brief essay, explain the point
method of job evaluation and why it is problematic for firms in regards to comparable worth.
107) In a brief essay, compare and contrast the use of pay ranges with broadbanding.
108) What are the primary factors involved in determining compensation for a firm’s CEO?
What reasons best explain compensation reductions for top executives in recent years?
109) What are the key differences between competency-based pay and traditional job-based pay?
Which method would you prefer if you were an employee? Why?
110) What are the five main elements of a competency-based pay plan?