Human Resource Management, 14e (Dessler)
Chapter 13 Benefits and Services
1) The indirect financial and nonfinancial payments employees receive for continuing their
employment with a company are called ________.
A) compensation
B) salary
C) benefits
D) remuneration
2) Nonfinancial payments like health and life insurance, pensions, time off with pay, and child
care facilities are examples of ________.
A) competency-based incentives
B) variable pay
C) benefits
D) bonuses
3) Which of the following benefits is required by federal or state law?
A) unemployment insurance
B) disability insurance
C) health insurance
D) pensions
4) All of the following benefits are required by federal or state law EXCEPT ________.
A) workers’ compensation
B) unemployment insurance
C) disability insurance
D) maternity leave
5) Which of the following terms refers to benefits for time not worked, such as unemployment
insurance, vacation and holiday pay, and sick pay?
A) supplemental pay benefits
B) employee assistance
C) financial incentives
D) premium benefits
6) Keith works as a construction foreman, and he is viewed as a reliable, competent employee.
Keith was recently injured in a car accident while on vacation, and his injuries are so severe that
he will not be able to return to work. Which of the following would most likely provide Keith
with benefits?
A) group life insurance
B) unemployment insurance
C) workers’ compensation insurance
D) supplemental unemployment benefits
7) Which of the following provides pay to an employee when he or she is temporarily out of
work because of illness?
A) sick leave
B) severance pay
C) supplemental pay
D) workers’ compensation
8) What is the maximum number of weeks of unpaid leave that an employee may take under the
Family and Medical Leave Act?
A) six
B) ten
C) twelve
D) sixteen
9) All of the following are true statements regarding the application of the Family and Medical
Leave Act EXCEPT ________.
A) employers must receive advance notice and medical certification from the employee
B) eligible employees must have worked for the employer for at least one year
C) employees must be employed at job sites with at least 50 employees
D) up to 12 weeks must be granted in a 12-month period
10) To be eligible for leave under the Family and Medical Leave Act, an employee must have
worked ________ hours during the past twelve consecutive months.
A) 850
B) 1000
C) 1250
D) 1600
11) Eric has worked full-time for a large manufacturing company for over three years. Eric and
his wife have recently adopted a baby, and Eric wants to take time off from work to care for the
child. Which of the following laws most likely applies to Eric’s situation?
A) Pregnancy Discrimination Act
B) Family and Medical Leave Act
C) Title VII of the Civil Rights Act
D) Health Insurance Portability and Accountability Act
12) The Family and Medical Leave Act ________.
A) provides guidelines regarding what rates of return employers should use in computing their
pension plan values
B) ensures that an employer must grant an employee up to 12 weeks of leave in a 12-month
period for the birth or care of a newborn child, placement of a child for adoption, to care for a
spouse, child, or parent with a serious health condition, or to care for the employee’s own serious
health condition
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
13) Which of the following is NOT an employer cost associated with granting leave to
employees under the Family and Medical Leave Act?
A) paying temporary workers
B) recruiting replacement workers
C) paying employee for time not worked
D) compensating for lower productivity of new workers
14) Rita was terminated from her position as an accounts manager with Carson Financial, Inc.
On her last day at work, Rita received a check for $3,500. Which of the following did Rita most
likely receive from Carson Financial?
A) merit pay
B) annual bonus
C) severance pay
D) performance pay
15) All of the following are typical reasons that employers provide severance pay when
downsizing EXCEPT ________.
A) reducing litigation chances
B) ensuring good public relations
C) reassuring remaining employees
D) adhering to government requirements
16) Elizabeth works at an auto manufacturing firm that recently shut down for five weeks to
change machinery. However, during the shutdown, Elizabeth was able to maintain her standard
of living because of the firm’s ________.
A) supplemental unemployment benefits
B) workers’ compensation insurance
C) disability insurance
D) severance pay
17) Who contributes funds for workers’ compensation benefits?
A) state governments
B) federal government
C) insurance providers
D) employers
18) Which of the following provides income and medical benefits to employment-related
accident victims or their dependents?
A) severance pay
B) family and medical leave
C) workers’ compensation
D) health insurance benefits
19) Employers must provide employees who have work-related injuries with all of the following
EXCEPT ________.
A) cash benefits
B) medical services
C) hospital services
D) time off with full pay
20) Which of the following conditions must be met for an injured employee to earn workers’
compensation from the employer?
A) The employee was injured while on the job.
B) The employee suffered the injury through no fault of his or her own.
C) The employee worked full-time for the employer for a minimum of 12 months.
D) The employee received adequate job training to understand the position’s requirements.
21) Which of the following is a popular workers’ compensation cost-control measure that
involves coordinating the medical care and health insurance coverage for each injured employee?
A) nurse management
B) case management
C) health maintenance
D) medical rehabilitation
22) Which health benefit is offered by almost all employers?
A) vision insurance
B) chiropractic insurance
C) prescription drug coverage
D) health maintenance organization
23) Which of the following is a prepaid health care system that provides medical services for
employees who pay a nominal fee?
A) PPO
B) HMO
C) DMO
D) ESOP
24) ________ 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) ADDs
25) The primary difference between health maintenance organizations and preferred provider
organizations is that ________.
A) PPOs are less costly than HMOs
B) HMOs are more flexible than PPOs
C) HMOs offer mental health services while PPOs do not
D) PPOs allow patients to choose from a list of doctors without referrals
26) All of the following are the most likely reasons that mental health costs are rising EXCEPT
________.
A) increased drug abuse within society
B) more mental health referrals by specialists
C) mental health claims triggering health care claims
D) laws requiring employers to offer mental health benefits
27) Which of the following sets minimum mental health care benefits?
A) Civil Rights Act
B) Employee Mental Health Act
C) Americans with Disabilities Act
D) Mental Health Parity Act
28) Which of the following 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) FMLA
B) COBRA
C) OSHA
D) ADA
29) The Consolidated Omnibus Budget Reconciliation Act ________.
A) 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
B) limits the ability of health plans to set annual or lifetime maximums on mental and nervous
disorder benefits
C) requires that most private employers continue to make health benefits available to terminated
or retired employees and their families for a period of time
D) sets minimum requirements for protecting individuals’ health-care data accessibility and
confidentiality
30) COBRA 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 ________
months.
A) 6
B) 12
C) 18
D) 24
31) Which of the following is NOT a true statement about the Protection and Affordable Care
Act of 2010?
A) Employers must offer health insurance coverage to employees who work at least 30 hours per
week.
B) Employers will be required to pay a 20% excise tax on high-cost health insurance plans.
C) Contributions to health care flexible spending accounts will be capped at $2,500.
D) Health plans with dependent coverage must expand eligibility up to age 26.
32) Which of the following represents the largest proportion of all reported disabilities?
A) respiratory diseases
B) cardiovascular diseases
C) mental illness
D) cancer
33) Which of the following 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?
A) Family and Medical Leave Act
B) Pregnancy Discrimination Act
C) Comprehensive Omnibus Budget Reconciliation Act
D) Health Insurance Portability and Accountability Act
34) Which of the following best describes the purpose of the Newborn Mother’s Protection Act?
A) guarantee pension plans and health insurance coverage for female employees who have
recently given birth
B) prohibit employer health plans from using incentives to encourage employees to leave the
hospital after childbirth sooner than legally required
C) prevent employers from discriminating against women affected by pregnancy or childbirth in
respect to benefits coverage
D) set minimum requirements for accessing the health records of female employees
35) All of the following are preventive services offered by employers as part of their wellness
programs EXCEPT ________.
A) anti-smoking incentives
B) low-cost immunizations
C) case management services
D) on-site primary care
36) In which of the following can employers and employees deposit pretax wages to pay for non-
catastrophic medical expenses?
A) health maintenance organizations
B) health benefits funds
C) health savings accounts
D) deferred savings plans
37) All of the following are health care cost-control methods used by employers EXCEPT
________.
A) requiring employees to pay high premiums
B) auditing medical claims for errors
C) requiring disability insurance
D) encouraging medical tourism
38) Which of the following provides lower rates for the employer or employee and includes all
employees regardless of health or physical condition?
A) workers’ compensation insurance
B) group life insurance
C) disability insurance
D) pension plans
39) Which of the following is LEAST likely to explain the growing percentage of part-time
workers?
A) economic recession
B) phased retirement programs
C) desire to better balance work and life
D) minimum wage increases
40) For individuals born in 1960 or later, the full retirement age for non-discounted Social
Security benefits is ________.
A) 62
B) 65
C) 67
D) 70
41) Social Security offers all of the following EXCEPT ________.
A) survivor’s benefits for those insured under the Social Security Act
B) disability payments to employees who become totally disabled
C) tax refunds for retirees who are 55 and older
D) Medicare program administration