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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. How does the Fair Labor Standards Act require employers to pay their nonexempt employees?

A) Time and a half for all hours worked over 40 in the workweek
B) Double time for work on Saturday
C) Time and a half for all hours worked over 8 in the workday
D) Double time for time worked on Sunday

2. Which of the following are the two primary elements of benefits?

A) Unemployment and disability
B) Defined contribution and defined benefits plans
C) Pay for time not worked and income protection programs
D) Mental health coverage and health care coverage

3. Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

A) Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.
B) Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.
C) Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.
D) Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.

4. Which type of base pay is typically based on an individual employee's rate of production?

A) Salary
B) Piece rate
C) Production rate
D) Hourly rate

5. As a general rule, what are individual contributors most likely to ask about their compensation?

A) How the company sets compensation budgets
B) How their pay compares to co-workers
C) How the company makes pay decisions that affect them
D) What the take-home pay will be

Solutions: