aPHR Compensation and Benefits 5

Question 1

Which pay philosophy positions an organization's compensation at the 75th percentile of the market?

Accepted Answer

Lead strategy

Answer

A lead strategy sets pay above the market median to attract top talent, while a lag strategy pays below market and a match strategy aligns with the median.

Question 2

What is the term for the range between the minimum and maximum of a pay grade?

Accepted Answer

Pay spread

Answer

The pay spread (or range spread) is the percentage difference between the minimum and maximum of a pay grade, typically ranging from 50% to 150%.

Question 3

An employee's salary is $55,000, and the midpoint of their pay grade is $50,000. What is the compa-ratio?

Accepted Answer

1.10

Answer

Compa-ratio = employee salary ÷ pay grade midpoint; $55,000 ÷ $50,000 = 1.10, meaning the employee is paid 10% above midpoint.

Question 4

Which law established the first federal minimum wage and mandated overtime pay at 1.5 times the regular rate?

Accepted Answer

Fair Labor Standards Act (FLSA)

Answer

The FLSA of 1938 established the federal minimum wage, overtime pay standards, recordkeeping, and child labor laws.

Question 5

Under COBRA, how long may a qualified beneficiary typically continue group health coverage after a qualifying event such as termination of employment?

Accepted Answer

18 months

Answer

COBRA generally allows qualified beneficiaries to continue group health coverage for up to 18 months after a qualifying event like job loss.

aPHR - Associate Professional in Human Resources Practice Test

aPHR - Associate Professional in Human Resources Practice Test

aPHR Compensation and Benefits 5