CBP Compensation and Total Rewards 3

Question 1

Which federal law requires employers to pay employees at least $7.25 per hour as of 2024 (federal minimum wage)?

Accepted Answer

Fair Labor Standards Act (FLSA)

Answer

ERISA

Answer

Davis-Bacon Act

Answer

Equal Pay Act

Question 2

What is a Restricted Stock Unit (RSU) in executive compensation?

Accepted Answer

A promise to deliver company shares upon satisfaction of vesting conditions

Answer

A stock option with a below-market exercise price

Answer

A stock purchase plan open to all employees

Answer

A cash award tied to stock price performance

Question 3

What does a 'total compensation statement' communicate to employees?

Accepted Answer

The full monetary value of all compensation and benefits components provided by the employer

Answer

Only the employee's base salary and projected raises

Answer

The employer's retirement plan investment performance

Answer

The employee's tax withholding summary

Question 4

Pay equity analysis helps employers identify and address what type of compensation problem?

Accepted Answer

Unjustified pay disparities based on gender, race, or other protected characteristics

Answer

Pay compression between senior and junior employees

Answer

Over-market pay rates for key talent

Answer

Under-utilization of variable pay programs

Question 5

Which type of pay increase is based on movement in the Consumer Price Index and is designed to maintain purchasing power?

Accepted Answer

Cost-of-living adjustment (COLA)

Answer

Merit increase

Answer

Step increase

Answer

Market adjustment

Question 6

What is 'pay compression' in compensation management?

Accepted Answer

A situation where pay differences between levels or tenure groups are very small or non-existent

Answer

The narrowing of salary ranges over time

Answer

The elimination of variable pay components

Answer

Compressing all pay grades into one broadband