COA Regulatory Compliance & Guidelines 3 — Questions and Answers
Question 1: Which document must a new employee complete to establish their eligibility to work legally in the United States?
- W-4 Employee's Withholding Certificate
- I-9 Employment Eligibility Verification form (Correct answer)
- W-9 Request for Taxpayer Identification Number
- SS-4 Application for Employer Identification Number
Correct answer: I-9 Employment Eligibility Verification form
The Form I-9 is required by federal law for all new hires to verify their identity and authorization to work in the United States.
Question 2: Under Section 504 of the Rehabilitation Act, which organizations are primarily covered by its nondiscrimination requirements?
- All private businesses with more than 15 employees
- Organizations receiving federal financial assistance (Correct answer)
- Only federal government agencies and departments
- Businesses operating in interstate commerce
Correct answer: Organizations receiving federal financial assistance
Section 504 of the Rehabilitation Act prohibits discrimination based on disability in programs and activities receiving federal financial assistance.
Question 3: An office is disposing of old hard drives containing employee personal data. Which compliance concern is MOST relevant?
- Occupational Safety and Health Administration (OSHA) regulations
- Environmental Protection Agency (EPA) disposal regulations only
- Data privacy laws requiring secure destruction of personal information (Correct answer)
- Federal Communications Commission (FCC) telecommunications rules
Correct answer: Data privacy laws requiring secure destruction of personal information
Disposing of storage media with personal data must comply with data privacy laws (such as state breach notification laws and HIPAA if applicable) requiring secure destruction to prevent unauthorized access.
Question 4: What is the primary purpose of an organization's whistleblower protection policy?
- To prevent employees from discussing salaries with coworkers
- To protect employees from retaliation when reporting illegal or unethical conduct (Correct answer)
- To allow management to monitor employee communications for compliance
- To establish disciplinary procedures for policy violations
Correct answer: To protect employees from retaliation when reporting illegal or unethical conduct
Whistleblower protection policies safeguard employees who report suspected violations of laws, regulations, or company policies from retaliation by their employer.
Question 5: Which of the following actions would constitute sexual harassment under Title VII guidelines?
- A supervisor giving critical performance feedback to a subordinate
- A coworker repeatedly making unwanted sexual comments after being asked to stop (Correct answer)
- Enforcing a dress code that applies equally to all employees
- Assigning overtime shifts based on seniority
Correct answer: A coworker repeatedly making unwanted sexual comments after being asked to stop
Repeated unwanted sexual comments after the behavior has been flagged as unwelcome constitutes hostile work environment sexual harassment under Title VII.
Question 6: Under the Sarbanes-Oxley Act (SOX), which employees at publicly traded companies can face criminal liability for certifying false financial statements?
- Only external auditors and accounting firms
- Any employee with access to financial systems
- The CEO and CFO who must personally certify financial reports (Correct answer)
- The board of directors as a collective body
Correct answer: The CEO and CFO who must personally certify financial reports
SOX Section 302 requires the CEO and CFO to personally certify the accuracy of financial reports, and they can face criminal penalties for knowingly certifying false statements.
Question 7: A company's record retention policy specifies that contracts must be kept for 7 years. An employee wants to destroy a 5-year-old contract. What should the administrator do?
- Allow the destruction since the employee requested it
- Destroy the document if no active litigation involves it
- Retain the document because it has not yet met the required retention period (Correct answer)
- Seek approval from the contract's external party before deciding
Correct answer: Retain the document because it has not yet met the required retention period
Record retention policies establish minimum timeframes for keeping documents, and a 5-year-old contract that requires 7-year retention must be kept for at least 2 more years.
COA Regulatory Compliance & Guidelines 3
Which document must a new employee complete to establish their eligibility to work legally in the United States?