CPHR CPHR Employment Law and Compliance 2 — Questions and Answers
Question 1: What does the term 'at-will employment' mean in the context of US employment law?
- Either party can terminate employment at any time for any lawful reason (Correct answer)
- Employees can only be terminated for just cause
- Employers must provide notice before terminating employment
- Employment contracts are required for all workers
Correct answer: Either party can terminate employment at any time for any lawful reason
At-will employment means that either the employer or employee may end the employment relationship at any time, with or without cause, as long as the reason is not illegal.
Question 2: The Age Discrimination in Employment Act (ADEA) protects employees and job applicants who are at least how old?
- 40 years old (Correct answer)
- 50 years old
- 55 years old
- 60 years old
Correct answer: 40 years old
The ADEA protects individuals who are 40 years of age or older from discrimination based on age in hiring, promotion, discharge, compensation, and other terms of employment.
Question 3: Under COBRA, what right do employees have when they lose their employer-sponsored health insurance coverage?
- The right to continue coverage at their own expense for a limited period (Correct answer)
- The right to free coverage for 6 months
- The right to employer-subsidized coverage for 12 months
- The right to enroll in Medicare immediately
Correct answer: The right to continue coverage at their own expense for a limited period
COBRA allows employees who lose group health coverage due to qualifying events to continue that coverage for a limited time by paying the full premium themselves.
Question 4: Which law governs employee benefit plans and sets standards for pension plans, health plans, and other welfare benefit plans?
- Employee Retirement Income Security Act (ERISA) (Correct answer)
- Social Security Act
- Pension Benefit Guaranty Act
- Health Insurance Portability and Accountability Act
Correct answer: Employee Retirement Income Security Act (ERISA)
ERISA sets minimum standards for most voluntarily established retirement and health plans in private industry to protect individuals in these plans.
Question 5: What is the primary purpose of the National Labor Relations Act (NLRA)?
- To protect employees' rights to organize and bargain collectively (Correct answer)
- To set minimum wage standards
- To establish workplace safety requirements
- To regulate employee benefits
Correct answer: To protect employees' rights to organize and bargain collectively
The NLRA guarantees employees the right to form, join, or assist labor unions, bargain collectively with employers, and engage in concerted activities for mutual aid and protection.
Question 6: Under the Equal Pay Act, what must an employer demonstrate to justify paying men and women differently for substantially equal work?
- A legitimate factor such as seniority, merit, or production-based pay system (Correct answer)
- That the positions have different titles
- That the employees were hired at different times
- That different managers supervise each group
Correct answer: A legitimate factor such as seniority, merit, or production-based pay system
The Equal Pay Act allows wage differentials between men and women only when based on seniority, merit, quantity or quality of production, or any factor other than sex.
CPHR CPHR Employment Law and Compliance 2
What does the term 'at-will employment' mean in the context of US employment law?