CPM Employment Law & Ethical Practices 3 — Questions and Answers
Question 1: The Equal Employment Opportunity Commission (EEOC) requires employers to post notices about employee rights. Which law mandates this posting requirement?
- The National Labor Relations Act
- Title VII, ADA, ADEA, and other EEOC-enforced statutes (Correct answer)
- The Employee Retirement Income Security Act (ERISA)
- The Occupational Safety and Health Act
Correct answer: Title VII, ADA, ADEA, and other EEOC-enforced statutes
EEOC-enforced laws require employers to post the 'Know Your Rights' notice informing employees of their federal anti-discrimination rights.
Question 2: A supervisor regularly tells inappropriate jokes about religion in front of employees, even after being asked to stop. This most likely constitutes:
- Protected free speech in the workplace
- Hostile work environment harassment under Title VII (Correct answer)
- A minor conduct issue addressed through coaching only
- Legal behavior unless a formal complaint is filed
Correct answer: Hostile work environment harassment under Title VII
Persistent unwelcome religious jokes that alter working conditions can rise to the level of hostile work environment harassment.
Question 3: Which federal law establishes the minimum standards for pension and health benefit plans offered by private employers?
- Family and Medical Leave Act (FMLA)
- Employee Retirement Income Security Act (ERISA) (Correct answer)
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Health Insurance Portability and Accountability Act (HIPAA)
Correct answer: Employee Retirement Income Security Act (ERISA)
ERISA sets fiduciary responsibilities and minimum participation, vesting, and funding standards for private employer benefit plans.
Question 4: When conducting a background check on a job applicant under the Fair Credit Reporting Act (FCRA), what must an employer do before taking adverse action based on the report?
- Notify the EEOC of the background check results
- Provide the applicant a pre-adverse action notice and a copy of the report (Correct answer)
- Immediately inform the applicant they are disqualified
- Obtain a court order to use the background check information
Correct answer: Provide the applicant a pre-adverse action notice and a copy of the report
FCRA requires a pre-adverse action notice, a copy of the report, and a summary of rights before taking adverse action based on a consumer report.
Question 5: An ethical manager who becomes aware of a colleague falsifying performance evaluations to benefit a friend should first:
- Confront the colleague publicly in a team meeting
- Report the concern through appropriate internal channels such as HR or an ethics hotline (Correct answer)
- Ignore it as it does not directly affect their own team
- Document the behavior and wait until annual review season
Correct answer: Report the concern through appropriate internal channels such as HR or an ethics hotline
Ethical obligations require reporting known misconduct through proper internal channels to protect the integrity of the organization and affected employees.
Question 6: Which FLSA classification correctly describes an employee who sets their own hours, uses their own tools, works for multiple clients, and controls how they complete work?
- Exempt employee
- Non-exempt employee
- Independent contractor (Correct answer)
- Part-time employee
Correct answer: Independent contractor
The economic realities and ABC tests for independent contractor status consider control over work, investment in tools, and ability to work for multiple clients.
Question 7: Under the Age Discrimination in Employment Act (ADEA), which group of employees is protected from discrimination in hiring, firing, pay, and other employment terms?
- Employees of any age who are treated differently from younger colleagues
- Employees and applicants who are 40 years of age or older (Correct answer)
- Employees over age 50 at companies with 100 or more workers
- Retirees seeking re-employment regardless of age
Correct answer: Employees and applicants who are 40 years of age or older
The ADEA protects individuals who are 40 years of age or older from age-based discrimination in all aspects of employment.
CPM Employment Law & Ethical Practices 3
The Equal Employment Opportunity Commission (EEOC) requires employers to post notices about employee rights.
Which law mandates this posting requirement?