HR Regulatory Frameworks & Compliance 5 — Questions and Answers
Question 1: Under ERISA, what is the primary fiduciary duty of an HR manager who administers a company health plan?
- Maximize cost savings for the company at all times
- Act solely in the interest of plan participants and beneficiaries (Correct answer)
- Follow IRS guidelines even if they conflict with participant interests
- Report plan data to the SEC annually
Correct answer: Act solely in the interest of plan participants and beneficiaries
ERISA imposes a fiduciary duty on plan administrators to act solely in the interest of plan participants and beneficiaries, with the exclusive purpose of providing benefits.
Question 2: A software engineer claims their manager retaliated against them for reporting a potential SOX violation. Which law protects this employee?
- FMLA anti-retaliation provisions
- SOX Section 806 whistleblower protection (Correct answer)
- Title VII anti-retaliation clause
- NLRA Section 8(a)(3)
Correct answer: SOX Section 806 whistleblower protection
SOX Section 806 protects employees of publicly traded companies who report potential securities law violations, mail/wire fraud, or SEC rule violations from retaliation.
Question 3: Which OSHA standard most directly applies to ergonomic injury prevention for software developers working at computer workstations?
- OSHA's General Duty Clause (Section 5(a)(1)) since no specific ergonomics standard exists (Correct answer)
- 29 CFR 1910.120 (Hazardous Waste Operations)
- 29 CFR 1910.147 (Lockout/Tagout)
- 29 CFR 1910.1200 (Hazard Communication)
Correct answer: OSHA's General Duty Clause (Section 5(a)(1)) since no specific ergonomics standard exists
OSHA revoked its ergonomics standard in 2001; employers are still obligated to address ergonomic hazards under the General Duty Clause, which requires a workplace free from recognized serious hazards.
Question 4: Under the Pregnant Workers Fairness Act (PWFA) effective 2023, what new obligation does a software company have regarding pregnant employees?
- Pregnant employees are automatically entitled to 6 months of paid leave
- Employers must provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related conditions (Correct answer)
- Pregnancy is now a protected class only in states with separate laws
- Employers must reassign pregnant developers to non-technical roles
Correct answer: Employers must provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related conditions
The PWFA (effective June 27, 2023) requires employers with 15+ employees to provide reasonable accommodations for limitations related to pregnancy, childbirth, or related conditions, even without a disability determination.
Question 5: A software company requires all employees to sign non-compete agreements. In which state would this agreement most likely be unenforceable?
- Texas
- Florida
- California (Correct answer)
- New York
Correct answer: California
California Business and Professions Code Section 16600 renders non-compete agreements void and unenforceable in almost all employment contexts.
Question 6: Which FTC rule, finalized in 2024, broadly bans non-compete clauses for most US workers including software developers?
- FTC Act Section 5 guidance memo
- FTC Non-Compete Clause Rule (though subject to legal challenges) (Correct answer)
- NLRA Section 7 expansion ruling
- DOL Final Rule on independent contractor classification
Correct answer: FTC Non-Compete Clause Rule (though subject to legal challenges)
The FTC finalized a rule in April 2024 banning non-compete clauses for most workers, though federal courts have issued injunctions blocking its enforcement pending litigation.
Question 7: Under the E-Verify program, when must a software company enroll if it wins a new federal contract subject to the FAR E-Verify clause?
- Within 180 days of contract award
- Within 30 days of contract award (Correct answer)
- Only upon employee request
- E-Verify enrollment is optional for all federal contractors
Correct answer: Within 30 days of contract award
The FAR E-Verify clause requires federal contractors to enroll in E-Verify within 30 days of contract award and begin verifying new hires and existing employees working on the contract.
HR Regulatory Frameworks & Compliance 5
Under ERISA, what is the primary fiduciary duty of an HR manager who administers a company health plan?