HRCI Compensation and Benefits

Question 1

What does the Fair Labor Standards Act (FLSA) establish regarding overtime pay?

Accepted Answer

Non-exempt employees must receive 1.5× their regular rate for hours over 40 per workweek

Answer

All employees must be paid overtime for hours over 8 per day

Answer

Exempt employees must receive overtime after 50 hours per week

Answer

Overtime is voluntary and need not be compensated

Question 2

What is a 'salary band' (also called a pay grade or range)?

Accepted Answer

A defined minimum and maximum compensation range for a job or job group

Answer

A fixed salary that cannot change

Answer

A government-mandated pay scale for federal contractors

Answer

A union-negotiated wage table

Question 3

What is the concept of 'total rewards' in compensation strategy?

Accepted Answer

The combination of base pay, incentives, benefits, work-life programs, and development opportunities

Answer

Only the employee's gross wages before deductions

Answer

The value of stock options granted annually

Answer

A retirement plan contribution matching formula

Question 4

Which law governs the administration of private-sector employee benefit plans including health and retirement?

Accepted Answer

Employee Retirement Income Security Act (ERISA)

Answer

COBRA

Answer

HIPAA

Answer

ACA

Question 5

What is 'pay equity' analysis designed to identify?

Accepted Answer

Unjustified pay disparities between employees in similar roles based on gender, race, or other protected characteristics

Answer

The difference between a company's highest and lowest salaries

Answer

Whether the company's pay is competitive with market benchmarks

Answer

The percentage of payroll spent on incentive compensation

Question 6

What is a 'defined contribution' retirement plan?

Accepted Answer

A plan where the employer and/or employee contributes a set amount and investment risk is borne by the employee

Answer

A plan where the employer guarantees a fixed monthly benefit at retirement

Answer

A plan funded entirely by the government

Answer

A plan that only covers executive employees