NASCLA Labor Laws and Employment Practices 2 — Questions and Answers
Question 1: Workers' compensation insurance is primarily designed to cover which of the following for a contractor's employees?
- Property damage caused by employees on the job
- Medical expenses and lost wages for employees injured on the job (Correct answer)
- Liability for injuries sustained by third parties at the worksite
- Equipment damage resulting from employee negligence
Correct answer: Medical expenses and lost wages for employees injured on the job
Workers' compensation provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses, regardless of fault.
Question 2: What is the primary purpose of a payroll tax deposit schedule established by the IRS?
- To determine how much to withhold from each paycheck
- To ensure timely remittance of withheld taxes to the IRS (Correct answer)
- To calculate quarterly bonuses for employees
- To set employee pay periods for the calendar year
Correct answer: To ensure timely remittance of withheld taxes to the IRS
The IRS deposit schedule requires employers to remit withheld payroll taxes on a monthly or semi-weekly basis to avoid late-deposit penalties.
Question 3: Under the Family and Medical Leave Act (FMLA), eligible employees at covered employers are entitled to how many weeks of unpaid, job-protected leave per year?
- 6 weeks
- 8 weeks
- 12 weeks (Correct answer)
- 16 weeks
Correct answer: 12 weeks
FMLA provides eligible employees up to 12 weeks of unpaid, job-protected leave per year for qualifying family and medical reasons.
Question 4: Which of the following correctly describes the employer's Federal Unemployment Tax Act (FUTA) obligation?
- Both employer and employee contribute equally to FUTA
- Only the employee pays FUTA through payroll deductions
- Only the employer pays FUTA; it is not deducted from employee wages (Correct answer)
- FUTA is paid jointly by the employer and the state government
Correct answer: Only the employer pays FUTA; it is not deducted from employee wages
FUTA is strictly an employer-paid tax; it comes entirely from employer funds and cannot be withheld or deducted from employee wages.
Question 5: A contractor misclassifies employees as independent contractors. What is a primary consequence of this misclassification?
- The contractor may owe back payroll taxes, penalties, and interest to the IRS (Correct answer)
- The contractor is only responsible for state-level fines and penalties
- Workers permanently lose all rights to unemployment benefits
- The IRS typically resolves misclassification with a warning letter
Correct answer: The contractor may owe back payroll taxes, penalties, and interest to the IRS
Misclassifying employees as independent contractors can result in substantial back payroll taxes owed, plus significant IRS penalties and interest.
Question 6: Which required workplace poster informs employees of their federal minimum wage and overtime rights under federal law?
- OSHA Job Safety and Health poster
- EEOC 'Know Your Rights' poster
- DOL 'Employee Rights Under the Fair Labor Standards Act' poster (Correct answer)
- IRS Taxpayer Rights poster
Correct answer: DOL 'Employee Rights Under the Fair Labor Standards Act' poster
The Department of Labor's FLSA poster must be displayed conspicuously in the workplace and informs employees of their minimum wage, overtime, and child labor protections.
Question 7: Under OSHA regulations, how soon must an employer report a work-related fatality to OSHA after learning of the incident?
- Within 24 hours
- Within 48 hours
- Within 8 hours (Correct answer)
- Within 72 hours
Correct answer: Within 8 hours
OSHA requires employers to report all work-related fatalities within 8 hours of finding out about the incident, and in-patient hospitalizations within 24 hours.
NASCLA Labor Laws and Employment Practices 2
Workers' compensation insurance is primarily designed to cover which of the following for a contractor's employees?