Human Resources Compensation & Benefits

Question 1

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

Accepted Answer

Minimum wage, overtime pay, and child labor standards

Answer

The FLSA sets federal minimum wage, requires overtime pay at 1.5x for hours over 40 per week, and establishes child labor protections.

Question 2

Which FLSA classification exempts employees from overtime requirements?

Accepted Answer

Exempt

Answer

Exempt employees meet specific salary level and duties tests and are not entitled to overtime pay under the FLSA.

Question 3

What is 'compa-ratio' in compensation management?

Accepted Answer

An employee's actual pay divided by the midpoint of their pay range

Answer

Compa-ratio compares an employee's pay to the salary range midpoint, indicating where they fall relative to the market benchmark.

Question 4

What type of pay plan links employee compensation directly to productivity output?

Accepted Answer

Piece-rate pay

Answer

Piece-rate pay compensates employees for each unit they produce, directly tying earnings to individual productivity.

Question 5

Which benefit is required by federal law for most employers?

Accepted Answer

Social Security and Medicare (FICA)

Answer

Employers are federally required to pay Social Security and Medicare (FICA) taxes for employees.

Human Resources Practice Test