Compensation and Benefits Flashcards

Which vesting schedule fully vests an employee's employer contributions after exactly three years of service, with nothing before?

Answer: Cliff vesting

Cliff vesting grants 100% ownership at a single point in time with no partial vesting beforehand.

A nonexempt employee's regular rate of pay for overtime must include which of the following?

Answer: Nondiscretionary bonuses

Nondiscretionary bonuses must be included when calculating the regular rate for overtime.

The compa-ratio of an employee paid $60,000 in a range with a $50,000 midpoint is approximately:

Answer: 1.20

Compa-ratio = salary ÷ midpoint = 60,000 ÷ 50,000 = 1.20.

Which type of stock plan gives employees the right to buy company shares at a fixed price after a vesting period?

Answer: Stock options

Stock options grant the right to purchase shares at a set exercise price after vesting.

Under the ACA, applicable large employers must offer affordable coverage to full-time employees working at least how many hours per week on average?

Answer: 30

The ACA defines a full-time employee as one averaging at least 30 hours per week.

When an employee is paid above the maximum of their pay range, the employer may 'red-circle' the rate, which means:

Answer: Freezing the pay until the range catches up

Red-circling freezes an above-range salary until range adjustments bring it within bounds.

Which benefit provides income replacement to employees who are injured on the job, regardless of fault?

Answer: Workers' compensation

Workers' compensation provides no-fault income and medical benefits for work-related injuries.