PHR Compensation and Benefits 2

Question 1

Under the FLSA, which test is NOT one of the criteria for an employee to qualify for the executive exemption?

Accepted Answer

The longevity test

Answer

The salary basis test

Answer

The salary level test

Answer

The duties test

Question 2

A compensation structure with overlapping pay grades that are very wide and few in number is best described as:

Accepted Answer

Broadbanding

Answer

Red-circling

Answer

Pay compression

Answer

Step structure

Question 3

When a long-tenured employee's pay is close to or higher than a newly hired employee's pay for similar work, this is called:

Accepted Answer

Pay compression

Answer

Wage drift

Answer

Green-circling

Answer

Pay leadership

Question 4

Which federal law requires employers to provide continuation of group health coverage after qualifying events such as termination?

Accepted Answer

COBRA

Answer

ERISA

Answer

HIPAA

Answer

FMLA

Question 5

An employee earning $1,000/week works 50 hours under a fluctuating workweek agreement. The overtime is calculated using which multiplier on the regular rate?

Accepted Answer

0.5

Answer

1.5

Answer

2.0

Answer

1.0

Question 6

Which type of benefit is legally required (mandatory) for most U.S. employers?

Accepted Answer

Social Security contributions

Answer

Dental insurance

Answer

Paid vacation

Answer

Tuition reimbursement

Question 7

A compensation philosophy of 'leading the market' means an employer:

Accepted Answer

Pays above the market median

Answer

Pays at the market median

Answer

Pays below the market median

Answer

Ignores market data entirely