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 executive exemption requires the salary basis, salary level, and duties tests; there is no longevity 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

Broadbanding consolidates many narrow grades into a few wide bands to allow flexibility.

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

Pay compression occurs when little difference exists between the pay of new and experienced employees.

Question 4

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

Accepted Answer

COBRA

Answer

COBRA allows employees and dependents to continue group health coverage temporarily after qualifying events.

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

Under the fluctuating workweek method, overtime is paid at half-time (0.5) because straight time already covers all hours.

PHR Practice Test

PHR Practice Test

PHR Compensation and Benefits 2