PHR Total Rewards 2

Question 1

Under the FLSA, which test is NOT one of the standard exemption tests for the executive exemption?

Accepted Answer

Tenure test

Answer

Salary basis test

Answer

Salary level test

Answer

Duties test

Question 2

A company pays employees a flat amount per geographic area regardless of role. This best describes which pay strategy component?

Accepted Answer

Geographic differential

Answer

Pay compression

Answer

Red circle rate

Answer

Broadbanding

Question 3

Which type of benefit is mandated by federal law in the United States?

Accepted Answer

Social Security contributions

Answer

Dental insurance

Answer

Paid vacation

Answer

Tuition reimbursement

Question 4

An employee earns more than the maximum of their pay range due to a prior salary. What is this situation called?

Accepted Answer

Red circle rate

Answer

Green circle rate

Answer

Compa-ratio of 1.0

Answer

Pay equity adjustment

Question 5

What does a compa-ratio of 0.85 indicate about an employee's pay?

Accepted Answer

Pay is 85% of the range midpoint

Answer

Pay is 15% above midpoint

Answer

Pay equals the range maximum

Answer

Pay is below minimum wage

Question 6

Which equity vehicle gives employees the right to buy company stock at a set price in the future?

Accepted Answer

Stock options

Answer

Restricted stock units

Answer

Phantom stock

Answer

Employee stock purchase plan

Question 7

What is the primary purpose of a salary survey in total rewards?

Accepted Answer

To benchmark external market competitiveness

Answer

To calculate payroll taxes

Answer

To track internal promotions

Answer

To measure employee engagement