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Question 1

Which law requires equal pay for men and women performing substantially equal work?

Accepted Answer

Equal Pay Act of 1963

Answer

The Equal Pay Act of 1963 mandates equal pay for substantially equal work regardless of sex.

Question 2

A pay structure with very few wide salary bands instead of many narrow grades is called:

Accepted Answer

Broadbanding

Answer

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

Question 3

Which retirement plan places investment risk on the employer rather than the employee?

Accepted Answer

Defined benefit plan

Answer

A defined benefit (pension) plan guarantees a benefit and places investment risk on the employer.

Question 4

Pay compression most commonly results from which situation?

Accepted Answer

New hires being paid near or above existing staff

Answer

Pay compression occurs when new hires are paid close to or more than longer-tenured employees.

Question 5

Which federal law governs continuation of group health coverage after job loss?

Accepted Answer

COBRA

Answer

COBRA allows eligible employees to continue group health coverage after a qualifying event such as termination.

PHR Practice Test