FLSA Exemptions and Compensation Regulations, Exams of Nursing

Download FLSA Exemptions and Compensation Regulations and more Exams Nursing in PDF only on Docsity! HRCI-SPHR/PHR EXAM STUDYGUIDE AND PRACTICE EXAM QUESTIONS AND 100% CORRECT ANSWERS | A+ GRADE 2024-2025 FLSA governs types of work 16 & 18 year olds can do. What are the regulations? Correct Answer child must be at least 16 years old to work in most non-agricultural jobs and at least 18 years old to work in a hazardous job The FLSA Correct Answer The Act established specific minimum requirements for employees' wages, hours of work, overtime entitlement, and payroll records The FLSA Correct Answer outlines administrative procedures by which covered work time must be compensated. Included in the Act are provisions relating to equal pay, child labor, and record-keeping standards Exempt employees Correct Answer receive an established monthly or annual salary and are expected to fulfill the duties of their positions regardless of the hours worked. Non-exempt employees Correct Answer under the FLSA, must be paid overtime at the premium (time-and-one- half) for actual time worked in excess of 40 hours per week To be considered exempt from FLSA requirements, what two criteria must be met? Correct Answer Salary Basis Test and Duties Test To be considered exempt from FLSA requirements, What does the Salary Basis Test include: Correct Answer (a) must be paid at least $684 per week on a salary basis; (b) must receive full, predetermined salary for any week in which the employee performs work regardless of number of days or hours worked or quality or quantity of work, and (c) are not paid overtime, being expected to work until the job is completed without additional compensation To be considered exempt from FLSA requirements, What does the Duties Test include: Correct Answer (a) paid minimum salary; (b) paid on a salary basis and (c) meets the primary duties for a specific exemption What are the FLSA Exemptions: Correct Answer (a) Executive Exemption; (b) Administrative Exemption; (c) Professional Exemption (Learned and Creative Professional); (d) Computer Employee Exemption; (e) Outside Sales Exemption What are the (4) FLSA Record Keeping requirements: Correct Answer 1. Maintain complete and current payroll records - organizations covered by the FLSA are required to keep specific demographic information, including name, social security number, and hours worked, for each employee; 2. Retain records for the required duration - FLSA regulations require records to be retained for two or What are the 5 steps when implementing a strategic compensation plan? Correct Answer 1. consider priorities and goals 2. evaluate jobs 3. forecast the compensation market 4. create a pay structure, and 5. administer compensation Central Tendency Correct Answer are used to help analyze pay survey information 3 measures of central tendency are: Correct Answer mean (average), median, and mode Mean Correct Answer the mean is the average of a set. To calculate the mean, add all the values (numbers) in a series and divide the total by the number of values Median Correct Answer the median is the middle most number of a series of numbers once placed in numerical order Mode Correct Answer the mode is the most frequently occurring member of a set The Equal Pay Act (EPA) Correct Answer is enforced by the Equal Employment Opportunity Commission (EEOC) Age Discrimination in Employment Act (ADEA) Correct Answer prohibits discrimination against employees or job- seekers based on age. The act protects all persons 40 years of age or older. It prevents organizations from hiring or promoting younger workers simply because they may be with the organization for longer. It protects workers from exclusion solely on the basis of age. In regards to compensation, the pay systems used cannot discriminate against older workers. Work Opportunity Tax Credit (WOTC) Correct Answer is a federal tax credit that is designed to encourage organizations to hire specific employees who are part of certain group Retirement Equity Act (REA) Correct Answer provides legal protections for spousal benefits of retirement plans. More specifically, it lowered age limits for participation and vesting in pension plans. It also required written approval from a spouse if the participant did not want to provide survivor benefits in the plan American Recovery and Reinvestment Act (ARRA) Correct Answer applies to any contract where the federal, state, or local government uses funds from ARRA and has implications for reporting, disclosure, auditing procedures, fraud and abuse hotlines, whistleblower protections, and small business programs Patient Protection and Affordable Care Act (PPACA) Correct Answer requires group health plans to provide dependent children coverage (for those up to 26) Older Workers' Benefits Protection Act (OWBPA) Correct Answer This Act applies to workers 40 years of age or older, and requires the employer to include several additional terms in a severance agreement/release Older Workers' Benefits Protection Act (OWBPA) specifies: Correct Answer (a) that the employer must advise the worker, in writing, to get legal counsel before signing the release; (b) the worker must be given at least 21 days to consider the release before signing and (c) 45 days when they are part of an exit incentive or group termination program, where additional disclosures are also required. (d) It even provides that the worker can revoke the agreement for seven days after signing What are the 5 steps in a benefits needs assessment? Correct Answer 1. Review the Orgs Strategy 2. Review the Orgs approach to total rewards 3. Examine the Orgs workforce demographics 4. Analyze the design and utilization of current benefits program 5. Gap Analysis What is used to gather data for benefits needs assessments? Correct Answer 1. Questionnaires and surveys (Rating Scales are used to help prioritize EE's interests and wants) 2. Benchmarking (orgs can look at other orgs and groups regarding their benefits program) 3. Trend Analysis can be used to identify patterns in their performance 2 Bonus Types: Correct Answer Discretionary and Non- Discretionary Discretionary Correct Answer are not included in OT cals i.e. spot awards, achievement awards Non-Discretionary Correct Answer are included in the OT cals i.e. shift differenitals, skill competency bonus How to calculate OT? Correct Answer 1. Determine the Base Rate 2. Compute Base Time Pay 3. Determine the Half Rate 4. Compute the Half Time Pay 5. Calculate the Total Pay OT Cals: Jan receives a base rate of $12 per hour. She worked 44 hours last week. What was her earned pay for the week? Correct Answer 1. Base Rate $12/hr 2. Base Time: 44 hrs x $12/hr =$528 3. Half Rate: $12/hr x 1/2 = $6/hr 4. Half Time: 4 hrs x $6/hr = $24 5. Total pay: Base Time + Half time = $528 +$24 =$552 Job Analysis Correct Answer A comprehensive study of a job and process of gathering all the in-depth info on a position that makes way into the job description and job specification Job Evaluation Correct Answer Determines the relative internal value of the job and a process of determing the worth of one job in relation to that of the other jobs in a company so that fair & equitable wage & salary can be established Job Description Correct Answer A brief list of essential elements of a job and a general summary of the tasks, duties, qualifications & responsibilities of a position Job Specification Correct Answer Identifies the KSAs need to perform a job and defines the type of person best suited for an opening Compa-Ratio Correct Answer the actual salary of the ee divided by the midpoint of the grade Davis-Bacon Act Correct Answer Requires contractors using federal funds to pay wages and fringe equal to or greater than the local market wage What is the HR Significance of the Davis-Bacon Act? Correct Answer Applies if receiving federal funds for work or projects Walsh-Healey Act Correct Answer Establishes the time- and-a-half overtime rule for hours in excess of 40 in a week for nonexempt employees What is the HR Significance of the Walsh-Healey Act? Correct Answer Must properly classify employees and track hours worked for nonexempt employees Portal-to-Portal Act Correct Answer Created general rules for compensatory time What is the HR Significance of the Portal-to-Portal Act? Correct Answer Understanding when employees are on "company time" for pay purposes and when developing policy Dodd-Frank Wall Street Reform and Consumer Protection Act Correct Answer Creates rules for executive compensation to include reporting and provisions for recapturing certain compensation in cases of misconduct or highly substandard performance What is the HR Significance of Dodd-Frank Wall Street Reform & Consumer Protection Act? Correct Answer Important when establishing executive compensation packages and employment contracts Sarbanes-Oxley Act (SOX) Correct Answer Places restrictions on executives and administrators of benefits plans within public companies to prevent certain transactions that would create unfair or illegal business earnings for benefits programs such as company stock What is the HR Significance of Sarbanes-Oxley Act (SOX)? Correct Answer Necessitates the monitoring of plans and ensuring compliance by all company leaders that are involved with benefits plans The Wage and Hour Division of the Department of Labor Correct Answer is chiefly responsible for the enforcement of many of the provisions of the FLSA and is a primary source for clarification on rules, interpretations, and requirements of employers The Employee Retirement Income Security Act (ERISA) Correct Answer is the key legislation that governs actions concerning a company's benefits, establishing minimum controls and ensuring that benefit plans are administered in a financially responsible way Family and Medical Leave Act (FMLA) Correct Answer applies to organizations with 50 or more employees for at least 20 weeks of the current or preceding calendar year. The Copeland "Anti-Kickback " Act Correct Answer was established in 1934 to prevent federal contractors and/or subcontractors from getting employees to "kick-back" a portion of their earnings. Penalties include a five-year prison term, and/or a $5000 fine The Service Contract Act Correct Answer builds further on Davis-Bacon by extending prevailing wage and benefit rates to service providers with contacts with the federal government for more than $2,500 each. Service employees outlined in the act include security guards and others in some kind of recognized service trade. What is the Business Life Cycle? Correct Answer 1. Start up 2. Growth 3. Maturity 4. Decline 5. Demise Job Enlargement Correct Answer increase in the # of taks that an EE performs associated with the design of jobs to reduce the EE dissatisfaction Job Enrichment Correct Answer act of making fuller or more meaningful or rewarding Non-Qualified Plans for Executive Compensation include: Correct Answer Rabbi Trust, Split Dollar Life Insurance and Top Hat Plan Defined Contributions other Tax Deferred Plans are: Correct Answer IRA, SIMPLE, Simplified Pension (SEP), 401K, 403b, Keogh, ESOPs Name the Types of Reward Strategies: Correct Answer Equity Theory (Adams); Expectancy Theory (Vroom); Hierarchy of Needs (Maslows); Reward Theory (Reinforcement Theory); Goal-Setting (MOB) Intrinsic Rewards Correct Answer are psychological and intellectual rewards inherent to the job i.e. gain a sense of accomplishment Extrinsic Rewards Correct Answer are derive from sources external to the job i.e. financial rewards, positive feedback Gainsharing Plans are Correct Answer Scanlon plan, The Rucker plan and Improshare Group incentives encompass Correct Answer gainsharing, team incentives, cash profit sharing plans and combination plans Types of Budgets: Correct Answer Zero-Based Budget; Formula-based Budget; Incremental Budgeting; Rolling Budget and Capital Budget Balance Sheet Correct Answer is a financial statement that summarizes a company's Assets, Liabilities and Shareholders' Equity. Also, provides investors idea as to what the company owns, owes and the amount invested by shareholders. Profit & Loss Statement (P&L) or Income Statement Correct Answer Financial statement that summarizes the Revenues, Costs and Expenses incurred during a specific period of time, i.e. fiscal quarter or year Statement of Cash Flow Correct Answer a financial statement issued by the company that describes the cash flows into and out of the org Green Circle Rates Correct Answer Wages that are lower than the bottom of the pay grade Under FMLA, what is the number of unpaid workweeks allowed for certain events during a 12-month period? Correct Answer 12 unpaid workweeks Under FMLA, what is the number of unpaid workweeks allowed for next of kin of a covered service member? Correct Answer 26 unpaid workweeks FMLA can be taken within what time period? Correct Answer 12-month period Under COBRA, how many months of coverage are allowed due to termination of employment or reduced hours? Correct Answer 18 months of coverage Under COBRA coverage, how many months of coverage is allowed for disability? Correct Answer 18 months + 11 month disability extension = 29 months Under COBRA coverage, how many months of coverage is allowed for a death of employee, divorce or separation, Medicare enrollment or Loss of dependent status? Correct Answer 36 months of coverage Under the Sarbanes-Oxley Act, what are the number of days in advance an employer must notify employees prior to a blackout period? Correct Answer At least 30 and no more than 60 days in advance Annual Benefits Statements under the ERISA Correct Answer ERs are required to provide participants in qualified plans specific information about the status of their projected pension income or account balances Annuity Correct Answer a form of investment plan provided as a retirement plan that provides income for a specified period of time, such as a number of years or for life Automatic Wage Adjustment Correct Answer automatically increasing or decreasing wages according to a specific plan formula Automatic Wage Progression Correct Answer automatically increasing wages after specified periods of service, until the employee reaches the top of his or her salary range. Often achieved through an automatic step- by-pay system.