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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following acts is focused on employers with construction contracts with the government?

A) Davis-Bacon Act
B) Sherman Antitrust Act
C) McNamara-O'Hara Act
D) National Labor Relations Act

2. To qualify for the executive exemption from the minimum wage and overtime provisions of the FLSA, among other things what must an employee do?

A) Devote less than 15% of his/her time to nonexempt work
B) Possess knowledge of an advanced type in business administration
C) Perform work that is intellectual and varied
D) Customarily and regularly direct the work of at least two full-time employees

3. The Delta Company has experienced increased turnover in the past two years. Data from exit interviews indicate that most of those leaving did so for better opportunities and higher compensation. If Delta pays at the highest percentile of the market for their peer group, what data analysis should they do?

A) No additional data analysis is needed. Delta should increase pay rates based on the existing data to decrease turnover.
B) Qualitative data collection to talk to key stakeholders and employees and determine whether the exit interviews accurately reflect their concerns
C) Qualitative data collection in the form of an employee survey with questions about employee satisfaction with pay levels
D) Additional quantitative analysis to determine whether pay rates are truly competitive or existing data are unreliable

4. Who are you most likely to hear from if there are questions about an employee's compensation?

A) A concerned co-worker
B) The employee's manager
C) The employee
D) The employee's department head

5. Which of the following best describes severance allowances?

A) A continuation of an employee's salary after termination
B) A practice of paying a lump sum to employees during a company shutdown
C) A continuation of a portion of an employee's salary to a beneficiary after the death of an employee
D) A portion of one's salary paid during reserve duty and military leave

Solutions: