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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. What statement is most accurate regarding compensation communications with employees at varying levels?

A) They should be kept to a minimum for employees at all levels to maximize efficiency and efforts can be focused only on those who have questions.
B) They generally require a greater degree of detail for lower level employees who have less of an understanding of pay plan design.
C) They usually require more detail for senior employees regarding plan details and performance and the needs from one employee group to another can vary greatly.
D) They tend to be fairly consistent because the elements of pay may differ, but the concerns are universal.

2. Which of the following would most likely be considered a "repeated" violation of the FLSA?

A) An employer knowing its conduct was prohibited under the act or showing reckless disregard for the requirements of the act
B) When the Labor Department has advised an employer that its actions were unlawful
C) An employer that had a prior finding by the Labor Department, court or another tribunal with the authority to make such a finding
D) An employer who should have inquired further into whether its conduct was in compliance with the act and failed to do so.

3. Why are lump-sum increases generally used?

A) To control annual fixed costs from base pay adjustments
B) To elevate employees who are below the midpoint in the range
C) To make up for benefits not provided by the organization
D) To reward employees under short-term incentive plans

4. Regarding presentations to executives, which of the following is most accurate?

A) Keep them brief
B) Use multiple media
C) Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions
D) Include all details related to the issue

5. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working in more than one department
B) When working in locations other than the corporate office
C) When working less time than his or her normal schedule
D) When working a holiday or weekend

Solutions: