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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which one of the following should be included in a compensation guide for managers?

A) The consequences of various disciplinary measures
B) Information on common management processes
C) Individual salary rates of employees in their department

2. Which of the following statements best describes defined benefit (DB) plans?

A) Employees are at risk for financial resources.
B) Individual accounts must be maintained for each participant.
C) They are often integrated with government-sponsored programs.
D) There is no promise of a specific benefit at retirement.

3. Regarding medical plans, what is the out-of-pocket maximum?

A) The maximum the plan will pay if the member is covered by another insurance plan
B) The limit the member will be required to pay at each doctor visit
C) The lifetime limit for benefits to any one employee
D) The most that the member will be liable for in relation to co-insurance

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

5. Regarding compensation communications with executives, where do they tend to need the greatest level of understanding?

A) In the differences in pay levels for the different levels of the organization
B) In the methods and processes used to make pay decisions
C) In the details of their individual compensation packages
D) In the overall program objectives

Solutions: