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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following documents is a requirement of the FLSA for all nonexempt employees?

A) Copies of employee W-2s
B) Copies of pay stubs
C) Records on hours worked and wages paid
D) Discharge notices stating reason for discharge

2. Which employees are covered by the National Labor Relations Act?

A) City, state and federal government employees
B) Employee who work for companies that sell goods in various states
C) Airline and railroad employees

3. Which of the following benefits are usually offered at the discretion of the employer?

A) Retirement plans
B) Unemployment insurance
C) Disability (occupational)
D) Social security programs

4. Which of the following is a type of variable pay?

A) Hourly pay
B) Piece rate
C) Pay for time not worked
D) Bonuses

5. If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
B) Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
C) Compensation costs and revenue increase at approximately the same rate.
D) Compensation costs eventually stabilize and become a consistent percent of revenue.

Solutions: