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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

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

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

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

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

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

4. What best describes the primary purpose of budgeting?

A) Increasing profitability of the business annually to maximize shareholder/owner value
B) Making choices about spending based on expectations of performance
C) Limiting spending to a fixed percentage of organizational revenue
D) Complying with local legislation and maintaining accurate records to prepare financial reports and tax documents

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

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

Solutions: