HRCI: SPHR/PHR -- Total Rewards
Exam Questions and Answers
Davis-Bacon Act - correct Answer-Requires contractors using federal funds to pay
wages and fringe equal to or greater than the local market wage
What is the HR Significance of the Davis-Bacon Act? - correct Answer-Applies if
receiving federal funds for work or projects
Walsh-Healey Act - correct Answer-Establishes the time-and-a-half overtime rule for
hours in excess of 40 in a week for nonexempt employees
What is the HR Significance of the Walsh-Healey Act? - correct Answer-Must properly
classify employees and track hours worked for nonexempt employees
Portal-to-Portal Act - correct Answer-Created general rules for compensatory time
What is the HR Significance of the Portal-to-Portal Act? - correct Answer-Understanding
when employees are on "company time" for pay purposes and when developing policy
Dodd-Frank Wall Street Reform and Consumer Protection Act - correct Answer-Creates
rules for executive compensation to include reporting and provisions for recapturing
certain compensation in cases of misconduct or highly substandard performance
What is the HR Significance of Dodd-Frank Wall Street Reform & Consumer Protection
Act? - correct Answer-Important when establishing executive compensation packages
and employment contracts
Sarbanes-Oxley Act (SOX) - correct Answer-Places restrictions on executives and
administrators of benefits plans within public companies to prevent certain transactions
that would create unfair or illegal business earnings for benefits programs such as
company stock
What is the HR Significance of Sarbanes-Oxley Act (SOX)? - correct Answer-
Necessitates the monitoring of plans and ensuring compliance by all company leaders
that are involved with benefits plans
Lilly Ledbetter Equal Pay Act (EPA) - correct Answer-Affirms equal pay for equal work
regardless of gender and provides recourse and legal avenues in cases of
discrimination
, What is the HR Significance of the Lilly Ledbetter Act? - correct Answer-Requires
policies and procedures to ensure that men and women in the company are not paid at
different wage rates in the same jobs with similar experience and qualifications
Uniformed Services Employment and Reemployment Rights Act (USERRA) - correct
Answer-Provides provisions for members of the Armed Services called to military
service to allow returning to civilian work upon completion of their duty
What is the HR Significance of USERRA? - correct Answer-Has special tracking and
monitoring consideration of any individual that is serving in the Armed Forces and was
required to give up their civilian employment
Consolidated Omnibus Budget Reconciliation Act (COBRA) - correct Answer-Provides
employees and dependents the ability to maintain continuous healthcare coverage in
the group plan by covering the employer cost and additional admin fee
What is the HR Significance of the COBRA? - correct Answer-Requires notification of
rights under this law to all employees accepting healthcare benefits and notice upon a
qualifying event of eligibility
Health Insurance Portability and Accountability Act (HIPAA) - correct Answer-to promote
a more efficient healthcare system by reducing administrative costs. It also regulates
the privacy, security, and electronic transfer of protected health information (PHI)
through the Administrative Simplification provisions. HIPAA contains two main
provisions-the Health Care Insurance Access, Renewal, and Portability provision; and
the Administrative Simplification provisions
What is the HR Significance of HIPAA? - correct Answer-Restricts the release of
personal medical information to third parties without consent and places provisions on
maintaining the integrity and security of the information held
Genetic Information Nondiscrimination Act (GINA) - correct Answer-Prevents
discrimination on the basis of genetic information in obtaining employment or access to
healthcare
What is the HR Significance of the GINA? - correct Answer-Mandates the protection
and unauthorized disclosure of genetic-related information of employees or applicants
Fair Labor Standards Act (FLSA) - correct Answer-the prevailing law that governs
wages and hours worked by the workforce
What factors influence compensation within an organization: - correct Answer-
INTERNAL CONDITIONS - such as the organization's financial position; and
ORGANZATIONAL CULTURE - reflects the values that the organization seeks in
employees
Exam Questions and Answers
Davis-Bacon Act - correct Answer-Requires contractors using federal funds to pay
wages and fringe equal to or greater than the local market wage
What is the HR Significance of the Davis-Bacon Act? - correct Answer-Applies if
receiving federal funds for work or projects
Walsh-Healey Act - correct Answer-Establishes the time-and-a-half overtime rule for
hours in excess of 40 in a week for nonexempt employees
What is the HR Significance of the Walsh-Healey Act? - correct Answer-Must properly
classify employees and track hours worked for nonexempt employees
Portal-to-Portal Act - correct Answer-Created general rules for compensatory time
What is the HR Significance of the Portal-to-Portal Act? - correct Answer-Understanding
when employees are on "company time" for pay purposes and when developing policy
Dodd-Frank Wall Street Reform and Consumer Protection Act - correct Answer-Creates
rules for executive compensation to include reporting and provisions for recapturing
certain compensation in cases of misconduct or highly substandard performance
What is the HR Significance of Dodd-Frank Wall Street Reform & Consumer Protection
Act? - correct Answer-Important when establishing executive compensation packages
and employment contracts
Sarbanes-Oxley Act (SOX) - correct Answer-Places restrictions on executives and
administrators of benefits plans within public companies to prevent certain transactions
that would create unfair or illegal business earnings for benefits programs such as
company stock
What is the HR Significance of Sarbanes-Oxley Act (SOX)? - correct Answer-
Necessitates the monitoring of plans and ensuring compliance by all company leaders
that are involved with benefits plans
Lilly Ledbetter Equal Pay Act (EPA) - correct Answer-Affirms equal pay for equal work
regardless of gender and provides recourse and legal avenues in cases of
discrimination
, What is the HR Significance of the Lilly Ledbetter Act? - correct Answer-Requires
policies and procedures to ensure that men and women in the company are not paid at
different wage rates in the same jobs with similar experience and qualifications
Uniformed Services Employment and Reemployment Rights Act (USERRA) - correct
Answer-Provides provisions for members of the Armed Services called to military
service to allow returning to civilian work upon completion of their duty
What is the HR Significance of USERRA? - correct Answer-Has special tracking and
monitoring consideration of any individual that is serving in the Armed Forces and was
required to give up their civilian employment
Consolidated Omnibus Budget Reconciliation Act (COBRA) - correct Answer-Provides
employees and dependents the ability to maintain continuous healthcare coverage in
the group plan by covering the employer cost and additional admin fee
What is the HR Significance of the COBRA? - correct Answer-Requires notification of
rights under this law to all employees accepting healthcare benefits and notice upon a
qualifying event of eligibility
Health Insurance Portability and Accountability Act (HIPAA) - correct Answer-to promote
a more efficient healthcare system by reducing administrative costs. It also regulates
the privacy, security, and electronic transfer of protected health information (PHI)
through the Administrative Simplification provisions. HIPAA contains two main
provisions-the Health Care Insurance Access, Renewal, and Portability provision; and
the Administrative Simplification provisions
What is the HR Significance of HIPAA? - correct Answer-Restricts the release of
personal medical information to third parties without consent and places provisions on
maintaining the integrity and security of the information held
Genetic Information Nondiscrimination Act (GINA) - correct Answer-Prevents
discrimination on the basis of genetic information in obtaining employment or access to
healthcare
What is the HR Significance of the GINA? - correct Answer-Mandates the protection
and unauthorized disclosure of genetic-related information of employees or applicants
Fair Labor Standards Act (FLSA) - correct Answer-the prevailing law that governs
wages and hours worked by the workforce
What factors influence compensation within an organization: - correct Answer-
INTERNAL CONDITIONS - such as the organization's financial position; and
ORGANZATIONAL CULTURE - reflects the values that the organization seeks in
employees
