Exam (elaborations) MGMT338

MGMT 338 / MGMT338 EMPLOYEE COMPENSATION AND BENEFITS PROFESSOR PAXTON UNIT 1 INTELLIPATH Which of the following is a type of short-term incentive? Retirement account Sabbaticals Pension Employee gift programs Which of the following is not a component of total compensation? Hourly rate Annual salary Base salary Employee relations What is a type of benefit that might be offered to employees? Dental Rental insurance Home insurance Car maintenance How can companies use their compensation packages? To decrease profits To discipline employees To improve their public image To satisfy shareholders What is the market rate? Highest salary in the marketplace Minimum wage Mandatory pay Wage that the competition is paying Who is responsible for enforcing the Employee Retirement Income Security Act (ERISA)? Individual companies President Department of Labor (DOL) Equal Employment Opportunity Commission (EEOC) Which of the following is a form of pay that is covered by the Equal Pay Act? Vacation time Overtime pay Life insurance Disability insurance Which of the following is a major life activity under the Americans with Disabilities Act (ADA)? Working Jumping Seeing Attending school Which of the following is a position category that a person must hold to be exempt? Retail worker Truck driver Executive Warehouse worker Which of the following is a type of insurance offered as an indirect benefit? Federally-mandated benefits Workers' compensation Disability Family and Medical Leave Act (FMLA) Which of the following is a form of indirect compensation? Hourly wage Leave from work Bonus Allowances Which of the following is an example of a type of voluntary leave that employers provide to employees? Jury duty Personal leave Workers' Compensation Military Which of the following is a characteristic of military leave? Employers can force the employee to use vacation time while on leave. Employers are not required to pay individuals on military leave. Private employees must pay for leave. Employers are required to pay the employee while on leave. Employee assistance programs typically help employees with __________. family issues car purchases pay issues home purchases What is a type of flexible schedule? Mandatory overtime Split shift Core hours Set schedule What must an employer do before implementing a flexible work schedule? Check for FLSA violations Allow employees the freedom to choose their schedules Check for legislation Determine what type of flexible work schedules to offer Employees wanted a more flexible schedule for what reasons? Increased commuting costs Increased stress Spend less time with family Work when they are at their best What does a job analysis contain? Who the position reports to Hourly rate Work schedule Responsibilities When reviewing applicants, what documents should be reviewed? Family history Resumes Financial records Medical history What is a requirement to receive unemployment insurance? Taking an extended vacation Not seeking work Available and able to work Voluntarily unemployed What is a part of Medicare? Part S Part Z Part D Part X What position could be covered under the administrative exemption? CFO COO Controller President What is one aspect of the salary basis test? Minimum salary Salary less than $23,000 per year No minimum salary Reduction in pay due to variations in the quantity of work What did the FLSA establish? Minimum wage Workers' compensation Disability Unemployment insurance What states have overtime regulations beyond those outlined in the FLSA? Ohio Vermont Indiana Kentucky What is a possible flextime schedule? Mandatory overtime Four-day work week Part-time work Working Monday through Friday from 9-5 FLSA Job Duty Exemptions - Executive/Administrative/Professional Introduction The Fair Labor Standards Act (FLSA) was created to protect the interests of workers. It established regulations for the payment of overtime to eligible employees. Most jobs are governed by the provisions of FLSA. However, some are specifically excluded, and others are exempt from FLSA regulations. Learning Materials The Fair Labor Standards Act (FLSA) established—for employees in both the public and private sectors—minimum wage, overtime, recordkeeping, and employment standards for children. The federal minimum wage, raised to $7.25 per hour in 2009, must be followed by all employers; although, state-based minimum wage requirements, if higher, supersede the federal wage levels. Covered nonexempt employ¬ees who work more than 40 hours a week must be paid at a rate of one and one-half times their regular rate for their over¬time work. Under FLSA, there are exemptions under which employees are not eligible for overtime pay. The FLSA uses a “duties test” to determine if individuals are exempt from overtime pay. Typically, employees who perform specific duties are exempt from overtime pay. The title the employee holds does not matter, but rather it is the duties the individual performs in his or her job that matters. Exempt job duties are separated into three categories: executive, professional, and administrative. Executive Exemption The executive exemption applies if the following requirements are met (U.S. Department of Labor, 2008a): • The individual supervises two or more employees on a regular basis. • The primary duty of the position is management in nature. • The person has some input into hiring, firing, promotions, or other assignments. The supervision must be a regular part of the employee's job, and it must be the supervision of at least two other people (U.S. Department of Labor, 2008a). In addition, the supervisory employee must have management as the "primary duty" of the job (U.S. Department of Labor, 2008a). The FLSA regulations contain a list of typical management duties (U.S. Department of Labor, 2008a). These include the following (U.S. Department of Labor, 2008a): • Interviewing, selecting, and training employees • Determining compensation and work hours • Maintaining company records • Monitoring productivity and employee relations • Planning and determining techniques for work • Compliance • Safety and security Every situation is different, and so whether an individual has management as a primary job duty must be evaluated on a case-by-case basis. However, the best place to start is to determine if the employee is in charge of a department or subdivision of a company. An individual may be performing regular job duties but can still be included under the executive exemption. The employee must have actual input regarding the employees of the company. This does not mean that this person has to be the final decision maker, but that his or her opinion must be given consideration. Administrative Exemption For an administrative exemption, all of the following tests must be met (U.S. Department of Labor, 2008b): The administrative exemption relates to high-level employees whose main job is to keep the business running. It does not cover employees who make what the business sells (U.S. Department of Labor, 2008b). Examples of administrative functions include work “directly related to management or general business operations” including, but not limited to, work in the following functional areas (U.S. Department of Labor, 2008b): • Tax • Finance • Accounting • Budgeting • Auditing • Insurance • Quality control • Purchasing • Procurement • Advertising • Marketing • Research • Safety and health • Personnel management • Human resources • Employee benefits • Labor relations • Public relations • Government relations • Computer network, Internet, and database administration • Legal and regulatory compliance Learned Professionals The learned professional employee exemption requires the following (U.S. Department of Labor 2008c): Among the learned professions are lawyers, doctors, dentists, teachers, architects, clergy, nurses, accountants, engineers, and actuaries (U.S. Department of Labor 2008c). Professionally exempt work generally requires specialized education, including advanced degrees. It may involve the exercise of discretion and judgment. In addition, individuals, such as actors, musicians, composers, writers, cartoonists, and some journalists, may also be covered under the learned professional exemption, covering work that requires invention, imagination, originality, or talent (U.S. Department of Labor 2008c). What profession would be classified under the learned professional exemption? Lawyer Certified nursing assistant Janitor Licensed practice nurse What is a question one can ask to determine whether the administrative exemption applies? How major are the employees' assignments in relation to the overall business's operations? What orders does the employee regularly fill? How many pieces does the employee put together in a given work shift? What hours does the employee work? What position could be covered under the administrative exemption? Human resource manager COO CFO President What does professionally exempt work mean? Work that involves originality of talent Low-level work Work that requires no specialized training Work that requires no specialized education What is a professional that is exempt under the FLSA job duty? Janitors Professional Dog trainers Teachers What is a question one can ask to determine whether the administrative exemption applies? Can the employee interpret company policies? What orders does the employee regularly fill? What is the compensation of the employee? What hours does the employee work? What is an example of an administrative function? Advertising Distributing mail Making travel arrangements Ordering lunch What is a typical management duty? Maintaining product or sales records Distributing mail Ordering supplies Answering the main telephone for the company The FLSA applies to what type of employer? Manufacturing Contractors Government workers Military employees What is a requirement of the executive exemption? Has management as a primary duty Has no direct reports Has no input in hiring decisions Has no authority to make decisions What is one requirement of the FLSA? Employees are paid at least a minimum wage. It only applies to government employees. Employers can pay any wages that they feel are appropriate. It provides disability benefits. What does professionally exempt work mean? Work that requires no specialized training Work that requires no specialized education Work that involves invention Low-level work What is true of the categories of exemptions? Can make decisions on behalf of the company Receive overtime pay Have no authority Must have management responsibilities What is one aspect of the salary basis test? Reduction in pay due to variations in the quality of work Minimum annual salary Reduction in pay due to variations in the quantity of work No minimum salary What is true of the duties test under the FLSA? The duties of the position are what matter Determines employee's job title Determines work hours Job title matters more than actual job duties performed