Chapter 15 Challenges facing Compensation Professionals Exam Questions.docx

Chapter 15 Challenges facing
Compensation Professionals Exam
Questions
Federal minimum wage - CORRECT ANSWERS ✔✔-As of October
2015, $7.25 per hour
-More than half of the states instituted minimum
wage laws, mandating minimum wages higher than
$7.25


Federal minimum wage cont. - CORRECT ANSWERS ✔✔-In 2013,
President Barack Obama called for an
increase to at least $10.10. Struck down by US
Senate
-Mix research results on
economic effects (e.g., loss
of lower skilled jobs, layoffs, price increases)


Challenges for compensation professionals - CORRECT ANSWERS
✔✔-Managing inequities between minimum wage workers in
companies with facilities located in different states
-Managing inequities between higher paid workers and minimum wage
workers because the pay difference will decrease

, Chapter 15 Challenges facing
Compensation Professionals Exam
Questions
Challenges for compensation professionals cont.. - CORRECT ANSWERS
✔✔-Uncertainty in budget planning as many states debate whether
to increase the minimum wage rate
-Increased minimum wage rates do not equate in higher compensation
budgets, which could lead to the reduction in discretionary benefit
offerings


Strengthening overtime pay provisions - CORRECT ANSWERS ✔✔-
In 2014, President Barack Obama called for
increasing the salary threshold to qualify workers
for overtime pay


The U.S. Department of Labor proposed plans to
increase the amounts - CORRECT ANSWERS ✔✔From $455 per
week to $970 per week, or
From $23,660 annually to $50,400
annually
Passed in 2016; $913 per week; $47,476
annually; effects 4.2 million workers


Possible advantages for employees and companies - CORRECT
ANSWERS ✔✔-Having more employees possibly earning overtime