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SHRM-CP WORKPLACE Questions - Part 28
1. Which employee must be paid overtime under the Fair Labor Standards Act (FLSA)?
A) Manager who has the authority to hire or fire other employees
B) Manager who earns $450 per week
C) Assistant manager who regularly supervises four full-time employees
D) Computer programmer who earns $825 per week
2. Which does not count toward the regular rate of pay for overtime calculations?
A) Discretionary bonuses
B) Production bonuses
C) Sales commissions
D) Shift premiums
3. Which is regulated by the Fair Labor Standards Act (FLSA)?
A) Equal pay
B) Overtime pay
C) Sales commissions
D) Employee benefits
4. A family-owned business with 100 employees wants to set up a retirement plan. If the organization implements a qualified defined contribution plan, what restrictions does the Employee Retirement Income Security Act impose on the investment of the assets?
A) The employer must have its assets covered through the Pension Benefit Guaranty Corporation.
B) The employer has a fiduciary responsibility to invest the pension fund as any prudent person would.
C) The investment advisor of the plan must be a registered investment broker and not be employed by the organization.
D) The investment advisor for the employer cannot have any conflicts of interest.
5. U.S. Leave and Benefits Laws An organization terminates an employee Β due to an organizational restructuring in response to lagging sales numbers. What is the maximum length of continuation of COBRA benefits for the terminated employee?
A) 0 months
B) 18 months
C) 29 months
D) 36 months
A) Manager who has the authority to hire or fire other employees
B) Manager who earns $450 per week
C) Assistant manager who regularly supervises four full-time employees
D) Computer programmer who earns $825 per week
2. Which does not count toward the regular rate of pay for overtime calculations?
A) Discretionary bonuses
B) Production bonuses
C) Sales commissions
D) Shift premiums
3. Which is regulated by the Fair Labor Standards Act (FLSA)?
A) Equal pay
B) Overtime pay
C) Sales commissions
D) Employee benefits
4. A family-owned business with 100 employees wants to set up a retirement plan. If the organization implements a qualified defined contribution plan, what restrictions does the Employee Retirement Income Security Act impose on the investment of the assets?
A) The employer must have its assets covered through the Pension Benefit Guaranty Corporation.
B) The employer has a fiduciary responsibility to invest the pension fund as any prudent person would.
C) The investment advisor of the plan must be a registered investment broker and not be employed by the organization.
D) The investment advisor for the employer cannot have any conflicts of interest.
5. U.S. Leave and Benefits Laws An organization terminates an employee Β due to an organizational restructuring in response to lagging sales numbers. What is the maximum length of continuation of COBRA benefits for the terminated employee?
A) 0 months
B) 18 months
C) 29 months
D) 36 months
1. Right Answer: B
Explanation: Each individual employee must qualify for one of the specific exemptions provided by the FLSA to be excluded from the minimum wage and overtime pay requirements of the law. In general, they must meet certain tests regarding their job duties and must be paid on a salary basis at not less than $455 per week.
2. Right Answer: A
Explanation: Discretionary bonuses do not count toward the regular rate of pay. All the other choices (shift premiums, sales commissions, and production bonuses) do count toward overtime calculations.
3. Right Answer: B
Explanation: Commonly referred to as the Wage and Hour Law, the FLSA governs employee status, overtime pay, and minimum wage. Employee benefits, sales commissions, and equal pay are not governed by the FLSA.
4. Right Answer: B
Explanation: The employer must follow the prudent person rule with respect to its handling, investment, and management of the plan's assets. The employer cannot take more risks than a reasonably knowledgeable, prudent investor would under similar circumstances. Conflicts of interest do not always have to be disclosed. Investment advisors are not required to be registered investment brokers. The Pension Benefit Guaranty Corporation does not insure retirement plans that do not promise specific benefit amounts.
5. Right Answer: B
Explanation: Because the employee was not terminated for gross misconduct, COBRA coverage may be extended for up to 18 months. Had the employee been terminated for gross misconduct, he or she would not be able to extend coverage (if the employer elected to apply the gross misconduct exception). Β If the employee was disabled at the time of termination, he or she would be eligible to continue coverage for 29 months. The 36-month coverage extension applies to situations involving divorce or death of the employed spouse or where a dependent child loses eligibility status.
Explanation: Each individual employee must qualify for one of the specific exemptions provided by the FLSA to be excluded from the minimum wage and overtime pay requirements of the law. In general, they must meet certain tests regarding their job duties and must be paid on a salary basis at not less than $455 per week.
2. Right Answer: A
Explanation: Discretionary bonuses do not count toward the regular rate of pay. All the other choices (shift premiums, sales commissions, and production bonuses) do count toward overtime calculations.
3. Right Answer: B
Explanation: Commonly referred to as the Wage and Hour Law, the FLSA governs employee status, overtime pay, and minimum wage. Employee benefits, sales commissions, and equal pay are not governed by the FLSA.
4. Right Answer: B
Explanation: The employer must follow the prudent person rule with respect to its handling, investment, and management of the plan's assets. The employer cannot take more risks than a reasonably knowledgeable, prudent investor would under similar circumstances. Conflicts of interest do not always have to be disclosed. Investment advisors are not required to be registered investment brokers. The Pension Benefit Guaranty Corporation does not insure retirement plans that do not promise specific benefit amounts.
5. Right Answer: B
Explanation: Because the employee was not terminated for gross misconduct, COBRA coverage may be extended for up to 18 months. Had the employee been terminated for gross misconduct, he or she would not be able to extend coverage (if the employer elected to apply the gross misconduct exception). Β If the employee was disabled at the time of termination, he or she would be eligible to continue coverage for 29 months. The 36-month coverage extension applies to situations involving divorce or death of the employed spouse or where a dependent child loses eligibility status.
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