Ch17 Government And Legal Issues In Test Bank + Answers - Compensation 12e Complete Test Bank by Jerry Newman. DOCX document preview.

Ch17 Government And Legal Issues In Test Bank + Answers

Chapter 17

Government and Legal Issues in Compensation

 


Multiple Choice Questions
 

1.

The executive branch of the federal government _____. 
 

A. 

enforces laws through agencies and its other bodies

B. 

passes new laws

C. 

interprets laws and considers their constitutionality

D. 

changes existing laws

 

2.

The _____ Act extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts. 
 

A. 

Sarbanes-Oxley

B. 

Walsh-Healey Public Contracts

C. 

Fair Labor Standards

D. 

Davis-Bacon

 

3.

The Davis-Bacon Act _____. 
 

A. 

states that income from most stock plans need not be included in calculating overtime pay

B. 

increases the burden of proof on employers to rebut some discrimination claims

C. 

requires that mechanics and laborers on public construction projects be paid the prevailing wage in an area

D. 

extends the prevailing-wage concept to manufacturers or suppliers of goods for government contracts

 

4.

Under the _____ Act, executives cannot retain bonuses or profits from selling company stock if they mislead the public regarding their company's financial condition. 
 

A. 

Worker Economic Opportunity

B. 

Davis-Bacon

C. 

Walsh-Healey

D. 

Sarbanes-Oxley

 

5.

Which of the following is NOT a provision of the Fair Labor Standards Act of 1938? 
 

A. 

It requires that employers provide 15 weeks of medical leave to employees.

B. 

It sets minimum wage standards.

C. 

It prohibits child labor.

D. 

It requires payment at one-and-a-half times the standard for working more than 40 hours per week.

 

6.

The Worker Economic Opportunity Act _____. 
 

A. 

states that income from most stock plans need not be included in calculating overtime pay

B. 

requires the value of all employee stock options to be expensed at estimates of fair value on financial statements

C. 

gives SEC the authority to grant shareholders proxy access to nominate directors

D. 

extends SEC pay disclosure requirements to highly paid executives

 

7.

Under the _____, employers can be liable for current pay differences that are a result of discrimination that occurred many years earlier. 
 

A. 

Sarbanes-Oxley Act

B. 

Lilly Ledbetter Fair Pay Act

C. 

Equal Pay Act

D. 

Fair Labor Standards Act

 

8.

Which of the following includes a provision that requires public companies to set policies to allow executive compensation to be taken back if it was based on inaccurate financial statements that did not comply with accounting standards? 
 

A. 

The American Recovery and Reinvestment Act (ARRA)

B. 

The Troubled Asset Relief Program (TARP)

C. 

The Financial Accounting Standards Board Statement 123 R

D. 

The Dodd-Frank Wall Street Reform and Consumer Protection Act

 

9.

Which of the following is a test that must be met to qualify for the administrative employee exemption? 
 

A. 

The employee must be compensated on a salary or fee basis at a rate not less than $455 per week.

B. 

The employee's primary duty must be performance of manual work.

C. 

The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent.

D. 

The employee must have the authority to hire or fire other employees.

 

10.

Which of the following groups can qualify for the exemptions under the Fair Labor Standards Act of 1938? 
 

A. 

Computer employees

B. 

Police and other first responders

C. 

Paramedics

D. 

Fire fighters

 

11.

The _____ specifies the number of breaks that must be provided in an eight-hour workday. 
 

A. 

Portal-to-Portal Act

B. 

Occupational Safety and Health Administration legislation

C. 

Walsh-Healey Public Contracts legislation

D. 

Equal Pay Act

 

12.

Susan works in a sterile laboratory that requires her to scrub and put on protective clothing. Which of the following acts determines whether she should be paid for this time? 
 

A. 

The Fair Labor Standards Act

B. 

The Occupational Safety and Health Administration legislation

C. 

The Portal-to-Portal Act

D. 

The Health Care Workers Protection Act

 

13.

Which of the following regarding child labor is NOT true? 
 

A. 

Persons under 18 cannot work in hazardous jobs such as logging and meat packing.

B. 

Persons under 16 cannot be employed in jobs involving interstate commerce except for nonhazardous work for a parent or guardian.

C. 

The ILO finds that child labor is increasing on a global basis.

D. 

The highest rates of child labor are in sub-Saharan Africa.

 

14.

The highest rates of child labor are in _____. 
 

A. 

China

B. 

India

C. 

Latin America

D. 

sub-Saharan Africa

 

15.

Who among the following has violated the Fair Labor Standards Act of 1938? 
 

A. 

Rachel, who pays all her workers a minimum wage of $13

B. 

Sally, who does not consider time her employees spend travelling to work as compensable time

C. 

Jeremy, who employs his 16-year-old cousin in his meat-packing plant

D. 

Randy, who employs his 17-year-old son in his stationery store as a cashier

 

16.

An early study of the effects of the living wage law in Los Angeles found all of the following EXCEPT that _____. 
 

A. 

7,735 of the employees covered by the law received an average wage increase of 20 percent

B. 

1 percent of covered jobs were lost

C. 

a higher proportion of new hires were female

D. 

turnover and absenteeism declined

 

17.

Prevailing-wage laws _____. 
 

A. 

set pay for work done to produce goods and services contracted by the state government

B. 

specify that a government-defined prevailing wage is the maximum wage that must be paid for work done on covered government projects

C. 

give contractors the right to drive down wages using their size

D. 

were passed in response to conditions on projects such as the construction of the Hoover Dam during the Depression

 

18.

Denial of jobs, promotions, or training opportunities to qualified women or minorities are examples of _____. 
 

A. 

access discrimination

B. 

valuation discrimination

C. 

treatment discrimination

D. 

hostile environment

 

19.

_____ is defined by the Department of Labor as the experience, training, education, and ability as measured by the performance requirements of a particular job. 
 

A. 

Effort

B. 

Skill

C. 

Responsibility

D. 

Working condition

 

20.

Meltrop Corp. employs two store clerks, Sam and Stella. Stella sues Meltrop claiming unequal pay as she earns $500 a week less than Sam does despite doing the same work as Sam. Which of the following is most likely to be the result of the litigation? 
 

A. 

Meltrop will win the litigation as blue-collar workers are exempt from the Equal Pay Act.

B. 

Meltrop will win the litigation if it can prove that Stella is Sam's senior.

C. 

Meltrop will lose the litigation as it has committed access discrimination.

D. 

Meltrop will lose the litigation as it has committed valuation discrimination.

 

21.

The ADEA _____. 
 

A. 

prohibits discrimination on the basis of sex, race, or color

B. 

was amended in 1990 to include the Older Workers Benefit Protection Act

C. 

was amended in 2011 to ensure that workers get two months' notice before termination

D. 

prohibits discrimination on the basis of national origin in any employment condition

 

22.

In which of the following types of cases is the focus on the discriminatory consequences rather than the intent to discriminate? 
 

A. 

Disparate treatment

B. 

Access discrimination

C. 

Disparate impact

D. 

Valuation discrimination

 

23.

MNTX University requires that all its female professors score higher than the male professors in their appraisal rating to qualify for a pay bonus as there are more female professors than male professors in the university. Which of the following statements is true in this case? 
 

A. 

MNTX is liable for access discrimination against women.

B. 

MNTX is liable for disparate treatment of women.

C. 

MNTX's pay policy is legal as educational institutions are exempt under the Equal Pay Act.

D. 

MNTX's pay policy is legal as its intention is to reduce the overall costs of the company and not to discriminate.

 

24.

_____ prohibits discrimination on the basis of race, color, religion, sex, or national origin. 
 

A. 

Executive Order 11452

B. 

The FMLA

C. 

Executive Order 11246

D. 

The Rehabilitation Act

 

25.

The agency that conducts reviews and seeks remedies where insufficient compliance to Executive Order 11246 is found is the _____. 
 

A. 

OSHA

B. 

EEOC

C. 

OFCCP

D. 

FCSS

 

26.

Regarding pay differences for different jobs, _____. 
 

A. 

courts continue to rely on the use of employer opinion surveys to justify differences

B. 

the courts favor reliance on the use of statistical models

C. 

court decisions have been inconclusive

D. 

courts continue to uphold the use of market data to justify differences

 

27.

The determination of pay discrimination on jobs of dissimilar content requires a standard that allows jobs of dissimilar content to be declared comparable and that allows pay differences for jobs that are not comparable. This standard is _____. 
 

A. 

job evaluation

B. 

comparable worth analysis

C. 

disparate impact analysis

D. 

point factor market comparison

 

28.

Which of the following is NOT one of the steps in establishing a comparable-worth pay plan? 
 

A. 

Adopt a single gender neutral point job evaluation plan for all jobs within a unit.

B. 

All jobs with equal job evaluation points should be paid the same.

C. 

Identify the percentages of male and female employees in each job group.

D. 

Base the wage-to-job evaluation point ratio on the wages paid for female-dominated jobs.

 

29.

_____ has produced more comparable-worth pay increases than any other approach. 
 

A. 

Integrative bargaining

B. 

Win-win bargaining

C. 

Interest-based bargaining

D. 

Collective bargaining

 

30.

Which of the following statements regarding wage differences in industries and firms is NOT true? 
 

A. 

Wages of men in large firms are 54 percent higher than wages of men in small firms.

B. 

Hispanic men are concentrated in construction and service firms.

C. 

Female employment is more heavily concentrated in large firms.

D. 

The pay premium associated with changing jobs is enjoyed primarily by white males.

 

 


True / False Questions
 

31.

Legislation does not always achieve what it intends nor intend what it achieves. 
 
True    False

 

32.

While government affects the supply of labor through legislation, it has no effect on the demand for labor. 
 
True    False

 

33.

The Mental Health Act of 1997 requires that mental illness be covered to the same extent that other medical conditions are covered. 
 
True    False

 

34.

All employees are covered by the Fair Labor Standards Act of 1938 and its amendments without exemptions. 
 
True    False

 

35.

If federal and state minimum wage laws cover the same job, workers should be paid at or above the higher rate. 
 
True    False

 

36.

As the lowest rates paid in the software, chemical, oil, and pharmaceutical industries are already well above minimum, any legislation to increase minimum wage would have little direct impact on them. 
 
True    False

 

37.

One objective of the overtime provision of FLSA is to share available work by making the hiring of additional workers a less costly option than the scheduling of overtime for current employees. 
 
True    False

 

38.

A GAO study found that 9 of 10 cases brought by GAO undercover agents posing as workers were mishandled by the Wage and Hour division of the Labor Department. 
 
True    False

 

39.

A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases. 
 
True    False

 

40.

Prevailing wages protect foreign workers working as registered nurses. 
 
True    False

 

41.

The two types of discrimination recognized by law are valuation discrimination and access discrimination. 
 
True    False

 

42.

In the Schultz v. Wheaton Glass case, the Supreme Court ruled that for jobs to receive equal pay, they do not have to be identical but substantially equal. 
 
True    False

 

43.

Of the four affirmative defenses for unequal pay for equal work, "a factor other than sex" has prompted the most court cases. 
 
True    False

 

44.

Pay differences for equal work may be justified for demonstrably business-related reasons. 
 
True    False

 

45.

Disparate treatment occurs when a seemingly neutral employment practice disproportionately excludes a protected group from employment opportunities. 
 
True    False

 

46.

The key to a comparable-worth system is a single job evaluation plan for jobs with dissimilar content. 
 
True    False

 

47.

Women's median annual earnings compared to men's has changed from about 60 percent to 78 percent from 1980 to 2013. 
 
True    False

 

48.

The gender wage gap is moderate for recent college graduates and decreases as the cohort ages. 
 
True    False

 

49.

A higher proportion of women are employed by small firms compared to large firms. 
 
True    False

 

50.

The gender pay gap is common across countries and is smaller in some countries than the U.S. 
 
True    False

 

 


Short Answer Questions
 

51.

Distinguish between access discrimination and valuation discrimination. 
 


 


 


 

 

52.

What are the definitions of skill, effort, responsibility, and working conditions according to the Department of Labor? What are the conditions that must be met for an employer to support a claim of unequal work? 
 


 


 


 

 

53.

Compare and contrast disparate treatment and disparate impact. 
 


 


 


 

 

54.

What are the four basic steps in establishing a comparable-worth plan? 
 


 


 


 

 

55.

What are the sources of earnings gaps? 
 


 


 


 

 

Document Information

Document Type:
DOCX
Chapter Number:
17
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 17 Government And Legal Issues In Compensation
Author:
Jerry Newman

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