WorldatWork C1 Regulatory Environments for Compensation Programs Exam Practice Test

Providing a pre-employment medical exam

Creating a new position in the company

Creating a separate area for the disabled employee to work

Job restructuring

Production worker

Account executive

IT contractor

HR Director

Davis-Bacon Act

National Labor Relations Act

McNamara-O'Hara Act

Sherman Antitrust Act

Fixed costs must be kept to a minimum, but variable costs can fluctuate since they tend to correlate with revenue.

Variable costs often have a heavier focus than fixed costs, which applies to all areas, including compensation.

Fixed costs and variable costs are equally important and both should be kept to a minimum.

Fixed costs are not a concern because they cannot be changed, so the focus is primarily on variable costs.

Hourly rate

Salary

Piece rate

Bonuses   

Assessing how well the business is running

Determining employee satisfaction levels

Measuring the financial success of the business

Evaluating customer perceptions of products or services

Compensation professionals should anticipate the level of the audience and tailor messages to their needs.

Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don’t understand a communication.

Compensation terms are well-known and easily understood by most stakeholders.

Implement the merit increase budget as is because the anticipated financial obligations have made it necessary

Meet with Finance and make a case for a larger merit increase budget because the loss of key talent will cost more over the long term than the savings from the smaller merit increases

Gather the perspectives of all stakeholders, analyze their individual concerns and meet to determine whether a compromise solution is possible

Recommend a reduction in force to eliminate poor performers, which will increase the merit budget by reducing headcount

Keep them brief

Use multiple media

Include all details related to the issue

Leave backup data out of the presentation so there is time to develop an effective response to unexpected questions

Make it easier to enforce the Equal Pay Act

Make the regulations covered under Title VII of the Civil Rights Act of 1964 more strict

Eliminate the potential conflict between Title VII and EPA

Prohibit gender-based discrimination

They require complex actuarial calculations and assumptions.

The benefit is based on a formula that considers pay and service.

They generally provide better benefits to employees with longer service.

The employee assumes the risk for the investments.   

Gross profit

Revenue

Net income

Operating profit

An employer who should have inquired further into whether its conduct was in compliance with the act and failed to do so.

An employer that had a prior finding by the Labor Department, court or another tribunal with the authority to make such a finding

An employer knowing its conduct was prohibited under the act or showing reckless disregard for the requirements of the act

When the Labor Department has advised an employer that its actions were unlawful