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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following would most likely be considered a "repeated" violation of the FLSA?

A) An employer that had a prior finding by the Labor Department, court or another tribunal with the authority to make such a finding
B) When the Labor Department has advised an employer that its actions were unlawful
C) An employer who should have inquired further into whether its conduct was in compliance with the act and failed to do so.
D) An employer knowing its conduct was prohibited under the act or showing reckless disregard for the requirements of the act

2. What is one reason that it is important to perform a periodic audit of processes and results?

A) It is required in determining increase budgets
B) It is required by the Department of Labor
C) It determines what information and data sources will be used in the audit
D) It builds in a process of continuous improvement

3. Which of the following best describes the most likely perspectives of different groups in the organization that compensation professionals must be aware of?

A) Investors want to maximize gains and want to see compensation tightly controlled and Legal needs to ensure that compensation plans do not attract undue scrutiny.
B) Investors and Finance want to see money spent wisely. Legal must ensure compliance, and HR and operating departments want to see their needs taken into account to attract, retain and motivate a high quality workforce.
C) Operating departments view compensation as it applies to them, HR must balance available resources to attract, retain and motivate employees and Finance knows the value of a motivated workforce and will provide the budget necessary to achieve it.
D) Operating departments and HR understand the company must live within its means and Finance cannot allocate funds to a budget if it is likely that profitability will be adversely affected.

4. What best describes an effective core technique for communicating with executives?

A) Provide a wide range of facts and figures. With their high level of responsibility, executives must have all the data before they can make informed decisions.
B) Assume they have little knowledge of the issue and make a detailed presentation leading up to the purpose of the meeting.
C) Focus on negative issues first, such as compensation costs exceeding budget, to get their attention
D) Recommend a solution that will solve the issue and explain why it is the best solution available.

5. When would an employee most likely receive a differential in addition to the regular hourly rate?

A) When working a holiday or weekend
B) When working in locations other than the corporate office
C) When working in more than one department
D) When working less time than his or her normal schedule

Solutions: