Calculations

Question 1

Checking for adverse impact

        Interviewed      hired Males      40                      20 Females  30                      6

Check if adverse impact exists.

Answer 1

1. Identify the selection rate: male selection rate is 50% (20:40), female selection rate is 20% (6:30)
2. Identify the group with the highest selection group. (Males at 50%)
3. Divide the lowest selection rate (minority group) by the selection rate of the majority group. ( 20 : 50 = 40%)
4. Adverse impact is indicated if the selection rate of the minority group is less than 80%, or four-fifths, of the selection rate.

Question 2

An employee earning $22,500 per year supervises three employees and spends 35 hours per week on essential job duties that require discretion and independent judgement. Is this employee:

a. ) Exempt, based on the executive
b. ) Exempt, based on the administrative exemption test
c. ) Nonexempt, based on the salary basis requirement
d. ) Nonexempt

Answer 2

c.) Effective in 2004, employees must be paid a minimum $455 per week to be exempt from FLSA requirements. This employee earns only $432.69 per week. ($22,500 / 52 weeks = $432.69.)

Although d.) is also correct, the BEST answer is the one that explains why.

Question 3

Total cost of training is $40,000
Number of employees: 20

Calculate the cost of training per employee

Answer 3

$40,000 (total cost of training) / 20 ( number of trainees)= $2,000 (cost per trainee)

Question 4

Find median salary?
$55,000   $65,000   $70,000 
$55,000   $70,000   $70,000
$60,000   $70,000   $70,000
$65,000   $70,000

Answer 4

$70,000 is the median salary; There is an odd number of salaries (11); five salaries are less than that point and five are greater.

Question 5

Calculate the range spread

Minimum annual salary: $45,000
Maximum annual salary: $65,000

Answer 5

(Maximum - Minimum) / Minimum

(65,000 - 45,000)/ 45,000= .444 or 44%

Question 6

Differential piece-rate system.
An employee is paid $8/Hr plus 10c. for each item up to 200, 11 c for each item from 201-500, and 15c for each item over 500. If the employee worked 40 -hour week and made 1,000 items, what would be his base pay.

Answer 6

Base wage: 40 x $8.00 = $320
Items 1-200: 200 x$0.1 = $20
Items 201-500: 300 x $0.11 = $33
Items 501-1000: 500 x $0.15 = $75
$320+$20+$33+$75=$448