SPHR Flashcards
1
Q
Characterized by rapid increases in learning in the beginning that taper off as the learner becomes more familiar with the process or task
A
Negatively accelerating learning curve
2
Q
Additional requirements of ADEA related to exit incentives or termination programs (RIFs)
What and When?
A
- RIF or layoff affecting more than 1 employee
- 45 days to consider
- list of eligibility factors for those affected
- list of job titles and ages of all individuals included and not included
3
Q
Categories of expatriate issues in workforce planning
A
- Cost
- Foreign Business Practices
- Cultural Acclimation
4
Q
This approach seeks to place the best qualified person into each position, regardless of country of origin
A
Geocentric
5
Q
This approach fills positions int he home country with PCNs and positions in the host country with HCNs
A
Polycentric
6
Q
Approach in which all key management positions are filled by expatriates
A
Ethnocentric
7
Q
PCN’s
A
Parent Country Nationals
8
Q
Measurement useful for determining the types of HR programs needed to manage and support the workforce
A
Accesssion Rate
9
Q
Measures the number of new employees against the total number of employees
A
Accession Rate
10
Q
The WARN act defines mass layoffs as what?
A
500 employees or 33% of workforce and at least 50 employees
11
Q
WARN act requires ___ notice to ___
A
- 60 days
- individual employees or their union reps
12
Q
WARN act applies to
A
Employers with 100 or more full time workers or 100 total working aggregate 4k hours per week
13
Q
WARN unforeseeable business circumstances
A
Sudden and unexpected negative change - For example, cancellation of a major contract without warning
14
Q
WARN act faltering company exception
A
Company is actively seeking funding and has reasonable expectation that it could prevent layoff and that giving notice may prevent company from obtaining funding
15
Q
WARN exceptions
A
- Faltering company
- Unforeseen business circumstance
- Natural disaster
16
Q
The WARN act defines plant closings as
A
50+ full time workers due to permanent or temporary shut down of a single facility
17
Q
Immigration Reform and Control Act applies to
A
businesses with four or more employees
18
Q
___ are specifically excluded from the ADA’s medical examination requirement and may be required prior to extending an offer
A
Drug screening tests
19
Q
The ability of the tool to measures some future outcome
A
Predictive validity
20
Q
Determines whether the tool properly measures what it is designed to measure
A
Construct validity
21
Q
Confirms that a selection procedure samples significant parts of the job being tested
A
Content validity
22
Q
Measures whether test or other instrument produces consistent results so that scores won’t vary over time
A
Reliability
23
Q
Measure candidate’s ability to analyze and solve problems and draw conclusions from a set of facts
A
Cognitive ability test
24
Q
Measure candidate’s knowledge and ability to apply skills in various areas
A
Aptitude test
25
Test of adverse impact
```
4/5ths or 80% rule:
Adverse impact exists if the selection rate of the protected class is less than 80% of the selection rate of the group with the highest selection rate
```
26
UGESP states a selection tool producing adverse impact is discriminatory unless
- Job-related
| - Valid predictor of success
27
Specifically exempt from UGESP
ADEA & Rehabilitation Act
28
What is the 2nd level of EO compliance and to whom does it apply?
- Written AAP within 120 days of origin of contract
| - 50+ employees and $50k+
29
What is the first level of EO compliance and to whom does it apply?
- Prohibits employment discrimination and requires AA
| - $10K+ in 12 months
30
VEVRAA provides ___ and applies to ___
- EEO and AA protection for vietnam vets
| - Federal contractors and subcontractors with contracts of $25k+
31
Rehabilitation Act applies to
Federal government and federal contractors with contracts of $10k or more during a 12 month period
32
of employees for ADA coverage
15
33
ADEA waiver of rights requirements
- Valuable consideration
- Advice to consult with an attorney
- 21 days to review/consider
- 7 days to revoke after signing
34
BFOQ's of ADEA
- Firefighters and police
- Retirements 65 or older who work in executive positions at least 2 years and are eligible for retirement benefits of at least $44k/year
- Retirements of tenured employees at institutes of higher education at age 70
- Discharge/discipline for just cause
35
of employees for ADEA coverage
20
36
of employees for Title VII coverage
15
37
4 Balanced Scorecard areas
- Financial Results
- Customer Results
- Key Internal Process
- How people are hired/trained to achieve org goals
38
Prima facie retaliation includes these elements
- Employee engaged in a protected activity
- Employer knew or suspected the employee was engaged in the activity
- Employee suffered unfavorable employment action
- Sufficient circumstances to infer a contributing factor was the activity
39
SOX whistle blower protection is provided by
OSHA
40
A practice of forecasting possible risks to the organization and taking steps to mitigate their impact on organizations
Enterprise risk management
41
Transactions related to product sales and the costs related to creating the product
Cost accounting
42
BPO provider
| PEO provider
- Business process outsource
| - Professional employer organization
43
Communicates what the company does, for whom it does it, and what long range success will look like
Vision statement
44
Describes the company, what it does, where it's going, and how it's different from other companies
Mission statement
45
A budgetary activity in which HR attempts to measure the value of the human resources
Human capital projecting
46
List the steps in the needs assessment process
1. Describe the objective
2. Define the current situation
3. Conduct a gap analysis
4. Set priorities
5. Investigate and develop options
6. Evaluate options and determine budget impact
7. Recommend solutions
47
Most effective in environments of highly skilled professionals who are self-motivated and independent
Democratic style
48
Measures the relationship between one variable against another and allows prediction of one variable from the other
Simple linear regression
49
Another name for product-based structure
Customer-oriented structure
50
Elements of Blake-Mouton grid
```
P
E
O
P
L
E
PRODUCTION
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51
Hersey-Blanchard style where followers have experience and motivation
Delegating
52
Benefits of diversity
- Workforce is more creative
- Reflects the population
- Increases the candidate pool
53
Types of reinforcement are part of which motivation concept?
Behavioral modification (operant conditioning)
54
Describe negative reinforcement
Encourages continuation of behavior by removing an unpleasant response to the behavior
55
Maslow's hierarchy of needs
1. Psychological
2. Safety
3. Social
4. Esteem
5. Self-Actualization
56
Acquired Needs theory
- Achievement
- Affiliation
- Power
57
Describe Theory X & Y
- Theory X managers believe employees are lazy and therefore use a top-down approach
- Theory Y managers believe employees seek challenging work. Likely to invite participation in decision making
58
These leaders set the ideal for the group and act as role models, inspiring excellence in the group and stimulating new ideas
Transformational leaders
59
Focuses on relationships in the group, building them to achieve goals
Transformational leadership
60
Define and list motivators according to Herzberg
Leading to satisfaction:
- Achievement
- Recognition
- The Work Itself
- Responsibility
- Advancement
- Growth
61
Focuses on getting the job done and seeks to do this by offering a reward
Transactional leadership
62
PEST analysis
Political
Economic
Social
Technological
63
These leaders work closely with group members to develop skills
Coaching
64
The study of how adults learn
Andragogy
65
Describe contingency theory
Utilizes the least preferred coworker scale and 3 situational aspects:
- Leader/Member relations
- Task structure
- Position power
66
A high LPC score indicates greater concern for ___
People
67
These leaders are effective in situations requiring immediate action or those that are life-threatening
Authoritarian or directive
68
Vroom's expectancy theory
- Expectancy
- Instrumentality
- Valence
69
Define equity theory
People are constantly measuring what they put into work vs. what they get out. Demotivation leads to decreased productivity and quality
70
The ability of a diverse group of people to achieve org goals and a measure of a company's ability to work with people from multiple walks of life
Cultural competence
71
These leaders allow members to operate on their own without direction. Leads to lower productivity
Laissez-faire
72
Define and list hygiene factors according to Herzberg
Leading to dissatisfaction:
- Company policy
- Supervision
- Relationship with boss
- Working conditions
- Safety
- Relationship with peers
73
Which acquired needs motivator is the most likely to produce an effective manager?
Power
74
Hersey-Blanchard style where followers are immature or inexperienced
Telling
75
Assigns more weight to current data with the use of a predetermined number and drops old data as new is added
Weighted moving average
76
Hersey Blanchard style where followers have some experience and the leader directs them in a general sense
Selling
77
Self knowledge - how well a person knows himself
Intrapersonal intelligence
78
Define valence according to Vroom
The result of calculations as to whether the possible reward is worth the effort
79
Requires federal contractors to list all job openings with state employment agencies, except for management jobs, positions to be filled internally, and those lasting 3 days or less
VEVRAA
80
Emotional intelligence & social aptitude
Interpersonal intelligence
81
2 key differences between Maslow and Alderfer/ERG
1) Alderfer allows that people can work on multiple levels at once
2) Frustration-regression is possible
82
"The absence rate is higher with new employees" - If this hypothesis is true, we would have ___
A negative correlation coefficient
83
Hersey-Blanchard - Followers have progressed in ability but lack motivation and require support
Participating
84
3 Elements of ERG Theory
Existence, Relatedness, Growth
85
Steps are taken to avoid the risk
Risk Avoidance
86
Steps are taken to reduce the risk
Risk Mitigation
87
Four leadership styles of Path-Goal
Directive, Supportive, Participative, Achievement
88
Used to compensate for data that may be out of date
Weighted average
89
Define instrumentality according to Vroom
Will the effort to complete the work be the instrument for obtaining the reward
90
Define expectancy according to Vroom
An individual's assessment about their capabilities to successfully complete an assignment
91
How does Hersey-Blanchard theory describe leadership?
In terms of the maturity level of the followers:
- Psychological (motivation)
- Job Task (experience)
92
Provides information about the financial results of operations
Income Statement or Profit and Loss Statement
93
A picture of the financial condition of the organization on a specific day, usually the last of the accounting period
Balance Sheet
94
4 Elements needed to create a High Involvement Organization
Power, Information, Knowledge, and Rewards
95
In these organizations, employees are involved in designing their own work processes
High-Involvement Organziations
96
Provides graphical representation of the 80/20 rule
Pareto Chart
97
5 disciplines of the learning organization
- Systems thinking
- Personal mastery
- Mental models
- Building a shared vision
- Team learning
98
Three stages of change according to change process theory
Unfreezing, moving, refreezing
99
Organization development is a systematic way of examining an organization's ___
Technology, processes, structure, human resources
100
Protect new, original, and ornamental designs of manufacturing items
Design patents
101
Plant patents are limited to ___
20 years
102
Utility patents are limited to ___
20 years
103
Design patents are limited to ___`
14 years
104
Protect the invention or discovery of asexually reproduced varieties of plants
Plant patents
105
Protect the invention of new and useful processes, machines, manufacture or composition of matter, and new and useful improvements of the same
Utility patents
106
Works for hire are protected for how long?
Shorter of 95 years from 1st year of publication or 120 years from the year of creation
107
Copyrights protect original works for how long?
Life of the author plus 70 years
108
5 Six Sigma steps
1) Define
2) Measure
3) Analyze
4) Improve
5) Control
109
Crosby's 4 absolutes of quality
- Conformance to requirements
- Prevention
- Performance standards
- Measurement
110
Provide a graphical representation of elements that are out of the acceptable range by setting parameters above and below the range
Process-Control Chart
111
Aids in the development of appropriate programs to solve the individual problems that make up a whole
Stratification charts
112
Charts that show the individual components of a problem in addition to the total
Stratification chart
113
Two other names for cause and effect diagrams
Ishikawa / Fishbone diagrams
114
___ are representative of routing tasks, such as operating a cash register
Negatively accelerating learning curves
115
Characterized by a slow start in learning that increases as the learner masters different aspects of the process or task
Positively accelerating learning curves
116
Factors of job enrichment
- Skill variety
- Task identity
- Autonomy
- Task Significance
- Feedback
117
3 types of passive training methods
Lecture, Presentation, Conference
118
5 elements of instructional design
- Analysis
- Design
- Development
- Implementation
- Evaluation
119
Learner listens to and absorbs information
Passive training methods
120
Occurs when learner performs a task irregularly, not often enough to become proficient
Plateau learning curve
121
Begins with rapid increase in knowledge that levels off a period of time and no additional progress occurs for an extended period
Plateau learning curve
122
___ curve found in software conversion projects
S-Shaped
123
___ are representative of tasks that are complex
Positively accelerating learning curves
124
A slow learning process that accelerates over time and then slows again
S-Shaped
125
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L
E
A
R xx
N xx
I xx
N xx
G xx
TIME IN JOB
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Positively accelerating
126
```
L
E
A xx
R xx
N xx
I xx
N xx
G xx
TIME IN JOB
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Negatively accelerating
127
If all employees are reviewed at the same time, the organization has a ___
Focal review period
128
A review conducted by someone other than the supervisor
Field review
129
Strategies of formulative evaluation
- Needs assessment
- Asking people
- Analyzing jobs
- Pilot tests
- Pre tests
130
Testing or previewing the content of training prior to final delivery to ensure it will result in desired behavior
Formulative evaluation
131
The ultimate goal of a talent assessment process is to
Align the organization workforce with key business initiatives
132
Effective for disseminating facts and concepts, refreshing previously learned skills, or expanding a learner's knowledge in a field already familiar
Programmed instruction
133
Evaluations designed to identify what participants want, know, and need
Formulative evaluation
134
4 types of summative evaluation
- Reaction
- Learning
- Behavior
- Results
135
In this method, the learner progresses from lesson to lesson in a predesigned course of instruction
Programmed instruction
136
Causes of salary compression
- High-growth economy
| - Organization's compensation system is not aligned with the market
137
Compa-ration formula
Base / Midpoint x 100
138
What are compa-ratios used for?
- Comparison against a group of employees
| - Providing pay / promo recommendations
139
A merit matrix combines a ___ with the employee's ___ to recommend the amount of increase
- performance rating
| - position in salary range
140
Generally speaking, an increase of ___ is provided for promotions
10%
141
What type of compensation program focuses on employee KSAs?
Competency-based
142
Competency-based compensation is used most effectively with ___
Broadband salary ranges
143
Effects of broadbanding
- Flatter organizations
- Facilitates lateral movement
- Greater collaboration
144
Legally mandated benefits
- SS
- Medicare
- Unemployment insurance
- FMLA
- Worker's comp
- COBRA
145
Work hours can children work?
- School year: 7a-7p
| - Summer: 7a-9p
146
Work rules for 14 & 15 year olds
- Non-hazardous, non-farm, non-mining
- Up to 3 hrs/day or 18/wk
- Up to 8 hours on non-school day or 40/wk
147
How old must a child be to work in a non-farm job?
| A hazardous non-farm job?
- 16
| - 18
148
Define highly compensated employees
Make $100k if at least $455/wk is paid as a salary or fee
149
Elements of DOL safe harbor
- Policy against improper deductions and complaint mechanism
- Reimbursement
- Commitment to comply in the future
150
Factors in determining FLSA "actual practice"
- # of improper vs. proper deductions
- time period
- # of employees affected
- Geographic locations and managers responsible
151
If the employer has an actual practice of improper deductions, who is impacted? For how long?
All employees in that classification lose exempt status for the time the deductions were made
152
Permissible salary deductions
- Absence for personal reasons
- Illness if part of a plan
- Offset jury, witness, military pay
- Penalties for safety rule violation
- Disciplinary suspensions
- Initial or terminal weeks when less than 1 week worked
153
What "travel away from home" time is compensable?
Travel for overnight stay, during work hours, even on non-work days. Excludes passenger time (except car)
154
Situations requiring pay for travel
- Emergency travel from home to work
- One day offsite assignments
- Travel between job sites
- Travel away from home
155
Non-exempt employees are not required to be paid to attend training events if
- Event is outside normal work hours
- Voluntary
- May not be job-related
- No other work performed during the event
156
Breaks shorter than ___ minutes are compensable time
20
157
Is on-call time compensable? One exception.
No
| - Employees required to remain on site
158
Is time spent waiting to engage compensable?
No
159
Is time spent engaged to wait compensable?
Yes
160
Do holidays count as time worked toward overtime qualification?
No
161
How may public employers compensate for overtime?
- OT payments
| - Comp time of 1.5 times number of OT hours worked
162
Federal minimum wage
$7.25
163
Federal tax legislation is imposed by
the IRS
164
Rulings from IRS that apply only to the specific taxpayer and circumstances included in the request - used to find out tax implications of transactions
Private letter ruling
165
First federal legislation to regulate minimum wages
Davis Bacon Act
166
The computer employee FLSA exemption does not apply to
Employees who manufacture or repair computers
167
FLSA exemption compensation requirement for computer professionals
$455/wk or $27.63/hr
168
Which FLSA requirement for exemption does not apply to outside sales employees?
Salary
169
Describe the FLSA salary basis test
- Predetermined pay on regular schedule
- Pay not reduced for variations in quality/quantity
- Paid full salary for weeks in which any work is performed
170
Salary level test formula
(employee's annual rate x FTE ) / 52 weeks
171
Expands the requirements of Davis Bacon and Walsh-Healy to contractors providing services to the federal government
Service Contract Act (SCA)
172
Employees must be paid a minimum salary of ___ to be exempt.
Exceptions?
$455/wk or $23.60/year
- Outside sales, teachers, attorneys, MDs
173
Individual coverage (FLSA) applies to whom?
Orgs whose daily work involves interstate commerce
174
Enterprise coverage (FLSA) applies to whom?
```
- Businesses employing 2+ employees with at least $500k annual sales
AND
- hospitals
- schools
- government agencies
```
175
5 major FLSA requirements
- Minimum wage
- OT requirements and rate
- Exemption criteria
- Limitations on child workers
- Retention of payroll info
176
Which employees are not covered by the FLSA?
Those covered by another law
177
SCA applies to federal service contractors with contracts over ___
$2500
178
Payments to employees associated with wages and salaries
Direct compensation
179
A qualified deferred compensation plan is one that
- Meets ERISA requirements
| - Protects employees from loss of benefits to employer mismanagement of funds
180
Two factors in defined benefit formula
Salary and Length of service
181
Elements of ERISA
- Increased reporting requirements
- Funds separated from operating funds
- Vesting schedules
- SPD given to employees
- fund management standards
182
Cash balance plans are subject to ___ regulations
Defined benefit
183
___ retirement plans are controversial because some courts have held they ___
Cash balance plans, discriminate against older workers
184
This plan's benefits are determined using a hypothetical personal pension account
Cash balance plans
185
Fringe benefits such as vacation, sick and holiday pay, 401k, pension plans, SS, FLMA
Indirect compensation
186
Agencies that establish rules for financial reporting that affect total rewards decisions
SEC, FASB
187
Refers to the degree of secrecy around pay issues
Pay openness
188
Relates to how closely pay reflects actual performance
Distributive justice
189
Requires government contractors with contracts over $10k to pay prevailing wages
Walsh-Healy Public Contracts Act
190
Determining the job responsibilities of a position for purposes of defining exemption status
Duties test
191
How fair the internal process and procedures in determining pay scales are perceived to be
Procedural justice
192
The midpoint progression is generally ___ for lower grades
LOOK UP
193
When employees record the actual hours they're at work along with vacation, sick, or other time off
Positive time reporting
194
FLSA methods for recovering back wages
- Wage and hour division of DOL can supervise payments
- DOL files lawsuit
- Private suit
- DOL injunction
195
Statute of limitations for back pay recovery
- 2 years
| - 3 years if willful violation
196
Major provisions of Portal to Portal Act
- Commute time is non-compensable
| - Employees paid for work during lunch and before/after normal hours
197
What does the FLSA require regarding hazard pay?
Not required but, if paid, must be factored into OT
198
Incentive plans should target at least a ___ bonus to motivate employees
10%
199
Elements of an Improshare incentive plan
Baseline for productivity and baseline for productivity costs. Difference in new output determines performance.
200
Elements of Scanlon Plan
Employees receive portion of cost savings won through increased productivity and cost savings
201
Which incentive plans are typically covered by ERISA?
Profit-sharing
202
Which type of incentive plan requires disclosure of financial information and productivity metrics to employees?
Scanlon
203
Most profit sharing plans qualify as ___ plans
Defined contribution
204
Profit sharing plans distribute ___ tax dollars
Pre
205
An ESPO is a defined ___ plan
contribution
206
An ESOP trust and the contributions the company makes to it are tax ___
deductible
207
When are ESOPs taxed?
When funds are distributed
208
ESOPs allow employees to use ___ tax payroll deductions to purchase discounted stock
after
209
ESOP stock is usually discounted up to __%
15
210
Characteristics that define and distinguish jobs from one another
Compensable factors
211
Which job evaluation method involves key benchmark positions?
Classification method
212
5 categories used in the point factor classification method
Education, Skill, Effort, Responsibility, Working Conditions
213
Factors of the HAY classification method
Knowledge, problem solving, accountability
214
Describe internal equity with regard to job classification
Value of jobs to each other relative to their value in the organization
215
Ways to establish internal equity in job classifications
- Broadbanding
- Point Factor
- HAY
216
Generally, what % of jobs should be included in a salary survey?
65-70%
217
The difference between the midpoints of the salary grades
Midpoint progression
218
The SSA introduced ___ that is to be paid to qualified workers upon retirement or disability
Old Age, Survivors, and Disability Insurance
219
The ___ established unemployment insurance
SSA
220
The Medicare and OASDI tax was originally contained in ___ but later moved to ___
SSA; FICA (Federal Insurance Contributions Act)
221
Per FICA, responsibility for collecting medicare and OASDI tax lies with ___
the IRS
222
The current SSA retirement age
67
223
___ moved unemployment tax to the IRS
FUTA (Federal Unemployment Tax Act)
224
All employers who make their unemployment tax payments in full and on time receive ___
a 5.4 credit, making their tax rate .6%
225
Unemployment tax is calculated as ___
6% of the first 7k of each employee's salary
226
Unemployment is typically paid for how long?
26 weeks
227
Unemployment payments are currently extended to ___
99 weeks
228
Provisions of FMLA
1) 12 weeks unpaid leave in a 23 month period (or 26 weeks military caregiver leave)
2) Continuation of health benefits
3) Reinstatement to the same or equivalent position
229
FMLA job restoration rights continue for how long?
Until the employee is released to full duty or until the end of the 12 month FMLA year
230
FMLA leave records must be retained for how long
3 years
231
FMLA applies to whom?
All public agencies and schools, and to private employers with 50+ employees working in a 75 mile radius
50 employees must be employed for each working day of 20 or more work weeks in the current or preceding year
232
Employers retain FMLA subjection until
Payroll is less than 50 employees for each of 20 weeks in the current and preceding calendar year
233
Once an employee requests FMLA leave, how quickly must the employer respond?
5 business days
234
What happens if an employer fails to notify an employee that he is ineligible for FMLA leave prior to the leave's start?
The employee is automatically eligible for the leave.
235
When are employees eligible for FMLA?
Employed for 12 months; Worked 1250 hours in the past 12 months
236
Define a "key employee" under FMLA
A salaried employee among the highest paid 10% (as calculated by salary/hours)
237
When the need for leave is foreseeable, the FMLA requires the employer be notified ___
30 days prior to the beginning of the leave
238
If proper notice isn't received, how may the employer alter the FMLA leave?
Delayed by as many days as the notification was delinquent
239
If a child is adopted or born to a couple working for the same employer, how much FMLA is due?
12 weeks between the couple
240
FMLA certification must be requested within ___ days and provided within ___
5; 15 unless the employer allows more time
241
Ways of calculating the FMLA year
1) The calendar year
2) Any fixed 12 month period
3) The 12 month period beginning at the start of the FMLA leave
4) A rolling 12 month period counting back from the leave
242
Companies who are self insured for worker's comp are termed
Nonsubscriber plans
243
A pension claim that exists because of a participant's service
Nonforfeitable claims
244
These pension claims are legally enforceably
Nonforfeitable claims
245
3 reports ERISA requires
SPD, Annual report, notice of participant rights
246
ERISA participation requirements
1 year of service and age 21, unless the plan provides 100% vesting after 2 years in which case 2 years is allowable
Must become participants within 6 months of qualification or the start of the first plan year after qualification, whichever is first
247
Vesting schedule in which participants become 100% vested after a specified period of time
Cliff Vesting
248
Establishes a vesting schedule that provides for partial vesting each year for a specified number of years
Graded vesting or graduated vesting
249
A person, corporation, or another legal entity that holds property or assets on behalf of, or in trust for, the pension fund
Fiduciary
250
Criminal penalties for willful violations of ERISA include...
5k-100k and imprisonment for up to 1 year
251
Lowered age limits for participation and vesting in pension plans
Retirement Equity Act
252
Required written approval from a spouse if the participant didn't want to provide survivor benefits
Retirement Equity Act
253
___ amends ADEA to include a prohibition on discrimination against older workers in all employee benefit plans unless age-based reductions are justified by significant cost considerations
Older Worker Benefit Protection Act
254
Reduced rules for rolling over lump sum distributions of qualified retirement plans to other plans and subjected some distributions to 20% income tax withholding
Unemployment Compensation Amendments
255
Cap on executive pay, requirement to honor court-issued qualified medical child support orders
OBRA
256
Simplified actual deferral percentage tests for 401k plans and redefined highly compensated employees
Small Business Job Protection Act
257
Established contribution limits, increasing many and allowing for catch-up contributions
Economic Growth and Tax Relief Reconciliation Act
258
Required employers to fully fund pension plans. Provides a penalty in the form of a 10% excise tax
Pension Protection Act
259
Allowed employees to automatically enroll in a 401k plan. Employees must now opt out.
Pension Protection Act
260
Requires defined contribution plans that include employer stock to provide at least 3 other investment options and allow employees to divest stock
Pension Protection Act
261
COBRA applies to
Businesses with 20 or more employees
262
Employers may charge COBRA participants a maximum of ___
102% of the group premium
263
HIPAA is an amendment to ___
ERISA
264
HIPAA permits exclusion of preexisting conditions for
12 months
265
HIPAA defines a preexisting condition as one that
was treated within 6 months prior to enrollment
266
Flexible spending accounts are exempt from ___ requirements but subject to ___
ERISA, HIPAA
267
Several types of defined contribution plans
- Profit Sharing Plans
- Money-Purchase Plans
- Target-Benefit Plan
- 401k Plans
268
Based on a percentage of company earnings each year
Profit-Sharing Plans
269
Profit Sharing Plans allow a max contribution per employee of ___
25%
270
When calculating profit sharing contributions, employers may only use the first $___ of pay
$245k
271
____ work well for companies with erratic profit levels
Profit sharing plans
272
Uses a fixed percentage of employee earnings to defer compensation.
Money-Purchase Plans
273
This type of plan works well for organizations with relatively stable earnings from year to year
Money-Purchase Plans
274
A hybrid plan with similarities to a defined-benefit and money purchase plan
Target-Benefit plan
275
Plan uses actuarial formulas to calculate the contribution needed to reach a predetermined benefit
Target-Benefit plan
276
These plans may not provide greater benefits to highly compensated employees
401k
277
Define a highly compensated employee
$115k/year, owns 5% or more of the company, in the top 20% of highest paid employees
278
___ aren't protected by ERISA and are generally available to only executives
Nonqualified deferred-compensation plans; top hat plans
279
Types of nonqualified deferred-compensation plans
Rabbi or Grantor Trusts and Excess Deferral Plans
280
Plan in which funds are unsecured and subject to claims made by the organization's creditors.
Rabbi or Grantor Trusts
281
When and how are Rabbi Trusts taxed?
At the time they are paid; as ordinary income
282
Allows the organization to make contributions to a nonqualified plan to reduce the impact of discrimination testing on HCEs
Excess Deferral Plans
283
Consists of a network and includes a hospital. Physicians may only see plan participants
Exclusive Provider Organizations
284
Physicians join with a hospital and together rely on the plan structure to market their services. Unique in that they contract directly with the employer.
Physician Hospital Organization
285
Places no restrictions on the providers participants can see.
Fee for Service Plans (FFS)
286
These plans require participants to pay out of pocket and be reimbursed
Fee for Service
287
Process by which providers set treatment rates based on the costs incurred by the group during the current coverage period
Experience rating
288
IRS views group life insurance in excess of ___ as imputed income
$50k
289
Indirect compensation paid on behalf of employees
Imputed income
290
ASO Plans are ___
Administrative Services Only - May also be used for self-funded plans
291
An association of employers who negotiate and contracts for the plan on behalf of all members of the group
Health Purchasing Alliance
292
Health plans popular among smaller employers
Health purchasing alliances
293
If an employer uses a PTO plan, what is payable to the employee upon separation?
All remaining time (sick and vacation) in the plan
294
FSAs were authorized by what law?
The Revenue Tax Act
295
FSAs are also known as
Section 125 plans
296
For employers, a downside of FSAs is that...
employees may be reimbursed for expenses before the funds have been deducted from their pay.
297
If an employee leaves the company after FSA expenses have been paid but before the cost was withheld from their paycheck, can the funds be recovered?
No
298
Maximum amount employees can set aside for dependent care costs
$5k
299
One key difference between an FSA and a dependent caregiver account is that...
In a dependent caregiver account, employees can not be reimbursed in excess of the money already withheld from their paycheck
300
2 IRS-required annual plan discrimination tests
key-employee-concentration and dependent-care
301
Statutory deduction
- SS
- Medicare
- Federal Income Tax
- State Income Tax
- UI (in some states)
- Disability Insurance (in some states)
- Other state and local taxes
302
Federal Wage Garnishment Law is part of
Title III of Consumer Credit Protection Act
303
Title III of the Consumer Credit Protection Act protects employees by ___
- Prohibiting termination of employees whose wages are garnished for any one debt
- Sets limits on the amount that can be garnished per week
- Defines how disposable income is calculated for garnishment withholdings
304
Define disposable income
Income left over after all mandatory deductions have been made
305
Debt Garnishment Calculation
The lesser of 25% of disposable income or disposable income in excess of 30 times the minimum wage
306
Child Support Garnishment Calculation
Up to 50% of disposable income if the employee is currently supporting another child or spouse, and 60% if not.
An additional 5% is permitted for garnishments 12 weeks in errears
307
This legislation requires employers to report all new hires within 20 days of their hire date to the State Department of New Hires
Personal Responsibility and Work Opportunity Reconciliation Act
308
The Federal Wage Garnishment Law applies to
All employers and employees
309
A typical compensation package for executives can include ___
- Base salary
- Bonuses and ST incentives
- LT incentives
- Benefits
- Perks
310
OBRA limited tax deductions for executive pay to ___
$1M
311
Provides significant benefits to an executive whose employment is terminated
Golden Parachute
312
Most often used when a CEO takes a position that entails a high risk of termination due to restructuring or sometimes as an incentive to retire early
Golden Handshake
313
Sometimes offered to executives of a company being acquired, to ensure they remain with the reorganized company
Golden Lifejacket
314
Incentive Stock Options can only be offered to
employees
315
An Incentive Stock Option is favorable to employees because
it does not face taxes at the time the stock option is exercised, only when sold at a later date
316
An Incentive Stock Option is not favorable to employers because
They only receive a tax deduction if certain conditions are met
317
Incentive Stock Options are also called
Qualified Stock Options
318
Nonqualified stock options can be provided to
consultants and members of the BOD as well as employees
319
Describe the tax treatment of a nonqualified stock option
- Employer receives tax deduction when options are exercised
| - Recipients pay tax on any gain they realize from the sale. Income from the stock is treated as compensation
320
Common stock offered to employees
Restricted stock
321
Used in privately held companies to provide the benefits of ownership without granting stock
Phantom stock
322
The most common recipients of phantom stock are
The BOD and executives
323
With phantom stock, what determines its value?
A valuation formula.
324
When can an employer receive a tax deduction related to phantom stock?
When the stock yields a payout
325
When do accounting rules require that stock options be reflected in financial reports?
When the options are granted
326
This metric provides information about the cost of human capital relative to other operating expenses
Compensation as a percentage of operating expenses
327
Formula for compensation as a percentage of operating expenses
Base, variable, & deferred comp / Operating Expenses
328
This clause allows the parties to agree on which laws - home or host country - will apply
Choice of law clause
329
A civil action based on a duty or obligation that has been breached by one party, causing an injury of some kind to another
a tort
330
Occurs when an employer entices an employee (or prospective employee) to take an action by promising a reward. The employee takes the action but the reward is not granted.
Promissory Estoppel
331
This means an employer can be held liable for actions of its employees that occur within the scope and course of the job, regardless of whether the act is negligent or reckless
Respondeat Superior
332
Occurs when an employer makes the workplace so hostile and inhospitable that an employee resigns
Hostile Work Environment
333
Employers are generally protected from defamation charges by ___ if the information is truthful and job-related.
Qualified privilege
334
A hostile work environment is created when individuals are subjected to unwanted verbal or physical conduct...
when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, work performance, or creates an intimidating, hostile, or offensive work environment.
335
Case that established that "hostile environment" sex discrimination is actionable under Title VII and that to be protected, employers should have a policy encouraging victims to come forward.
Meritor Savings Bank v. Vinson
336
Established that the test for harassment is conduct which falls between that which is merely offensive and that which results in tangible psychological injury.
Harris v. Forklift Systems
337
Case in which the court determined that subordinates know that the possibility of adverse supervisory actions exist whenever requests are made, even if the adverse actions aren't stated.
Faragher v. City of Boca Raton
338
Case in which it was determined that in part "an employer is subject to vicarious liability to a victimized employee for an actionable hostile environment created by a supervisor with immediate or higher authority over the employee."
Burlington Industries v. Ellerth
339
Case dealing with same-sex harassment
Oncale v. Sundowner Offshore Services, Inc.
340
Case that determined that because a male employee was subjected to offensive sexual conduct, the conduct was sexual in nature and discriminatory, and he was treated differently based on his sex. (sexual orientation)
Medina Rene v. MGM Grand Hotel
341
Barriers for the advancement of women, per the Glass Ceiling Act
- Societal barriers
- Internal structural barriers
- Governmental barriers
342
___ conducts glass ceiling audits
EEOC
343
Protects the rights of reservists called to active duty in the armed forces.
Uniformed Services Employment and Reemployment Rights Acts
344
Who is subject to USERRA?
All employers
345
USERRA grants a leave up to ___.
Exceptions?
5 years
Boot camp, waiting for orders, annual training are all excluded - no limits
346
2 employee rights under USERRA
- Moonlighting during off-duty hours
- Reinstatement rights maintained if the employee leaves the job to prepare for mobilization and then mobilization is cancelled
347
Compensation during USERRA leave
- Employers not required to pay unless they have a policy of doing so
- Employees may apply their accrued vacation but cannot be required to do so
348
Benefits on USERRA leave
- Same benefits as other employees on leave
- Continue to accrue seniority and other benefits
- For leaves more than 30 days but less than 240, COBRA-like continuation
- 31 days or less and at employee's request, continuation of health coverage at regular cost
349
Pensions under USERRA leave
- Vesting and accrual treated as if there were no break in service
- Employer contributions continue as if employee were working
- For defined-contribution plans, employee must be given 3 times the duration of the leave (max 5 years) to make up payments missed. Any employer matches must also be made up.
350
Reinstatement under USERRA
Must be reinstated to the position the employee would have earned if they had remained on the job.
351
USERRA forfeiture of reinstatement rights
- Temporary or seasonal employees
- Dishonorably or any way other than honorably discharged
- AWOL for 90 days
352
Continued employment under USERRA
- Leaves between 30 and 181 days - no discharge without cause for 6 months
- 181 days or more - no discharge without cause for 1 year
353
Requires an employee to act with reasonable care and skill in the course of performing work for the employer
Duty of Diligence
354
Requires employees to act within the authority granted by the employer and to follow the employer's reasonable and legal policies, rules, procedures
Duty of Obedience
355
Requires that employees act in the best interest of the employer and not solicit work away from the employer to benefit themselves
Duty of Loyalty
356
Describes how people feel about an organization based on a number of factors, including observable practices and employee perceptions.
Org climate
357
Org ___ is strongly influenced by the structure as reflected in the org chart
climate
358
Based on the values and beliefs shared at all levels and reflected by interactions between employees and customers and vendors
Org culture
359
List some employee involvement strategies
- Suggestion boxes
- Delegating authority
- Task Forces
- Committees
- Work Teams
- Virtual Work Teams
- Employee-Management Committees
360
Employers should use care when creating committees to address issues related to any terms and conditions of employment such as wages, safety, training, scheduling, to avoid the appearance of having created a
employer-dominated union, prohibited by the NLRA
361
Broad guidelines developed by the employer to guide organizational decisions
Policies
362
Provide details on how policies are to be applied
Procedures
363
State what employees may or may not do to comply with the policy
Work Rules
