CMCA Human Resources and Personnel Management 1 — Questions and Answers
Question 1: When a community association employs on-site staff directly, who is legally the employer of record?
- The management company
- The individual board members who hired the staff
- The community association as a legal entity (Correct answer)
- The state homeowners association registry
Correct answer: The community association as a legal entity
When staff are direct employees, the association as a legal entity is the employer of record and bears all employer obligations including payroll taxes, workers' compensation, and compliance with labor law.
Question 2: An HOA manager hires a landscaping crew as independent contractors. Which of the following factors most strongly supports worker classification as an employee rather than an independent contractor?
- The worker provides their own tools and equipment
- The association controls how, when, and where the work is performed (Correct answer)
- The worker performs services for multiple clients
- The worker sets their own hours and rates
Correct answer: The association controls how, when, and where the work is performed
The IRS and most courts focus on the degree of behavioral and financial control; if the association controls the manner and method of work, the worker is likely an employee.
Question 3: Under the Fair Labor Standards Act (FLSA), non-exempt employees must be paid overtime at a rate of at least:
- Time and a quarter (1.25×) for all hours over 40/week
- Time and a half (1.5×) for all hours over 40 in a workweek (Correct answer)
- Double time (2×) for hours over 8 per day
- Standard rate regardless of hours if salaried
Correct answer: Time and a half (1.5×) for all hours over 40 in a workweek
The FLSA requires non-exempt employees to receive at least 1.5 times their regular rate of pay for all hours worked beyond 40 in a single workweek.
Question 4: A community association with 15 or more employees is subject to which federal anti-discrimination law?
- The Americans with Disabilities Act (ADA) only
- Title VII of the Civil Rights Act of 1964 (Correct answer)
- The Equal Pay Act only
- The National Labor Relations Act
Correct answer: Title VII of the Civil Rights Act of 1964
Title VII applies to employers with 15 or more employees and prohibits discrimination based on race, color, religion, sex, and national origin.
Question 5: Which document establishes the terms and conditions of employment for association staff and reduces misunderstandings about job expectations?
- The association's Declaration
- The management agreement
- A written job description and employee handbook (Correct answer)
- The annual budget
Correct answer: A written job description and employee handbook
A written job description and employee handbook set clear expectations regarding duties, policies, benefits, and disciplinary procedures, reducing disputes and legal exposure.
Question 6: When conducting a performance review for an on-site association employee, the manager should:
- Evaluate personality traits rather than job performance
- Rely solely on verbal feedback without documentation
- Document specific, measurable performance observations tied to job duties (Correct answer)
- Avoid discussing areas for improvement to maintain morale
Correct answer: Document specific, measurable performance observations tied to job duties
Effective performance reviews use documented, job-specific, measurable feedback that provides a legal record and guides employee development.
CMCA Human Resources and Personnel Management 1
When a community association employs on-site staff directly, who is legally the employer of record?