Base Pay Administration Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Base Pay Administration flashcards as text
Under the Fair Labor Standards Act (FLSA), which basis for pay differences is NOT a permissible affirmative defense against an Equal Pay Act claim?
Answer: An employee's prior salary history alone
The Ninth Circuit and other courts have held that relying solely on prior salary history to justify pay differences is not a permissible factor under the EPA.
When benchmarking jobs for salary survey purposes, which approach is used when a benchmark job does NOT exist in a participating company?
Answer: The company skips that job and submits only matching jobs
Standard salary survey methodology instructs participants to submit data only for jobs they can match and to omit jobs they cannot accurately match.
Which pay policy line is constructed by regressing evaluated job worth (x-axis) against actual pay (y-axis)?
Answer: Internal pay policy line
An internal pay policy line uses regression analysis of internally evaluated job worth against current actual pay to reveal how pay aligns with internal equity.
A company wants to age survey data collected six months ago to today's date using a 3% annual trend rate. The aging factor to apply is approximately:
Answer: 1.015
For half a year at 3% annual growth, the aging factor is approximately 1 + (0.03 × 6/12) = 1.015.
Which of the following is the BEST description of 'pay grade overlap'?
Answer: The percentage by which one grade's range extends into an adjacent grade's range
Range overlap measures how much of one pay grade's range falls within the adjacent grade's range, indicating the degree of pay differentiation between grades.
A hiring manager wants to offer a candidate above the range midpoint before the candidate has demonstrated full proficiency. Which term describes this concern?
Answer: Front-loading risk
Front-loading occurs when pay is set high in the range early in employment, leaving little room for future merit increases and inflating fixed costs before value is proven.
Which of the following is a key advantage of using weighted average market data instead of simple average in salary surveys?
Answer: It reflects larger organizations' pay practices more proportionally
Weighted averages account for the number of incumbents each employer contributes, so larger firms with more employees have proportionally greater influence on the result.