PHR Total Rewards and Compensation 2

Question 1

Under the FLSA, what is the primary requirement for an employee to qualify for the executive exemption?

Accepted Answer

Earning a salary above the threshold and primarily managing the enterprise or a department

Answer

Working more than 40 hours per week regularly

Answer

Holding a job title containing the word 'manager'

Answer

Being paid on an hourly basis above minimum wage

Question 2

A pay structure with a single broad range covering many job levels is known as what?

Accepted Answer

Broadbanding

Answer

Pay compression

Answer

Step rate system

Answer

Market pricing

Question 3

Pay compression most commonly occurs when:

Accepted Answer

New hires are paid nearly as much as long-tenured employees

Answer

Bonuses exceed base salary

Answer

Benefits costs rise faster than wages

Answer

Overtime is heavily restricted

Question 4

Which compensation philosophy aims to set pay at the market median?

Accepted Answer

Match (meet) the market

Answer

Lead the market

Answer

Lag the market

Answer

Pay for time

Question 5

The difference between an employee's pay and the midpoint of their pay range, expressed as a ratio, is called the:

Accepted Answer

Compa-ratio

Answer

Range spread

Answer

Pay differential

Answer

Wage index

Question 6

Which type of benefit is legally mandated for most U.S. employers?

Accepted Answer

Social Security and Medicare contributions

Answer

Dental insurance

Answer

Paid vacation

Answer

Tuition reimbursement

Question 7

A discretionary bonus paid at year-end with no advance promise of amount is best described as:

Accepted Answer

Excludable from the regular rate for overtime purposes

Answer

Always included in overtime calculations

Answer

A guaranteed incentive

Answer

A form of deferred compensation