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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. How are the compensation communication needs of managers different from those of individual employees?

A) They tend to have more influence, so it is important to resolve any concerns they have quickly and efficiently.
B) They aren't. Managers are concerned about their compensation also.
C) They are also responsible for merit increases, incentives and hiring so they have greater information needs.
D) They have more duties and responsibilities and are less likely to have the time to discuss compensation issues.

2. Which of the following are the two primary elements of benefits?

A) Pay for time not worked and income protection programs
B) Mental health coverage and health care coverage
C) Unemployment and disability
D) Defined contribution and defined benefits plans

3. How does the Fair Labor Standards Act require employers to pay their nonexempt employees?

A) Time and a half for all hours worked over 8 in the workday
B) Double time for time worked on Sunday
C) Double time for work on Saturday
D) Time and a half for all hours worked over 40 in the workweek

4. Which of the following statements regarding the Worker Economic Opportunity Act is most accurate?

A) Employees must hold options for at least 3 months.
B) Employers must include stock profits in overtime calculations.
C) Employees are not required to participate
D) Stock options may be granted at a 20% discount

5. What statement is most accurate regarding communication of compensation information?

A) Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
B) Compensation terms are well-known and easily understood by most stakeholders.
C) The ready availability of information online has made it unnecessary for compensation professionals to tailor messages since individuals can research terms and concepts after the fact if they don't understand a communication.
D) Compensation terms and practices are unclear to most individuals who do not work in this area and communication should be tailored to the least informed member of the target audience.

Solutions: