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WorldatWork Regulatory Environments for Compensation Programs Sample Questions:

1. Which of the following acts is focused on employers with construction contracts with the government?

A) National Labor Relations Act
B) McNamara-O'Hara Act
C) Sherman Antitrust Act
D) Davis-Bacon Act

2. Which of the following documents is a requirement of the FLSA for all nonexempt employees?

A) Discharge notices stating reason for discharge
B) Copies of pay stubs
C) Records on hours worked and wages paid
D) Copies of employee W-2s

3. What best describes what forecasting helps the organization to do?

A) Withhold payroll taxes for all elements of compensation
B) Anticipate future capital needs by determining when the organization will enter the next phase of the business lifecycle
C) Recognize possible issues and concerns that will drive budget planning
D) Prepare quarterly and annual reports and their associated statements

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

A) 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.
B) Compensation professionals should anticipate the level of the audience and tailor messages to their needs.
C) Compensation terms are well-known and easily understood by most stakeholders.
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.

5. How do commissions typically differ from annual incentives for non-executive employees?

A) They are offered to motivate employee performance.
B) They are intended to align the interests of the employee with those of the organization.
C) They are based on a predetermined performance and reward schedule.
D) They tend to make up the larger portion of an employee's total compensation.

Solutions: