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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) Sherman Antitrust Act
C) Davis-Bacon Act
D) McNamara-O'Hara Act

2. If a company has a higher percentage of employees with fixed compensation than variable compensation, what happens as revenues increase?

A) Compensation costs eventually stabilize and become a consistent percent of revenue.
B) Compensation costs eventually decrease as a percent of revenue, increasing profit growth.
C) Compensation costs remain the same as a percent of revenue until variable compensation costs exceed fixed compensation costs.
D) Compensation costs and revenue increase at approximately the same rate.

3. Who are you most likely to hear from if there are questions about an employee's compensation?

A) The employee's department head
B) The employee
C) The employee's manager
D) A concerned co-worker

4. Who enforces Title VII of the Civil Rights Act of 1964?

A) The National Civil Rights Commission
B) The Wage and Hour Division of the Department of Labor
C) The Office of Federal Contract Compliance
D) The Equal Employment Opportunity Commission

5. Regarding cost analysis of compensation expense, which job is most likely to incur fixed costs for the company?

A) IT contractor
B) Production worker
C) Account executive
D) HR Director

Solutions: