ch21 - docshare01.docshare.tipsdocshare01.docshare.tips/files/20030/200308704.pdf · ch21 Student:...

ch21Student: ___________________________________________________________________________

1. States may set minimum wage amounts that are lower, not higher, than the federal minimum wage. True False

2. The FLSA requires breaks or meal periods to be given to workers.

True False 3. In internship programs under the FLSA, the intern is entitled to wages for the time spent in the

internship. True False

4. The FLSA requires employers to provide reasonable break time for nursing mothers.

True False 5. Penalties imposed for violation of the Fair Labor Standards Act can be trebled for repeated violations.

True False 6. Employers are not required to compensate nursing mothers for breaks taken for the purpose of expressing

milk. True False

7. Employers with fewer than 50 employees are not subject to the FLSA break time requirement if

compliance with the provision would impose an undue hardship. True False

8. The FLSA sets 16 years of age as the minimum age for employment.

True False 9. The WARN Act requires that employers give employees prior notice of plant closings or mass

layoffs. True False

10. The right to receive a WARN notice excludes part-time workers.

True False 11. A WARN notice is mandatory for a case that relates to the sale of a business.

True False 12. Covered plant closings are defined as the loss of jobs by 500 or more employees in a 30-day period.

True False 13. The penalty for failure to comply with the WARN notice is back pay to employees to cover the required

60-day period. True False

14. Under the FMLA, the employee's parents in law do not qualify as an immediate family member.

True False 15. The right to a covered leave of absence under the Family and Medical Leave Act applies to employees

the moment they begin employment. True False

16. If a bonus is based on the amount of sales, the FMLA requires the employer to award sales that the

employee would have made if not on family medical leave. True False

17. Employers have the right to retaliate against anyone assisting in the enforcement of USERRA rights, provided that person has no service connection. True False

18. An employee is entitled to sue an employer for damages based on an OSHA violation.

True False 19. Regarding employment at-will, employees may be fired if the boss does not like them.

True False 20. Employment-at-will relationships are essentially employer/employee agreements that may be terminated

at any time without cause. True False

21. A personnel handbook for a business has no effect on at-will employment.

True False 22. Whistleblowers are entitled to awards of lesser amounts when the fraud has already been publicly

disclosed and the whistleblower is not an original source. True False

23. Under federal law, private employers generally are permitted to use lie detector tests while screening job

applicants. True False

24. The National Drug Prevention and Testing Act of 1994 includes uniform guidelines regarding the drug

testing of employees. True False

25. The Fourth Amendment protects public employees from some drug testing because courts have ruled that

certain tests were unreasonable searches. True False

26. Liability of the employer exists regardless of lack of negligence or fault, provided the necessary

association between the injuries and the business of the employer is present. True False

27. Common ailments in which the employee has had a preexisting disease are not compensable

as "accidental injuries." True False

28. The exclusive remedy rule is applicable to employers in the case of intentional as well as accidental

injuries of workers. True False

29. The requirement for Form I-9 Employment Eligibility Verification forms is waived off for U.S.

employers who employ noncitizens. True False

30. Clear identification of employer expectations and policies helps provide a defense against employee

lawsuits if subsequent discipline or discharge of the employee becomes necessary. True False

31. One major purpose of the Fair Labor Standards Act is to provide:

A. overtime pay.B. guaranteed employment.C. disability benefits.D. antidiscrimination policies.E. private pension plans.

32. The purpose of the Social Security Act is to provide: A. employment.B. disability benefits.C. policy guidance on employment discrimination.D. protection for employee privacy.E. provisions for restrictions on child labor.

33. Which of the following provides for private pension plans?

A. The Fair Labor Standards ActB. The Social Security ActC. The Worker Adjustment and Retraining Notification ActD. The Civil Rights Act of 1964E. The Employment Retirement Income Security Act

34. Which of the following holds true for the Fair Labor Standards Act (FLSA)?

A. It addresses issues regarding disability benefits.B. It addresses issues regarding reemployment rights after performing uniformed service.C. It addresses issues regarding minimum wage.D. It addresses issues regarding workplace safety.E. It addresses issues regarding private pension plans.

35. Standards regarding unsafe and unhealthy workplace conditions are created and enforced under:

A. NLRB.B. FLSA.C. ERISA.D. OSHA.E. IRCA.

36. Under the FLSA, the overtime pay for workers is:

A. at a rate of not less than two and one-half times the employee's regular rate of pay.B. decided by the employer after mutual consent and agreement with the workers.C. at a rate that is equal to the employee's regular rate of pay.D. variable depending upon the particular job involved.E. at a rate of not less than one and one-half times the employee's regular rate of pay.

37. If the employee's tips combined with the cash wage do not meet the minimum hourly wage:

A. the employee is entitled to work for a reduced number of hours.B. the employer must make up the difference (with certain conditions).C. the federal government along with the employer must make up the difference.D.

the employee is entitled to be paid for the inconvenience caused along with the difference (with certain conditions).

E.

the employer is not liable to pay the difference if he/she reduces the number of working hours for the employee.

38. If the state minimum wage rate differs from the federal minimum wage rate, then employers:

A. have the legal right to pay whichever minimum wage is lower.B. have the legal right to choose the minimum wage rate to be paid.C. are legally required to pay the federal minimum wage rate.D. are legally required to pay whichever minimum wage is higher.E. are legally required to pay the state minimum wage rate.

39. Which of the following acts provides national policy for governing the union-management relationship?

A. The Social Security ActB. The Fair Labor Standards ActC. The Worker Adjustment and Retraining Notification ActD. The Taft-Hartley ActE. The Employment Retirement Income Security Act

40. Which of the following statements holds true for the internship programs under the FLSA? A. The intern is entitled to a job at the conclusion of the internship.B. The intern is entitled to wages for the time spent in the internship.C. The intern, in certain cases, displaces regular employees.D. The internship includes actual operation of the facilities of the employer.E. The intern works independently of the existing staff.

41. The FLSA:

A. as a general rule, sets 16 years of age as the minimum age for employment.B. limits the number of hours worked by minors under the age of 18.C. was amended in 2006 to increase penalties against employers who violate child labor laws.D.

increased penalties from $10,000 to $50,000 for each FLSA violation leading to the serious injury or death of a child worker.

E. increased fines which are subject to doubling for repeated or willful violations. 42. If the employer already provides compensated breaks, an employee who uses that break time to express

milk: A. is legally entitled to be compensated but at a rate lower than the other employees.B. need not be compensated by the employer.C. is legally entitled to stretch the duration of the break time.D. is legally required to take a pay cut.E. is legally entitled to be compensated in the same way as other employees.

43. Which of the following statements is true of the WARN Act?

A. It requires employers to give notice of a scheduled mass layoff.B. It requires employers to give notice to an "at will" employee that he/she is being fired.C.

It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.

D. It requires employers to give notice to employees that they are being subjected to polygraph tests.E. It requires employers to give notice to employees that they are being subpoenaed by a court of law.

44. The WARN notice is required of employers with:

A. 50 employees working within a 75-mile radius.B. 100 or more full-time employees.C. 100 employees, whether full- or part-time.D. less than half-time employees.E. more than 100 part-time employees.

45. A WARN notice covers a mass layoff involving loss of employment of _____ in a _____ period.

A. 500 or more full-time employees; 30-dayB. 500 or more full- and/or part-time employees; 60-dayC. 500 or more full-time employees; 90-dayD. 500 or more full- and/or part-time employees;120-dayE. 450 or more full- and/or part-time employees; 120-day

46. Under the WARN Act, which of the following constitutes a loss of employment?

A. A transfer leading to reduction in position and pay.B. Layoff exceeding one month.C. A reduction in an employee's work time of more than 50 percent in each month for six months.D. Extended leave period of more than 10 weeks.E. A disciplinary notice requiring immediate response from the employee.

47. Which of the following statements holds true for a WARN notice in cases involving the sale of a business? A. Any required notice prior to the sale being completed is the responsibility of the seller.B.

The seller of the business holds the responsibility of issuing a WARN notice even after the date of the closing.

C. A failure on the part of the seller to issue a WARN notice results in a $1,000 fine.D.

The seller has to provide written notice to the federal government within 90 days before the sale of the business.

E. The sale of a business mandatorily requires the WARN notice. 48. The provisions included in the Family and Medical Leave Act:

A. apply only to female employees.B. apply only to the employee's children who are over 18 years old.C. do not apply to same-sex couples.D. relating to birth, adoption, and foster care apply to both female and male employees.E. apply only to the employee's parents and parents in law.

49. The _____ has the responsibility of defining "any qualifying exigency" arising out of the fact that a

family member is on active duty in support of a contingency operation. A. Department of JusticeB. Department of LaborC. Department of InteriorD. Department of DefenseE. Department of State

50. Jamie works as a barista at Coffee-Ha-Ha, a small chain of three coffee houses, in the main facility

located in Paradise, New Jersey with 60 other employees. He has worked there full time for 18 months. His wife has called with some bad news. His mother was driving with Jamie's 10-year-old daughter, Delores, and has had an accident severely injuring both of them. Jamie has asked his employer for leave under the Family Medical Leave Act. Which of the following is true? A.

Granting the leave is entirely at the discretion of the employer; the employer does not permit him the leave as it would hamper the functioning of Coffee-Ha-Ha.

B.

Jamie is not entitled to the leave because the number of hours he has worked during the preceding 12 months is less than what is required by law.

C.

Jamie is entitled to leave for taking care of his mother-in-law and daughter, regardless of his daughter‘s age.

D. Jamie is only entitled to the leave to take care of his daughter.E. The provisions of this Act apply only to females.

51. An employee is eligible to qualify for the Family and Medical Leave Act benefits if the employee has

worked: A. 1,040 hours during the previous 12 months.B. 1,250 hours during the previous 12 months.C. 1,950 hours during the previous 12 months.D. 2,080 hours during the previous 12 months.E. 3,000 hours during the previous 12 months.

52. Under the Family Medical Leave Act, in order to take leave, the eligible employee:

A. must have worked for 12 consecutive months prior to requesting leave.B. is entitled to one 12-week paid leave per year.C. must have worked at least 1,950 hours during the preceding 12 months.D. must have worked for the employer at least a total of 12 months.E. must work at a location where at least 100 employees are employed.

53. Which of the following constitutes the responsibilities of the employer in case an employee is on family medical leave? A. The employer is entitled to review the actual medical records of the employee.B.

The employer cannot request a medical certification that a qualifying event has occurred in the employee's life.

C.

The employee is not entitled to be awarded the sales that the employee would have made if not on family medical leave.

D. The employer may not keep the employee's job available when the employee returns to work.E.

If the employer gives a bonus for perfect attendance, the employee on family medical leave is not entitled to such a bonus.

54. Which of the following statements is true of the Uniformed Services Employment and Reemployment

Rights Act? A.

Employers may retaliate against anyone assisting in the enforcement of USERRA rights, provided that person has no service connection.

B. It contains health insurance provisions.C.

Covered individuals who leave a job to perform military service are barred from continuing any existing employer-based health plan coverage.

D.

For individuals who elect to continue coverage, they have the right to be reinstated in the employer's health plan when reemployed.

E.

It applies to all individuals released from service irrespective of whether it was under "honorable conditions" or "dishonorable conditions"

55. Which of the following is true of OSHA?

A. Employees do not have the right to request an OSHA inspection.B.

Employees making complaints who are subjected to discrimination are prohibited from filing a complaint with OSHA.

C. There is no private cause of action under OSHA.D. An employee can sue an employer for damages based on an OSHA violation.E.

Employees making complaints who are subjected to retaliation by their employers are prohibited from filing a complaint with OSHA.

56. The Health Insurance Portability and Accountability Act:

A.

provides that employees can continue to purchase health insurance even after their employment is terminated.

B.

exempts health insurance companies from the federal anti-trust legislation that applies to most businesses.

C. protects employees who have preexisting health conditions when they change jobs.D. calls for the creation of a universal single-payer health care system in the United States.E. ensures that elderly and needy individuals receive proper medical care.

57. Tom has a back injury that has required surgery in the past. He is able to work, but he requires periodic

medical checkups and physical therapy. If he leaves his current job and moves to another company, he is protected and can receive medical coverage that includes coverage for his back at the new job due to the provisions of: A. FMLA.B. FLSA.C. OSHA.D. HIPAA.E. USERRA.

58. Which of the following acts is directed at protecting employees' health care?

A. COBRAB. FMLAC. FLSAD. ERISAE. WARN

59. Employers were prohibited from firing employees for union activities under the: A. common law.B. Fair Labor Standards Act.C. Labor-Management Relations Act.D. Labor Rights Act.E. WARN Act.

60. Flo has been working at ABC Corporation for four-and-a-half years. Her pension plan will vest at her

five-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The internal finance department has determined that cost cutting is needed to keep the company profitable. They recommend that Flo be fired before her pension vests and becomes a permanent liability against the corporation. They cannot fire her to keep her pension from vesting based on: A. ERISA.B. COBRA.C. HIPPA.D. FLSA.E. IRCA.

61. The Age Discrimination in Employment Act forbids age-based discharge of employees over age:

A. 35.B. 40.C. 45.D. 50.E. 60

62. Which of the following holds true for the Fair Labor Standards Act?

A. It forbids discharge for exercising rights guaranteed by minimum-wage and overtime provisions.B. It prohibits discharge of employees due to garnishment of wages for any one indebtedness.C. It forbids discharge of employees for service on federal grand or petit juries.D. It prohibits discharge to prevent employees from getting vested pension rights.E. It forbids age-based discharge of employees over age 40.

63. Which of the following holds true for the IRS Whistleblowers Rewards Program?

A.

To be eligible to recover compensation from the IRS, a person must bring information to the Department of Justice.

B.

The whistleblower may receive compensation only from monies actually collected based on the information provided.

C.

The total collected proceeds based on which the reward is calculated exclude penalties, interest, additions to tax, and additional amounts.

D. The reward to the whistleblower is independent of his contribution to the prosecution of the action.E.

Under no circumstances does the IRS have the right to lower the amount of the reward given to the whistleblower.

64. Sarah negotiated with her boss and works from 7:00 a.m. to 7:00 p.m., Mondays through Thursdays, with

an hour for lunch and an hour for dinner each day. On Election Day, the polls are open from 7:00 a.m. until 7:00 p.m. and there are long lines at the polling station. She requests permission from her boss to cast her vote and asks for an extended lunch or dinner break. He refuses and tells her that she will be fired if she takes extra time off. Which of the following is true? A. The boss can fire her because her first obligation is to her job.B. The boss can fire her because employment at will permits him to fire her for any reason.C.

The boss cannot fire her because the Fair Labor Standards Act allows employees leeway in the fixture of work schedules without the approval of their superiors.

D.

The boss cannot fire her because he may not prohibit her from exercising a statutory or constitutional right.

E.

The boss can fire her because the company does not bear any responsibility for the fulfillment of duties of a personal nature.

65. Employees that publicly disclose illegal or unethical behavior on the part of their companies are called: A. whistleblowers.B. informants.C. scabs.D. purges.E. accommodation makers.

66. An employee at-will can be fired for:

A. taking time off from work to serve on jury duty after the boss asked the employee to request a waiver.B. making public the fact that the employer was cheating the government on a defense contract.C. taking time off from work to care for a dependant, without informing the employer.D. making public statements about the hazardous working conditions in a companyE. taking time off from work to vote in the elections.

67. Polygraph tests may:

A. be legally used by most private employers to screen job applicants.B. be legally used by most private employers to randomly check current employees.C.

be legally used by private companies that sell controlled substances to screen and randomly check current employees.

D. never be used in connection with employment.E. only be used by government organizations to regularly check current employees.

68. Under the Employee Polygraph Protection Act:

A. employers cannot be sued by the employees for violating the Act.B. private employers are permitted to use lie detector tests while screening job applicants.C. current employees may not be tested randomly.D. private security companies may not use lie detector tests while screening job applicants.E.

current employees may not be tested even in cases involving specific incidents that cause loss to an employer's business.

69. Public employees are protected from some drug testing by the ____ Amendment's prohibition against

unreasonable searches. A. FirstB. FifthC. FourthD. TenthE. Seventeenth

70. Under common law, even though an employer is negligent in permitting a hazardous condition to persist,

if the worker is aware of the dangers that exist, he will be unable to recover damages because of the _____ defense of the employer. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. proportionate liabilityE. shelter rule

71. Under common law, if an injury were caused by the carelessness of the employee as well as the

employer, the employee would be unable to recover damages because of the _____ defense of the employer. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. contributory negligenceE. shelter rule

72. Under common law, if an injury occurred because of the negligence of another employee, the employer would escape liability because of the _____ defense. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. contributory negligenceE. shelter rule

73. Under the workers' compensation laws:

A. the compensation paid to the workers excludes medical benefits.B. liability requires the necessary association between the injuries and the business of the employer.C.

employers, treating the costs of injuries as part of the costs of production, may not pass them on to the consumers.

D. the three defenses under the common law are strengthened.E. liability exists only if there is proof of lack of negligence or fault.

74. The _____ rule states that an employee's sole remedy against an employer for workplace injury or illness

shall be workers' compensation. A. assumption of the riskB. exclusive remedyC. fellow-servantD. contributory negligenceE. shelter

75. Which of the following statements is true for a paper fortress?

A. It consists of cases of labor violations by an organization.B. It consists of personnel manuals.C. It consists of legal injunctions served on an organization.D. It consists of terms of registration of an organization.E. It acts as a protection against unjustified employer lawsuits.

76. Food and Snacks is a restaurant that is owned and operated by Megan Hill. During the Christmas season,

the restaurant attracts more than 5,000 visitors. Each employee of the restaurant earns $8 an hour. The employees have to work extra hours to cope up with the rush. They work an average of 55 hours a week and are paid $8 for the extra hours that they put in. Additionally, there are no accurate records of employees' work hours and wages. Does the restaurant violate any rule?

77. A fast food restaurant allowed nine minors to operate a deep fryer. The restaurant's manually operated

fryer requires the employees to cook baskets of food in hot oil, according to the department. All of the minors that utilized the fryer did so at the direction of various store managers as well as senior staff members and on a regular and recurring basis. Does the restaurant violate any rule?

78. California-based Click Storage Products, Inc., suffered extensive building damage after it was hit by an earthquake. The plant was considered unsafe to work in. Eventually it was closed down, leaving hundreds of employees without jobs. The plant gave a notice of 10 days to warn the workers of the impending shutdown. Is the plant guilty of any violation?

79. Block International is an American company manufacturing fiber cement products at its Macon plant, and

its U.S. headquarters are located in Norcross. Mel works as a plant supervisor. She had to take leave in order to care of her mother who had undergone surgery for a serious health condition. The management of the company terminated Mel for taking intermittent leave. Is the termination order justified?

80. Jack works as a mechanic in Cars Unlimited, an automobile manufacturing company. While employed as

a service technician for the defendant, Jack suffered back injuries in March 2005 and April 2005. Though he requested to go home, he did not submit a written injury report and refused medical treatment. Jack was absent through the month of June, calling in sick each day without providing any other information and not seeking medical treatment during this time. As Jack had exhausted his available sick leave and vacation leave, he was terminated when he returned to work on July 3, 2005. Can Jack sue his former employer for failure to reinstate and wrongful discharge in violation of the Family and Medical Leave Act (FMLA)?

81. Serena, who had worked for Global Tech for nearly 30 years, was hospitalized for having suicidal

thoughts. One day, Serena notified her supervisor that she would be unable to work for at least one month. Global Tech mailed Serena an FMLA packet, which she completed and forwarded to her health care provider for certification. Global Tech denied the plaintiff's FMLA request because the supplied medical information was insufficient to support a serious health condition. Serena asked the hospital to provide additional medical information to the defendant, which Global Tech received the following day. A few days later, Global Tech notified Serena in a letter that she was terminated for her failure to supply medical information as required by the company. Serena sued her employer for interfering with her FMLA leave rights. Is she right?

82. Ben began working for Whitestone in December 2005. In October 2007, Whitestone was acquired by Sky Ltd., a competitor. In November 2007, Ben learned he had fibrosing mediastinitis and applied for FMLA leave for a related surgery. Ben's FMLA leave was approved beginning December 17, 2007. On February 15, 2008, Ben notified his supervisor of his intention to return to work on February 18, 2008. When the regional manager learned that Ben was returning, he discharged Ben and provided assurances to Human Resources that Ben's position would have been eliminated due to the acquisition of Whitestone, regardless of his FMLA leave. Is Whitestone justified in its action?

83. Aside from granting leave when appropriate, what are the responsibilities of the employer with regard to

the Family Medical Leave Act?

84. New York police officers Brad Williams and Michael Durant volunteered to participate in the Iraq War

as part of the National Guard soldiers. Upon their return home from war, the City overlooked the officers' heroism and sacrifice by denying them the annual leave, seniority, and pay-steps they would have otherwise accrued but for their devoted service in the armed forces. Do the officers have the right to sue the City of New York?

85. Mekon Ltd., operates a paper mill which employs more than 1,000 workers. The mill is quite old. It has

a number of places in which unguarded moving machine parts operate. There are open-sided platforms unguarded or inadequately guarded against falls. Some of the stairs in the mill are without railings and there are several locations where the floors are not kept dry. The mill has not witnessed a single injury or death in all these years of operation. Does the mill violate any law?

86. The County Hill plant manufactures tube and hose assemblies, and dryers and accumulators for large vehicle air conditioning systems. It uses highly toxic chemicals like potassium hydroxide and isoparaffinic hydrocarbon for its operations. The plant has not attached hazardous warning labels on the tanks where these chemicals are stored. It does not provide the workers with protective body or eye gear. Moreover, the exit doors and routes in the plant are blocked. Which law does County Hill violate?

87. What is the purpose and jurisdiction of Occupational Safety and Health Administration (OSHA)?

88. What is the employment-at-will doctrine and how is it being limited?

89. What are the provisions of the IRS Whistleblowers Rewards Program?

90. George Bennet was hired by Bragg Brothers Ltd., as a business agent and was told by its secretary-

treasurer that he would be employed for as long as his work was satisfactory. During his employment, Bennet was subpoenaed by the California legislature to appear before, and testify to, a committee which was investigating corruption inside Bragg Brothers. The company directed Bennet to make false statements to the committee during his testimony, but he instead truthfully answered all questions posed to him. He was fired the day after his testimony. Is the company justified in its action under the at-will doctrine?

91. What are the rewards received by the whistleblower as part of the IRS Whistleblowers Rewards Program?

92. Pat Whatmore worked as manager at National Banks. One morning, a National branch received a

telephone call from Whatmore, who claimed that he had been forced at gunpoint to help rob the bank. Later that same day, National Banks' regional security manager requested Whatmore to take a polygraph examination in order to eliminate his name from the list of suspects. Whatmore refused and sued the bank for the breach of privacy. Is the bank justified in asking Whatmore to take a polygraph test?

93. When may public employees be drug tested?

94. Patty Holmes, a 15-year-old high school sophomore attending Valley High, was participating in a junior

varsity field hockey match against a team from Manfield High. While Holmes was controlling the ball and attempting to score a goal, one or more members of the Manfield team came into contact with her, causing her to fall and sustain injuries. Holmes claimed that the school and school district were negligent and sued to recover damages for the injuries she sustained during the field hockey match. Under the common law, is Patty eligible to recover damages?

95. Martin was injured in a collision between his buggy and Herzog's car. Martin was driving at night without

lights. Martin's wife sued Herzog. Herzog claimed that Martin's failure to use headlights resulted in the accident. Is there any provision under the common law that would come to Herzog's rescue?

96. John, a New York City fireman was fighting a fire when he was struck by a couch which a fellow firefighter had either thrown or pushed from a window of a burning building. John sustained injuries and sued the city for damages. In its defense, the city asserted the common law fellow-servant rule. What is the fellow-servant rule? Does it apply in this case?

97. The U.S. Citizen and Immigration Services broadly categorizes document abuse into four categories. List

the categories.

98. What are some of the things an employer can do to protect himself/herself from a lawsuit concerning

employment?

99. What is meant by the term "paper fortress" and why would an employer amass a "paper fortress"?

100.How does "writing" as a piece of documentation help the employer?

ch21 Key 1. States may set minimum wage amounts that are lower, not higher, than the federal minimum

wage. FALSE

Many states provide for minimum wages higher than the federal rate. Employers are legally required to pay whichever minimum wage is higher.

AACSB: Ethics

Blooms: RememberDifficulty: 1 Easy

Learning Objective: 21-01 To identify major employment laws and their significance for employers and employees.Reed - Chapter 21 #1

Topic: Employment Laws

2. The FLSA requires breaks or meal periods to be given to workers. FALSE

The FLSA does not require breaks or meal periods to be given to workers.

AACSB: Ethics




3. In internship programs under the FLSA, the intern is entitled to wages for the time spent in the internship. FALSE

According to the Department of Labor, the employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.Refer: Sidebar 21.2

AACSB: Ethics

Blooms: RememberDifficulty: 2 Medium



4. The FLSA requires employers to provide reasonable break time for nursing mothers. TRUE

The FLSA now requires break time for nursing mothers. Employers are required to provide "reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk."Refer: Sidebar 21.3

AACSB: Ethics




5. Penalties imposed for violation of the Fair Labor Standards Act can be trebled for repeated violations. FALSE

The increased fines are subject to doubling for repeated or willful violations.

AACSB: Ethics




6. Employers are not required to compensate nursing mothers for breaks taken for the purpose of expressing milk. TRUE

Employers are not required to compensate nursing mothers for breaks taken for the purpose of expressing milk.Refer: Sidebar 21.3

AACSB: Ethics




7. Employers with fewer than 50 employees are not subject to the FLSA break time requirement if compliance with the provision would impose an undue hardship. TRUE

Employers with fewer than 50 employees are not subject to the FLSA break time requirement if compliance with the provision would impose an undue hardship.Refer: Sidebar 21.3

AACSB: Ethics

Blooms: UnderstandDifficulty: 2 Medium



8. The FLSA sets 16 years of age as the minimum age for employment. FALSE

As a general rule, the FLSA sets 14 years of age as the minimum age for employment, and limits the number of hours worked by minors under the age of 16.

AACSB: Ethics




9. The WARN Act requires that employers give employees prior notice of plant closings or mass layoffs. TRUE

The Worker Adjustment and Retraining Notification Act (WARN) became law in 1989. Known as the WARN Act, this law requires employers to provide notice of plant closings and mass layoffs.

AACSB: Ethics




10. The right to receive a WARN notice excludes part-time workers. FALSE

Employees entitled to receive the WARN notice include those who are hourly, salaried, supervisory, and managerial. In essence all workers, even part-time, are entitled to receive the notice.

AACSB: Ethics




11. A WARN notice is mandatory for a case that relates to the sale of a business. FALSE

The sale of a business may or may not require the WARN notice.

AACSB: Ethics




12. Covered plant closings are defined as the loss of jobs by 500 or more employees in a 30-day period. FALSE

Covered plant closings are defined as the shutting of an employment site resulting in a loss of employment of 50 or more employees during any 30-day period.

AACSB: Ethics




13. The penalty for failure to comply with the WARN notice is back pay to employees to cover the required 60-day period. TRUE

The penalty for failure to comply with the WARN notice is back pay to employees to cover the required 60-day period.

AACSB: Ethics




14. Under the FMLA, the employee's parents in law do not qualify as an immediate family member. TRUE

Under the FMLA, the employee's parents in law do not qualify as an immediate family member.

AACSB: Ethics




15. The right to a covered leave of absence under the Family and Medical Leave Act applies to employees the moment they begin employment. FALSE

Covered employers are those who employ 50 or more employees for each working day of 20 or more calendar weeks during either the current or preceding year. Eligible employees have worked for their employer for at least 12 months and have worked at least 1,250 hours during the preceding 12 months.

AACSB: Ethics




16. If a bonus is based on the amount of sales, the FMLA requires the employer to award sales that the employee would have made if not on family medical leave. FALSE

If a bonus is based on the amount of sales, the FMLA does not require the employer to award sales that the employee would have made if not on family medical leave.

AACSB: Ethics




17. Employers have the right to retaliate against anyone assisting in the enforcement of USERRA rights, provided that person has no service connection. FALSE

Employers may not retaliate against anyone assisting in the enforcement of USERRA rights, even if that person has no service connection.

AACSB: Ethics




18. An employee is entitled to sue an employer for damages based on an OSHA violation. FALSE

There is no private cause of action under OSHA, which means that an employee cannot sue an employer for damages based on an OSHA violation.

AACSB: Ethics




19. Regarding employment at-will, employees may be fired if the boss does not like them. TRUE

Historically, unless employees contracted for a definite period of employment (such as for one year), employers were able to discharge them without cause at any time. This is called the employment-at-will doctrine.

AACSB: Ethics


Learning Objective: 21-02 To explain the scope and limits of the employment-at-will doctrine.Reed - Chapter 21 #19


20. Employment-at-will relationships are essentially employer/employee agreements that may be terminated at any time without cause. TRUE

Historically, unless employees contracted for a definite period of employment (such as for one year), employers were able to discharge them without cause at any time. This is called the employment-at-will doctrine.

AACSB: Ethics




21. A personnel handbook for a business has no effect on at-will employment. FALSE

Courts have ruled that the employer's publication of an employee handbook can change the nature of at-will employment. They have held the employer liable for breach of contract for discharging an employee in violation of statements made in the handbook about discharge procedures.

AACSB: Ethics




22. Whistleblowers are entitled to awards of lesser amounts when the fraud has already been publicly disclosed and the whistleblower is not an original source. TRUE

Under the IRS Whistleblower Reform Law, the IRS may give awards of lesser amounts under certain circumstances (i.e., when the fraud has already been publicly disclosed and the whistleblower is not an original source).Refer: Sidebar 21.11

AACSB: Ethics




23. Under federal law, private employers generally are permitted to use lie detector tests while screening job applicants. FALSE

Concerns for individual privacy also contributed to passage of the Electronic Communications Privacy Act of 1986 and the 1988 Employee Polygraph Protection Act. Under this latter federal law, private employers generally are forbidden from using lie detector tests while screening job applicants.

AACSB: Ethics


Learning Objective: 21-03 To understand the limits of privacy in the workplace and the role of workers compensation laws.Reed - Chapter 21 #23


24. The National Drug Prevention and Testing Act of 1994 includes uniform guidelines regarding the drug testing of employees. FALSE

An important privacy concern involves drug testing. At present, there is no uniform law regarding the drug testing of employees.

AACSB: Ethics




25. The Fourth Amendment protects public employees from some drug testing because courts have ruled that certain tests were unreasonable searches. TRUE

Public employees are protected from some drug testing by the Fourth Amendment's prohibition against unreasonable searches.

AACSB: Ethics




26. Liability of the employer exists regardless of lack of negligence or fault, provided the necessary association between the injuries and the business of the employer is present. TRUE

Workers' compensation laws create strict liability for employers of accidentally injured workers. Liability exists regardless of lack of negligence or fault, provided the necessary association between the injuries and the business of the employer is present.

AACSB: Ethics




27. Common ailments in which the employee has had a preexisting disease are not compensable as "accidental injuries." FALSE

Courts have held that heart attacks (as well as other common ailments in which the employee has had either a preexisting disease or a physical condition likely to lead to the disease) are compensable as "accidental injuries."

AACSB: Ethics




28. The exclusive remedy rule is applicable to employers in the case of intentional as well as accidental injuries of workers. FALSE

Since workers' compensation laws apply only to accidentally injured workers, the exclusive remedy rule does not protect employers who intentionally injure workers.

AACSB: Ethics




29. The requirement for Form I-9 Employment Eligibility Verification forms is waived off for U.S. employers who employ noncitizens. FALSE

In accordance with the federal Immigration Reform and Control Act of 1986 ("IRCA"), all U.S. employers must complete and retain Form I-9 Employment Eligibility Verification forms for each individual they hire in the United States. Both citizens and noncitizens must complete the form.

AACSB: Ethics




30. Clear identification of employer expectations and policies helps provide a defense against employee lawsuits if subsequent discipline or discharge of the employee becomes necessary. TRUE

Clear identification of employer expectations and policies helps provide a defense against employee lawsuits if subsequent discipline or discharge of the employee becomes necessary.

AACSB: Ethics


Learning Objective: 21-04 To discuss ways an employer should document employee performance in anticipation of potential employee litigation.Reed - Chapter 21 #30


31. One major purpose of the Fair Labor Standards Act is to provide: A. overtime pay.B. guaranteed employment.C. disability benefits.D. antidiscrimination policies.E. private pension plans.

Originally enacted in 1938, the FLSA establishes a minimum wage, overtime pay, record-keeping requirements, and child labor standards.

AACSB: Ethics




32. The purpose of the Social Security Act is to provide: A. employment.B. disability benefits.C. policy guidance on employment discrimination.D. protection for employee privacy.E. provisions for restrictions on child labor.

The Social Security Act provides standards for safe and healthy working environment and also provides unemployment compensation.Refer: Table 21.1

AACSB: Ethics




33. Which of the following provides for private pension plans? A. The Fair Labor Standards ActB. The Social Security ActC. The Worker Adjustment and Retraining Notification ActD. The Civil Rights Act of 1964E. The Employment Retirement Income Security Act

The Employment Retirement Income Security Act (ERISA) provides requirements for private pension plans.Refer: Table 21.1

AACSB: Ethics




34. Which of the following holds true for the Fair Labor Standards Act (FLSA)? A. It addresses issues regarding disability benefits.B. It addresses issues regarding reemployment rights after performing uniformed service.C. It addresses issues regarding minimum wage.D. It addresses issues regarding workplace safety.E. It addresses issues regarding private pension plans.

The Fair Labor Standards Act (FLSA) provides hourly minimum wage and maximum number of hours before overtime is owed.Refer: Table 21.1

AACSB: Ethics




35. Standards regarding unsafe and unhealthy workplace conditions are created and enforced under: A. NLRB.B. FLSA.C. ERISA.D. OSHA.E. IRCA.

The Occupational Safety and Health Act (OSHA) provides standards for safe and healthy working environment.Refer: Table 21.1

AACSB: Ethics




36. Under the FLSA, the overtime pay for workers is: A. at a rate of not less than two and one-half times the employee's regular rate of pay.B. decided by the employer after mutual consent and agreement with the workers.C. at a rate that is equal to the employee's regular rate of pay.D. variable depending upon the particular job involved.E. at a rate of not less than one and one-half times the employee's regular rate of pay.

Overtime pay at a rate of not less than one and one-half times the employee's regular rate of pay is required after 40 hours of work in a workweek.

AACSB: Ethics




37. If the employee's tips combined with the cash wage do not meet the minimum hourly wage: A. the employee is entitled to work for a reduced number of hours.B. the employer must make up the difference (with certain conditions).C. the federal government along with the employer must make up the difference.D.

the employee is entitled to be paid for the inconvenience caused along with the difference (with certain conditions).

E. the employer is not liable to pay the difference if he/she reduces the number of working hours for the employee.

If the employee's tips combined with the cash wage do not meet the minimum hourly wage, the employer must make up the difference (with certain conditions).

AACSB: Ethics




38. If the state minimum wage rate differs from the federal minimum wage rate, then employers: A. have the legal right to pay whichever minimum wage is lower.B. have the legal right to choose the minimum wage rate to be paid.C. are legally required to pay the federal minimum wage rate.D. are legally required to pay whichever minimum wage is higher.E. are legally required to pay the state minimum wage rate.

Many states provide for minimum wages higher than the federal rate. Employers are legally required to pay whichever minimum wage is higher.

AACSB: Ethics




39. Which of the following acts provides national policy for governing the union-management relationship? A. The Social Security ActB. The Fair Labor Standards ActC. The Worker Adjustment and Retraining Notification ActD. The Taft-Hartley ActE. The Employment Retirement Income Security Act

The Taft-Hartley Act provides national policy for governing the union-management relationship.

AACSB: Ethics




40. Which of the following statements holds true for the internship programs under the FLSA? A. The intern is entitled to a job at the conclusion of the internship.B. The intern is entitled to wages for the time spent in the internship.C. The intern, in certain cases, displaces regular employees.D. The internship includes actual operation of the facilities of the employer.E. The intern works independently of the existing staff.

The internship, even though it includes actual operation of the facilities of the employer, is similar to training which would be given in an educational environment.Refer: Sidebar 21.2

AACSB: Ethics




41. The FLSA: A. as a general rule, sets 16 years of age as the minimum age for employment.B. limits the number of hours worked by minors under the age of 18.C. was amended in 2006 to increase penalties against employers who violate child labor laws.D.

increased penalties from $10,000 to $50,000 for each FLSA violation leading to the serious injury or death of a child worker.

E. increased fines which are subject to doubling for repeated or willful violations.

As a general rule, the FLSA sets 14 years of age as the minimum age for employment, and limits the number of hours worked by minors under the age of 16. In 2008, the FLSA was amended to increase penalties against employers who violate child labor laws. The penalties increased from $11,000 to $50,000 for each FLSA violation leading to the serious injury or death of a child worker. The increased fines are subject to doubling for repeated or willful violations.

AACSB: Ethics




42. If the employer already provides compensated breaks, an employee who uses that break time to express milk: A. is legally entitled to be compensated but at a rate lower than the other employees.B. need not be compensated by the employer.C. is legally entitled to stretch the duration of the break time.D. is legally required to take a pay cut.E. is legally entitled to be compensated in the same way as other employees.

If the employer already provides compensated breaks, an employee who uses that break time to express milk must be compensated in the same way that other employees are compensated for break time.Refer: Sidebar 21.3

AACSB: Ethics




43. Which of the following statements is true of the WARN Act? A. It requires employers to give notice of a scheduled mass layoff.B. It requires employers to give notice to an "at will" employee that he/she is being fired.C.

It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.

D. It requires employers to give notice to employees that they are being subjected to polygraph tests.E. It requires employers to give notice to employees that they are being subpoenaed by a court of law.

The Worker Adjustment and Retraining Notification Act (WARN) became law in 1989. Known as the WARN Act, this law requires employers to provide notice of plant closings and mass layoffs.

AACSB: Ethics




44. The WARN notice is required of employers with: A. 50 employees working within a 75-mile radius.B. 100 or more full-time employees.C. 100 employees, whether full- or part-time.D. less than half-time employees.E. more than 100 part-time employees.

The WARN notice is required of employers with 100 or more employees. Workers who work less than half-time are not counted to determine this threshold level of 100.

AACSB: Ethics




45. A WARN notice covers a mass layoff involving loss of employment of _____ in a _____ period. A. 500 or more full-time employees; 30-dayB. 500 or more full- and/or part-time employees; 60-dayC. 500 or more full-time employees; 90-dayD. 500 or more full- and/or part-time employees;120-dayE. 450 or more full- and/or part-time employees; 120-day

A mass layoff requires the WARN notice if 500 or more employees lose their jobs in a 30-day period.

AACSB: Ethics




46. Under the WARN Act, which of the following constitutes a loss of employment? A. A transfer leading to reduction in position and pay.B. Layoff exceeding one month.C. A reduction in an employee's work time of more than 50 percent in each month for six months.D. Extended leave period of more than 10 weeks.E. A disciplinary notice requiring immediate response from the employee.

Under the WARN Act, a loss of employment includes (1) termination of employment, (2) layoff exceeding 6 months, or (3) a reduction in an employee's work time of more than 50 percent in each month for six months.

AACSB: Ethics




47. Which of the following statements holds true for a WARN notice in cases involving the sale of a business? A. Any required notice prior to the sale being completed is the responsibility of the seller.B.

The seller of the business holds the responsibility of issuing a WARN notice even after the date of the closing.

C. A failure on the part of the seller to issue a WARN notice results in a $1,000 fine.D.

The seller has to provide written notice to the federal government within 90 days before the sale of the business.

E. The sale of a business mandatorily requires the WARN notice.

The sale of a business may or may not require the WARN notice. Any required notice prior to the sale being completed is the responsibility of the seller. The buyer of the business assumes this responsibility after the date of the closing.

AACSB: Ethics




48. The provisions included in the Family and Medical Leave Act: A. apply only to female employees.B. apply only to the employee's children who are over 18 years old.C. do not apply to same-sex couples.D. relating to birth, adoption, and foster care apply to both female and male employees.E. apply only to the employee's parents and parents in law.

The provisions relating to birth, adoption, and foster care apply to both female and male employees.

AACSB: Ethics




49. The _____ has the responsibility of defining "any qualifying exigency" arising out of the fact that a family member is on active duty in support of a contingency operation. A. Department of JusticeB. Department of LaborC. Department of InteriorD. Department of DefenseE. Department of State

The FMLA grants employees up to 26 weeks of unpaid leave to care for a family member in the military who has incurred a serious illness or injury, and allows employees to take their current 12-week FMLA leave entitlement "for any qualifying exigency" arising out of the fact that a family member is on or has been notified that he/she is being called to active duty in support of a contingency operation. The Department of Labor has the responsibility of issuing regulations related to these changes, including defining "any qualifying exigency."

AACSB: Ethics




50. Jamie works as a barista at Coffee-Ha-Ha, a small chain of three coffee houses, in the main facility located in Paradise, New Jersey with 60 other employees. He has worked there full time for 18 months. His wife has called with some bad news. His mother was driving with Jamie's 10-year-old daughter, Delores, and has had an accident severely injuring both of them. Jamie has asked his employer for leave under the Family Medical Leave Act. Which of the following is true? A.

Granting the leave is entirely at the discretion of the employer; the employer does not permit him the leave as it would hamper the functioning of Coffee-Ha-Ha.

B.

Jamie is not entitled to the leave because the number of hours he has worked during the preceding 12 months is less than what is required by law.

C. Jamie is entitled to leave for taking care of his mother-in-law and daughter, regardless of his daughter‘s age.

D. Jamie is only entitled to the leave to take care of his daughter.E. The provisions of this Act apply only to females.

An immediate family member is a spouse, minor child, or parent of the employee. Under the FMLA, the employee's parents in law do not qualify as an immediate family member. The employee's children who are over 18 years old do not qualify as an immediate family member, unless that child is incapable of self-care due to a mental or physical disability that limits one or more of the major life activities as defined in the Americans with Disabilities Act.

AACSB: EthicsBlooms: Apply

Difficulty: 3 HardLearning Objective: 21-01 To identify major employment laws and their significance for employers and employees.

Reed - Chapter 21 #50Topic: Employment Laws

51. An employee is eligible to qualify for the Family and Medical Leave Act benefits if the employee has worked: A. 1,040 hours during the previous 12 months.B. 1,250 hours during the previous 12 months.C. 1,950 hours during the previous 12 months.D. 2,080 hours during the previous 12 months.E. 3,000 hours during the previous 12 months.

Eligible employees have worked for their employer for at least 12 months and have worked at least 1,250 hours during the preceding 12 months.

AACSB: Ethics




52. Under the Family Medical Leave Act, in order to take leave, the eligible employee: A. must have worked for 12 consecutive months prior to requesting leave.B. is entitled to one 12-week paid leave per year.C. must have worked at least 1,950 hours during the preceding 12 months.D. must have worked for the employer at least a total of 12 months.E. must work at a location where at least 100 employees are employed.

An immediate family member is a spouse, minor child, or parent of the employee. Eligible employees have worked for their employer for at least 12 months and have worked at least 1,250 hours during the preceding 12 months. The 12-month work period does not have to be consecutive months. An employee satisfies this requirement so long as that employee has worked for the employer at least a total of 12 months. Furthermore, eligible employees must work at a location where at least 50 employees are employed.

AACSB: Ethics

Blooms: UnderstandDifficulty: 3 Hard



53. Which of the following constitutes the responsibilities of the employer in case an employee is on family medical leave? A. The employer is entitled to review the actual medical records of the employee.B.

The employer cannot request a medical certification that a qualifying event has occurred in the employee's life.

C.

The employee is not entitled to be awarded the sales that the employee would have made if not on family medical leave.

D. The employer may not keep the employee's job available when the employee returns to work.E.

If the employer gives a bonus for perfect attendance, the employee on family medical leave is not entitled to such a bonus.

The employer may request a medical certification that a qualifying event has occurred in the employee's life, but the employer is not entitled to review the actual medical records of the employee. Once family medical leave is granted, the employer must keep the employee's job available for when the leave is up and the employee returns to work. In essence, the employee who qualifies for family medical leave is not supposed to be disadvantaged by the fact that the leave was taken.

AACSB: Ethics




54. Which of the following statements is true of the Uniformed Services Employment and Reemployment Rights Act? A.

Employers may retaliate against anyone assisting in the enforcement of USERRA rights, provided that person has no service connection.

B. It contains health insurance provisions.C.

Covered individuals who leave a job to perform military service are barred from continuing any existing employer-based health plan coverage.

D.

For individuals who elect to continue coverage, they have the right to be reinstated in the employer's health plan when reemployed.

E.

It applies to all individuals released from service irrespective of whether it was under "honorable conditions" or "dishonorable conditions"

USERRA contains health insurance provisions. For those who do not elect to continue coverage, they have the right to be reinstated in the employer's health plan when reemployed, generally without any waiting periods or exclusions. Employers may not retaliate against anyone assisting in the enforcement of USERRA rights, even if that person has no service connection.

AACSB: Ethics




55. Which of the following is true of OSHA? A. Employees do not have the right to request an OSHA inspection.B.

Employees making complaints who are subjected to discrimination are prohibited from filing a complaint with OSHA.

C. There is no private cause of action under OSHA.D. An employee can sue an employer for damages based on an OSHA violation.E.

Employees making complaints who are subjected to retaliation by their employers are prohibited from filing a complaint with OSHA.

Employees have the right to request an OSHA inspection if they believe that there are unsafe and unhealthful conditions in the workplace. Employees making complaints who are subjected to retaliation or discrimination by their employers may also file a complaint with OSHA. There is no private cause of action under OSHA, which means that an employee cannot sue an employer for damages based on an OSHA violation.

AACSB: Ethics




56. The Health Insurance Portability and Accountability Act: A.

provides that employees can continue to purchase health insurance even after their employment is terminated.

B. exempts health insurance companies from the federal anti-trust legislation that applies to most businesses.

C. protects employees who have preexisting health conditions when they change jobs.D. calls for the creation of a universal single-payer health care system in the United States.E. ensures that elderly and needy individuals receive proper medical care.

The Health Insurance Portability and Accountability Act (HIPAA) became law in 1996 and protects employees who have preexisting health conditions when they change jobs.

AACSB: Ethics




57. Tom has a back injury that has required surgery in the past. He is able to work, but he requires periodic medical checkups and physical therapy. If he leaves his current job and moves to another company, he is protected and can receive medical coverage that includes coverage for his back at the new job due to the provisions of: A. FMLA.B. FLSA.C. OSHA.D. HIPAA.E. USERRA.

The Health Insurance Portability and Accountability Act (HIPAA) became law in 1996 and protects employees who have preexisting health conditions when they change jobs.


Difficulty: 3 HardLearning Objective: 21-02 To explain the scope and limits of the employment-at-will doctrine.


58. Which of the following acts is directed at protecting employees' health care? A. COBRAB. FMLAC. FLSAD. ERISAE. WARN

Since ERISA, the federal government has enacted a number of other laws directed at protecting employees' health care. Among these laws are Consolidated Omnibus Budget Reconciliation Act (COBRA), which was passed in 1986, and provides that employees can continue to purchase health insurance even after their employment is terminated.

AACSB: Ethics




59. Employers were prohibited from firing employees for union activities under the: A. common law.B. Fair Labor Standards Act.C. Labor-Management Relations Act.D. Labor Rights Act.E. WARN Act.

The Labor-Management Relations Act prohibited employers from firing employees for union activities.

AACSB: Ethics




60. Flo has been working at ABC Corporation for four-and-a-half years. Her pension plan will vest at her five-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The internal finance department has determined that cost cutting is needed to keep the company profitable. They recommend that Flo be fired before her pension vests and becomes a permanent liability against the corporation. They cannot fire her to keep her pension from vesting based on: A. ERISA.B. COBRA.C. HIPPA.D. FLSA.E. IRCA.

The Employee Retirement Income Security Act prohibits discharge to prevent employees from getting vested pension rights.Refer: Table 21.2




61. The Age Discrimination in Employment Act forbids age-based discharge of employees over age: A. 35.B. 40.C. 45.D. 50.E. 60

The Age Discrimination in Employment Act forbids age-based discharge of employees over age 40.Refer: Table 21.2

AACSB: Ethics




62. Which of the following holds true for the Fair Labor Standards Act? A. It forbids discharge for exercising rights guaranteed by minimum-wage and overtime provisions.B. It prohibits discharge of employees due to garnishment of wages for any one indebtedness.C. It forbids discharge of employees for service on federal grand or petit juries.D. It prohibits discharge to prevent employees from getting vested pension rights.E. It forbids age-based discharge of employees over age 40.

The Fair Labor Standards Act forbids discharge for exercising rights guaranteed by minimum-wage and overtime provisions of the Act.Refer: Table 21.2

AACSB: Ethics




63. Which of the following holds true for the IRS Whistleblowers Rewards Program? A.

To be eligible to recover compensation from the IRS, a person must bring information to the Department of Justice.

B.

The whistleblower may receive compensation only from monies actually collected based on the information provided.

C.

The total collected proceeds based on which the reward is calculated exclude penalties, interest, additions to tax, and additional amounts.

D. The reward to the whistleblower is independent of his contribution to the prosecution of the action.E. Under no circumstances does the IRS have the right to lower the amount of the reward given to the

whistleblower.

The whistleblower may receive compensation only from monies actually collected based on the information provided.Refer: Sidebar 21.11

AACSB: Ethics




64. Sarah negotiated with her boss and works from 7:00 a.m. to 7:00 p.m., Mondays through Thursdays, with an hour for lunch and an hour for dinner each day. On Election Day, the polls are open from 7:00 a.m. until 7:00 p.m. and there are long lines at the polling station. She requests permission from her boss to cast her vote and asks for an extended lunch or dinner break. He refuses and tells her that she will be fired if she takes extra time off. Which of the following is true? A. The boss can fire her because her first obligation is to her job.B. The boss can fire her because employment at will permits him to fire her for any reason.C.

The boss cannot fire her because the Fair Labor Standards Act allows employees leeway in the fixture of work schedules without the approval of their superiors.

D.

The boss cannot fire her because he may not prohibit her from exercising a statutory or constitutional right.

E.

The boss can fire her because the company does not bear any responsibility for the fulfillment of duties of a personal nature.

Many contract and tort exceptions to employment at will have involved one of three types of employer behavior, one being the discharge of the employee for exercising statutory rights.




65. Employees that publicly disclose illegal or unethical behavior on the part of their companies are called: A. whistleblowers.B. informants.C. scabs.D. purges.E. accommodation makers.

The discharge of an employee for reporting the employer's alleged violations of law is known as whistleblowing.

AACSB: Ethics




66. An employee at-will can be fired for: A. taking time off from work to serve on jury duty after the boss asked the employee to request a

waiver.B. making public the fact that the employer was cheating the government on a defense contract.C. taking time off from work to care for a dependant, without informing the employer.D. making public statements about the hazardous working conditions in a companyE. taking time off from work to vote in the elections.

Many contract and tort exceptions to employment at will have involved one of three types of employer behavior: Discharge of employee for performance of an important public obligation, such as jury duty; discharge of employee for reporting employer's alleged violations of law (whistleblowing); and discharge of employee for exercising statutory rights.

AACSB: Ethics




67. Polygraph tests may: A. be legally used by most private employers to screen job applicants.B. be legally used by most private employers to randomly check current employees.C.

be legally used by private companies that sell controlled substances to screen and randomly check current employees.

D. never be used in connection with employment.E. only be used by government organizations to regularly check current employees.

Concerns for individual privacy also contributed to passage of the Electronic Communications Privacy Act of 1986 and the 1988 Employee Polygraph Protection Act. The latter permits private security companies to test job applicants and allows companies that manufacture or sell controlled substances to test both job applicants and current employees.

AACSB: Ethics




68. Under the Employee Polygraph Protection Act: A. employers cannot be sued by the employees for violating the Act.B. private employers are permitted to use lie detector tests while screening job applicants.C. current employees may not be tested randomly.D. private security companies may not use lie detector tests while screening job applicants.E.

current employees may not be tested even in cases involving specific incidents that cause loss to an employer's business.

Under the Employee Polygraph Protection Act, current employees may not be tested randomly but may be tested as a result of a specific incident or activity that causes economic injury or loss to an employer's business.

AACSB: Ethics




69. Public employees are protected from some drug testing by the ____ Amendment's prohibition against unreasonable searches. A. FirstB. FifthC. FourthD. TenthE. Seventeenth

Public employees are protected from some drug testing by the Fourth Amendment's prohibition against unreasonable searches.

AACSB: Ethics




70. Under common law, even though an employer is negligent in permitting a hazardous condition to persist, if the worker is aware of the dangers that exist, he will be unable to recover damages because of the _____ defense of the employer. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. proportionate liabilityE. shelter rule

Assume that an employer knowingly instructed workers to operate dangerous machinery not equipped with any safety devices, even though it realized injury to them was likely. A worker had his arm mangled when it was caught in the gears of one of these machines. Even though the employer was negligent in permitting this hazardous condition to persist, if the worker was aware of the dangers that existed, he would be unable to recover damages because he knowingly assumed the risk of his injury.

AACSB: Ethics




71. Under common law, if an injury were caused by the carelessness of the employee as well as the employer, the employee would be unable to recover damages because of the _____ defense of the employer. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. contributory negligenceE. shelter rule

Assume that an employer knowingly instructed workers to operate dangerous machinery not equipped with any safety devices, even though it realized injury to them was likely. A worker had his arm mangled when it was caught in the gears of one of these machines. Even though the employer was negligent in permitting this hazardous condition to persist, if the worker was aware of the dangers that existed, he would be unable to recover damages because he knowingly assumed the risk of his injury. In addition, if the injury were caused by contributory negligence of the employee as well as the negligence of the employer, the action was defeated.

AACSB: Ethics




72. Under common law, if an injury occurred because of the negligence of another employee, the employer would escape liability because of the _____ defense. A. assumption of the riskB. exclusive remedy ruleC. fellow-servant ruleD. contributory negligenceE. shelter rule

Assume that an employer knowingly instructed workers to operate dangerous machinery not equipped with any safety devices, even though it realized injury to them was likely. A worker had his arm mangled when it was caught in the gears of one of these machines. If the injury occurred because of the negligence of another employee, the negligent employee, rather than the employer, was liable because of the fellow-servant rule.

AACSB: Ethics




73. Under the workers' compensation laws: A. the compensation paid to the workers excludes medical benefits.B. liability requires the necessary association between the injuries and the business of the employer.C.

employers, treating the costs of injuries as part of the costs of production, may not pass them on to the consumers.

D. the three defenses under the common law are strengthened.E. liability exists only if there is proof of lack of negligence or fault.

Workers' compensation laws create strict liability for employers of accidentally injured workers. Liability exists regardless of lack of negligence or fault, provided the necessary association between the injuries and the business of the employer is present.

AACSB: Ethics




74. The _____ rule states that an employee's sole remedy against an employer for workplace injury or illness shall be workers' compensation. A. assumption of the riskB. exclusive remedyC. fellow-servantD. contributory negligenceE. shelter

Recently, some courts have been liberal in their interpretations of the exclusive remedy rule. This rule, which is written into all compensation statutes, states that an employee's sole remedy against an employer for workplace injury or illness shall be workers' compensation.

AACSB: Ethics




75. Which of the following statements is true for a paper fortress? A. It consists of cases of labor violations by an organization.B. It consists of personnel manuals.C. It consists of legal injunctions served on an organization.D. It consists of terms of registration of an organization.E. It acts as a protection against unjustified employer lawsuits.

One important protection against unjustified employee lawsuits is an established system of adequate documentation. Sometimes called the paper fortress, this documentation consists of job descriptions, personnel manuals, and employee personnel files.

AACSB: Ethics




76. Food and Snacks is a restaurant that is owned and operated by Megan Hill. During the Christmas season, the restaurant attracts more than 5,000 visitors. Each employee of the restaurant earns $8 an hour. The employees have to work extra hours to cope up with the rush. They work an average of 55 hours a week and are paid $8 for the extra hours that they put in. Additionally, there are no accurate records of employees' work hours and wages. Does the restaurant violate any rule?

Yes. The restaurant has violated the Fair Labor Standards Act (FLSA) with regard to the payment of wages for the extra hours put in by the employees. The FLSA requires that covered employees be paid at least the federal minimum wage for all hours worked, plus overtime pay at a rate of not less than one and one-half times the employees' regular rate of pay after 40 hours of work in a workweek. The employees should get at least $12 for the extra hours that they have put in.




77. A fast food restaurant allowed nine minors to operate a deep fryer. The restaurant's manually operated fryer requires the employees to cook baskets of food in hot oil, according to the department. All of the minors that utilized the fryer did so at the direction of various store managers as well as senior staff members and on a regular and recurring basis. Does the restaurant violate any rule?

Yes. The restaurant has violated the Fair Labor Standards Act (FLSA) with regard to wage, hours worked, and safety requirements for minors (individuals under age 18). The operation of the deep fryer by the minors could have endangered their lives. It might have caused serious injuries. The FLSA forbids the use of minors in operations that might cause bodily harm to them. FLSA imposes penalties against employers who violate child labor laws. The penalty amounts to $50,000 for each FLSA violation leading to the serious injury or death of a child worker. The fines are subject to doubling for repeated or willful violations.




78. California-based Click Storage Products, Inc., suffered extensive building damage after it was hit by an earthquake. The plant was considered unsafe to work in. Eventually it was closed down, leaving hundreds of employees without jobs. The plant gave a notice of 10 days to warn the workers of the impending shutdown. Is the plant guilty of any violation?

No. A Worker Adjustment and Retraining Notification Act (WARN) notice covers plant closings and mass layoffs involving loss of employment. Covered plant closings are defined as the shutting of an employment site resulting in a loss of employment of 50 or more employees during any 30-day period. A mass layoff requires the WARN notice if 500 or more employees lose their jobs in a 30-day period. However, natural disasters such as storms, floods, and earthquakes may justify a less than 60-day notice for a plant closing or mass layoff. Therefore, the plant is not guilty of any violation.




79. Block International is an American company manufacturing fiber cement products at its Macon plant, and its U.S. headquarters are located in Norcross. Mel works as a plant supervisor. She had to take leave in order to care of her mother who had undergone surgery for a serious health condition. The management of the company terminated Mel for taking intermittent leave. Is the termination order justified?

No. The Family and Medical Leave Act (FMLA) allows for workplace flexibility by providing eligible employees with the right to take a total of 12 workweeks of unpaid leave during any 12-month period, without the risk of losing their jobs, to provide care for spouses, parents, children, or other covered dependents due to serious health conditions. The company failed to recognize the Mel's situation as an FMLA-qualifying event and fired her for excessive unexcused absences.




80. Jack works as a mechanic in Cars Unlimited, an automobile manufacturing company. While employed as a service technician for the defendant, Jack suffered back injuries in March 2005 and April 2005. Though he requested to go home, he did not submit a written injury report and refused medical treatment. Jack was absent through the month of June, calling in sick each day without providing any other information and not seeking medical treatment during this time. As Jack had exhausted his available sick leave and vacation leave, he was terminated when he returned to work on July 3, 2005. Can Jack sue his former employer for failure to reinstate and wrongful discharge in violation of the Family and Medical Leave Act (FMLA)?

No. The employer may request a medical certification that a qualifying event has occurred in the employee's life, but the employer is not entitled to review the actual medical records of the employee. While Jack had "ample opportunity" to notify his employer that his condition was serious, he did not fill out a written injury report, refused medical attention, and provided no other information when he called in sick. As such, Jack did not properly notify the defendant of his reason or need for FMLA leave.




81. Serena, who had worked for Global Tech for nearly 30 years, was hospitalized for having suicidal thoughts. One day, Serena notified her supervisor that she would be unable to work for at least one month. Global Tech mailed Serena an FMLA packet, which she completed and forwarded to her health care provider for certification. Global Tech denied the plaintiff's FMLA request because the supplied medical information was insufficient to support a serious health condition. Serena asked the hospital to provide additional medical information to the defendant, which Global Tech received the following day. A few days later, Global Tech notified Serena in a letter that she was terminated for her failure to supply medical information as required by the company. Serena sued her employer for interfering with her FMLA leave rights. Is she right?

Yes. The employer may request a medical certification that a qualifying event has occurred in the employee's life. The initial certification that Serena provided was incomplete but she did provide the certification, albeit incomplete, in a timely matter. She provided the complete certification after the incomplete nature of the certification was brought to her notice. Therefore, Serena may sue her employer for interfering with her FMLA leave rights.




82. Ben began working for Whitestone in December 2005. In October 2007, Whitestone was acquired by Sky Ltd., a competitor. In November 2007, Ben learned he had fibrosing mediastinitis and applied for FMLA leave for a related surgery. Ben's FMLA leave was approved beginning December 17, 2007. On February 15, 2008, Ben notified his supervisor of his intention to return to work on February 18, 2008. When the regional manager learned that Ben was returning, he discharged Ben and provided assurances to Human Resources that Ben's position would have been eliminated due to the acquisition of Whitestone, regardless of his FMLA leave. Is Whitestone justified in its action?

No. Once family medical leave is granted, the employer must keep the employee's job available for when the leave is up and the employee returns to work. In essence, the employee who qualifies for family medical leave is not supposed to be disadvantaged by the fact that the leave was taken.




83. Aside from granting leave when appropriate, what are the responsibilities of the employer with regard to the Family Medical Leave Act?

The FMLA places a number of responsibilities on the employer. These responsibilities include notifying the employees that they are eligible for family medical leave and designating in writing when an employee has requested such leave. Although the employer is not permitted to review the actual medical records of the employee, the employer may request a medical certification evidencing that a qualifying event has occurred if they desire proof. The employer must also keep the employee's job available for when the leave is up and the employee returns to work.

AACSB: Ethics




84. New York police officers Brad Williams and Michael Durant volunteered to participate in the Iraq War as part of the National Guard soldiers. Upon their return home from war, the City overlooked the officers' heroism and sacrifice by denying them the annual leave, seniority, and pay-steps they would have otherwise accrued but for their devoted service in the armed forces. Do the officers have the right to sue the City of New York?

Yes. The denial violated the Unformed Services Employment and Reemployment Rights Act (USERRA). Those eligible to be reemployed must be restored to the job and receive benefits that would have been attained had there not been an absence due to military service. USERRA protects those performing uniformed service from discrimination in initial employment, reemployment, retention in employment, promotion, and any benefit of employment. Their annual leave and pay-step increases earned during their deployments to Iraq have to be paid. New York City also has to reinstate the officers' seniority as if they had never left.




85. Mekon Ltd., operates a paper mill which employs more than 1,000 workers. The mill is quite old. It has a number of places in which unguarded moving machine parts operate. There are open-sided platforms unguarded or inadequately guarded against falls. Some of the stairs in the mill are without railings and there are several locations where the floors are not kept dry. The mill has not witnessed a single injury or death in all these years of operation. Does the mill violate any law?

Yes. The mill violates the provisions set by the OSHA. Employers are required to comply with OSHA standards to furnish a workplace free from recognized hazards. Though there have been no accidents yet, unguarded moving machine parts, open-sided platforms unguarded or inadequately guarded against falls, and stairs without railings, do constitute health hazards for the workers working in the mill.




86. The County Hill plant manufactures tube and hose assemblies, and dryers and accumulators for large vehicle air conditioning systems. It uses highly toxic chemicals like potassium hydroxide and isoparaffinic hydrocarbon for its operations. The plant has not attached hazardous warning labels on the tanks where these chemicals are stored. It does not provide the workers with protective body or eye gear. Moreover, the exit doors and routes in the plant are blocked. Which law does County Hill violate?

County Hill violates the provisions set by OSHA. Employers are required to comply with OSHA standards to furnish a workplace free from recognized hazards. Lack of warning labels and lack of protective gear for the workers exposes them to extreme physical danger and could result in their injury or death.




87. What is the purpose and jurisdiction of Occupational Safety and Health Administration (OSHA)?

The Occupational Safety and Health Administration (OSHA) has jurisdiction over complaints about hazardous conditions in the workplace. OSHA sets standards that employers are required to follow to maintain a workplace free from recognized hazards. OSHA is empowered to make workplace inspections to assure that published standards are being followed and they are empowered to issue citations for noncompliance.




88. What is the employment-at-will doctrine and how is it being limited?

Employment at-will means that if an employee is not hired under or subject to a contract defining the exact period of employment, that employee may be discharged by the employer at any time and for any reason not defined as illegal or addressed by judicial decision. Numerous statutes have been passed making it illegal to fire an employee for various discriminatory reasons and the courts have defined a variety of public policy violations that would bar discharge. Some of these public policy violations include firing an employee for going on jury duty, for refusing to commit a crime, for complying with a statute, and for whistleblowing.

AACSB: Ethics




89. What are the provisions of the IRS Whistleblowers Rewards Program?

The IRS Whistleblowers Rewards Program gives those who report significant tax violations a reward of between 15 percent and 30 percent of the total amount recovered by the IRS, including penalty and interest monies collected. A lesser amount may be awarded in cases that have been previously made public or if the whistleblower is not an original source.Feedback: Refer: Sidebar 21.11

AACSB: Ethics




90. George Bennet was hired by Bragg Brothers Ltd., as a business agent and was told by its secretary-treasurer that he would be employed for as long as his work was satisfactory. During his employment, Bennet was subpoenaed by the California legislature to appear before, and testify to, a committee which was investigating corruption inside Bragg Brothers. The company directed Bennet to make false statements to the committee during his testimony, but he instead truthfully answered all questions posed to him. He was fired the day after his testimony. Is the company justified in its action under the at-will doctrine?

No. The discharge of an employee for reporting employer's alleged violations of law is illegal. It stands as an exception to the rules of at-will employment.




91. What are the rewards received by the whistleblower as part of the IRS Whistleblowers Rewards Program?

Under the IRS Whistleblower Reform Law, a person can receive a reward of between 15 percent and 30 percent of the total collected proceeds (including penalties, interest, additions to tax, and additional amounts). If the IRS moves forward with an administrative or judicial action based on information brought by a whistleblower, the whistleblower is eligible to receive at least 15 percent and up to a cap of 30 percent of the recovery, depending on the whistleblower's contribution to the prosecution of the action. The IRS may give awards of lesser amounts under certain circumstances (i.e., when the fraud has already been publicly disclosed and the whistleblower is not an original source).Feedback: Refer: Sidebar 21.11

AACSB: Ethics




92. Pat Whatmore worked as manager at National Banks. One morning, a National branch received a telephone call from Whatmore, who claimed that he had been forced at gunpoint to help rob the bank. Later that same day, National Banks' regional security manager requested Whatmore to take a polygraph examination in order to eliminate his name from the list of suspects. Whatmore refused and sued the bank for the breach of privacy. Is the bank justified in asking Whatmore to take a polygraph test?

Yes. Under the 1988 Employee Polygraph Protection Act, current employees may not be tested randomly but may be tested as a result of a specific incident or activity that causes economic injury or loss to an employer's business. Here, the polygraph test was the result of the fact that Whatmore was the manager of the bank which was robbed. Moreover, the bank only wanted to clear his name from the list of suspects. The bank also suffered financial loss due to the armed robbery. Therefore, the bank is justified in asking Whatmore to take a polygraph test.


Difficulty: 3 HardLearning Objective: 21-03 To understand the limits of privacy in the workplace and the role of workers compensation laws.


93. When may public employees be drug tested?

Public employees may be drug tested when there is a proper suspicion that employees are using illegal drugs that impair working ability or violate employment rules or possibly as part of required annual medical exams.

AACSB: Ethics




94. Patty Holmes, a 15-year-old high school sophomore attending Valley High, was participating in a junior varsity field hockey match against a team from Manfield High. While Holmes was controlling the ball and attempting to score a goal, one or more members of the Manfield team came into contact with her, causing her to fall and sustain injuries. Holmes claimed that the school and school district were negligent and sued to recover damages for the injuries she sustained during the field hockey match. Under the common law, is Patty eligible to recover damages?

No. When Patty played, she assumed certain risks of injury, which were clearly foreseeable consequences of her voluntary participation in an athletic competition. Therefore, by voluntarily participating in the field hockey game, Patty assumed the risks of injury, which were clearly foreseeable consequences of her voluntary participation in the field hockey match. The assumption of the risk defense cancels any liability that Manfield High might have.




95. Martin was injured in a collision between his buggy and Herzog's car. Martin was driving at night without lights. Martin's wife sued Herzog. Herzog claimed that Martin's failure to use headlights resulted in the accident. Is there any provision under the common law that would come to Herzog's rescue?

Yes. Herzog could use the contributory negligence defense. According to this, if the injury were caused by contributory negligence of the defendant as well as the negligence of the appellant, the action against the defendant is defeated. The evidence of a collision at night between a car and an unseen buggy proceeding without lights is evidence from which a causal connection may be inferred between the collision and the lack of lights. Therefore, Martin is guilty of contributory negligence.




96. John, a New York City fireman was fighting a fire when he was struck by a couch which a fellow firefighter had either thrown or pushed from a window of a burning building. John sustained injuries and sued the city for damages. In its defense, the city asserted the common law fellow-servant rule. What is the fellow-servant rule? Does it apply in this case?

If the injury occurred because of the negligence of another employee, the negligent employee, rather than the employer, was liable because of the fellow-servant rule. It is applicable in this case because the injury to John was caused by the action of a fellow firefighter. The city cannot be held liable for the injuries sustained by John.




97. The U.S. Citizen and Immigration Services broadly categorizes document abuse into four categories. List the categories.

The U.S. Citizen and Immigration Services broadly categorizes document abuse into four categories:• Improperly requesting that employees produce more documents than are required by Form I-9 to establish the employee's identity and employment authorization.• Improperly requesting that employees present a particular document, such as a "green card," to establish identity and/or employment authorization.• Improperly rejecting documents that reasonably appear to be genuine and to relate to the employee presenting them.• Improperly treating groups of applicants differently when completing Form I-9, such as requiring certain groups of employees who look or sound "foreign" to present particular documents to the employer.

AACSB: Ethics




98. What are some of the things an employer can do to protect himself/herself from a lawsuit concerning employment?

The employer should create a paper fortress for each employee. Once an employee is hired, the employer should give the employee a personnel handbook that contains all pertinent employment information. The employer should get a signed form that the employee received the manual and enter it in the employee's personnel file. Regular employment performance appraisals should be performed and noted in the personnel file. Written warnings should be given to employees not performing their jobs; this should be in the personnel file too with a signed form that the employee received the written warning.

AACSB: Ethics




99. What is meant by the term "paper fortress" and why would an employer amass a "paper fortress"?

A paper fortress is the name frequently given to the concept of accumulating relevant data and documentation regarding employees. Such documentation could include job descriptions, personnel manuals, and employee files. Employee files may include any relevant correspondence that is job and/or performance related including performance assessments, attendance and punctuality records, letters of reprimand and letters of commendation. Maintaining such a "fortress" protects against unjustified employee lawsuits.

AACSB: Ethics




100. How does "writing" as a piece of documentation help the employer?

A piece of documentation that helps justify employer decisions is the written warning. Anytime an employee breaks a work rule or performs unsatisfactorily, the employer should issue the employee a written warning and place a duplicate in the personnel file. The warning should explain specifically what work rule the employee violated. In addition, employers should either have an employee sign that he/she has received a written warning or else note in the personnel file that the employee has received a copy of it. The employer should also give the employee the opportunity to place a letter of explanation in the personnel file. It is a very useful defense against unjustified lawsuits brought by unsatisfactory employees who have been disciplined, denied promotion, or discharged.

AACSB: Ethics




ch21 Summary Category # of Questions

AACSB: Ethics 100

Blooms: Apply 20

Blooms: Remember 42

Blooms: Understand 38

Difficulty: 1 Easy 28

Difficulty: 2 Medium 49

Difficulty: 3 Hard 23

Learning Objective: 21-01 To identify major employment laws and their significance for employers and employees. 57

Learning Objective: 21-02 To explain the scope and limits of the employment-at-will doctrine. 17

Learning Objective: 21-03 To understand the limits of privacy in the workplace and the role of workers compensation laws. 21

Learning Objective: 21-04 To discuss ways an employer should document employee performance in anticipation of potential employee litigation.

5

Reed - Chapter 21 100

Topic: Employment Laws 100

Date post:	03-Aug-2020
Category:	Documents
Upload:	others
View:	5 times
Download:	0 times

ch21 - docshare01.docshare.tipsdocshare01.docshare.tips/files/20030/200308704.pdf · ch21 Student:...

Documents