Title: Competency Assessment: (CU1 M1) Ch. 1 Answer Key
Course: SkillsCom BA 177 16.0 > Section: Credit Unit 1 Module 1

1. Which act sets the minimum wage, and what is the current wage rate? (2 pts)
The Fair Labor Standards Act sets the minimum wage rate, and the current minimum
wage rate is $7.25 an hour.

2. Who pays the social security taxes that are levied by the Federal Insurance Contributions Act? (1 pt)

FICA levies taxes on employers and employees to finance the Federal Old-Age and Survivors’ Trust Fund, the Federal Disability Insurance Trust Fund, and the Health Insurance Plan—Medicare. SECA also imposes taxes on the net earnings of the self-employed individual.

3. What types of unfair employment practices are prohibited by the Civil Rights Act of 1964 as amended? (3 pts)

The unfair employment practices prohibited by the Civil Rights Act of 1964, as amended, include:
a. Discriminating in hiring, firing, promoting, compensating, or in any other condition of employment on the basis of race, color, religion, gender, or national origin.
b. Unions may not include or segregate union members on these bases.
c. Employment agencies may not refer or refuse to refer applicants for employment on the basis of race, color, religion, gender, or national origin.

4. Are there any exceptions to the protection afforded older workers by the Age Discrimination in Employment Act? (2 pts)

A key exception is executives who are 65 or older and who have held high policy making positions during the two-year period prior to retirement. If such an employee is entitled to an annual retirement benefit from the employer of at least $44,000, he or she can be forcibly retired.

5. What is the primary purpose of the Employee Retirement Income Security Act (ERISA)? (1 pt)

ERISA was designed primarily to ensure that workers covered by private pension plans receive benefits from those plans in accordance with their credited years of service with their employers.

6. What are the major provisions of the Occupational Safety and Health Act (OSHA)? (1 pt)

OSHA sets specific occupational and health standards for employers and requires that records be kept of work-related injuries, illnesses, and death.

7. Under ERISA, if requested in writing, what information must the administrator of the pension fund supply to the participants? (2 pts)

The administrator must furnish a statement, not more than once in a 12-month period, of the total benefits accrued and accrued benefits that are vested, if any, or the earliest date on which these accrued benefits will become vested.

8. What information is commonly provided by a job-seeker on the application for employment form? (5 pts)

The application for employment form may provide information such as the following:
a. Personal information, including name, address, telephone number, and social security number
b. Educational background, including a summary of the schools attended, whether the applicant graduated, and degrees conferred
c. Employment and experience record
d. Type of employment desired
e. References

9. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? (3 pts)

The Fair Credit Reporting Act of 1968 subjects employers to certain disclosure obligations when they seek an investigative report from a consumer reporting agency on a job applicant or, in certain instances, on present employees. Generally, whenever such a report is requested, the employer must notify the applicant or employee in writing that such a report is being sought. If employment is denied because of the facts on the investigative report, the employer must inform the applicant of this fact. In addition, the name of the consumer reporting agency must be furnished to the applicant.

10. What two basic records are generated in most payroll accounting systems? (2 pts)

The two basic records generated in a payroll accounting system are the payroll register and the employee’s earnings record.