Project description
Identify the legal requirement(s) for developing a pay structure.

A. Product markets
B. High-quality workforce
C. Equity and fairness
D. Overtime pay
E. Pay differentials

39. According to the FLSA, which of the following is most likely a nonexempt employee?

A. CEO
B. Senior administrative employee
C. Hourly-paid employee
D. Executive employee
E. Director

40. The federal government tracks trends in the nation’s cost of living with a measure known as the:

A. Consumer Price Index.
B. Living-Wage Index.
C. Gross National Product Index.
D. Exchange Rate Index.
E. Employment Cost Index.

41. A rate of pay for each unit produced is known as:

A. yearly pay.
B. salary.
C. hourly wage.
D. piecework rate.
E. monthly pay.
42. A _____ is an adjustment to a pay rate to reflect differences in working conditions or labor markets.

A. bonus
B. pay differential
C. green-circle rate
D. rank-and-file adjustment
E. red-circle rate

Chapter 12
43. Pay specifically designed to energize, direct, or control employees’ behavior is known as:

A. monthly salary.
B. wage.
C. incentive pay.
D. annual salary.
E. fixed pay.

44. Which of the following types of incentive pay plans are used to reward individual performance?

A. Gainsharing
B. Merit pay
C. Scanlon plan
D. Profit sharing
E. Stock ownership

45. In merit pay programs, an individual’s compa-ratio represents his/her:

A. pay relative to performance of other workers in the industry.
B. pay relative to average pay.
C. comparable worth versus others.
D. ratio of pay to benefits.
E. the average worth of the skills possessed by the individual.