C1 - World at Work - Regulatory
Environments for Compensation Programs
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Regulations dealing with Wage and Hour - Correct answers✔✔National Labor Relations Act
Fair Labor Standards Act
Davis-Bacon Act
McNamara-O'Hara Service Contract Act
Sherman Antutrust Act
State labor law
Regulations dealing with discrimination - Correct answers✔✔Equal Pay Act
Title VII
Americans with Disabilities (ADA ad ADAAA)
Age Discrimination in Employment Act (ADEA)
Family and Medical Leave Act
Lily Ledbetter Fair Pay Act
Genetic Information Nondiscrimination Act
Uniformed Service Employment and Reemploymment Rights Act
Vocational Rehabilitation Act
State discrimination statutes
Significant Regulation Dates - 1917 - Correct answers✔✔The supreme court upheld a states
right to set work hours and overtime requirements.
,Significant Regulation Dates - 1937 - Correct answers✔✔The supreme court upheld a states
right to set minimum wages
Significant Regulation Dates - 1938 - Correct answers✔✔Onle the states were establishing labor
laws with the exception of regulations aimed at federal contractors. FLSA was passed.
Significant Regulation Dates - 1941 - Correct answers✔✔The supreme court upheld the
constitutionality of the 1917 decision, the 1937 decision and the FLSA of 1938.
Davis-Bacon Act - Correct answers✔✔* Passed in 1931
* Protected unionized contractors from competition by nonunionized contractors paying lower
wages
* Covers companies with construction contracts over $2k
* Requires pay scales to be based on prevailaing wages (or union equivalent wages and benefits)
* Enforced with the US Department of Labor
McNamara-O'Hara Service Contract Act - Correct answers✔✔* Passed in 1965
* Improves working conditions and pay for employees of government service contractors
* Covers companies with govt service contracts over $2.5k
* requires pay scales to be based on prevailing wages (union equivalent)
* Enforced by the US Dept of Labor
Executive Order 13658 - Correct answers✔✔* Signed in 2014
* establishing minimum wage for all employees of all federal contractors. - which may be
different from the min wage under FLSA
,* Covers all federal contractors
* Min Wage for contractors updated annually by consumer price index for urban wage earners
and clerical workers.
* applies to all employees working on federal contracts
* does not apply to employees not working on fed contracts where employer has customers who
are not federal contractors.
* must notify all workers performing or in connection with covered contract of the applicable
min wage rate under the executive order - usually via a poster
* Enforced by the Wage and Hour Division of the DOL
National Labor Relations Act - Correct answers✔✔* Creates a more equitable environment for
labor/mgmt dispute resolution
* Covers all employers involved in interstate commerce (x airlines, railroads, ag, and govt)
* guarantees the right and established a process that employees can use to select or reject 3rd
party rep.
*established rules for bargaining in good faith
* controls against unfair labor practices
* Enforced by the National Labor Relations Board
*Fed Courts and US DOL do NOT have juridiction in matters concerning the NLRB
* States are prohibited from regulating rights and obligations established by the NLRA
Electromation Inc. (1992) - Correct answers✔✔Case presented 2 questions:
1) When does an employee committee change from a communication device into a labor
organization
2) How much control can the employer exercise over a problem-solving team before it is
determined to be a domination of interference?
, Administrative Law Judge decided that employee committees addressing several issues
constituted a labor organization, and the company unlawfully dominated and interferred with the
committees in violation of the NLRA
Result - employers must be careful to establish and enforce boundaries of employment so that
employees are not involved in negotiating the terms and conditions of employment.
Keller Brass Automotive (1995) - Correct answers✔✔Case reaffirmed the NLRB's position of
the Electromation case.
NLRB Ruling - "Ability to Pay" - Correct answers✔✔If an employer contends this when
bargaining wage rates, the employer can be required to disclose data fully. Employers may be
required to supply corporate financial data and external salary survey data that was used to
establish the company's position on competitive salary levels.
NLRB Ruling - Concerted Activity - Correct answers✔✔Rules prohibiting discussion of pay
interfere with the employee's right to engage in this.
NLRB Ruling - Social Media - Correct answers✔✔Concerted activity cannot be punished.
Employer "bashing" may be be grounds for discipline.
Sherman Antitrust Act - Correct answers✔✔* Preserves a competitive business environment,
removes monopolies
*covers all employers involved in interstate commerce
* elimination of anti-competitive price fixing of wages
* Enforced by the US DOL. (on issues related to the workforce)
*Violations - DOJ could bring criminal prosecution against individuals and/or the company; civil
lawsuits by employees or other private parties for three times damages
Environments for Compensation Programs
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Regulations dealing with Wage and Hour - Correct answers✔✔National Labor Relations Act
Fair Labor Standards Act
Davis-Bacon Act
McNamara-O'Hara Service Contract Act
Sherman Antutrust Act
State labor law
Regulations dealing with discrimination - Correct answers✔✔Equal Pay Act
Title VII
Americans with Disabilities (ADA ad ADAAA)
Age Discrimination in Employment Act (ADEA)
Family and Medical Leave Act
Lily Ledbetter Fair Pay Act
Genetic Information Nondiscrimination Act
Uniformed Service Employment and Reemploymment Rights Act
Vocational Rehabilitation Act
State discrimination statutes
Significant Regulation Dates - 1917 - Correct answers✔✔The supreme court upheld a states
right to set work hours and overtime requirements.
,Significant Regulation Dates - 1937 - Correct answers✔✔The supreme court upheld a states
right to set minimum wages
Significant Regulation Dates - 1938 - Correct answers✔✔Onle the states were establishing labor
laws with the exception of regulations aimed at federal contractors. FLSA was passed.
Significant Regulation Dates - 1941 - Correct answers✔✔The supreme court upheld the
constitutionality of the 1917 decision, the 1937 decision and the FLSA of 1938.
Davis-Bacon Act - Correct answers✔✔* Passed in 1931
* Protected unionized contractors from competition by nonunionized contractors paying lower
wages
* Covers companies with construction contracts over $2k
* Requires pay scales to be based on prevailaing wages (or union equivalent wages and benefits)
* Enforced with the US Department of Labor
McNamara-O'Hara Service Contract Act - Correct answers✔✔* Passed in 1965
* Improves working conditions and pay for employees of government service contractors
* Covers companies with govt service contracts over $2.5k
* requires pay scales to be based on prevailing wages (union equivalent)
* Enforced by the US Dept of Labor
Executive Order 13658 - Correct answers✔✔* Signed in 2014
* establishing minimum wage for all employees of all federal contractors. - which may be
different from the min wage under FLSA
,* Covers all federal contractors
* Min Wage for contractors updated annually by consumer price index for urban wage earners
and clerical workers.
* applies to all employees working on federal contracts
* does not apply to employees not working on fed contracts where employer has customers who
are not federal contractors.
* must notify all workers performing or in connection with covered contract of the applicable
min wage rate under the executive order - usually via a poster
* Enforced by the Wage and Hour Division of the DOL
National Labor Relations Act - Correct answers✔✔* Creates a more equitable environment for
labor/mgmt dispute resolution
* Covers all employers involved in interstate commerce (x airlines, railroads, ag, and govt)
* guarantees the right and established a process that employees can use to select or reject 3rd
party rep.
*established rules for bargaining in good faith
* controls against unfair labor practices
* Enforced by the National Labor Relations Board
*Fed Courts and US DOL do NOT have juridiction in matters concerning the NLRB
* States are prohibited from regulating rights and obligations established by the NLRA
Electromation Inc. (1992) - Correct answers✔✔Case presented 2 questions:
1) When does an employee committee change from a communication device into a labor
organization
2) How much control can the employer exercise over a problem-solving team before it is
determined to be a domination of interference?
, Administrative Law Judge decided that employee committees addressing several issues
constituted a labor organization, and the company unlawfully dominated and interferred with the
committees in violation of the NLRA
Result - employers must be careful to establish and enforce boundaries of employment so that
employees are not involved in negotiating the terms and conditions of employment.
Keller Brass Automotive (1995) - Correct answers✔✔Case reaffirmed the NLRB's position of
the Electromation case.
NLRB Ruling - "Ability to Pay" - Correct answers✔✔If an employer contends this when
bargaining wage rates, the employer can be required to disclose data fully. Employers may be
required to supply corporate financial data and external salary survey data that was used to
establish the company's position on competitive salary levels.
NLRB Ruling - Concerted Activity - Correct answers✔✔Rules prohibiting discussion of pay
interfere with the employee's right to engage in this.
NLRB Ruling - Social Media - Correct answers✔✔Concerted activity cannot be punished.
Employer "bashing" may be be grounds for discipline.
Sherman Antitrust Act - Correct answers✔✔* Preserves a competitive business environment,
removes monopolies
*covers all employers involved in interstate commerce
* elimination of anti-competitive price fixing of wages
* Enforced by the US DOL. (on issues related to the workforce)
*Violations - DOJ could bring criminal prosecution against individuals and/or the company; civil
lawsuits by employees or other private parties for three times damages
