Deck 20: Employment Law

Question 1

Discharging an employee soon after hiring with a promise of "long-term employment" may give rise to an action against the employer for fraud.

Answer 1

True

Question 2

Federal wage-hour requirements apply to all employers engaged in interstate commerce, in producing goods for interstate commerce, and in certain other businesses.

Answer 2

True

Question 3

To a large extent, statutory law governing the workplace has displaced common law doctrines.

Answer 3

True

Question 4

An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, and in certain situations that arise from military service.

Question 5

A whistleblower is an employee who publicly reveals a co-worker's unsafe or illegal activity.

Question 6

An employee fired for participating in a protected activity, such as an employment-discrimination investigation, cannot sue for wrongful discharge.

Question 7

If a state law requires employers to give employees one day off per week, an employee who works that one day may be entitled to overtime pay under federal law.

Question 8

Most of the states and the federal government have enacted statutes to protect employees who report wrongdoing from employer retaliation.

Question 9

To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer.

Question 10

An employer can waive or reduce the federal overtime pay requirements if the waiver or reduction is applied to all otherwise eligible and ineligible employees.

Question 11

An employee's reasonable expectation in response to an employer's promise is key to a finding of an implied employment contract.

Question 12

When an employee receives tips on the job, federal law requires the employer to pay the employee the difference between the amount of the tips and the federal minimum wage.

Question 13

Federal law that allows employees to take time off work for family or medical leave supersedes state and local laws that provide more generous benefits.

Question 14

In states that require a minimum wage that is higher than the specified federal minimum wage, employees are entitled only to the lower federal amount.

Question 15

An express employment contract cannot protect an employee from discharge without good cause.

Question 16

During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce.

Question 17

Employees who work ten hours a day, for four days a week, are entitled to overtime pay because they work more than eight hours a day.

Question 18

Private employers are generally free to hire and fire workers at will, regardless of the employees' performance.

Question 19

An employer may fire a worker for reasons that violate a fundamental public policy if that policy is clearly expressed in statutory law.

Question 20

Manufacturers and suppliers entering into contracts with agencies of the federal government are exempt from federal wage-hour requirements.

Question 21

An employer can eliminate a worker's medical, optical, or dental insurance coverage on the voluntary termination of the worker's employment.

Question 22

The distinction made under agency law between employee and independent-contractor status is important because federal employment laws

A) apply only to the employer-employee relationship.
B) govern employees and independent contractors who act as agents.
C) do not cover employees who qualify as independent contractors.
D) distinguish between agents and independent contractors.

Question 23

Food Mart Company employs workers, including Gina, at six locations in two states. Food Mart's discharge of Gina against the terms of an implied employment contract may result in

A) the employer's liability for breach of contract.
B) the employee's ineligibility for unemployment compensation.
C) a court's imposition of an express employment contract.
D) a claim under the Whistleblower Protection Act.

Question 24

An employer cannot discharge a worker who, in good faith, refuses to work in a high-risk area if bodily harm or death might result.

Question 25

Any business offering health insurance to its employees may be eligible for tax credits to offset some of the cost.

Question 26

With respect to governing the workplace, statutory law

A) has displaced common law doctrines to a large extent.
B) is superseded by common law principles.
C) is given effect only when it aligns with common law precedents.
D) applies to a dispute only in the absence of a common law rule.

Question 27

Employers who provide health insurance to their employees must ensure that the employees' health information is not disclosed to unauthorized parties.

Question 28

An employer offering health insurance that costs an employee more than a certain amount of the employee's income may be assessed a penalty.

Question 29

An employer is not prohibited from intercepting and monitoring all communications made on electronic devices by employees during business hours.

Question 30

Notifying employees that their e-mails and phone calls may be monitored protects an employer who also monitors social media posts and text messages from liability for invasion of privacy.

Question 31

An injury that occurs while an employee is commuting to or from work is usually not considered to have occurred on the job or in the course of employment and hence is not covered by workers' compensation law.

Question 32

To pay for social insurance programs administered by the Social Security Administration, employers, employees, and the unemployed must contribute.

Question 33

To be eligible for unemployment compensation, a worker must be willing and able to work.

Question 34

Ferris is an employee of Guitars LLC. Guitars' employee manual states that workers, such as Ferris, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on a statute.

Question 35

A worker who has voluntarily left his or her job qualifies for unemployment compensation to partially make up for the worker's loss of income.

Question 36

To receive benefits under a state workers' compensation law, an employee injured on the job must promptly sue the employer.

Question 37

If an employer does not pay unemployment taxes, the government can place a lien on the business's property to secure the debt.

Question 38

Health Clinic Inc. has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on a statute.

Question 39

The permissibility of a private employer's drug testing of employees may hinge on whether the testing is reasonable.

Question 40

Certain employers are required to keep occupational injury and health records for each employee, but due to privacy concerns, no employer is permitted to electronically post those records.

Question 41

Olin is a key Power Company employee, whose pay falls within the top ten percent of the firm's workforce. Olin takes permitted time off under the Family Medical and Leave Act. On the employee's return from the leave, the employer

A) can avoid reinstating Olin.
B) must pay Olin an additional ten percent in wages prorated to the leave.
C) may cancel Olin's health-care coverage.
D) must accept the return to work but can restore Olin to a lesser position.

Question 42

Chloe is seventeen years old. Under the Fair Labor Standards Act, she cannot

A) work in any job.
B) work in a hazardous occupation.
C) work for her parents.
D) deliver newspapers.

Question 43

Games Inc. induces Hoda to leave a well-paying job and move to another state for "long-term, lucrative employment in a growing business." She accepts the offer, but her position is soon eliminated due to Games' ongoing, undisclosed financial problems. Hoda brings a successful action against the employer for fraud. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on tort theory.

Question 44

Denis works for Engineers P.A. While working on an Engineers project, Denis is injured. Under state workers' compensation laws, he will be compensated only if the injury was

A) incidental.
B) material.
C) accidental.
D) intentional.

Question 45

Gobi is an employee of Haz-Mat, Inc. He refuses a transfer to a Haz-Mat department in which several employees suffered serious injuries from exposure to hazardous materials. Under the Occupational Safety and Health Act, Gobi may be

A) entitled to higher wages for working in a hazardous department.
B) reported to the Occupational Safety and Health Administration.
C) entitled to protection from discharge.
D) subject to discharge.

Question 46

The Family and Medical Leave Act requires certain employers to provide eligible employees with family or medical leave for any of the following reasons except

A) to care for a newly adopted child.
B) to care for a newly placed foster child.
C) to go on an extended family vacation.
D) if the employee is unable to perform the essential functions of his or her job due to a serious health condition.

Question 47

Retail Store Inc. is located in Seattle, Washington, where the city and the state have minimum wage laws. Retail pays its starting employees the legal minimum rate, which, among the governing laws, is

A) the highest minimum wage.
B) the federal minimum wage.
C) the state minimum wage.
D) the city minimum wage.

Question 48

Luke takes temporary family leave from his job at Metal Works Corporation to arrange for child care and deal with financial and legal matters when Nancy, his spouse, a U.S. Marine on active duty, is deployed overseas. On Luke's return from the leave, Metal Works must

A) restore him to his same position or a comparable position.
B) reimburse him for his expenses while on leave.
C) promote him to the status of a key employee.
D) do nothing.

Question 49

Leah is an at-will employee of Mortgage Mart LLC. She is fired for refusing to falsify credit applications for her employer's clients. Leah successfully sues Mortgage Mart for wrongful discharge. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on tort theory.

Question 50

Ben takes temporary family leave from his job at Car Sales Company to care for a newborn baby. With respect to the employee's health-care coverage, during the leave, under the Family and Medical Leave Act, the employer

A) must continue it.
B) may suspend it.
C) may terminate it.
D) must add the baby to it.

Question 51

Salsa Inc. employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of

A) up to twelve days.
B) up to twelve weeks.
C) up to twelve pay periods.
D) no limited duration.

Question 52

Cyberware Inc. plans to lay off 400 of its 1,800 marketing employees at its corporate headquarters. Under federal law, the employer must give these employees

A) sixty day's severance pay after the layoff.
B) sixty days' notice before the layoff.
C) up to sixty days' leave to find other jobs.
D) none of the choices, in the absence of an employment contract.

Question 53

Lin is an employee at Manufacturing Plant Inc. Lin is called for jury duty and as a result cannot work her scheduled shift. The plant fires Lin, who subsequently successfully sues her employer for reinstatement. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on a statute.

Question 54

The waiters who work for Sports Time Grill receive tips on the job. Under the Fair Labor Standards Act, Sports Time is required to pay the wait staff

A) $2.13 an hour, plus the tips, to equal at least the federal minimum wage.
B) the federal minimum wage, plus the tips.
C) the federal minimum wage, minus the tips, which must be remitted.
D) the federal minimum wage, plus a tax credit for cash tips.

Question 55

Devlin is thirteen years old. Under the Fair Labor Standards Act, he cannot

A) work in any job.
B) work in a hazardous occupation.
C) work for her parents.
D) deliver newspapers.

Question 56

Blanca is an at-will employee of Commercial Data Company. In firing Blanca, Dart, a Commercial Data manager, publicly discloses, via social media, private facts about Blanca's personal life. She successfully sues the employer for wrongful discharge. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on tort theory.

Question 57

Oakley is an employee of Paving Inc., which is performing a contract for the federal government. Oakley learns that Paving is overcharging for the work. If he publicly reports the fraud, the law may protect him from being fired from his job. With respect to the employment-at-will doctrine, this is

A) an example of the doctrine.
B) an exception based on contract theory.
C) an exception based on public policy.
D) an exception based on a statute.

Question 58

Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except

A) mechanics.
B) programmers.
C) outside salespersons.
D) professionals.

Question 59

Federal overtime provisions apply only after a covered employee works more than

A) eight hours in a day.
B) forty hours in a week.
C) twenty days in a month.
D) one year for the same employer.

Question 60

A state law prohibits employers from causing employees "to work more than six days in seven." An employee who works a seventh consecutive day filling in for another worker is most likely

A) not owed overtime pay if, on a rolling basis, the employee averages one day off per week.
B) eligible for overtime wages.
C) entitled to overtime pay and two days off in the subsequent seven.
D) waiving the overtime requirements of the Fair Labor Standards Act.

Question 61

Owen, a counter clerk at Pastry Bakery, notices that the bakers are not wearing protective gloves while preparing baked goods, a violation of state law. Owen reports this to Quinn, the owner, who does nothing. Owen tells Robin, a reporter for STUV, a local television station. STUV reports the violations on a newscast. Pastry's business drops 40 percent. Can Quinn fire Owen for this?

Question 62

The Affordable Care Act requires most employers with fifty or more full-time employees to offer health-insurance benefits. Under the act's 50/30 rule, qualified employers who fail to provide insurance

A) will be fined for each employee after the first thirty.
B) must reduce their full-time workforce to no more than thirty workers.
C) are subject to a reduction of eligible tax credits from 35 to 30 percent.
D) may be required to pay 30 percent of employees' healthcare costs.

Question 63

The purpose of state workers' compensation laws is to establish an administrative process for compensating workers for

A) all of the choices.
B) retirement, disability, death, and hospitalization insurance.
C) injuries that arise in the course of employment, regardless of fault.
D) periods of unemployment, subject to eligibility requirements.

Question 64

Northwest Energy Company is subject to mandatory workers' compensation laws in the states in which it does business. Odell and Phelps work for Northwest Energy as part of a crew that travels to remote locations to repair broken pumps and other damaged equipment. At a distant site, Odell is injured in an accident that is entirely Phelps's fault. Odell files a claim for workers' compensation. Should the claim be granted? What would be Northwest Energy's best defense against it?

Question 65

Investment Corporation wants to monitor business communications on phones that the employer provides to the employees. The employer's best course of action to avoid liability under laws related to employee monitoring is to inform

A) no one.
B) its employees.
C) its clients and others who communicate with the employees.
D) the public generally.

Question 66

Fresh Food Packing Inc. employs 1,800 workers in its storage, packing, and shipping facilities. Employees who lose their jobs with Fresh Food are not eligible for unemployment compensation if they

A) are actively seeking employment.
B) are laid off for budgetary reasons.
C) have their hours decreased from full-time to part-time.
D) quit their jobs voluntarily.

Question 67

A key provision of the Employee Retirement Income Security Act (ERISA) concerns vesting. Vesting gives an employee who stops working a legal right to receive

A) all of the choices.
B) pension benefits.
C) disability, death, and hospitalization insurance.
D) unemployment compensation.

Question 68

Riga works for Street Tacos LLC. The basis for Riga's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is

A) an equitable share of the employer's unpaid contribution.
B) the employee's annual wage base.
C) the employee's special job skills.
D) the employer's adjusted gross profits.

Question 69

Financial Accountants P.A. is a private employer. In most circumstances, federal law generally prohibits Financial from subjecting its employees to

A) electronic monitoring.
B) none of the choices.
C) drug tests.
D) lie-detector tests.

Question 70

Steel Mill Inc. employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except

A) keep occupational injury and illness records for each employee.
B) report any work-related diseases.
C) report any work-related injuries.
D) pay employees higher wages for working in more dangerous areas.

Question 71

Game Stores Inc. employs four hundred workers at three locations in three states. Workers who lose their jobs with Games have a right to continued health-care coverage under the company's group plan unless they

A) are fired for gross misconduct.
B) are laid off for budgetary reasons.
C) have their hours decreased from full-time to part-time.
D) quit their jobs voluntarily.

Question 72

Corporate Enterprises Inc. provides its employees with a closed, in-house, e-mail system, which the company expressly restricts to business-related interactions. Employees who use the system

A) have a reasonable expectation of privacy in their use of the system.
B) cannot reasonably expect their interactions to be private.
C) can hold the employer liable for monitoring their communications.
D) are protected from monitoring but cannot sue their employer.