Employment Law for Business 7th Edition by Bennett Alexander – Test Bank

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Employment Law for Business 7th Edition by Bennett Alexander – Test Bank

Chapter 02

The Employment Law Toolkit: Resources for Understanding the Law and Recurring Legal Concepts

 

 

 True / False Questions

  1. (p. 43)The American legal system is based on stare decisis, a system of using legal precedent.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 44)An appellee is the party who appealed the case to the court of appeals.
    FALSE

 

Difficulty: 1 Easy

  1. (p. 44, 46)If the plaintiff cannot establish a prima facie case in a Title VII lawsuit, the claim will be remanded to the EEOC.
    FALSE

 

Difficulty: 1 Easy

  1. (p. 60)Colton Manufacturing shuts down 3 manufacturing facilities without prior notice to its 3000 employees. Colton has graciously offered to provide outsourcing assistance to its displaced employees and informed them of their right to continue to receive health insurance coverage through COBRA for eighteen months. Colton has no further liability to its former employees.
    FALSE

 

Difficulty: 3 Hard


 

  1. (p. 57)Hannah Bing was hired by Friendly Catering Company. The employee handbook stated that employees would only be terminated for good cause. Hannah was fired and replaced by her supervisor’s niece. Hannah cannot file a wrongful discharge lawsuit against Friendly Catering Company because she is an employee-at-will.
    FALSE

 

Difficulty: 2 Medium

  1. (p. 58)Promissory Estoppel is an exception to the employment-at-will doctrine if the employee can show that he/she relied on the employer’s promise to his/her detriment.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 60)Major Tire Company’s plant in Charleston, South Carolina was destroyed when Hurricane Hazel hit the coast. The company officially closed the facility after reviewing the damage and terminated all 500 workers. The company did not give the employees 60 days’ notice, and it is liable under the WARN Act.
    FALSE

 

Difficulty: 3 Hard

  1. (p. 64)An employer can successfully defend a charge of disparate treatment discrimination under Title VII of the Civil Rights Act by offering a legitimate, nondiscriminatory reason for the action taken regarding the charging party.
    TRUE

 

Difficulty: 2 Medium

  1. (p. 74)Punitive damages are permitted in Title VII cases, but not in disparate impact cases or against government employers.
    TRUE

 

Difficulty: 2 Medium


 

  1. (p. 62)If Sally’s employer subjects her to more severe discipline for an act of misconduct than a similarly situated fellow employee not in her protected group for the same act of misconduct, Sally is being subjected to disparate treatment discrimination.
    TRUE

 

Difficulty: 2 Medium

  1. (p. 70)Questions asked during idle conversational chat during preemployment interviews or included on job applications may unwittingly be the basis for Title VII claims of disparate impact.
    TRUE

 

Difficulty: 1 Easy

 

 Multiple Choice Questions

  1. (p. 45, 46)When a party wins a Motion for Summary Judgment
    A. the case is remanded to the lower court
    B. there are triable issues of fact
    C. there are no triable issues of fact
    D. Both A and B.

 

Difficulty: 2 Medium


 

  1. (p. 57)Davis Hosiery Mills has each new employee sign a form acknowledging receipt of the company’s handbook. The handbook states that employees will be terminated for good cause only. It also contains a disclaimer, in small print, which informs the employee that the employment relationship is “at will.” An employee of Davis Hosiery sues for wrongful termination.
    A. The employee cannot sue because termination for good cause is not generally recognized as a limitation to employment-at-will, even when placed in an employee handbook.
    B. Davis Hosiery will win the case because the employee signed a form acknowledging that the employment relationship at Davis Hosiery is “at will.”
    C. Depending on the statutes or court decisions in the state where Davis Hosiery is located, the employee can proceed with the lawsuit because the disclaimer was neither prominent nor conspicuous.
    D. The employee cannot sue if she lost her copy of the handbook.

 

Difficulty: 2 Medium

  1. (p. 54-55)Mr. Johnson, a white male, testified for the plaintiffs in a racial discrimination lawsuit brought by a black female employee against his employer, Security Bank. He had been advised by his manager not to get involved. Shortly thereafter, Mr. Johnson was fired.
    A. Mr. Johnson has no case for retaliatory discharge because he is not a member of the protected class.
    B. Mr. Johnson has no case for retaliatory discharge because merely testifying on behalf of someone else is insufficient involvement in a discrimination lawsuit to get protection against retaliatory discharge under Title VII of the Civil Rights Act.
    C. Mr. Johnson has no case for retaliatory discharge because he is an employment-at-will employee.
    D. Mr. Johnson may have a case because Title VII of the Civil Rights Act protects an employee who participates in any manner in an investigation, proceeding or hearing on a colleague’s complaint of discrimination.

 

Difficulty: 3 Hard


 

  1. (p. 47)The employment-at-will doctrine means that
    A. An actor must agree to follow the instructions by the play’s director in order to be cast in a play by William Shakespeare.
    B. Highly paid skilled workers in the building trades can pass their jobs on to a relative when they die.
    C. An employer can terminate an employee for any reason as long as the reason is not a violation of public policy or against the law.
    D. Government employees lose their constitutional rights when on the job.

 

Difficulty: 1 Easy

  1. (p. 51)Ms. Lee was employed as a secretary at Burton Trucking. She was fired from her job when she refused to perjure herself at a trial where her employer was the defendant. She filed a wrongful discharge lawsuit against her former employer. Ms. Lee will
    A. prevail if the state where the lawsuit was filed recognizes a public policy exception to the employment-at-will doctrine.
    B. prevail only if she proves she was telling the truth.
    C. will lose because the employment-at-will doctrine completely insulates the employer from liability.
    D. will lose because her testimony provided the basis for a defamation lawsuit by her former employer.

 

Difficulty: 2 Medium

  1. (p. 52)Octavia is an employee of DFC, Inc., a defense contractor. She discloses to the Department of Justice information relating to fraud in carrying out a defense contract on which she is working. DFC subsequently fires her. Octavia then files a lawsuit against DFC for violating the Federal Whistleblower Statute.
    A. Octavia’s case will be dismissed.
    B. Octavia can win compensatory damages only.
    C. Octavia can win compensatory and punitive damages.
    D. Octavia can win reinstatement only.

 

Difficulty: 3 Hard


 

  1. (p. 60)Mr. Jones was employed by Barker Sock Company as a sewing machine repairman in Plant #5. He, along with the other 700 employees, was informed that the plant had been permanently closed by a written notice on the door when he arrived at work.
    A. Mr. Jones’ only recourse is to file for unemployment benefits.
    B. Mr. Jones has no recourse because he was an employee-at-will.
    C. Mr. Jones may be eligible to receive his salary and benefits for the next 60 days.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 52)Cortney was employed at Brunson County Elementary School as a cook. Her supervisor routinely took extra food and other supplies home. Cortney was fired after she reported the theft to the police and local newspaper.
    A. Cortney does not have a cause of action for wrongful discharge.
    B. Cortney may have a cause of action pursuant to the “whistle-blowers” exception to the employment-at-will doctrine.
    C. Cortney is an employee-at-will and can be terminated at any time for any reason.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 52)Mathias is an employee for Burton Commercial Realty. He receives a modest salary, however, his salary is supplemented by substantial commissions. He has been working on a commercial real estate deal for 5 months, two weeks before the deal closes, he is fired and Burton does not pay him his commission:
    A. Mathias has a cause of action for breach of implied covenant of good faith.
    B. Mathias has a cause of action for retaliatory discharge.
    C. Mathias has a claim under the Civil Service Reform Act.
    D. None of the above.

 

Difficulty: 2 Medium


 

  1. (p. 54)A retaliatory discharge claim under Title VII requires
    A. that the employee has either participated in the statutory complaint process or opposed some form of discrimination.
    B. an adverse action taken with regard to the employee’s employment status.
    C. a causal connection between the adverse employment action and the employee’s participation in the statutory process.
    D. All of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 61)Natalie resigned from her position as floor supervisor at Martin’s Department Store. The store manager told the other employees that she had been fired for coming to work drunk. He also communicated that information to someone calling to verify Ms. Weston’s previous employment with Martin’s Department Store.
    A. Ms. Weston has no recourse against her former employer because the store manager is a known liar.
    B. Ms. Weston is an at-will employee and therefore has no cause of action against Martin’s Department Store.
    C. Ms. Weston may have a cause of action against Martin’s Department Store for defamation.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 57)Harrison was hired by SportsTV to broadcast the local high school sports games. During the interview, Harrison was told that the company had plans to expand its coverage of team sports to college and professional sports. He was told that he would be getting in on the ground floor and would have an opportunity to move up with the company as it grew. Harrison was given a timeline for expansion that covered the next ten years. Armed with this knowledge, Harrison accepted the job and moved to Greensboro, North Carolina from Atlanta, Georgia. After 18 months, the management at SportsTV fired Harrison and replaced him with a local athlete with more name recognition.
    A. Harrison has cause of action for breach of contract.
    B. Harrison has a cause of action for breach of implied contract.
    C. Harrison has no recourse because he is an employee-at-will.
    D. Harrison has no recourse because he did not have a written contract.

 

Difficulty: 3 Hard


 

  1. (p. 59)Sarah was employed at Carlson Printing Company as the Sales Manager. After a year on the job, Paul became her new supervisor. Paul was constantly yelling at Sarah and telling her she was stupid. Sarah was so nervous when Paul was around that she started to stutter. After working with Paul for 6 months, Sarah sought treatment from a psychiatrist for depression. Shortly thereafter, Sarah quit her job and filed a wrongful discharge lawsuit against Carlson Printing Company.
    A. Sarah is an employee-at-will and has no right to her job.
    B. Sarah has valid claim for constructive discharge.
    C. Carlson Printing Company is not liable for wrongful discharge because Sarah quit her job, she was not fired.
    D. Carlson Printing Company is not liable for wrongful discharge because Paul was not acting within the scope of his authority.

 

Difficulty: 2 Medium

  1. (p. 54)Harrison works in a cubicle at a window next to Karen Ravenwood’s cubicle at Tabernacle Insurers. One day, Harrison overhears Karen’s supervisor make a comment that she’d be more successful if she spent as much time on shaping her list of prospective customers as she does on shaping her body. Karen files a complaint of sex/gender discrimination with the EEOC and Harrison is called to testify during the investigation. The EEOC decides not to pursue the matter. A month and a half after the investigation is closed, Tabernacle management moves Harrison from his cubicle to a cubicle on a vacant floor. All other aspects of his job remain the same. Harrison files a complaint of retaliation.
    A. Harrison cannot pursue a case of retaliation because the relocation of his work area between cubicles did not materially affect the terms, conditions, or privileges of his employment at Tabernacle.
    B. Harrison cannot prove a case of retaliation because the investigation uncovered no wrongdoing.
    C. Harrison cannot prove a case of retaliation because he is not in the same protected group as Karen.
    D. Harrison can prove a case of retaliation.

 

Difficulty: 2 Medium


 

  1. (p. 61)Cara works in the packaging and shipping department of the John Quincy Adams Mint & Collectibles Company. For the past few weeks, some special commemorative coin sets have been disappearing. The company used metal detectors and searched employee lockers and belongings in the plant but no contraband was found. Now, in an effort to catch the wrong-doers, the company stops the car of each packing and shipping department employee, including Cara as they leave the plant parking lot. The search of Cara’s car did not turn up any coins but she was terminated because the search revealed that her car’s glove compartment contained some sex toys that she had put in a John Quincy Adams Mint & Collectibles Company gift box.
    A. Cara has no recourse because she should have been more careful about storing her personal belongings in her car.
    B. Cara should be reinstated to her job because she was not terminated for a just cause.
    C. Cara may have an action against the Mint for wrongful invasion of privacy.
    D. Cara may have a cause of action against the Mint for violating her constitutional right against an unwarranted search and seizure.

 

Difficulty: 2 Medium

  1. (p. 55-56)Alana Brown was employed by the Quality Protection Security Company as a security officer at a local military base. While off duty, she participated in a rally protesting U.S. participation in the Iraq war. Chief of Security Felix Bratfurter saw Officer Brown on the evening television news. The next day, Chief Bratfurter fired Officer Brown.
    A. Officer Brown has no recourse because the protections of employee constitutional rights only apply when the employer is a government agency and she was employed by a private company.
    B. Officer Brown has a cause of action for wrongful discharge because she cannot be fired for exercising her constitutional right to free speech.
    C. Officer Brown has a cause of action for breach of contract.
    D. None of the choices are correct.

 

Difficulty: 1 Easy


 

  1. (p. 59)Carla Thomas, a nonsmoker, often encouraged her co-workers to quit smoking. Her new manager, Paul, a smoker, was annoyed by what he considered her constant nagging. He moved her desk from a separate room with a window to a cubicle surrounded by smokers, who smoked all day. Paul refused Carla’s request to create a no smoking area in the office and he refused her request to be moved back to the separate room. After 4 weeks of breathing second hand smoke, Carla quit.
    A. Carla has no recourse against her employer because she is an employee-at-will.
    B. Carla can file a lawsuit based on discrimination because non-smokers are a protected class.
    C. Carla may have a cause of action for constructive discharge.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 63)In a prima facie case of disparate impact discrimination, the claimant must establish that the claimant is a member of a protected class protected under Title VII and that:

    I. the claimant applied for and was qualified for a job for which the employer was seeking applicants.
    II. the claimant was rejected and, after the rejection, the position remained open.
    III. the employer continued to seek applicants with the rejected applicant’s qualifications.
    A. I and II.
    B. II and III.
    C. I, II, and III.
    D. None of the above.

 

Difficulty: 1 Easy

  1. (p. 65)The bona fide occupational qualification defense (BFOQ) can be used by the employer to defend Title VII discrimination claims when the basis is
    A. Sex/gender, religion, national origin, race or color
    B. Sex/gender, national origin, race or color
    C. Religion, national origin, race or color
    D. Sex/gender, religion, national origin

 

Difficulty: 1 Easy


 

  1. (p. 74)Every successful claimant in a Title VII case is eligible to receive
    A. back pay, front pay, and liquidated damages.
    B. back pay, front pay, attorney fees, and punitive damages.
    C. back pay, front pay, attorney fees, punitive damages, and compensatory damages.
    D. back pay, front pay, and compensatory damages.

 

Difficulty: 3 Hard

  1. (p. 67, 71)Major Industries has a published workplace policy that reads: “Promotions to the level of supervisor and higher are limited to individuals with at least a bachelor’s degree from an accredited college or university.”
    A. Although this is a facially neutral policy, it could be found to be discriminatory if it can be shown by statistics that it has a disparate impact on a protected group, unless Major Industries can prove a business necessity for the policy.
    B. There is nothing facially neutral about this policy because there are lots of people who are in supervisory or higher positions who never earned a degree from a college or university.
    C. Although this is a facially neutral policy, it could be found to be discriminatory if it can be shown by statistics that it has a disparate impact on a protected group, unless Major Industries can prove a bottom line defense.
    D. Although this is a facially neutral policy, it could be found to be discriminatory if it can be shown by statistics that it has a disparate impact on a protected group, unless Major Industries can prove a subjective qualifications defense.

 

Difficulty: 2 Medium


 

  1. (p. 74)Karen Rogers was employed at the Pentagon as manager of the Purchasing Department. Prior to the arrival of her new supervisor in June of 2004, she received the highest employee rating on her yearly evaluation. Her new supervisor, John Lincoln, had been overheard saying that he did not believe that women were smart enough to manage a department. Six months later, Karen was fired for poor work performance. If she wins her claim for gender discrimination, Karen may be entitled to

    I back pay
    II reinstatement to her former position
    III punitive damages
    A. I only
    B. I and II only
    C. I, II, and III
    D. All of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 65)Dean Capers, an African American, was employed as a bus driver with Mountain City Transportation Department. The city council voted to reduce the number of bus routes, and Dean’s job was eliminated. Dean filed a claim with EEOC alleging racial discrimination because he was the only African American bus driver and he had more seniority than 4 of the drivers retained. Mountain City successfully responded
    A. by showing that Dean was selected for lay off because he had a bad attitude and there had been several complaints filed against him.
    B. by using the bona fide occupational qualification defense.
    C. by using the business necessity defense.
    D. none of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 63)Marc Brown is a chemical engineer with a graduate degree from MIT. Mr. Brown is African American. He applied for a chemical engineering position with Kincaid Paper Company. Although he was qualified for the job, he was not offered the position. Mr. Brown happened to see the job advertised in the newspaper 2 weeks after he had been rejected.
    A. Mr. Brown does not have a cause of action for discrimination.
    B. Mr. Brown can offer evidence to satisfy the elements of a prima facie case.
    C. Mr. Brown cannot offer evidence to satisfy the elements of a prima facie case.
    D. Mr. Brown is not eligible to file a claim under Title VII.

 

Difficulty: 3 Hard


 

  1. (p. 67-68)BJI Enterprises requires all employees to pass a standardized test before being considered for promotions. Marisa Chavez, a Hispanic female, was employed in the Maintenance department as a housekeeper. She wanted to be considered for a supervisory position in that department. However, she could not make a passing score on the test. There were no minority supervisors in the Maintenance Department. The Civil Rights Act requires
    A. BJI to show that the test is related to the job.
    B. Ms. Chavez to show that the test is not related to the job.
    C. Ms. Chavez to prove that she is qualified for the job.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 69)The four-fifths rule states that
    A. only 20% of the employees affected by the screening device can be minorities or there is a presumption of disparate impact discrimination.
    B. minorities must do at least 80% as well as the majority on the screening device or there is a presumption of disparate impact discrimination.
    C. after the claim has been filed, the employer must offer evidence to prove that four-fifths of all employees are successful when the screening device is used.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 71)The Business Necessity Defense requires the employer to show
    A. that the challenged policy is job related and is a legitimate requirement for the job.
    B. that there is a legitimate, nondiscriminatory reason for the alleged discriminatory conduct.
    C. that the information provided by the employee is false.
    D. None of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 70-71)James Helton, an African-American, was hired as a dock worker with Coastal Distributing Company. As a full time employee, he was eligible for health insurance benefits if he met certain criteria. His pre-employment physical indicated that he suffered from hypertension or high blood pressure. The company’s health insurance plan excluded employees that had that condition. Hypertension is a condition that is common among African-Americans and affects that race at a much higher percentage than any other race.
    A. Coastal Distributing Company’s policy is not discriminatory because it applies to all employees, regardless of race.
    B. Coastal Distributing Company’s policy is discriminatory because more African-Americans will be denied health insurance than employees who are not African-American.
    C. Coastal Distributing Company’s policy is not subject to Title VII because it involves employee benefits, not hiring, promotion or termination.
    D. Coastal Distributing Company’s policy is discriminatory because it treats some employees differently (African Americans) than other similarly situated employees.

 

Difficulty: 3 Hard

  1. (p. 64, 65, 71)The following defenses are available to employers in discrimination claims:
    A. bona fide occupational qualification (BFOQ) defense
    B. legitimate, nondiscriminatory reason defense
    C. business necessity defense
    D. All of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 71, 92)Which of the following is not a business necessity providing a defense to a disparate impact claim?
    A. Hiring only cashiers that are bondable.
    B. Hiring only brunettes to work as servers in a restaurant because they are preferred by customers and bring larger profits for the company.
    C. Hiring only pizza deliverers who possess driver’s licenses.
    D. Hiring only English speaking workers to be telephone operators.

 

Difficulty: 2 Medium


 

  1. (p. 71)Emmanuel and Petersen is an extremely busy law firm specializing in litigation. In order to keep up with their workload, they refuse to hire anyone as a secretary who is unable to type at least 65 words per minute. If a group of male applicants challenges this policy as being discriminatory against generally slower typing males, the company could defend the typing-speed requirement as a:
    A. bottom line defense.
    B. disparate treatment defense.
    C. business necessity.
    D. bona fide disparate impact defense.

 

Difficulty: 3 Hard

  1. (p. 73)McFerrin was refused employment by Billiot, Inc., because he failed to achieve a high enough score on a valid, reliable skills test. Believing that he has been the victim of national origin discrimination, since no one of Scottish descent has ever achieved a satisfactory score, McFerrin sues under Title VII after exhausting his administrative remedies. He asks the court to require Billiot to adjust the scores of all Scottish-descent test-takers, upward, by ten points. Assuming McFerrin proves national origin discrimination, can the court grant the relief he seeks?
    A. No, because the Civil Rights Act of 1964 makes it an unfair employment practice for an employer to adjust the scores of an employment-related test on the basis of a protected trait.
    B. Yes, because the Civil Rights Act of 1964 requires an employer to adjust the scores of an employment-related test on the basis of a protected trait, if the effect of the test is to exclude certain groups from a certain minimum level of employment.
    C. No, because the Civil Rights Act of 1991 makes it an unfair employment practice for an employer to adjust the scores of an employment-related test on the basis of a protected trait.
    D. Yes, because the Civil Rights Act of 1991 requires an employer to adjust the scores of an employment-related test on the basis of a protected trait, if the effect of the test is to exclude certain groups from a certain minimum level of employment.

 

Difficulty: 3 Hard


 

  1. (p. 71)NorthernSky Airlines is a regional carrier that flies a variety of aircraft with maximum interior cabin heights ranging from 6’2¼” to 5’9.” NorthernSky advertisements for flight attendants state that an applicant “must be between 5’0″ and 5’8″ without shoes due to the internal size of our aircraft.” James, a 6′ 0″ man complains that the height restrictions have a disparate impact on men. The airline defends the case by asserting that height is a business necessity for the job.
    A. James will prevail on his complaint because he can fit inside some of the aircrafts.
    B. NorthernSky will prevail because it can demonstrate that the flexibility to schedule flight attendants on all its aircraft is a reasonable necessity for normal operation.
    C. James will prevail on his complaint because height restrictions have nothing to do with the primary responsibility of a flight attendant, which is the safety of the passengers.
    D. NorthernSky will prevail because it can demonstrate that a shorter flight attendant is innately better suited to perform the “non-mechanical” functions of the job, such as soothing nervous customers.

 

Difficulty: 2 Medium

  1. (p. 70-71)The Bright Creek Luggage Company has hired you as a consultant to improve the company’s hiring processes so it will be less vulnerable to claims of discrimination when hiring. You should make the following recommendations.
    A. Bright Creek should scrutinize prepared interview questions and employment applications to determine whether there is a disparate impact in the way that information is elicited.
    B. Bright Creek should require all outside recruiters and employment agencies to certify that they are familiar with the requirements of anti-discrimination laws.
    C. Bright Creek should provide training on basic legal concepts for equal employment opportunity to all interviewers and persons who make hiring decisions.
    D. All of the answers are correct.

 

Difficulty: 1 Easy

 

 

 Essay Questions
 

  1. (p. 51)Explain the public policy exception to the doctrine of employment at-will, including stating what the ex-employee must demonstrate to prevail and give at least three examples of the public policy exception that have been recognized by some of the states.

The public policy exception protects an employee who has engaged in conduct that society wants to encourage. The ex-employee must show that the employer’s actions were motivated by bad faith, malice, or retaliation. A violation of public policy can occur when the employee is terminated for an act such as refusing to violate a criminal statute on behalf of the employer or at the employer’s request, exercising a statutory right (e.g., voting), fulfilling a statutory duty (e.g., serving on a jury) or disclosing violations of statutes by an employer (e.g., violation of laws and regulations designed to protect public safety).

 

Difficulty: 2 Medium

  1. (p. 60)What are the requirements imposed on employers by the Worker Adjustment and Retraining Notification (WARN) Act? List and discuss the exceptions to this Act.

The WARN Act requires employers to give its employees 60 days advance notice of a plant closing or mass layoff. Notice is required if the plant closing will result in loss of employment for 50 or more workers in a 30-day period. Notice is required if the mass layoff at one facility during a 30-day period results in loss of employment for 500 or more workers or 50-499 workers if that number represents at least 1/3 of the total active workforce. An employer’s failure to comply with the WARN Act gives the affected employees the right to recover pay and benefits for the time notice was not given, up to the statutory 60-day maximum.
The WARN Act also provides for exceptions to the 60-day notice requirement. First, the “faltering company” exception allows an employer to forego notification of an imminent plant closing or mass layoff if the employer is actively seeking capital and has a good faith belief that notification to the employees would prevent the employer from receiving the necessary capital. Secondly, the Act provides an exception to the notice requirement when the plant closing or mass layoff is due to a sudden, unexpected business circumstance that was not foreseeable and out of the employer’s control. The final exception is for situations resulting from natural disasters.

 

Difficulty: 1 Easy


 

  1. (p. 62, 65)Linda was employed with Southern Telephone Company as a telephone operator for ten (10) years. Bored with this job, she applied for an open position as a telephone repairman which paid $10.00 per hour more than she was currently earning. This position required the employee to be able to climb to the top of a telephone pole wearing a tool belt weighing approximately 15 to 20 lbs to make repairs. Southern Telephone Company refused to admit Linda into the training program for the position claiming that she was incapable of performing the duties of the position because she was female. Discuss this scenario from both Linda’s and Southern Telephone Company’s point of view, including the basis for the relevant claims and defenses.

Linda can file a claim with EEOC alleging disparate treatment discrimination in violation of Title VII of the Civil Rights Act of 1964. Specifically, Linda would allege that she was denied training for the new position because she was female, thus, she was treated differently because of her gender in violation of Title VII. Southern Telephone Company can use the Bona Fide Occupational Qualification Defense to defend against Linda’s disparate treatment claim of discrimination. The BFOQ defense allows an employer to engage in discriminatory practices if it can be shown that the discrimination is necessary to the employer’s business. In this instance, the company can argue that it excludes women from training for the position as telephone repairman because women would be unable to climb the telephone pole carrying the weight of the tool belt. Furthermore, the employer should argue that while there may occasionally be a woman that would be able to perform the duties of the job, it would be impracticable to allow women to enter the training program, only to later be excluded due to the inability to climb the pole wearing the tool belt.

 

Difficulty: 3 Hard


 

  1. (p. 62, 67)Describe the two theoretical bases for lawsuits alleging discrimination under Title VII of the Civil Rights Act of 1964.

Disparate Treatment discrimination requires that the plaintiff/employee allege that he/she was treated differently than other similarly situated employees based on the plaintiff/employee’s race, color, gender, national origin or religion. This is intentional discrimination, but the plaintiff/employee does not have to prove that the employer said that one of the prohibited factors was the reason for the discriminatory conduct. It is enough for the plaintiff/employee to produce evidence that shows that discrimination as the only plausible explanation for what happened.
Disparate Impact discrimination occurs when an employer uses some type of screening device or has an employment policy that is neutral on its face, but the device or policy can be shown, by the use of statistics, to impact a protected group negatively. If such a policy impacts protected groups more harshly than majority groups, illegal discrimination may be found if the employer cannot show that the requirement is a legitimate business necessity.

 

Difficulty: 2 Medium

  1. (p. 65, 71)Distinguish the business necessity defense from the bona fide occupational qualification defense, including describing each defense and stating when each can be used.

A bona fide occupational qualification (BFOQ) is some skill or trait that is legitimately required in order for an individual to adequately and properly perform a particular job. An employer may defend against a claim of disparate treatment discrimination brought by an individual not possessing the trait or skill by asserting that the trait or skill is a BFOQ. The BFOQ can be used in cases involving allegations based on gender, religion or national origin but not for race or color. The business necessity defense is available only in cases of unintentional or disparate impact discrimination. It requires the employer to demonstrate that the performance of a particular job by the use of particular methods or skills is reasonably necessary to the essence of the employer’s business.

 

Difficulty: 2 Medium


 

  1. (p. 91)Describe the basic legal theory that is used to determine whether the plaintiff or the defendant will prevail in a lawsuit in which it is alleged that the defendant has committed illegal, disparate treatment employment discrimination, in violation of Title VII of the Civil Rights Act of 1964, as amended, when there is no direct evidence of discrimination.

According to the pattern set forth in McDonnell Douglas v. Green, the plaintiff must prove all elements of the prima facie case of discrimination alleged in the complaint. The burden then shifts to the defendant to articulate some legitimate nondiscriminatory reason to explain the alleged discriminatory act. If the defendant articulates such a reason, the plaintiff must then prove that this nondiscriminatory reason is simply a pretext for another, illegally discriminatory explanation of the defendant’s alleged discriminatory act. If the plaintiff can successfully show this, the plaintiff will prevail.

 

Difficulty: 2 Medium

Chapter 08

Gender Discrimination

 

 

True / False Questions

  1. (p. 347)Prior to passage of the Civil Rights Act of 1964, it was common for states to have laws that limited or prohibited women from working at certain jobs, under the theory that women needed to be protected by men.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 356)Gender Plus discrimination refers to discrimination based on transgenderism.
    FALSE

 

Difficulty: 2 Medium

  1. (p. 364)Under the Equal Pay Act, the content of the job, rather than the job title or description, determines the comparison of whether two jobs are substantially the same.
    TRUE

 

Difficulty: 2 Medium


 

  1. (p. 360)Conrad Parker owns Inner Serenity Salon and Day Spa. He also sells a line of cosmetics called Conrad Parker. Conrad requires all makeup artists to wear black. The men must wear black pants and black T-shirts. The women must wear black skirts, black sweaters and high heeled shoes. Conrad believes that the makeup sells better if the females are dressed in a feminine way. He fired Selena for wearing pants to work. She will win her gender discrimination lawsuit.
    FALSE

 

Difficulty: 3 Hard

  1. (p. 366)Comparable worth claims, under Title VII, have generally been successful in the federal courts.
    FALSE

 

Difficulty: 2 Medium

  1. (p. 368)In Ledbetter v. Goodyear Tire and Rubber Co., the Supreme Court held that Lilly Ledbetter could not sue for gender discrimination in pay because the statute of limitations expired 180 days from the initial discriminatory event, which had occurred years before.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 370)Marlene applied for a job as a travel agent. At the time, she was five months pregnant. Agnes, the manager told her that the company was very interested in hiring her because her references were excellent, but she should reapply after she had the baby and had found reliable day care. Marlene has no recourse under Title VII for gender discrimination.
    FALSE

 

Difficulty: 3 Hard


 

  1. (p. 372)If a pregnant employee is unable to perform her job because of her pregnancy, the employer should treat her just as any other employee who is temporarily unable to perform job duties.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 353)A 270-pound woman who lost a promotion to a woman who was “thinner and cuter,” can make a case for gender discrimination under Title VII because overweight women are routinely discriminated against in the workplace.
    FALSE

 

Difficulty: 1 Easy

  1. (p. 373)Employers can bar women from working in certain areas of the facility in order to guard against potential harm to an unborn fetus or to a female’s reproductive organs without incurring liability for gender discrimination.
    FALSE

 

Difficulty: 2 Medium

 

Multiple Choice Questions

  1. (p. 364)Padma is a seamstress for Lacy’s, a large upscale department store. Hector is a tailor in the same store. They were both hired the same year and have similar experience. However, Hector is routinely paid more than Padma. If Padma files a claim under the Equal Pay Act
    A. Padma will lose, if Lacy’s pays based on the number of pieces altered in a week and Hector routinely alters more pieces per week.
    B. Padma will lose, if Lacy’s pays Hector more because he is older than Padma.
    C. Padma will lose, if Lacy’s pays Hector more because he is the only Hispanic male employee.
    D. All of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 355)Boyd Myers is CEO of Dogwood Enterprises. He is having an affair with Sandra Ralston, the company’s Director of Manufacturing. The Vice-President of Manufacturing position became available and Carlton Mathews applied. Boyd gave the job to Sandra.
    A. Carlton can prevail on a claim of gender discrimination because he is of a different gender than the employee who received preferential treatment based upon a romantic relationship.
    B. Carlton can prevail on a claim of gender discrimination because the sexual attraction and satisfaction that motivated the discrimination are inseparable from the paramour’s gender.
    C. Carlton can prevail on a claim of gender discrimination because it is important to eliminate workplace sexual favoritism.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 368)The Equal Pay Act
    A. was enacted in 1939 as part of The National Labor Relations Act.
    B. was enacted in 1963 as an amendment to the Fair Labor Standards Act.
    C. was enacted in 1971 as amendment to Title VII of the Civil Rights Act.
    D. None of the choices is correct.

 

Difficulty: 2 Medium

  1. (p. 383)The Foggy Bottom Sheriff’s Department requires all applicants for deputy sheriff to pass a pre-employment agility test. It requires that an applicant to do 30 sit-ups in one minute, 25 pushups with no time limit, run 300 meters in 1 minute 11 seconds and drag a 165 pound dummy for a distance of 40 feet in 1 minute. Lisa McGregor fails the test. There are no female deputy sheriffs in the department.
    A. Lisa has a valid claim for gender discrimination because the requirements of the agility test are too strenuous for most women.
    B. Lisa has a valid claim for gender discrimination because the requirements of the agility test are just a subterfuge to avoid a claim of discrimination for screening applicants by height and weight.
    C. Lisa does not have a valid claim for gender discrimination if the department can show that the agility test, as composed, is job-related and necessary.
    D. Lisa does no have a valid claim for gender discrimination because the requirements of the agility test are not too strenuous for some women.

 

Difficulty: 2 Medium


 

  1. (p. 383)Women who are excluded from positions based on height and weight requirements can prove discrimination
    A. unless there was no discriminatory motive behind the challenged policy.
    B. unless the height and weight requirements can be proven to be directly correlated to the ability to do the job.
    C. unless the height and weight requirements also screen out some men.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 356)Corinna is a sales representative for The Word Was Good, a distributor of religious books. Corrina lives with her boyfriend. She is pregnant. Her sales manager tells her that she cannot keep her job because having an unwed pregnant sales representative, and, later on, an unwed mother, is bad for The Word’s image. Corrina feels that her employer’s action is discriminatory.
    A. Corrina cannot bring a case under Title VII because it is a business necessity for sales representatives of The Word Was Good to present a wholesome image.
    B. Corrina can bring a case of gender plus discrimination under Title VII.
    C. Corrina can bring a case of disparate impact gender discrimination under Title VII because the concept of wholesomeness has an adverse impact on women.
    D. Corrina cannot bring a case under Title VII because it is a BFOQ for sales representatives of The Word Was Good to present a wholesome image.

 

Difficulty: 3 Hard


 

  1. (p. 364)Dahlia is a photography analyst. She reviews photographs for placement in a stock images catalog. Her male colleagues, who review photographs for placement in a stock images catalog, are image technicians. She complains that she is paid less for doing the same work as them.
    A. Dahlia will prevail on a claim under the Equal Pay Act if the jobs require equal skill, effort and responsibility.
    B. Dahlia will not prevail on a claim under the Equal Pay Act because the wage rates for these jobs have been historically different.
    C. Dahlia will not prevail on a claim under the Equal Pay Act because the company hired image technicians before it hired photography analysts so all of the technicians have more years with the company than she does.
    D. Dahlia will prevail on her claim under the Equal Pay Act if she can show that her job as a photography analyst is more productive than an image technician is safe from liability under the Equal Pay Act.

 

Difficulty: 3 Hard

  1. (p. 369-370)The local T.V. station has an opening for evening sports caster. Yvonne, a recent graduate with a degree in broadcast journalism, applied for the job. She was told that they had to hire a man because the job required covering the local high school football teams and spending time in the locker rooms. Yvonne was not hired.
    A. Yvonne has no claim for gender discrimination because the employer can use BFOQ as a valid defense.
    B. Yvonne has a valid claim for gender discrimination and BFOQ cannot be used as a defense because the interviews of the players can take place outside the locker room.
    C. Yvonne has no claim for gender discrimination because the employer can hire anyone he wants to represent his T.V. station.
    D. None of the choices are correct.

 

Difficulty: 3 Hard


 

  1. (p. 361)Based on a case study in The American Journal of Forensic Psychiatry in which it was found that a jury would consider a female defense attorney as bolstering the credibility of a male defendant, John, a defendant in a case involving allegations of sexual harassment and rape insists that the firm of Elliot and Ness put a female attorney in charge of his criminal case. The firm has 11 attorneys (four female and 11 male). One of the male attorneys feels that he is more qualified to handle the case and objects to assigning a female attorney based on John’s preference. If the law firm assigns a female attorney to John’s case, it is
    A. not a violation of Title VII because it is a BFOQ based on the case study.
    B. a violation of Title VII because it is based on customer preference.
    C. not a violation of Title VII because John can articulate a legitimate nondiscriminatory reason for his preference.
    D. a violation of Title VII because the law firm has more than twice as many male attorneys as female attorneys.

 

Difficulty: 3 Hard

  1. (p. 348)Stephanie is transgendered. Prior to becoming a woman, she was employed in the accounting department at Wright Brothers, LLC. She was fired after reporting to work dressed as a woman.
    A. Stephanie has a cause of action under Title VII for gender discrimination against her former employer because she was fired for being transgendered.
    B. Stephanie does not have a cause of action under Title VII for gender discrimination because discriminating against transgendered persons is not considered gender discrimination.
    C. Stephanie does not have a cause of action under Title VII for gender discrimination because she did not file the action before she became a woman.
    D. Stephanie has a cause of action under Title VII for gender discrimination because she is legally considered a woman.

 

Difficulty: 3 Hard

  1. (p. 346)The 1991 Civil Rights act created the “Glass Ceiling Commission”
    A. to determine why black men were more likely to be promoted in spite of the glass ceiling.
    B. to determine whether a “glass ceiling” exists.
    C. to investigate the barriers to female and minority advancement in the workplace.
    D. None of the choices are correct.

 

Difficulty: 3 Hard


 

  1. (p. 351)Mr. Tompkins, of Tompkins, Lawlor & Tompkins, Attorneys at law, was conducting an interview for a first year associate. He asked Misty Rabon if she was married and when she intended, if ever, to have children. His second interview was with Scott Naylor. He did not ask Scott either of these questions.
    A. Misty Rabon has a claim for gender discrimination.
    B. Misty Rabon does not have a claim for gender discrimination because she was never employed by the law firm.
    C. Misty Rabon does not have a claim for gender discrimination because she was the only person that heard Mr. Tompkins ask the questions.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 352)Harry and Sally work for Chemco Chemical Supply Company. Harry and Sally attended a concert out of town and failed to show up to work the following day. When they returned to work, Harry was given a verbal warning and Sally was terminated.
    A. Sally has a claim for gender discrimination.
    B. Sally does not have a claim for gender discrimination if the company policy provides for termination for unexcused absences from work.
    C. Sally does not have a claim for gender discrimination if Harry has more seniority.
    D. Sally does not have a claim for gender discrimination if she has more seniority.

 

Difficulty: 2 Medium

  1. (p. 352)Solid Security Service hires male and female security officers. Solid only assigns the female employees to work at the local mall from 10:00 a.m. to 3:00 p.m. The company’s rationale is that the mall is a low risk area for violent crime until 3:00 p.m. Male employees are allowed to work day and night shifts and are assigned to a variety of work sites.
    A. Solid is not liable for gender discrimination because it can use BFOQ as a defense to any claim filed by its female employees.
    B. Solid is not liable for gender discrimination because it employs men and women.
    C. Solid is liable for gender discrimination because its male and female employees are being treated differently based on their gender.
    D. Solid is not liable for gender discrimination because it pays all employees based on the same wage scale, regardless of gender.

 

Difficulty: 2 Medium


 

  1. (p. 383)Laura Manning applied for a job as a firefighter. She was 5-feet-2-inches tall and weighed 110 lbs. Laura was denied the position because she did not meet the height and weight requirements of 5-feet-4-inches tall and 130 lbs. The fire department’s height and weight requirements
    A. are not discriminatory if it can be shown that there is a relationship between the height and weight of the firefighter and her ability to perform the job.
    B. are not discriminatory because historically, firefighters have always been tall.
    C. are not discriminatory because Title VII only applies to gender discrimination, not long-standing societal traditions.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 359)The dress code for Bright View Home Decorating required employees to report for work dressed in “smart casual clothes.” This meant that male employees could wear open collar sport shirts and women could wear slacks. However, when the district manager was scheduled to visit the Village of Upper Edge location, the Upper Edge store manager told the male employees to wear ties “because the district manager likes a professional look” and told female employees to wear skirts or dresses “because the district manager likes to see some leg.” Under Title VII, female employees at the Upper Edge store
    A. cannot complain because an employer has the right to set the workplace dress code.
    B. cannot complain because both make and female employees have to dress to please the district manager.
    C. can complain because it is harder to select an appropriate skirt or dress than an appropriate tie.
    D. can complain because the difference in attire is based on gender and has no business necessity.

 

Difficulty: 1 Easy


 

  1. (p. 361)Katie Fleming is a qualified carpenter just like her father and 4 brothers. She applied for a job with Kent Construction, LLC. Katie was assigned to work on the current project. A number of her co-workers complained saying they did not want to work with a woman and would not work with a woman. The entire crew threatened to walk off the job. Katie was subsequently terminated.
    A. Kent Construction is not liable for gender discrimination because of the business necessity defense.
    B. Kent Construction is not liable for gender discrimination and can use BFOQ.
    C. Kent Construction is liable for gender discrimination since Katie was fired because she was a woman.
    D. None of the choices are correct.

 

Difficulty: 1 Easy

  1. (p. 385-386)Smith Paving, Inc. has a contract to construct a new bypass around the city. The project is approximately 23 miles from Smith’s office. Kelly O’Neal and Portia Davis were hired to keep track of the supplies delivered to the site. They were the only females working at this job site. Smith has installed portable restrooms at the construction site. Initially, Kelly and Portia would take breaks and drive back to the office to use the restroom because the on site restrooms were unsanitary. However, the foreman complained that these breaks took too much time. Kelly and Portia asked Smith to install a portable “female only” restroom because the others were unsanitary and could lead to urinary tract infections in females.
    A. Kelly and Portia’s request for a separate restroom constitutes gender discrimination and Smith cannot comply without being liable under Title VII.
    B. Kelly and Portia’s request for a separate restroom should be granted unless installing the separate portable restroom would be an unreasonable financial burden to Smith.
    C. Smith has no legal obligation to provide separate restrooms unless state law requires him to do so.
    D. Smith can terminate Kelly and Portia for leaving the job site to use the restroom.

 

Difficulty: 2 Medium


 

  1. (p. 364)Jill and Seth, recent graduates, were hired as computer analysts for HRJ Enterprises. In a conversation over lunch, Jill discovered that Seth’s salary was 15% higher than hers. Assuming that she was being paid less because she was a female, Jill contacted the human resources department demanding that her salary be increased by 15%. She was told that Seth had violated company policy by discussing his salary. Seth told Jill later that the company lowered his salary by 15%.
    A. Jill does not have a claim for discrimination under the Equal Pay Act because the company remedied the wage discrepancy by lowering Seth’s salary.
    B. Jill does have a claim for discrimination under the Equal Pay Act because the company remedied the wage discrepancy by lowering Seth’s salary.
    C. Jill would only have a claim under the Equal Pay Act because Title VII does not address gender discrimination relating to compensation.
    D. Jill does not have a claim for discrimination because employers are free to set initial salaries without incurring liability under the Equal Pay Act or Title VII.

 

Difficulty: 3 Hard

  1. (p. 373)Fetal protection polices
    A. subject employers to tort liability on the basis of negligence for harm to the unborn fetus of an employee.
    B. are prohibited by Title VII if the policy applies only to women.
    C. are prohibited by Title VII if the policy applies to women and men.
    D. None of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 357)Titanium Office Products has had a record breaking year in terms of sales and revenue. It decides to reward its top sales representatives. Fourteen of the top reps are men and 7 are women. Titanium gives each of the reps an overnight stay at a top luxury hotel. In addition, the company pays for each of the men to play a round of golf at the hotel and tells the men that they can each invite one client as a guest for golf and lunch. The women are each given a full day beauty treatment at the hotel’s spa but no round of golf. The women complain that Titanium’s rewards are discriminatory.
    A. The rewards are gender neutral because men like to play golf and women like to get a spa beauty treatment.
    B. The rewards are discriminatory because Titanium did ask the women if they wanted to invite one client for a spa treatment.
    C. The rewards are discriminatory because they are based on gender stereotypes and affect the women’s employment.
    D. The rewards are not discriminatory because Titanium’s rewards to its sales staff are a gift beyond their regular compensation.

 

Difficulty: 3 Hard

  1. (p. 346)The term “glass walls” refers to
    A. workplace conditions and stereotyping that prevent women from moving to high level jobs in the workplace.
    B. workplace conditions and stereotyping that result in women in the workplace always being closely observed no matter what they do.
    C. workplace conditions and stereotyping that prevent women from moving laterally into areas that lead to higher advancement.
    D. internships for women and minorities that allow them to advance to higher level jobs based on observing men who have leadership positions in the workplace.

 

Difficulty: 3 Hard


 

  1. (p. 351)Cassidy applies for a job as a combination bartender and server at Victor’s Casino and Resort Spa. The interview process includes a tour of one of the bar areas at the casino. Cassidy notices that the male bar tenders and servers are all wearing tuxedos. The female bar tenders and servers, who are also known as “Victor’s Vixens,” are all wearing thigh length, low cut, tight, black velour dresses and high heeled shoes. Towards the end of the interview, the manager asks Cassidy if she is willing to wear the required velour dress. Cassidy says that would not be a problem. Male and female bartenders and servers are given identical duties and wages. A week after starting the job, Cassidy decides that she doesn’t want to wear the velour dress anymore. She complains to her manager about the dress but the manager says it is part of the job and Cassidy agreed to wear it.
    A. Cassidy cannot complain under Title VII because she witnessed the dresses before starting work and agreed to wear one.
    B. Cassidy has a valid Title VII claim because females are being treated differently than men regarding attire with no explainable job related justification.
    C. Cassidy cannot complain under Title VII because being one of “Victor’s Vixens” is a BFOQ for female bartenders and servers for this brand of casino.
    D. Cassidy cannot complain under Title VII because casino customers prefer to have women dressed provocatively but don’t care about the men.

 

Difficulty: 3 Hard

  1. (p. 352)Eric and Jessica are hired as coaches at Herbert Hoover High School in the same year. Harry coaches boys’ tennis and Jessica coaches girls’ tennis. The jobs also require them to each teach physical education classes approximately 50% of the time. Both have a bachelor’s degree in education and neither had prior teaching experience. Eric hosts a weekly radio show on current events at Hoover. Eric’s salary as coach is higher than Jessica’s salary as coach. Jessica complains that her pay is discriminatory.
    A. Jessica cannot prevail under the Equal Pay Act because her job does not require equal skill, effort, and responsibility as Eric’s job because she does not also host a radio show for the school.
    B. Jessica cannot prevail under Title VII of the Civil Rights Act because her job does not require equal skill, effort, and responsibility as Eric’s job because she does not also host a radio show for the school.
    C. Jessica can prevail under the Equal Pay Act or Title VII because she used to be a radio announcer before she became a teacher.
    D. Jessica can prevail under the Equal Pay Act or Title VII because Eric is not required to use his radio announcer’s skills to perform as a tennis coach.

 

Difficulty: 3 Hard


 

  1. (p. 364)The male coaches of the men’s baseball and ice hockey teams at Downstate Technological University (“D-Tech”) receive bonuses for winning seasons. D-Tech does not have women’s softball or ice hockey teams. D-Tech has a women’s gymnastic team and a women’s volleyball team but no similar teams for men. The female coaches of the women’s gymnastic team and the women’s volleyball team do not receive bonuses for winning seasons. The coaches of the gymnastic team and the volleyball team allege pay discrimination based on sex/gender.
    A. The coaches of the women’s gymnastic team and the women’s volleyball team can prevail in a case under the Title VII of the Civil Rights Act only if their jobs are substantially equal to the male coaches for baseball and ice hockey.
    B. The coaches of the women’s gymnastic team and the women’s volleyball team can prevail in a case under the Title VII even if their jobs are not substantially equal to the male coaches for baseball and ice hockey.
    C. The coaches of the women’s gymnastic team and the women’s volleyball team cannot prevail in a case under the Equal Pay Act because each coaching position is unique based on the differences between sports.
    D. The coaches of the women’s gymnastic team and the women’s volleyball team cannot prevail in a case under the Equal Pay Act because it is not traditional in the sporting world to pay bonuses for winning seasons in gymnastics and volleyball.

 

Difficulty: 3 Hard

  1. (p. 368)The Lilly Ledbetter Fair Pay Act:
    A. extends the statute of limitations for pay discrimination from 180 days to 300 days.
    B. extends the statute of limitations for gender discrimination under Title VII from 180 days to 300 days.
    C. allows the statute of limitations to reset each time a paycheck is issued based on pay discrimination.
    D. was never signed into law.

 

Difficulty: 2 Medium

  1. (p. 348)Due to Title VII of the Civil Rights Act
    A. the wage gap between men and women has been eliminated for positions requiring a college degree.
    B. gender discrimination occurs in less than half of the states.
    C. women have made tremendous gains in the workplace.
    D. All of the choices are correct.

 

Difficulty: 1 Easy


 

  1. (p. 370)All-American Tool & Die Company allows injured employees to work a “light duty” job until the employee is physically able to go back to regular work. Kimberly Cook is pregnant and has been advised by her physician not to engage in heavy lifting until after the baby is born. Kimberly took a letter from her physician and requested light duty work which would not require any lifting. Donaldson refused to allow Kimberly to work light duty. Kimberly was told that she could either take FMLA leave or resign.
    A. Donaldson is not liable for under the Pregnancy Discrimination Act because providing “light duty work” is not required by law.
    B. Donaldson is liable under the Pregnancy Discrimination Act because Kimberly is being treated differently than other employees with a short term disability.
    C. Donaldson is not liable under the Pregnancy Discrimination Act because he gave her the option to take up to 12 weeks of unpaid leave.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 361)The police chief of the city of Healing Springs has suggested that female patrol officers seek transfers away from high crime areas because he has heard rumors that male officers do not want to have female officers present in dangerous situations and might not support the female officers in the event that physical force is needed for policing. Healing Springs female police officers
    A. can bring an action for gender discrimination under Title VII.
    B. cannot bring an action for gender discrimination under Title VII because the chief’s suggestion is designed to protect the safety of the female officers.
    C. cannot bring an action for gender discrimination under Title VII because the chief’s suggestion is designed to protect the safety of the male officers.
    D. can bring an action under the Equal Pay Act.

 

Difficulty: 2 Medium

  1. (p. 361)A U.S. company employing female U.S. citizens abroad must comply with Title VII, with respect to its female U.S.-citizen employees:
    A. unless the culture of the foreign country does not permit women to work with men.
    B. unless it is culturally taboo to allow American women to work with women in the country in question.
    C. even if the culture of the foreign country does not permit women to work with men, unless doing so would constitute a violation of the foreign country’s law.
    D. regardless of the law or custom of the foreign country in question.

 

Difficulty: 3 Hard


 

  1. (p. 363)An employer may legitimately decide not to hire individuals of a given gender if:
    A. doing so would pose a logistical hardship.
    B. the employer’s current employees’ families object to them working with an individual of a different gender than the current employees.
    C. doing so would pose a logistical hardship that involves an unreasonable financial burden.
    D. doing so would eliminate the BFOQ defense.

 

Difficulty: 1 Easy

  1. (p. 348)Little legislative debate and Congressional guidance exists on the proper interpretation of Title VII’s prohibition of sex discrimination because:
    A. the majority of the members of congress were confident that the meaning of the terminology was self-evident and that any attempt to explain it would lead to confusion.
    B. virtually all members of congress, at that time, were men and, therefore, did not understand the concept of sex discrimination well enough to explain it.
    C. most members of congress, at that time, were men who felt that the discussion of sexual matters in a public forum was unseemly and inappropriate for a legislative body.
    D. a southern legislator and civil rights foe inserted the prohibition of sex discrimination in a last-minute amendment to the Civil Rights Act of 1964, in an attempt to bring about the bill’s defeat.

 

Difficulty: 2 Medium

  1. (p. 348)Under Title VII, sex discrimination includes:
    A. sexual harassment, and discrimination on the basis of pregnancy, but not discrimination on the basis of affinity orientation, or discrimination on the basis of being transgendered.
    B. sexual harassment, but not discrimination on the basis of pregnancy, discrimination on the basis of affinity orientation, or discrimination on the basis of being transgendered.
    C. sexual harassment, discrimination on the basis of pregnancy, discrimination on the basis of affinity orientation, and discrimination on the basis of being transgendered.
    D. disparate treatment on the basis of gender, sexual harassment, and discrimination on the basis of pregnancy, but not disparate impact discrimination on any basis.

 

Difficulty: 2 Medium


 

  1. (p. 361)Ismeralda Marcus, a prolific shoe buyer, refuses to be waited upon by male shoe store clerks. The owner of Your Shoe Town therefore informs all of his male clerks that they may not wait on Ms. Marcus, because he does not want to anger his best customer. One of the male clerks believes that this is illegal gender discrimination, and that since part of his compensation is based on his sales volume, he feels that this policy illegally denies him the opportunity to earn compensation because of his gender. Is he correct?
    A. Yes, because gender-based customer preferences are never legitimate.
    B. No, because gender-based customer preferences are legitimate business concerns.
    C. Yes, because gender-based customer preferences are not legitimate unless they implicate a legitimate privacy interest.
    D. No, because the shoe business does not affect interstate commerce.

 

Difficulty: 3 Hard

  1. (p. 361)The City of Lower Iberia pays for all of its firefighters who buy their firefighting gear (i.e., coats, helmets and gloves) from one authorized vendor who gives the city a discount price based on the volume of equipment purchased. There department has 197 males and 11 females in its firefighting corps. The vendor carries only male-designed gear although vendors located in other cities sell firefighting gear made specifically for women. Marcelle Landry and Lula Bourque are female firefighters in Lower Iberia. They complain.
    A. Marcelle and Lula will not prevail in a Title VII case because the men and women can buy the same uniforms.
    B. Marcelle and Lula will not prevail in a Title VII case because City of Iberia saves money by having its entire firefighters buy their uniforms from the same vendor.
    C. Marcelle and Lula will prevail in a Title VII case because requiring female firefighters to buy and wear male firefighting equipment makes it harder for them to do their jobs and subjects them to the risk of burns and injury due to improperly fit male-designed gear.
    D. Marcelle and Lula will prevail in a Title VII case because the City of Iberia requires its firefighters to buy their gear instead of giving it to them as part of their official equipment.

 

Difficulty: 3 Hard


 

  1. (p. 384)In Price Waterhouse v. Hopkins, the Supreme Court:
    A. determined that not providing the claimant the same opportunities to advance as her male coworkers is unlawful gender discrimination under Title VII.
    B. determined that the claimant did not show evidence that she was not given the same opportunities to advance as her male coworkers.
    C. determined that gender stereotyping is unlawful gender discrimination under Title VII.
    D. determined that gender stereotyping is not unlawful gender discrimination because employers are free to determine how to run their businesses.

 

Difficulty: 2 Medium

 

 

Essay Questions
 

  1. (p. 364)How are the Equal Pay Act (EPA) and Title VII of the Civil Rights Act different and how might these differences affect an employee who is seeking relief against wage discrimination based on sex/gender.

The EPA only prohibits wage discrimination based on sex. Title VII prohibits all types of discrimination in employment (including hiring, firing, promotion, etc. as well as wage) on the basis of race, color, religion, or national origin in addition to sex.

Depending on the facts, individuals who experience sex-based pay inequity may file under Title VII or the EPA or both.

Filing under the EPA may be advantageous because the EPA has a longer statute of limitations than Title VII. EPA wage discrimination claims must be brought within two years of the first act of discrimination, whereas the window under Title VII is 300 days at most. Plus, if the employer’s EPA violation is willful or intentional, the statute of limitations is extended to three years. This difference in the time to bring suit has become more important since the decision of the Supreme Court in Ledbetter v. Goodyear Tire and Rubber Co., Inc, which narrowly construed the statute of limitations for a disparate pay case under Title VII. Also, an aggrieved employee can go directly to court under the EPA. Under Title VII, an employee must file a complaint with the EEOC and wait until the EEOC issues a “Right to Sue” letter before filing a lawsuit. An employee in a small company, i.e., one with less than 15 employees can use the EPA but not Title VII, because the EPA is part of the Fair Labor Standards Act which does not have a 15 employee limitation. Nevertheless, if the firm is large enough and the claim is brought timely under Title VII, it may be possible to bring a case under both the EPA and Title VII.

Title VII can provide broader protection against wage discrimination than the EPA because Title VII does not require that the claimant’s job be substantially equal to that of a higher paid person of the opposite sex or require the claimant to work in the same establishment.

Finally, the type of damages that may be available also differs. Under the EPA, you can collect liquidated damages in the form of double back pay, as happened in the Polis v. New School for Social Research case. On the other hand, punitive damages are not available under the EPA but can be awarded under Title VII.

 

Difficulty: 3 Hard


 

  1. (p. 356, 370)Victoria Williams has been employed by TEDCO for 3 years. During that time, she has been an exemplary employee, repeatedly receiving the honor of being named employee of the month. TEDCO has 150 employees, 47 of them female, yet none of its female employees have young children. However, several of the male employees have young children. TEDCO provides health insurance and disability insurance for all full time employees. Victoria told a co-worker that she was pregnant. The co-worker warned her not to tell her supervisor, Brian. Victoria told Brian anyway, informing him that she intended to take 3 months off after she had the baby. Brian didn’t like having pregnant women on his team. He thought they became inefficient, missed work due to “morning sickness” and to attend doctor’s appointments, and were more emotional than non-pregnant workers. Furthermore, he didn’t want Victoria to return to work after the baby was born because he didn’t want to deal with the hassle of having an employee with a young child and all the potential issues that go along with it. Brian started to criticize Victoria’s performance, claiming that her work was substandard and that she was not a productive member of the team. Brian fired Victoria in her 6th month of pregnancy. She found out later that Brian had fired another employee when she told him she was pregnant. Does Victoria have a valid claim for pregnancy discrimination against TEDCO? Explain the reasons for your answer. Does Victoria have a valid claim based on Brian’s attitude towards women with young children? Again, explain your answer.

Victoria can file a claim for discrimination on the basis of pregnancy under the Pregnancy Discrimination Act (PDA). The PDA makes it unlawful for an employer to use pregnancy as the basis for treating an employee differently than any other employee with a short-term disability if that employee can perform the job. It appears that Brian fired Victoria because she was pregnant. Victoria does not have to prove that her pregnancy was the only reason she was fired, just that it was a factor considered in Brian’s decision to fire her.

Additionally, it appears that management at TEDCO engage in “gender-plus” discrimination in that the company does not hire women with young children but does hire men with small children. Victoria cannot assert a claim for gender-plus discrimination based on these facts because TEDCO has not discriminated against her in that way.

 

Difficulty: 2 Medium


 

  1. (p. 369-370)Genevieve applies for a job as a security guard at a diamond mine. The primary job of security guards is to perform body-cavity searches on the miners, at the end of each shift, to ensure the miners are not stealing diamonds. Part of each guard’s compensation is based upon the number of stolen diamond recoveries they accomplish by way of the searches. Since only male guards are assigned to search male miners and only female guards are assigned to search female miners, Genevieve is assigned to conduct searches exclusively on female miners. She files a claim of gender discrimination alleging that since male miners attempt more diamond thefts than female miners, the opportunity to augment her compensation through diamond recoveries is lower than that of male guards and, consequently, the policy of allowing her to search only women is having an illegally discriminatory, disparate impact on her compensation, on the basis of gender. Is Genevieve correct?

No, Genevieve is incorrect. This particular policy is probably justified on the ground that a guard having the same gender as the miners to be searched is a BFOQ, given the physically intrusive nature of the job. A privacy-based BFOQ is legal if the employer can show that transgressing the same-gender requirement would undermine the business operation, that the privacy interest at stake is entitled to protection under the law, and that no reasonable alternatives exist to protect those interests than the provision of same-gender employees. These should be very easy to demonstrate, since if women are allowed to search the male miners, then it is likely that men would have to be allowed to search female miners. It is unlikely that either gender would submit to this, or the inevitable refusals would disrupt the mine’s operation. The protection of bodily privacy is well recognized as a legally protectable interest. There does not appear to be an alternative way to preserve the privacy interests at stake.

 

Difficulty: 3 Hard


 

  1. (p. 369)The Pair O’ Dice Casino refuses to hire female bouncers, on the grounds that they are insufficiently strong and intimidating enough to effectively perform the job. During their trial for gender discrimination brought by a group of women denied jobs as bouncers at the casino, the general manager defended the policy, and offered as the only evidence of the policy’s soundness that he, “and everyone else in the world can tell, by looking, that the physical capability of women is less than that of men.” What kind of defense is the general manager asserting and will it be successful?

The manager is asserting a BFOQ defense, since he is asserting that physical strength is necessary to effectively perform the job. He will probably be unsuccessful, however, even if he is correct about the difference in strength between men and women, unless he can demonstrate, through the introduction of credible, objective evidence that the strength is justified, and that women do not have enough of it. His casual observation that strength is necessary and that women generally do not meet the requirement will be insufficient. In addition, it is likely that there will be some women who will be stronger than many men and who would meet a valid strength requirement.

Some students may write about women who are skilled in martial arts or women who are able to work effectively as bouncers by using verbal skills so that problems or confrontations are resolved without the use of physical violence.

 

Difficulty: 2 Medium


 

  1. (p. 357, 384)What is “gender stereotyping” and how does it result in gender discrimination?

Gender stereotyping occurs when an employer makes hiring, promotion or salary decisions based on his perception as to how a male or a female should behave. In our society, we have norms that we impose on individuals based on their gender. When a person, male or female, fails to comply with the standards imposed by society, they are judged accordingly. In other words, we have female roles and male roles and generally, we have a difficult time accepting those men and women who cross the boundaries set by society. For example, women don’t play football and those young women that have attempted to play or succeeded in playing experience a tremendous amount of opposition. The same is true for those men that want to engage in nontraditional male activities.

However, these attitudes rise to the level of gender discrimination when they influence employment decisions. If a manager refuses to hire a woman because he doesn’t think that a woman would be able to perform the duties of the job or just because he doesn’t think that a woman should do that type of job, he has engaged in gender discrimination. Gender stereotyping also occurs when women are told that they are too aggressive or assertive in performing their jobs, even when such behavior is appropriate for success in the job and males who exhibit the same characteristics are not criticized. Gender stereotyping can also occur when women are treated as sex objects, such as being told to dress or act in ways that have sexual connotations in order to be successful but men are not expected to dress or act in a similar manner. Gender stereotyping also occurs when a man is the subject of an adverse employment action because he is considered to effeminate.

 

Difficulty: 1 Easy


 

  1. (p. 373)List and discuss 4 ways that management can deal effectively with the threat of gender discrimination.

The students’ answers will vary. They may range from a discussion of general concepts, focusing on the information found in “Management Tips” on page 377 to a discussion of more specific examples or items or a combination of both. Some examples are:

· Let employees know from the beginning that gender bias in the workplace will not be tolerated in any way. Give them examples of unacceptable behavior.
· Enforce the company’s policy when gender discrimination is discovered.
· Take employee claims of gender discrimination or bias seriously.
· Promptly and thoroughly investigate all claims of gender discrimination.
· Don’t go overboard in responding to offenses substantiated by investigation. Make sure the “punishment fits the crime.”
· Conduct periodic training to keep communication lines open and to act as an ongoing reminder of the employer’s anti-bias policy.
· Conduct periodic audits to make sure that hiring, promotions and salary are not being affected adversely by gender.
· Review workplace policies to make sure there are no hidden policies or practices that could more adversely impact one gender than another.
· In determining whether employment policies are gender biased, look at the obvious, but also look at the subtle bias that may arise from seemingly neutral policies adversely impacting a specific gender.

A correct answer could also mention insuring equal opportunity for things that lead to advancement in the workplace, including mentoring and temporary assignments to higher level positions or to technical jobs. A discussion of family responsibility discrimination, although not explicitly covered in the text, would be appropriate because of the traditional role of women as caregivers so that most women in the workplace are expected to care for children or older parents whereas men are not expected to perform the same duties or play the same role.

 

Difficulty: 2 Medium

Chapter 16

Selected Employment Benefits and Protections

 

 

True / False Questions   

  1. (p. 764)An employer can be liable for criminal penalties, under OSHA, if it commits a willful violation that results in the death of an employee.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 783)COBRA gives qualified participants and beneficiaries the right to continue to receive health insurance benefits at the employer’s expense after a change in circumstances such as termination or divorce for up to 18 months.
    FALSE

 

Difficulty: 3 Hard

  1. (p. 794)Zola is a dancer at the Silver Fox gentleman’s club. According to the ruling in Reich v. Circle C. Investments, Inc., she is an independent contractor and her employer is exempt from the FLSA.
    FALSE

 

Difficulty: 2 Medium

  1. (p. 759)Under HIPAA, an employer may not request medical documentation to confirm illness pursuant to an employee’s request for FMLA leave.
    FALSE

 

Difficulty: 2 Medium


 

  1. (p. 754)Andrea is a 1st grade teacher. She is new to the job and usually works until 5:30 p.m. every evening to prepare her lesson plans for the following day. Andrea is not paid overtime pay and her employer has violated the FLSA.
    FALSE

 

Difficulty: 3 Hard

  1. (p. 775)Pension plan assets may not be invested in the employer’s own stock, as this creates a conflict of interest.
    FALSE

 

Difficulty: 1 Easy

  1. (p. 778)Employers with defined benefit plans are required to purchase insurance from the Pension Benefit Guarantee Corporation to cover potential losses of benefits on termination of a plan.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 774)The FLSA, which is administered by the EEOC, has the authority to investigate, gather information, issue regulations, and enforce provisions of the FSLA.
    FALSE

 

Difficulty: 1 Easy

  1. (p. 766)When OSHA issues citations or penalties for workplace safety violations, employers can challenge the citation or penalty directly in Federal District Court.
    FALSE

 

Difficulty: 2 Medium


 

  1. (p. 763)Prior to the enactment of the Occupational Safety and Health Act, employers could avoid liability for workplace accidents by alleging the contributory negligence defense.
    TRUE

 

Difficulty: 1 Easy

  1. (p. 757)Anthony has gotten a job delivering newspapers. He is 13 years old. The City News has not violated the child labor laws.
    TRUE

 

Difficulty: 2 Medium

  1. (p. 768)Herb refuses to perform dangerous work for his employer and the employer placed a written reprimand in Herb’s personnel file. The employer has violated OSHA.
    TRUE

 

Difficulty: 2 Medium

  1. (p. 757)The FLSA preempts any state child labor laws that are stricter than the Federal Law.
    FALSE

 

Difficulty: 2 Medium

  1. (p. 763)NIOSH is the agency responsible for researching workplace safety and making recommendations to the Secretary of Labor.
    TRUE

 

Difficulty: 1 Easy


 

  1. (p. 756)The only legal way in which an employer can avoid having to pay an employee at one and one-half the employee’s normal hourly rate for hours worked in excess of 40 hours per week is by having the employee sign a contract agreeing to waive the overtime rate.
    FALSE

 

Difficulty: 2 Medium

 

Multiple Choice Questions

  1. (p. 769)The “greater hazard” defense is allowed by OSHA if the employer can show

    I. A variance from the secretary of labor is unavailable.
    II. Alternative means of protection are unavailable.
    III. The employees refuse adhere to OSHA’s restrictions.
    IV. The hazards of compliance with the standard are greater than the hazards of noncompliance.
    A. I and II.
    B. II and III.
    C. I, II, and III.
    D. I, II, and IV.

 

Difficulty: 3 Hard

  1. (p. 764)Employers must keep records of workplace injuries
    A. even if the injury does not require medical treatment.
    B. if the injury causes a loss of consciousness.
    C. even if the injury does not result from a work related cause.
    D. None of the choices are correct.

 

Difficulty: 3 Hard


 

  1. (p. 767)The OSHA requirement that employers provide safety training to all new employees and to all employees who have been transferred into new positions:
    A. is the general duty rule.
    B. is the safety training requirement.
    C. is the continual training requirement.
    D. is the safety standard duty.

 

Difficulty: 1 Easy

  1. (p. 763)Before reviewing a high-risk workplace for compliance with OSHA, a safety inspector must give the employer advance notice of not less than
    A. 5 days.
    B. 10 days.
    C. 30 days.
    D. None of the choices is correct.

 

Difficulty: 1 Easy

  1. (p. 763)Beatrice sues her employer for a negligently incurred injury. The employer attempts to show that it was the act of one of Beatrice’s coworkers that caused Beatrice’s injuries. The employer is asserting:
    A. the fellow servant rule.
    B. assumption of the risk.
    C. the greater danger defense.
    D. contributory negligence.

 

Difficulty: 2 Medium

  1. (p. 763)The Occupational Safety and Health Administration will take complaints of OSHA safety violations from
    A. employees.
    B. grievances from sources other than employees, such as a union.
    C. reports of fatal or multiple injuries.
    D. All of the choices are correct.

 

Difficulty: 1 Easy


 

  1. (p. 767)The general duty clause in the Occupational Safety and Health Act:
    A. applies in addition to specific OSHA standards, and requires an employer maintain a workplace free of recognized hazards that are likely to cause death or serious physical injury to an employee.
    B. applies in the absence of any specific OSHA standard and requires an employer maintain a workplace free of recognized hazards that are likely to cause death or serious physical injury to an employee.
    C. applies only to industrial workplaces.
    D. eliminates the availability of the fellow servant rule and the contributory negligence defenses in cases where the employer had a statutory duty.

 

Difficulty: 2 Medium

  1. (p. 769)Noland Tools takes all reasonable precautions to guard against known hazards in one of its facilities; however, many of the precautions are frequently circumvented by employees, who find the precautions cumbersome. Employee Teal is injured when he circumvents these precautions. Noland Tools is:
    A. liable for the harm, under the ruling in Horne Plumbing and Heating v. OSHRC.
    B. liable for the harm, because the legislative history of the OSHA indicates that it is intended to make employers insurers of employee safety, even in spite of employee disregard for safety precautions.
    C. not liable for the harm, under Horne Plumbing and Heating v. OSHRC.
    D. not liable for the harm, by operation of the special duty rule.

 

Difficulty: 3 Hard

  1. (p. 767)An employer is deemed to have had constructive knowledge of a recognized hazard when:
    A. past safety practices imply that the employer was aware of the hazard, and the hazard was so obvious that anyone would have been aware of it.
    B. it has been the subject of a prior OSHA citation.
    C. at least one prior injury has arisen out of the hazard.
    D. the industry recognizes the hazard even if the employer doesn’t actually know of the hazard.

 

Difficulty: 2 Medium


 

  1. (p. 770)To prevent potential violence in the workplace, employers should develop a workplace violence policy that includes:
    A. training for customers and clients on recognizing workplace violence.
    B. varied discipline in response to violent acts based on seniority, with more senior employees receiving lesser discipline than less senior employees.
    C. a complaint process for employees to be able to warn the employer of potential violence.
    D. All of the choices are correct.

 

Difficulty: 1 Easy

  1. (p. 771)An employer may be liable for workplace bullying
    A. only if serious physical harm results.
    B. only if it constitutes discrimination under a federal or state law.
    C. whether or not serious physical harm results or constitutes discrimination under a federal or state law.
    D. None of the choices is correct.

 

Difficulty: 2 Medium

  1. (p. 784)Under HIPAA, the Privacy Rule allows covered entities to use or disclose protected health information without the individual’s permission for the following purposes:
    A. treatment, payment and health care operations as defined in the rule.
    B. to certain governmental authorities if abuse, neglect or domestic violence is at issue for law enforcement pursuant to a court order and/or subpoena.
    C. to funeral directors, coroners or medical examiners to identify a deceased person or to determine the cause of death.
    D. All of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 784)LaShonda Green works at the University of Northern Virginia’s Medical Center. She accessed medical records of a number of celebrities and prominent persons and sold them to the tabloids, which then revealed the information in their written publications, on television and on the Internet. Green may be subject to
    A. a federal lawsuit for HIPAA violations by the individuals whose private health information (PHI) was revealed.
    B. criminal prosecution by the U.S. Department of Justice, which could result in up to 10 years of jail time.
    C. a federal lawsuit under the Privacy Act by the individuals whose private health information (PHI) was revealed.
    D. a private lawsuit for contributory negligence by the individuals whose private health information (PHI) was revealed.

 

Difficulty: 1 Easy

  1. (p. 774)Defined contribution plans
    A. define the amount of the employee contribution without a specific amount to be recovered at retirement.
    B. are plans where the amount the employee receives at retirement is specifically designated at the time the employee enters the plan.
    C. is a plan that provides medical, surgical or hospital benefits.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 773)Fiduciary standards established by ERISA
    A. require the plan manager to exercise care and judgment that a prudent person would exercise pursuing similar objectives under the same circumstances.
    B. allow the plan manager to make loans to corporate officers from the employee pension fund.
    C. allow the plan manager to divert investment opportunities for his own benefit.
    D. None of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 797)In Varity Corp. v. Howe the court held that:
    A. ERISA fiduciaries do not have any fiduciary duty to disclose truthful information on their own initiative.
    B. ERISA’s fiduciary standards were intended to protect the integrity of the plan, not the individual beneficiaries.
    C. ERISA fiduciaries are required to discharge their duties with regard to the plan solely in the interest of the participants and beneficiaries.
    D. ERISA’s remedies for breach of fiduciary duty were limited to the plan itself and participants and beneficiaries have no claim.

 

Difficulty: 3 Hard

  1. (p. 775)Lucy is the plan administrator for the Golden Corporation. She has invested all of the funds in Techno stock. The stock price plummeted. Lucy has:
    A. violated her fiduciary duty of loyalty.
    B. violated her fiduciary duty of diversification.
    C. violated her fiduciary duty of exclusive purpose.
    D. None of the choices are correct.

 

Difficulty: 1 Easy

  1. (p. 784-785)Pamela is Chief Administrator in charge of medical records at Sunshine County Hospital. She received a request for copies of Victoria’s medical records from her employer and she released them without Victoria’s authorization. Pamela has
    A. not violated the HIPAA Privacy Rule because employers are included in the groups that can receive protected health information without an authorization.
    B. violated the HIPAA Privacy Rule because employers are not included in the groups that can receive protected health information without an authorization.
    C. not violated the HIPAA Privacy Rule because there is an exception in the Rule for the release of medical records by the head of the medical records department.
    D. None of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 774)A “defined benefit plan” is
    A. a pension plan in which each employee has his/her own account and the benefits are based only on the principal and income contributed.
    B. a plan that is established to provide health, vacation or death benefits.
    C. a plan where the amount the employee will receive at retirement is stated at the time the employee joins the plan.
    D. None of the choices are correct.

 

Difficulty: 2 Medium

  1. (p. 756)Grapple Industries has 1,000 full-time and part-time employees who manufacture parts for hand tools. Company policy states that part-time employees are not eligible for overtime pay, even if an employee works more than 40 hours during a particular week. Grapple has
    A. not violated the FLSA because part-time employees are by definition exempt from overtime pay.
    B. not violated the FLSA if it has obtained an exemption for part-time employees from the Department of Labor’s wage and hour administrator.
    C. has violated the FLSA because all of its employees are covered by the FLSA and entitled to overtime pay.
    D. not violated the FLSA because its part-time employees fall within artistic and creative exception to the overtime rules.

 

Difficulty: 3 Hard

  1. (p. 763)The safety standards enforced by the Occupational Safety and Health Administration are researched and formulated by:
    A. Congress.
    B. state workplace safety agencies.
    C. the National Institute for Occupational Safety and Health.
    D. the National Labor Relations Board.

 

Difficulty: 1 Easy


 

  1. (p. 797)Major Energy has decided to adopt a new pension plan. Under the new plan, Major Energy owners will benefit greatly, but the employees will be significantly less well off than under the present plan, even though the owners of Major Energy inform the employees that the whole purpose of the plan is to make the employees better off. Major Energy’s characterization of the effects of the change:
    A. is legal, as long as the new plan is funded at level substantially equivalent to HIPAA standards.
    B. does not violate section 404(a) of ERISA, as interpreted by the U.S. Supreme Court in Varity Corp. v. Howe, since it does not amount to a permanent termination of the availability of a pension benefits plan.
    C. violates section 404(a) of ERISA, as interpreted by the U.S. Supreme Court in Varity Corp. v. Howe.
    D. violates section 404(a) of ERISA, which prohibits any modification to a pension benefit plan once the first employee has enrolled in the plan.

 

Difficulty: 3 Hard

  1. (p. 783)Adriana injured her arm on July 11, 2007. She will require several surgeries over the next two years to restore full function. On September 3, 2007 she begins employment with Savory Meals, Inc., which has a three month waiting period before new employees can enroll in its medical insurance plan. If Adriana enrolls in the insurance plan on the earliest date she is eligible:
    A. HIPAA provides that her arm injury is not excludable as a preexisting injury.
    B. HIPAA provides that her arm injury is excludable as a preexisting injury.
    C. ERISA provides that her arm injury is not excludable as a preexisting injury.
    D. ERISA provides that her arm injury is excludable as a preexisting injury.

 

Difficulty: 2 Medium

  1. (p. 752)Candy Collins is an apprentice at World Kitchen Cabinets. She is learning to assemble the cabinets before installation. She is to be paid $5.50 per hour during her apprenticeship.
    A. World has violated the FLSA by paying Candy less than minimum wage.
    B. World can pay Candy less than minimum wage because she is in training.
    C. World cannot pay Candy less than minimum wage unless she is under the age of 18.
    D. World can pay Candy less than minimum wage because she is in training only if the employer obtains a certificate issued by the Department of Labor’s wage and hour administrator.

 

Difficulty: 3 Hard


 

  1. (p. 753)Judson is a cashier at Dixie’s Discount, located in Wyoming. Dixie’s pays Judson the minimum wage set by the state. The state minimum wage rate is less than the federal minimum wage rate. Dixie’s
    A. has not violated FLSA because the state wage rate supersedes the federal minimum wage rate.
    B. has violated FLSA because the federal minimum wage rate supersedes the state wage rate.
    C. has not violated FLSA because cashiers are exempt from FLSA.
    D. None of the choices is correct.

 

Difficulty: 3 Hard

  1. (p. 754)Shawn works on a fishing boat in Myrtle Beach, S.C. in the summer. He is paid $5.00 per hour, and even though he works 10 hour shifts 6 days a week, he is not paid overtime.
    A. Failure to pay Shawn overtime is a violation of the FLSA.
    B. Failure to pay Shawn overtime and minimum wage is a violation of the FLSA.
    C. Failure to pay Shawn minimum wage is a violation of the FLSA.
    D. None of the choices is correct.

 

Difficulty: 3 Hard

  1. (p. 755)Rennie Norquist is a recent law school graduate. She is employed at Dillard, Dobbs, Dooley and Duncan, a 200 lawyer firm. Rennie is well paid at $98,000 per year. However, she thinks she should be paid overtime for all the hours she works because all she does is do research the law and write legal memoranda.
    A. Rennie is eligible for overtime under the new FLSA regulations because she makes less than $100,000.
    B. Rennie is not eligible for overtime under the new FLSA because, as a professional worker, she is exempt from the overtime regulations.
    C. Rennie is entitled to overtime because as a recent graduate, she is in training.
    D. None of the choices are correct.

 

Difficulty: 2 Medium


 

  1. (p. 755)Jillian works as a taxicab driver for Blue Cabs. She is paid hourly, makes less than $23,000 a year and regularly works 10 to 15 hours per week overtime. However, she is not paid overtime.
    A. Blue Cabs has violated the FLSA by refusing to pay Jillian overtime because she makes less than $23,660.00 per year.
    B. Blue Cabs has not violated the FLSA by refusing to pay Jillian overtime because she is a professional and therefore exempt.
    C. Blue Cabs has not violated the FLSA by refusing to pay Jillian overtime because taxicab drivers are exempt.
    D. None of the choices are correct.

 

Difficulty: 3 Hard

  1. (p. 756)Employees of the Hefner Concrete Company work long and hard when on road building projects in order to take advantage of good weather and to meet performance bonuses for completion of jobs ahead of schedule. During one week, a few of the crews work 65 hours per employee. For the employees who worked 65 hours in one week, Hefner
    A. must pay its workers time and a half for all hours from 41 through 60 and double time for all hours over 60.
    B. has violated the FLSA because workers are prohibited from working over 60 hours per week.
    C. has violated the OSHA because workers are prohibited from working over 60 hours per week.
    D. must pay its workers time and a half for all hours over 40.

 

Difficulty: 3 Hard

  1. (p. 756)Under FLSA
    A. executives making at least $125,000 per year are not entitled to overtime pay.
    B. a salaried employee who makes $23,000 per year is automatically entitled to overtime pay.
    C. a tipped worker must be paid direct wages of at least $3.03 per hour.
    D. None of the choices is correct.

 

Difficulty: 2 Medium


 

  1. (p. 756)Lara is a cashier at the Piggy Wiggy Market. During the holidays, she regularly works 70 hours per week.
    A. Piggy Wiggy has not violated FLSA, if it pays Lara overtime for the hours worked over 40 hours per week.
    B. Piggy Wiggy has not violated FLSA, if it pays Lara overtime for the hours worked over 37.5 hours per week.
    C. Piggy Wiggy has violated FLSA, if it requires Lara to work more than 65 hours in a week.
    D. Piggy Wiggy has violated FLSA, if it requires Lara to work overtime.

 

Difficulty: 2 Medium

  1. (p. 759)Salim works at Harris Heavy Equipment. He has worked there for seven months as a Vice President of Federal Procurement. He has suffered with a herniated disc for years, but it has now become severe. His doctors have told him that he needs to have surgery soon or his condition will worsen. He needs 4-6 weeks off from work for surgery and rehabilitation. He asks the president for 4-8 weeks pursuant to FMLA.
    A. Harris is not required to grant the FMLA leave because Salim has a pre-existing condition, which he had before he was hired at Harris.
    B. Harris is not required to grant the FMLA leave because Salim has worked for Harris less than 12 months.
    C. Harris is required to grant the FMLA leave because Salim is an executive.
    D. Harris is not required to grant the FMLA leave because Salim’s condition does not qualify as a serious illness under FMLA.

 

Difficulty: 1 Easy


 

  1. (p. 759)Bernard has worked for Flipper Pools for 5 years as a salesman. He requests time off to be with his stepdaughter. Flipper

    I. does not have to grant the request for leave under FMLA because Flipper has only 52 employees.
    II. does not have to grant the request for leave under FMLA because he did not make the request 60 days prior.
    III. does not have to grant the request for leave under FMLA because FMLA does not cover stepdaughters.
    IV. does not have to grant the request for leave under FMLA because his stepdaughter is not ill.
    A. I only
    B. II and III
    C. IV only
    D. I, II, III, IV

 

Difficulty: 2 Medium

  1. (p. 778)Corbett, a twenty-year-old delivery truck driver for the Yumpin Yogurt has been excluded from Bagel Barn’s employee benefits plan. Corbett has worked continuously for Yumpin for three years. This exclusion is:
    A. illegal because ERISA requires an employer to extend benefits to individuals regardless of age.
    B. legal because COBRA does not require an employer to extend benefits to individuals under age 21.
    C. legal because ERISA does not require an employer to extend benefits to individuals under age 21.
    D. illegal because the ADEA requires an employer to extend benefits to individuals regardless of age.

 

Difficulty: 1 Easy


 

  1. (p. 783)Parminder has worked for Best Cable, Inc. for 3 years. She participates in the company’s health care plan for herself and her family. She resigned last week. With regard to her health-care coverage:
    A. under PITHON, Best is required to extend employee health insurance coverage for up to 18 months and may charge up to 104 percent of the rates originally charged to the employee.
    B. under COBRA, Best is required to extend employee health insurance coverage for up to 18 months and may charge up to 102 percent of the rates originally charged to the employee.
    C. under BOA, Best is required to extend employee health insurance coverage for up to 12 months and may charge up to 103 percent of the rates originally charged to the employee.
    D. None of the choices is correct.

 

Difficulty: 1 Easy

 

Essay Questions

  1. (p. 794-795)What are the five factors used to determine whether an individual is an employee for purposes of the FLSA?

The court articulated the factors used to determine whether an individual is an employee for purposes of the FLSA in Reich v. Circle C Investments. The factors are as follows:

(1) the degree of control exercised by the employer.
(2) the extent of relative investments of the worker and the alleged employer.
(3) the degree to which the worker’s opportunity for profit and loss is determined by the alleged employer.
(4) the skill and initiative required in performing the job.
(5) the permanency of the relationship.

 

Difficulty: 1 Easy


 

  1. (p. 769)Under what circumstances can an employer’s non-compliance with OSHA safety regulations not result in a violation?

There are three circumstances under which an employer will not be found to have committed a violation of OSHA safety requirements. First, if the harm is the result of reckless behavior by an employee. For example, if an employer takes precautionary measures but employees ignore the employer’s instructions and this results in their serious injury or death. Second, if it is physically or economically impossible for the employer to comply with a safety requirement. Third, if compliance with a requirement presents a greater harm than not complying, then there will be no OSHA violation imposed on the employer. For example, if a company failed to install a cable railing on the perimeter of the top of a building it was constructing and the employer presented evidence that the risk involved in constructing the railing would subject its employees to a greater risk than not having the railing, there would be no violation.

 

Difficulty: 2 Medium

  1. (p. 774-775)What are the “fiduciary standards” established by ERISA?

Fiduciary must comply with the following fiduciary standards:

Loyalty – Fiduciaries must discharge their duties solely in the interests of plan participants.
Exclusive purpose – Fiduciaries when making decisions must make them with the exclusive purpose of providing benefits under the plan and defraying the reasonable expenses under the plan. Accordingly fiduciaries may not act for their personal benefit or for the benefit of their employer or any other party.
Prudence – A fiduciary must exercise the care and judgment one would expect from a prudent person under similar circumstances.
Diversification – A fiduciary must invest the plan assets in a diversified manner in order to avoid losses. This diversification standard is intended to limit the investment risk of a plan. The prudence standard generally would require that a fiduciary managing the investments of a plan maintain a diversified portfolio. However, the diversification standard in effect creates a presumption that an undiversified portfolio is not prudent.
Compliance with plan documents – A fiduciary is required to administer the plan in a manner that is consistent with its governing documents.

 

Difficulty: 2 Medium


 

  1. (p. 758-761)What are the eligibility requirements for an employee to request leave under the Family Medical Leave Act (FMLA)?

In order to be eligible for leave under the FMLA, an employee must have worked for their employer for at least one year and for at least 1,250 hours during the 12 months preceding the time off. They must give the employer at least 30 days notice when practical. The reason for the leave must be one of the following: (A) to care for a newborn child; (B) to care for a newly adopted or foster child; (C) to care for the spouse, or a son, daughter, or parent, of the employee, if such spouse, son, daughter, or parent has a serious health condition; (D) a serious health condition that makes the employee unable to perform the functions of the position of such employee; and (E) to care for a returning war veteran.

 

Difficulty: 3 Hard

  1. (p. 754-755)List five categories of employees exempt from the overtime provisions of the FLSA.

The overtime provisions of the FLSA do not apply to any of the following: airline and railroad employees; salespeople for boats, aircraft, trucks, trailers and farm implements; buyers of agricultural products; rural elevator workers; live-in domestic workers; federal criminal investigators; firefighters or police officers in very small departments; employees of very small forestry or lumber companies; employees who transport fruits and vegetables; outside salespeople; executive, administrative, and professional employees; employees of certain individually owned and operated small retail or service establishments; employees of certain seasonal amusement or recreational establishments; messengers; full-time students; employees of certain small newspapers, radio or television stations; switchboard operators at small telephone companies; sailors; employees of fishing operations; certain farm workers; casual baby-sitters; houseparents in nonprofit educational institutions; livestock auction workers; taxicab drivers; local delivery drivers and their helpers; newspaper deliverers; motion picture theater employees; homeworkers making wreaths; and individuals employed as companions to the elderly.

 

Difficulty: 1 Easy


 

  1. (p. 764)Calvin was working as a mechanic to repair some processing equipment at the United Megaworks Company. He fell off a ladder, broke his arm and was knocked unconscious. Following medical treatment, he returned to the company which transferred him to an inspector position due to his broken arm. Does United need to make a report to OSHA? Explain.

Yes. Calvin’s injury was work related. Therefore, it must be reported because it involved all of the following reportable categories: (1) medical treatment, (2) loss of consciousness, (3) restriction of work or motion, and (4) transfer to a different position. If the injury had not been from a work related cause or, if the injury did not fit into one of the four categories, then no report need be made.

 

Difficulty: 3 Hard

  1. (p. 774)Briefly describe the difference between the two types of pension or retirement plans.

There are two general forms of pension plans: those with defined contributions and those with defined benefits. The former involves plans in which each employee has her or his own account and the benefits received at retirement are based solely on the amount of contributions and earnings on such contributions. Contributions in a defined contribution plans can come from employees, the employer, or both. Defined benefit plans comprise all other plans but generally refer to plans where the amount the employee receives at retirement is specifically designated at the time the employee enters the plan by a formula, the funding of which is determined actuarially. Contributions to defined benefit plans generally only come from the employer, although some old plans also allow employee contributions. In defined contribution plans, the security comes from knowing the amount of principal that will be invested and having some control over how it is invested, while the security in defined benefit plans comes from knowing exactly how much will be paid in the end. In addition, employers with defined benefit plans must purchase insurance from the Pension Benefit Guarantee Corporation (PBGC) to cover potential losses of benefits if the plan is terminated without sufficient funds to pay all promised benefits.

 

Difficulty: 2 Medium

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