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18 Cards in this Set

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What are the rules relating to, or the requirements imposed by FICA (Federal Insurance Contributions Act)?
FICA taxes paid by employers are deductible expenses for income tax purposes,
the frequency of FICA deposits depends on the amount of an employer’s payroll,
and employers must furnish employees with written statements of wages paid and FICA contributions withheld each calendar year.
However, contributions may not be made to an employee’s pension plan in lieu of making FICA contributions.
The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are
40 years of age or older from employment discrimination based on age. The ADEA's protections apply to both employees and job applicants. Under the ADEA, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment -- including, but not limited to, hiring, firing, promotion, layoff, compensation, benefits, job assignments, and training. It is also unlawful to retaliate against an individual for opposing employment practices that discriminate based on age or for filing an age discrimination charge, testifying, or participating in any way in an investigation, proceeding, or litigation under the ADEA. The ADEA applies to employers with 20 or more employees, including state and local governments. It also applies to employment agencies and to labor organizations, as well as to the federal government.
Under the Americans with Disabilities Act (ADA), an employer is required to make an accommodation to the known disability of an employee if it would not impose an "undue hardship" on the operation of the employer's business. An employer is required to make an accommodation
to the known disability of a qualified applicant or employee if it would not impose an "undue hardship" on the operation of the employer's business. Undue hardship is defined as an action requiring significant difficulty or expense when considered in light of factors such as an employer's size, financial resources and the nature and structure of its operation.
An employer is NOT required to lower quality or production standards to make an accommodation, nor is an employer obligated to provide personal use items such as glasses or hearing aids.
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in the private sector. ERISA
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry. ERISA requires plans to provide participants with plan information including important information about plan features and funding; provides fiduciary responsibilities for those who manage and control plan assets; and, requires plans to establish a grievance and appeals process for participants to get benefits from their plans. There have been a number of amendments to ERISA, including the Consolidated Omnibus Budget Reconciliation Act (COBRA), which provides some workers and their families with the right to continue their health coverage (at their own expense) for a limited time after certain events, such as the loss of a job.
The Employee Retirement Income Security Act of 1974 (ERISA) covers most private sector, voluntary employee benefit plans, including "pension plans" and "welfare plans.” Which of the following statements concerning ERISA is INCORRECT?


A ERISA sets uniform minimum standards to assure that employee benefit plans are established and maintained in a fair and financially sound manner.
B ERISA is enforced by the Department of Labor's Pension and Welfare Benefits Administration (PWBA) and by the Internal Revenue Service (IRS).
C ERISA imposes minimal obligations on persons who exercise discretionary authority or control over management of a plan or disposition of its assets.
D ERISA requires persons and who control plan funds to manage plans for the exclusive benefit of participants and beneficiaries, and to provide certain documents to assure compliance with the law.
The correct answer was C.

The Employee Retirement Income Security Act of 1974 (ERISA) covers most private sector, voluntary employee benefit plans, including "pension plans" and "welfare plans.” Pension plans provide retirement income. Welfare plans provide health benefits, disability benefits, and death benefits, as well as other benefits and services. ERISA imposes FIDUCIARY obligations on persons who exercise discretionary authority or control over management of a plan. Fiduciaries are required, among other things, to discharge their duties solely in the interest of plan participants and beneficiaries and for the exclusive purpose of providing benefits and defraying reasonable expenses of administering the plan.
Under the Family Medical Leave Act (FLMA), which of the following is an INCORRECT statement?


A A husband and wife who are employed with the same company are only entitled to a combined total of 12 weeks for the birth of a child, when adopting a child, or to care for a parent with a serious health condition.
B An “eligible” employee allowed leave under the FMLA is an employee that has been employed with a company for at least 1,250 hours during a 12 month period prior to the start of the leave.
C An employer may NOT ask the employee to provide a medical certification from a health care provider to substantiates the need to use FMLA.
D An employee can ask to use FMLA to care for a family member, for their own physical/mental health care, and after the birth or adoption of a child.
The correct answer was C.

The Family Medical Leave Act applies, in general, to employers having at least 50 employees. All the above statements regarding the Family Medical Leave Act are correct except the statement contained in answer C. An employer is permitted to ask the employee to provide a medical certification from a health care provider to substantiates the need to use FMLA.
The Occupational Safety Health Act (OSHA) requires employers to:
provide a workplace that is free from recognized hazards; and, to keep records of accidents and to report serious accidents to OSHA. OSHA permits employers to accompany OSHA inspectors during job site inspections, and allows employers to insist upon a search warrant (issued only for probable cause) before OSHA inspectors come onto the business premises. Business premise inspections are, however, typically permitted by employers without a court order.
The four basic programs of the Social Security Act are
unemployment insurance, hospital insurance (Medicare), survivors and disability insurance, and old age benefits.
Micah, an employee of Glidewell, was injured while delivering a sample to a prospective customer of her employer. The injury occurred when Faulk ran a stop sign and collided with Micah’s vehicle. Glidewell’s employees are covered by a standard workers compensation policy.
Since Micah was injured in the scope of her employment with Glidewell, her medical bills and most of her lost wages will be paid by Glidewell’s workers compensation carrier. Since Faulk was at fault, Faulk will be liable for damages sustained by Micah, including lost wages. Micah can also recover for her pain and suffereing from Faulk, but not from the workers compensation carrier. If Micah has auto insurance or health insurance which cover the medical care for her injuries, she will have multiple sorces of possible recovery.
An employee who is injured in connection with his/her employment,
OTHER that going TO AND FROM WORK, is entitled to
prompt compensation for his/her injuries.
Workers compensation benefits will be awarded regardless whether the employee, Cory, was negligent. If a third party was negligent, Cory will have rights to both workers compensation recovery as well as a personal injury claim against the third party, but cannot obtain double recovery. (I.e., the workers compensation carrier may be entitled to reimbursement if Cory prevails against a negligent third party.)
Heaton employed Wire-to-Wire, LLC, to install a new telephone system in its headquarters. Jackson, a long time Wire-to-Wire, LLC, employee was seriously injured when he carelessly connected a phone wire to a live electrical wire. Jackson, who had ignored company and local county safety procedures by failing to conduct a standard electrical check, temporarily lost use of one of his fingers as a result of the accident. Under state Workers Compensation provisions, Jackson


A is precluded from recovering lost wages if he is proven to have been negligent.
B will, in addition to recovering lost wages and medical bills relating to his injury, be awarded a sum of money for his pain and suffering.
C will only recover if the injury to his finger is determined to be permanent.
D can claim lost wages, but this portion of the claim will be limited to two-thirds of his regular wages.
The correct answer was D.

Negligence is not a bar to recovery for an employee injured in the course of employment. Workers Compensation does not compensate for pain and suffering but does pay for both temporary and permanent injuries. The lost wage portion of workers compensation amounts to 2/3 of regular pay, for up to 500 weeks.
Every state has enacted workers compensation laws which provide for prompt compensation for employees who are injured on the job. The regulations vary slightly from state to state, but every state includes provisions which
A hallmark of worker compensation laws is that employees are compensated for their injuries regardless whether the employee was negligent, and even if there has been no negligence on the part of the employer, fellow employees or third parties.

However, recovery of workers compensation benefits does not prevent the injured employee from also recovering from third party wrongdoers (if there are any).
With respect to the imposition of self-employment taxes and social security taxes, what are the rules?
In a C Corporation, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions.
In a partnership, earnings are generally subject to self-employment taxes, except for earnings distributed for limited partnership interests.
In a limited liability company, earnings are generally subject to self-employment taxes, except for earnings from passive investment interests.
In S Corporations, social security taxes are imposed on wages of employee-owners, but no self-employment tax is imposed on distributions (as long as reasonable wages are paid).
Companies that employ workers associated with a union generally operate in one of several ways. In some states, right-to-work laws mandate an open shop. An open shop:
An open shop does not discriminate based on union membership in employing or keeping workers. Where a union is active, the open shop allows workers to be employed who do not contribute to a union or the collective bargaining process. A closed shop employs only people who are already union members. A union shop employs both union and nonunion workers, but sets a time limit within which new employees must join the union. An agency shop requires nonunion workers to pay a fee to the union for its services in negotiating their contract. This is also called the Rand Formula.
Under most workers compensation laws, employees are not covered
while traveling to and from work, are not covered if they were intoxicated, and are not compensated for pain and suffering. Burial expenses are covered for employees who are killed on the job.
Under the provisions of the Comprehensive Environmental Response, Compensation, and Liability Act -- otherwise known as CERCLA or Superfund
the Environmental Protection Agency (EPA) is permitted to
obtain private party cleanup through court orders.

The Comprehensive Environmental Response, Compensation, and Liability Act -- otherwise known as CERCLA or Superfund -- provides a Federal "Superfund" to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment. Through CERCLA, EPA was given power to seek out those parties responsible for any release and assure their cooperation in the cleanup. EPA cleans up orphan sites when potentially responsible parties cannot be identified or located, or when they fail to act. Through various enforcement tools, EPA obtains private party cleanup through orders, consent decrees, and other small party settlements. EPA also recovers costs from financially viable individuals and companies once a response action has been completed.
The Clean Water Act (CWA) establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters. Under the CWA, the Environmental Protection Agency has implemented pollution control programs including all of the following EXCEPT:


A requiring individual homes that use a septic system to obtain a National Pollutant Discharge Elimination System permit.
B setting wastewater standards for industry.
C setting water quality standards for all contaminants in surface waters.
D making it unlawful to discharge any pollutant into navigable waters unless a permit is obtained.
The correct answer was A.

Under the CWA, the Environmental Protection Agency (EPA) has implemented pollution control programs such as setting wastewater standards for industry. It has also set water quality standards for all contaminants in surface waters. The CWA made it unlawful to discharge any pollutant from a point source into navigable waters unless a permit is obtained. EPA's National Pollutant Discharge Elimination System (NPDES) permit program controls discharges. Individual homes that are connected to a municipal system, use a septic system, or do not have a surface discharge do not need an NPDES permit; however, industrial, municipal, and other facilities must obtain permits if their discharges go directly to surface waters.
The Endangered Species Act provides a program for the conservation of
threatened and endangered plants and animals and the habitats in which they are found.
The U.S. Fish and Wildlife Service (FWS) of the Department of the Interior maintains a worldwide list. Species include birds, insects, fish, reptiles, mammals, crustaceans, flowers, grasses, and trees. Anyone can petition FWS to include a species on this list. The Act provides in some instances for the purchase of lands to protect certain habitats.
The Act establishes both civil and criminal penalties for violations.