Senior Professional in Human Resources (SPHR) Certification 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

Which agency is likely to scrutinize an agreement among banks to limit management salaries to the 25th percentile?

The Equal Employment Opportunity Commission

The Department of Labor

The Department of Justice

The correct choice is the Department of Justice. This agency is responsible for enforcing federal antitrust laws, which are designed to promote competition and prevent monopolistic behaviors. An agreement among banks to limit management salaries to the 25th percentile could be seen as a form of price-fixing or collusion, which directly falls under the scrutiny of antitrust laws. Such arrangements can impede competitive practices by restricting salary levels beyond what the market would naturally dictate, potentially harming employees and efficiency in the banking sector.

The Equal Employment Opportunity Commission is focused on preventing discrimination in the workplace rather than scrutinizing salary agreements between businesses. The Department of Labor oversees wage and hour laws but does not specifically enforce antitrust regulations. Similarly, the National Labor Relations Board deals primarily with the rights of employees in union-related matters and workplace conditions, and it wouldn't be the agency tasked with examining this type of salary agreement. This contextual understanding of each agency's role helps clarify why the Department of Justice is the appropriate choice for this scenario.

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The National Labor Relations Board

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