CPB Certified Professional Biller Certification Practice Exam

Which federal act enables employees to claim financial responsibility for employers’ malpractices?

1. False Claims Act

2. Federal Employment Liability Act

3. Fair Debt Collection Practices Act

4. Employee Retirement Income Security Act

The correct answer is: Federal Employment Liability Act

The Federal Employment Liability Act (FELA) is designed to hold employers accountable for injuries sustained by employees due to negligence in the workplace, particularly in railroad industries. Under FELA, employees have the right to sue their employers for damages caused by the employer's failure to maintain a safe working environment. This act enables employees to seek compensation for medical expenses, lost wages, and pain and suffering resulting from workplace injuries stemming from the employer's malpractice or negligence. Other acts mentioned in the options focus on different areas of law. The False Claims Act pertains to fraud against government programs, allowing individuals to report and recover losses. The Fair Debt Collection Practices Act regulates the behavior of debt collectors to protect consumers from abusive practices related to debt collection. Lastly, the Employee Retirement Income Security Act (ERISA) governs employee benefits and retirement plans, ensuring that employees receive promised benefits but does not directly address malpractice claims against employers.