Click Study Flashcards above to open the flashcard hub — hundreds of PHR cards you can flip, match, type, or quiz yourself on. Every card is drawn from HRCI’s seven current functional areas, so you study exactly what the exam tests.[1] Pair them with our free practice test and study guide.
PHR Flashcard Study Modes
Four modes run on the same 260 cards. Flip is for quiet review, one front at a time. Match is a timed game that pairs terms with their definitions. Type shows the definition and asks you to produce the term, so a card like What is FICA? has to come back from memory. Quiz builds multiple-choice questions from the deck for a closer test feel.

Why Flashcards Work for the PHR
Employee & Labor Relations is the largest group at 71 cards, matching its 20% share of the PHR exam. These cards drill the statutes, agencies, and workplace programs you are expected to name on sight, including prompts like What is GINA?, What is USERRA?, and the card that asks What is the NLRB?. Acronym-heavy fronts such as What is OSHA? and What is the ADA? show up often enough that repetition pays off.
Total Rewards carries 54 cards against a 15% weight. Compensation and benefits vocabulary dominates: retirement and health continuation cards such as What is ERISA? and What is COBRA?, payroll tax terms like What is FICA?, and pay-structure ideas including What is broadbanding? and What is gainsharing?.
Business Management holds 55 cards for a 14% weight and mixes strategy tools with credential and compliance basics. You get analysis frameworks in fronts like SWOT analysis? and PESTLE analysis?, systems and agency terms such as What is an HRIS? and What is the EEOC?, plus comparison cards including PHR vs SPHR?.
Talent Planning & Acquisition adds 39 cards on sourcing, hiring compliance, and metrics. Expect fronts like What is E-Verify?, What is the WARN Act?, and Yield ratio?, alongside process terms such as What is onboarding? and What are KSAs?.
Learning & Development rounds out the deck with 41 cards at a 10% weight. Instructional design and performance vocabulary lead here, with prompts like First phase of ADDIE?, What are SMART goals?, and Andragogy vs pedagogy?, plus distinctions such as Coaching vs mentoring?.
The PHR is dense with discrete facts — employment-law coverage thresholds, leave rules, plan types, and HR definitions across seven areas.[2] Spaced flashcards are the most efficient way to keep it all fresh. Used alongside our practice test and study guide, they turn review time into measurable progress.
PHR Flashcards by Functional Area
The cards are organized by HRCI’s seven current functional areas. Drill the highest-weighted areas first — Employee & Labor Relations, Employee Engagement, and Total Rewards make up over half the exam:[1]
| Functional area / deck | Exam weight |
|---|---|
| Employee & Labor Relations | 20% |
| Employee Engagement | 17% |
| Total Rewards | 15% |
| Business Management | 14% |
| Workforce Planning & Talent Acquisition | 14% |
| Learning & Development | 10% |
| HR Information Management | 10% |
How to Get the Most Out of These Flashcards
- Start heavy. Employee & Labor Relations is 71 cards and 20% of the exam, so clear that domain in Flip mode before you touch anything else.
- Type the acronyms. Cards like What is USERRA? and What is ERISA? are easy to recognize and hard to recall, so force yourself to produce the term.
- Match the look-alikes. The timed pairing game is best for compensation terms and framework cards, where broadbanding, gainsharing, and comp-time blur together under pressure.
- Switch when Quiz stops teaching. Once multiple choice feels automatic across all five domains, move to the practice test for full-length pacing and scenario wording.
- Cycle in slices. Work one domain per session, then run a mixed Quiz across the 260 cards; use the study guide to fill gaps the fronts only hint at.
PHR Flashcards FAQ
Hundreds of free PHR flashcards, organized across all seven current HRCI functional areas — business management, talent acquisition, learning & development, total rewards, engagement, labor relations, and HR information management. They're free with no account required.
Yes. Flashcards use active recall — retrieving an answer from memory — which research shows is one of the most effective study methods, especially in short, spaced sessions. They're ideal for the PHR's heavy load of employment-law facts: coverage thresholds, leave rules, and definitions.
All seven 2024 functional areas: Business Management, Workforce Planning & Talent Acquisition, Learning & Development, Total Rewards, Employee Engagement, Employee & Labor Relations, and HR Information Management — with deep US employment-law coverage (Title VII, FLSA, FMLA, ADA, ADEA, NLRA, OSHA, ERISA, COBRA).
Lead with the heaviest areas — Employee & Labor Relations (20%), Employee Engagement (17%), and Total Rewards (15%). Mix the modes: flip to learn, type to test recall, match for speed, and quiz to check yourself. Drill the law-threshold cards (15/20/50/100 employees) until they're automatic.
Yes — 100% free, all four study modes, no paywall.
Yes. The cards follow HRCI's current 2024 PHR Exam Content Outline, which has seven functional areas (the older five-area structure is obsolete), so they reflect the active exam.
PHR flashcard bank
All 260 cards, by topic
A reference copy of every card in this deck. Each answer stays hidden until you choose to show it. To study with Flip, Match, Type and Quiz modes and track what you have mastered, use Study Flashcards at the top of the page.
Business Management (55)
- What body grants the PHR?
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The HR Certification Institute (HRCI) — the PHR (Professional in Human Resources) is HRCI's operational/technical-level US HR credential.
- What does PHR test (focus)?
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US operational and technical HR — program implementation, employment law, and day-to-day HR practice. (Strategy/policy is the SPHR's focus.)
- PHR vs SPHR?
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PHR = operational/tactical, US-law and implementation focus. SPHR = strategic/policy, organization-wide, business-leadership focus. Same body (HRCI).
- PHR vs SHRM-CP?
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Different bodies: PHR is HRCI (knowledge/law-focused); SHRM-CP is SHRM (behavioral-competency + knowledge). Both are professional-level US HR certs.
- Five PHR functional areas?
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Business Management; Talent Planning & Acquisition; Learning & Development; Total Rewards; Employee & Labor Relations.
- PHR passing score?
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A scaled score of 500 on a 100–700 scale (a fixed standard, not a raw percentage).
- PHR exam length and time?
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115 items total (about 90 scored + 25 unscored pretest), with roughly a 2-hour testing time.
- Strategic management vs operational management?
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Strategic = long-range direction and goals set by leadership. Operational = day-to-day execution that carries out the strategy. The PHR centers on operational HR.
- SWOT analysis?
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Strengths, Weaknesses, Opportunities, Threats — a framework that scans internal strengths/weaknesses and external opportunities/threats to inform strategy.
- PESTLE analysis?
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Political, Economic, Social, Technological, Legal, Environmental — a scan of the macro-environment outside the organization.
- Mission vs vision statement?
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Mission = why the organization exists today (its purpose). Vision = the aspirational future state it is working toward.
- What is benchmarking?
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Comparing the organization's processes and performance metrics against industry bests or best-practice firms to identify improvement opportunities.
- What is corporate social responsibility (CSR)?
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An organization managing its impact on society and the environment — operating ethically and contributing beyond legal minimums.
- ADKAR change model?
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Awareness, Desire, Knowledge, Ability, Reinforcement — Prosci's individual-level model for managing change.
- Lewin's change model?
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Unfreeze (prepare for change), Change (implement), Refreeze (lock in the new state).
- What is a balanced scorecard?
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A strategy tool measuring performance across four perspectives: financial, customer, internal process, and learning & growth.
- What are HR metrics vs HR analytics?
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Metrics = measures of HR activity (e.g., turnover rate, cost per hire). Analytics = using data to find patterns and predict/inform decisions.
- Common HR metric: turnover rate?
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Separations ÷ average headcount over a period, expressed as a percentage. High turnover signals retention or culture problems.
- Cost per hire?
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Total recruiting costs (internal + external) ÷ number of hires in a period. A core talent-acquisition efficiency metric.
- Centralized vs decentralized HR?
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Centralized = one corporate HR function controls policy. Decentralized = HR authority pushed to business units/locations for local responsiveness.
- What are EEFs and OPAs (project context)?
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Enterprise environmental factors (outside conditions: culture, market, law) and organizational process assets (internal plans, policies, templates) that shape work.
- Title VII of the Civil Rights Act (1964)?
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Prohibits employment discrimination based on race, color, religion, sex, and national origin. Applies to employers with 15+ employees; enforced by the EEOC.
- What is the EEOC?
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Equal Employment Opportunity Commission — the federal agency that enforces anti-discrimination laws (Title VII, ADA, ADEA, Equal Pay Act, GINA).
- Disparate treatment vs disparate impact?
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Disparate treatment = intentional discrimination against a protected class. Disparate impact = a neutral policy that disproportionately harms a protected class (no intent required).
- What is the 4/5ths (80%) rule?
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An EEOC adverse-impact guideline: if a protected group's selection rate is below 80% of the highest group's rate, it suggests adverse impact.
- What is a BFOQ?
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Bona fide occupational qualification — a narrow defense allowing otherwise-discriminatory hiring (by sex, religion, national origin, age) when it is reasonably necessary to the job. Never permitted for race/color.
- Affirmative action — who must have a plan?
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Federal contractors above thresholds (under Executive Order 11246, enforced by the OFCCP) must maintain written affirmative action plans.
- What is the OFCCP?
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Office of Federal Contract Compliance Programs — enforces affirmative-action and nondiscrimination obligations of federal contractors.
- Sarbanes-Oxley (SOX) and HR?
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Corporate-governance law with whistleblower protections; HR supports anti-retaliation, ethics reporting, and document-retention controls.
- What is enterprise risk management (ERM)?
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A structured, organization-wide approach to identifying, assessing, and responding to risks that could affect objectives.
- Independent contractor vs employee — why it matters?
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Misclassification affects taxes, overtime, benefits, and liability. The IRS and DOL use control-based tests (behavioral, financial, relationship) to decide.
- What is the difference between strategic and operational HR?
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Strategic HR aligns people practices with long-term business goals; operational HR runs the day-to-day (hiring, pay, compliance). The PHR centers on the operational level.
- What is human capital?
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The collective knowledge, skills, and abilities of an organization's people, viewed as an asset that creates value.
- What is an HRIS?
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Human resource information system — software managing employee data, payroll, benefits, time, and reporting.
- What is the Privacy Act / employee data privacy?
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Employers must safeguard personal employee data and comply with privacy/security rules; mishandling exposes the organization to liability.
- What is span of control?
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The number of subordinates reporting to one manager. Wide spans flatten the structure; narrow spans add layers and closer supervision.
- Centralization vs decentralization of authority?
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Centralization keeps decision-making at the top; decentralization pushes it down to lower levels for speed and local fit.
- What is organizational culture?
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The shared values, beliefs, and norms that shape how people behave in an organization — a key driver of engagement and performance.
- What is an organizational structure (functional vs divisional vs matrix)?
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Functional groups by specialty; divisional by product/region/customer; matrix has dual reporting (function + project).
- What is the role of HR in mergers and acquisitions?
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HR handles due diligence on people costs/liabilities, culture integration, retention, harmonizing pay/benefits, and managing change/communications.
- What is an HR audit?
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A systematic review of HR policies, practices, and compliance to identify gaps and risks and recommend improvements.
- What is the difference between a policy and a procedure?
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A policy states what the organization will do and why; a procedure spells out the step-by-step how.
- What is an employee handbook?
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A document communicating policies, expectations, and benefits; it should include an at-will disclaimer and avoid implying a contract.
- What is records retention?
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Keeping employment records for legally required periods (e.g., I-9, payroll, EEO data) and disposing of them properly afterward.
- What is the difference between line and staff functions?
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Line functions directly produce goods/services and revenue; staff functions (like HR) support and advise the line.
- What is a project vs a program in HR initiatives?
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A project is a temporary effort with a defined end (e.g., implementing an HRIS); a program coordinates related projects for broader benefit.
- What is the difference between efficiency and effectiveness?
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Efficiency = doing things with minimal resources (the right way); effectiveness = achieving the intended result (the right things).
- What is the difference between a stakeholder and a shareholder?
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A stakeholder is anyone affected by the organization (employees, customers, community); a shareholder owns equity. All shareholders are stakeholders.
- What is cross-cultural competence (global HR)?
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The ability to work effectively across cultures — key for managing global teams, expatriates, and multinational policy.
- What is an expatriate?
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An employee assigned to work in a country other than their home country, requiring special pay, tax, and relocation considerations.
- What is repatriation?
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Reintegrating an expatriate back into the home organization after an international assignment — a frequent retention challenge.
- What is the difference between disparate impact and the bottom-line defense?
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Disparate impact challenges a specific practice; courts rejected a 'bottom-line' defense — overall balanced results don't excuse a discriminatory selection step.
- What is the difference between a Type I and Type II HR strategy posture?
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Reactive HR (Type I) responds to problems as they arise; proactive/strategic HR (Type II) anticipates needs and aligns with business plans.
- What is HR's role in business continuity planning?
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Ensuring people, communication, and staffing plans keep critical functions running during disruptions (disasters, pandemics).
- What is the difference between an HR generalist and specialist?
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A generalist handles a broad range of HR functions; a specialist focuses deeply on one area (e.g., comp, benefits, labor relations).
Talent Planning & Acquisition (39)
- What is a job analysis?
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A systematic study of a job's duties, responsibilities, and required knowledge/skills — the foundation for descriptions, selection, pay, and training.
- Job description vs job specification?
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Job description = the duties and responsibilities of the role. Job specification = the qualifications (KSAs) a person needs to perform it.
- What are KSAs?
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Knowledge, Skills, and Abilities required to perform a job — the basis for selection criteria and competency models.
- Workforce planning?
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Forecasting future talent needs and comparing them to current supply (a gap analysis), then planning to close the gap through hiring, development, or restructuring.
- What is succession planning?
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Identifying and developing internal talent to fill key leadership and critical roles, ensuring continuity when incumbents leave.
- Internal vs external recruiting?
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Internal (promotion, transfer, referral) is faster, cheaper, and boosts morale. External brings new skills and diversity but costs more and takes longer.
- What is employer branding?
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The reputation and value proposition an organization projects as a place to work — it attracts and retains talent and shapes candidate perception.
- What is an employee value proposition (EVP)?
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The total package of rewards and experiences an employer offers in exchange for performance — pay, benefits, development, culture, and purpose.
- Reliability vs validity (selection tests)?
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Reliability = consistent results over time. Validity = the test actually measures what it claims and predicts job performance. A test can be reliable but not valid.
- Types of selection-test validity?
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Criterion-related (predicts performance), content (samples the job), and construct (measures a trait like leadership). Validity supports defensible hiring.
- Structured vs unstructured interview?
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Structured = same job-related questions and scoring for every candidate (more valid and legally defensible). Unstructured = open, inconsistent, higher bias risk.
- Behavioral interview question?
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Asks for past examples ('Tell me about a time…') on the premise that past behavior predicts future behavior. Often scored with the STAR method.
- What is realistic job preview (RJP)?
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Giving candidates an honest picture of the job's positives and negatives before hire to improve fit and reduce early turnover.
- Yield ratio?
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The proportion of candidates who move from one recruiting stage to the next (e.g., applications → interviews) — used to plan and evaluate the funnel.
- Time to fill vs time to hire?
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Time to fill = days from job opening to offer accepted. Time to hire = days from a candidate entering the pipeline to accepting. Both measure speed.
- What is onboarding?
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The structured process of integrating new hires — paperwork, orientation, training, and socialization — to speed productivity and improve retention.
- Form I-9 — what is it?
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The federal form verifying a new hire's identity and authorization to work in the US. Must be completed within three business days of the start date.
- What is E-Verify?
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A voluntary (sometimes mandatory) federal system that confirms employment eligibility by comparing I-9 data to government records.
- Immigration Reform and Control Act (IRCA)?
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Requires employers to verify work authorization (Form I-9) and prohibits knowingly hiring unauthorized workers; also bars citizenship/national-origin discrimination in hiring.
- What is the WARN Act?
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Worker Adjustment and Retraining Notification Act — employers of 100+ must give 60 days' notice of a mass layoff or plant closing.
- Negligent hiring vs negligent retention?
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Negligent hiring = failing to screen a dangerous applicant. Negligent retention = keeping an employee after learning they pose a risk. Both create employer liability.
- Background-check law — the FCRA?
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Fair Credit Reporting Act — governs third-party background checks: requires disclosure, written consent, and a pre-adverse-action notice before rejecting on a report.
- What is recruitment process outsourcing (RPO)?
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Transferring all or part of recruiting to an external provider that manages the hiring process on the employer's behalf.
- Diversity recruiting?
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Sourcing and selection practices that widen and balance the candidate pool across demographics to build a more inclusive workforce.
- What is the difference between recruitment and selection?
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Recruitment attracts a pool of qualified candidates; selection chooses among them using valid, job-related criteria.
- What is an applicant tracking system (ATS)?
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Software that manages job postings, applications, screening, and the hiring workflow.
- What is the difference between active and passive candidates?
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Active candidates are job-seeking; passive candidates are employed and not looking but open to the right opportunity — often sourced directly.
- What is a job posting vs job requisition?
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A requisition is the internal request/authorization to fill a role; a posting is the external/internal advertisement of the opening.
- What is candidate experience?
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How an applicant perceives every interaction with the employer during hiring; a poor experience damages the employer brand.
- What is the difference between a contingent and a regular workforce?
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Contingent workers (temps, contractors, gig) are engaged on a non-permanent basis; regular employees hold ongoing positions.
- What is a pre-employment assessment?
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A validated test (cognitive, personality, skills, work sample) used to predict job performance and improve selection.
- What is adverse impact in selection?
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A selection rate for a protected group that is substantially lower than the highest group's — often measured by the 4/5ths rule.
- What is the uniform guidelines on employee selection procedures?
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Federal guidance defining how selection procedures must be validated to avoid unlawful discrimination.
- What is the difference between sourcing and recruiting?
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Sourcing finds and engages potential candidates (often passive); recruiting moves identified candidates through to hire.
- What is offer negotiation?
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Reaching agreement with a candidate on pay, start date, and terms; HR balances candidate expectations with internal equity and budget.
- What is the difference between turnover and attrition?
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Turnover = all separations (often replaced). Attrition = reductions through natural departures not backfilled. Both reduce headcount.
- Voluntary vs involuntary turnover?
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Voluntary = employee chooses to leave (resignation). Involuntary = employer ends it (termination, layoff). Both feed the turnover rate.
- What is a stay interview?
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A proactive conversation with a current employee to learn what keeps them and what might cause them to leave — a retention tool.
- What is an exit interview?
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A structured conversation with a departing employee to capture reasons for leaving and improvement opportunities.
Learning & Development (41)
- What is the ADDIE model?
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Instructional-design framework: Analysis, Design, Development, Implementation, Evaluation — a cycle for building effective training.
- First phase of ADDIE?
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Analysis — identify the learning/performance gap, audience, and objectives before any content is designed.
- What is a training needs assessment?
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Analysis at the organizational, task, and person levels to confirm a real skills gap and that training (not another fix) is the right solution.
- Kirkpatrick's four levels of evaluation?
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1) Reaction, 2) Learning, 3) Behavior, 4) Results — measuring how trainees react, what they learned, on-the-job change, and business impact.
- What does Kirkpatrick Level 4 measure?
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Results — the organizational impact of training (e.g., productivity, quality, cost, retention), the hardest level to attribute.
- What is a learning management system (LMS)?
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Software to administer, deliver, document, track, and report on training and e-learning programs.
- Andragogy vs pedagogy?
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Andragogy = adult learning (self-directed, experience-based, problem-centered). Pedagogy = teaching children. PHR training design follows adult-learning principles.
- Knowles' adult-learning assumptions?
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Adults are self-directed, draw on experience, are ready to learn what's relevant, prefer problem-centered learning, and are internally motivated.
- Bloom's Taxonomy?
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A hierarchy of cognitive learning: Remember, Understand, Apply, Analyze, Evaluate, Create — used to write learning objectives at the right level.
- What is competency-based training?
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Training focused on the specific skills/abilities needed to perform a role, with mastery measured against defined competencies.
- On-the-job training (OJT)?
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Learning by performing the actual job under guidance — practical and low-cost, but quality depends on the trainer and can disrupt production.
- What is 360-degree feedback?
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Performance feedback gathered from multiple sources — supervisor, peers, subordinates, and sometimes customers — to give a well-rounded development view.
- Coaching vs mentoring?
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Coaching = short-term, performance- and skill-focused. Mentoring = longer-term relationship focused on career and personal development.
- What is talent management?
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An integrated approach to attracting, developing, engaging, and retaining talent — linking recruiting, development, performance, and succession.
- What is a performance appraisal?
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A formal review of an employee's job performance against expectations, used for feedback, development, pay, and personnel decisions.
- Common appraisal rating errors?
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Halo/horns, recency, central tendency, leniency/strictness, and contrast — biases that distort ratings; training and structure reduce them.
- What is MBO?
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Management by objectives — setting specific, measurable goals jointly with employees and appraising against goal achievement.
- What are SMART goals?
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Specific, Measurable, Achievable, Relevant, Time-bound — a framework for writing clear, trackable objectives.
- What is a skills gap analysis?
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Comparing current employee skills to those required (now or in the future) to target training and development investments.
- What is an HPI / performance-improvement approach?
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Human performance improvement diagnoses whether a gap is caused by skills, motivation, environment, or resources before defaulting to training.
- Theory X vs Theory Y (McGregor)?
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Theory X assumes people dislike work and need control; Theory Y assumes people are self-motivated and seek responsibility.
- Maslow's hierarchy of needs?
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Physiological, safety, social, esteem, self-actualization — needs are pursued in order; satisfied needs no longer motivate.
- Herzberg's two-factor theory?
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Hygiene factors (pay, conditions) prevent dissatisfaction; motivators (achievement, recognition, growth) drive satisfaction and motivation.
- What is expectancy theory (Vroom)?
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Motivation = expectancy (effort→performance) × instrumentality (performance→reward) × valence (value of the reward).
- What is employee engagement?
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The emotional commitment and discretionary effort employees give the organization; high engagement links to retention and performance.
- What is a high-potential (HiPo) employee?
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An employee identified as capable of advancing into broader or leadership roles, typically targeted for accelerated development.
- What is a learning organization?
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An organization that continuously acquires and shares knowledge to adapt and improve (Senge's concept).
- What is blended learning?
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Combining instructor-led and self-paced/e-learning methods to leverage the strengths of each.
- What is the 70-20-10 development model?
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Development comes ~70% from on-the-job experience, ~20% from others (coaching/mentoring), and ~10% from formal training.
- What is gamification in training?
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Applying game elements (points, badges, leaderboards) to learning to boost engagement and motivation.
- What is a competency model?
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A defined set of behaviors, skills, and knowledge required for success in a role or organization, used across selection, development, and performance.
- What is career pathing?
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Mapping the sequence of roles and development steps an employee can take to progress within the organization.
- What is the difference between training and development?
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Training builds current job skills; development prepares employees for future roles and broader growth.
- What is a transfer of training?
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The degree to which skills learned in training are applied on the job; manager support and practice opportunities increase it.
- What is a pilot training program?
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A small-scale test of a new training program before full rollout to catch problems and gather feedback.
- What is microlearning?
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Delivering content in short, focused bursts (a few minutes) to fit busy schedules and improve retention.
- What is a learning objective?
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A specific, measurable statement of what a learner should be able to do after training, often written with an action verb (Bloom's Taxonomy).
- What is the difference between formative and summative evaluation?
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Formative evaluation improves a program during development; summative evaluation judges its effectiveness after delivery.
- What is the difference between a calibration session and an appraisal?
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Calibration aligns managers' ratings for fairness/consistency across teams; an appraisal evaluates one employee's performance.
- What is a performance improvement plan (PIP)?
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A formal, time-bound plan with specific goals to correct underperformance, documenting support and consequences.
- What is the difference between organizational development and training?
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OD is a planned, system-wide effort to improve effectiveness through change; training builds specific individual skills.
Total Rewards (54)
- What is the Fair Labor Standards Act (FLSA)?
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Sets federal minimum wage, overtime (1.5× over 40 hours/week for non-exempt), child-labor rules, and recordkeeping requirements.
- Exempt vs non-exempt (FLSA)?
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Non-exempt employees must receive overtime; exempt employees do not. Exemption requires meeting a salary basis, salary level, and duties test.
- FLSA white-collar exemptions?
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Executive, Administrative, Professional, Computer, and Outside Sales — each has a specific duties test plus salary requirements.
- Compensation philosophy: lead, match, lag?
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A pay strategy choice: lead the market (above), match (at), or lag (below) competitive pay — driving how the organization attracts and retains talent.
- What is job evaluation?
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A systematic process to determine the relative worth of jobs internally, establishing equitable pay differentials. Methods: ranking, classification, point-factor, factor comparison.
- Internal vs external equity?
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Internal equity = fairness of pay among jobs inside the firm (job evaluation). External equity = competitiveness vs the labor market (salary surveys).
- What is a pay grade and a pay range?
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A pay grade groups jobs of similar value; the pay range is the min-midpoint-max spread within that grade for setting individual pay.
- What is a compa-ratio?
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An employee's pay ÷ the range midpoint. Below 1.0 = paid below midpoint; above 1.0 = above midpoint. Used to monitor pay positioning.
- Red-circle vs green-circle rate?
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Red-circle = pay above the range max (frozen until the range catches up). Green-circle = pay below the range min (raised toward the minimum).
- Defined benefit vs defined contribution plan?
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Defined benefit = employer promises a set pension (e.g., based on salary/years). Defined contribution (e.g., 401(k)) = contributions defined; the payout depends on investment results.
- What is a Section 125 cafeteria plan?
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A benefit plan letting employees choose among pre-tax benefit options (e.g., health premiums, FSAs), reducing taxable income.
- What is ERISA?
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Employee Retirement Income Security Act — sets standards for private pension and welfare benefit plans: fiduciary duties, vesting, funding, and disclosure (SPD).
- What is COBRA?
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Lets employees (20+ employee employers) and dependents continue group health coverage after a qualifying event (e.g., job loss), usually up to 18 months, at their own cost.
- What is HIPAA (benefits)?
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Health Insurance Portability and Accountability Act — protects health-information privacy and limits pre-existing-condition exclusions and coverage discrimination.
- What is the ACA's employer mandate?
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Affordable Care Act — applicable large employers (50+ full-time equivalents) must offer affordable, minimum-value coverage or face penalties.
- What is the Equal Pay Act (1963)?
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Requires equal pay for men and women performing substantially equal work (skill, effort, responsibility, conditions) in the same establishment.
- What is the Lilly Ledbetter Fair Pay Act?
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Resets the statute-of-limitations clock for pay-discrimination claims with each discriminatory paycheck, making it easier to challenge ongoing pay disparities.
- What is a golden parachute?
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A substantial compensation/benefit package paid to an executive if they are terminated, typically after a change in company control (e.g., acquisition).
- Short-term vs long-term incentives?
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Short-term = annual bonuses tied to yearly results. Long-term = equity (stock options, RSUs) and multi-year plans aligning executives with sustained performance.
- What are nonqualified deferred comp plans?
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Agreements letting select executives defer income beyond qualified-plan limits — flexible but lacking ERISA's funding protections.
- What is total rewards?
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The full value an employer provides: compensation, benefits, work-life balance, recognition, and development — used to attract, motivate, and retain talent.
- Vesting (retirement benefits)?
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The point at which an employee owns employer contributions. ERISA caps schedules: e.g., 3-year cliff or 2-to-6-year graded for defined contribution plans.
- What is the Davis-Bacon Act?
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Requires payment of locally prevailing wages and benefits to laborers on federally funded construction contracts over $2,000.
- What is the Walsh-Healey Act?
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Sets labor standards (minimum wage, overtime, safety) for contractors on federal supply/manufacturing contracts over $10,000.
- What is the Portal-to-Portal Act?
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Clarifies which pre- and post-work activities are compensable 'hours worked' under the FLSA (commuting generally is not).
- What is gross-up pay?
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Increasing a payment so that, after taxes are withheld, the employee receives the intended net amount (common for relocation or bonuses).
- What is broadbanding?
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Collapsing many narrow pay grades into a few wide bands, giving flexibility in pay and de-emphasizing promotions through grades.
- What is pay compression?
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When the pay gap between new hires and tenured employees (or between subordinates and managers) shrinks too much, hurting equity and morale.
- What is the difference between an exemption duties test and salary test?
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To be exempt, a job must meet BOTH the duties test (job responsibilities) and the salary basis/level test (paid a fixed salary above the threshold).
- What is the regular rate of pay (overtime)?
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The hourly rate used to compute overtime; it includes most compensation (e.g., nondiscretionary bonuses), not just base wage.
- Discretionary vs nondiscretionary bonus?
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Discretionary bonuses (truly at employer's option) are excluded from the regular rate; nondiscretionary bonuses (promised/expected) must be included.
- What is differential pay (shift/hazard)?
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Extra pay for working undesirable shifts, hazardous duties, or special conditions, added on top of base pay.
- What is gainsharing?
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A group incentive that shares the financial gains from improved productivity or cost savings with the employees who achieved them.
- What is profit sharing?
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A plan distributing a portion of company profits to employees, tying rewards to overall organizational performance.
- What is an ESOP?
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Employee stock ownership plan — a qualified plan that invests primarily in employer stock, giving employees an ownership stake.
- What is a 401(k) plan?
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A defined-contribution retirement plan letting employees defer pre-tax (or Roth) pay, often with an employer match, subject to annual IRS limits.
- What is an FSA vs HSA?
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FSA = use-it-or-lose-it pre-tax account for medical/dependent care. HSA = portable, owned account paired with a high-deductible health plan; funds roll over.
- What is a salary survey?
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Market pay data collected to benchmark the organization's compensation and ensure external competitiveness.
- What is point-factor job evaluation?
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Assigning points to compensable factors (skill, effort, responsibility, conditions) and summing them to rank jobs by relative worth.
- What is pay transparency?
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Sharing pay ranges or structures openly; a growing number of states require posting salary ranges in job ads.
- What is wage garnishment?
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A legal withholding of part of an employee's earnings to pay a debt (e.g., child support, taxes); the CCPA limits how much can be taken.
- What is the Consumer Credit Protection Act (CCPA, garnishment)?
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Caps the amount of disposable earnings that can be garnished and prohibits firing an employee for a single garnishment.
- What is the difference between salary and wages?
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Salary = a fixed amount per pay period regardless of hours (often exempt). Wages = pay based on hours worked (often non-exempt, overtime-eligible).
- What is the difference between an employee and a volunteer/intern (FLSA)?
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The DOL's primary-beneficiary test decides if an intern is an employee owed wages; for-profit interns who are the primary beneficiary are generally employees.
- What is comp-time?
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Paid time off given instead of overtime cash — generally lawful only for public-sector employees under the FLSA.
- What is the white-collar salary threshold?
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The minimum salary an employee must earn to qualify for an FLSA white-collar exemption (set by the DOL and periodically updated — verify the current figure).
- What is total compensation?
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Direct pay (base + variable) plus the value of benefits and perquisites — the full monetary value an employee receives.
- What is a market-based pay structure?
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Setting pay ranges directly from external market survey data rather than primarily from internal job evaluation.
- What is the difference between merit pay and a cost-of-living adjustment?
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Merit pay rewards individual performance; a COLA raises pay across the board to offset inflation, regardless of performance.
- What is a wellness program?
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An employer initiative promoting employee health (screenings, fitness, EAP) to improve well-being and control health costs; ADA/GINA limits apply to incentives.
- What is paid family leave (state)?
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State programs (e.g., CA, NY) providing partial wage replacement for family/medical leave — distinct from the federal unpaid FMLA.
- What is unemployment insurance?
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A joint federal-state program paying temporary benefits to workers who lose jobs through no fault of their own, funded mainly by employer payroll taxes (FUTA/SUTA).
- What is FICA?
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Federal Insurance Contributions Act — payroll tax funding Social Security and Medicare, split between employer and employee.
- What is the difference between a perquisite and a benefit?
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A perquisite (perk) is a special privilege for select employees (e.g., company car); a benefit is part of the standard reward package for many or all.
Employee & Labor Relations (71)
- What is the National Labor Relations Act (NLRA / Wagner Act, 1935)?
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Gives private-sector employees the right to organize, form unions, and bargain collectively; created the NLRB and defined employer unfair labor practices.
- What is the NLRB?
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National Labor Relations Board — the federal agency that conducts union elections and investigates/remedies unfair labor practices under the NLRA.
- What are NLRA Section 7 rights?
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The right of employees to engage in 'protected concerted activity' — organizing, bargaining, and acting together on working conditions (union or not).
- What is the Taft-Hartley Act (1947)?
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Amended the NLRA to add union unfair labor practices, ban the closed shop, permit state right-to-work laws, and allow national-emergency strike injunctions.
- What is the Landrum-Griffin Act (1959)?
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Labor-Management Reporting and Disclosure Act — protects union members' rights and requires financial transparency and democratic procedures within unions.
- Closed shop vs union shop vs agency shop?
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Closed shop (illegal) = must be a union member before hire. Union shop = must join after hire. Agency shop = needn't join but pays a fee for representation.
- What is a right-to-work state?
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A state (allowed by Taft-Hartley) that bars requiring union membership or fees as a condition of employment.
- What are Beck rights?
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Under CWA v. Beck, employees who object can pay only the share of union dues that covers representation (bargaining), not political or other activities.
- What are Weingarten rights?
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A unionized employee's right to request union representation during an investigatory interview that could lead to discipline.
- What is the duty of fair representation?
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A union must represent all bargaining-unit members fairly, in good faith, and without discrimination — even non-members it represents.
- Mandatory vs permissive vs illegal bargaining subjects?
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Mandatory (wages, hours, conditions) must be bargained. Permissive may be bargained but not to impasse. Illegal subjects can't be bargained at all.
- What is 'good faith bargaining'?
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Parties must meet at reasonable times and confer in good faith over mandatory subjects — without a duty to actually agree or make concessions.
- What is surface bargaining?
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Going through the motions of bargaining with no real intent to reach agreement — an unfair labor practice.
- What is a bargaining impasse?
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A genuine deadlock after good-faith bargaining; the employer may then lawfully implement its last best offer on mandatory subjects.
- What is an unfair labor practice (ULP)?
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Conduct by an employer or union that violates the NLRA (e.g., retaliating against organizers, refusing to bargain). Charges are filed with the NLRB.
- What does 'TIPS' stand for (union campaigns)?
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Threaten, Interrogate, Promise, Spy — the four things supervisors must NOT do during a union-organizing campaign (they are ULPs).
- What is the Excelsior list?
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A list of names and addresses of bargaining-unit employees the employer must give the union before an NLRB election.
- What is a secondary boycott?
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Union pressure on a neutral (secondary) employer to force it to stop doing business with the primary employer — generally illegal under Taft-Hartley.
- What is a wildcat strike?
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A strike by employees without union authorization, typically violating a no-strike clause in the collective bargaining agreement.
- What is 'salting'?
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A union tactic of having members apply for jobs at a target employer to organize from within; refusing to hire someone for salting can be a ULP.
- Mediation vs arbitration?
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Mediation = a neutral facilitates a voluntary settlement (non-binding). Arbitration = a neutral hears the dispute and issues a binding decision.
- Interest vs rights arbitration?
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Interest arbitration sets the terms of a new contract. Rights (grievance) arbitration interprets/applies an existing contract.
- What is 'just cause'?
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A fair-discipline standard: the employer must show a legitimate, documented reason and follow due process before discipline or termination.
- What is progressive discipline?
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Escalating corrective steps — verbal warning, written warning, suspension, termination — giving employees notice and a chance to correct.
- What is employment at-will?
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Either party may end employment at any time for any lawful reason. Exceptions: public policy, implied contract, and good-faith/fair-dealing.
- What is constructive discharge?
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When an employer makes conditions so intolerable that a reasonable person resigns — treated legally as if the employee was fired.
- What is the FMLA?
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Family and Medical Leave Act — up to 12 weeks of unpaid, job-protected leave per year for qualifying family/medical reasons.
- FMLA coverage and eligibility thresholds?
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Employers with 50+ employees within 75 miles; employees eligible after 12 months and 1,250 hours worked in the prior year.
- What is the ADA?
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Americans with Disabilities Act — bars disability discrimination (15+ employees) and requires reasonable accommodation absent undue hardship.
- What is 'reasonable accommodation'?
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A modification (e.g., schedule, equipment, reassignment) enabling a qualified person with a disability to perform essential functions, unless it causes undue hardship.
- What is the interactive process (ADA)?
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A good-faith dialogue between employer and employee to identify the disability-related limitation and an effective reasonable accommodation.
- What is the ADEA?
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Age Discrimination in Employment Act — protects workers age 40 and over from age discrimination; applies to employers with 20+ employees.
- What is the Pregnancy Discrimination Act (PDA)?
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Amends Title VII to bar discrimination based on pregnancy, childbirth, or related conditions; pregnant workers must be treated like others similar in ability to work.
- What is the PWFA (2023)?
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Pregnant Workers Fairness Act — requires covered employers (15+) to provide reasonable accommodations for known limitations from pregnancy or childbirth.
- What is GINA?
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Genetic Information Nondiscrimination Act — prohibits using genetic information in employment decisions and restricts acquiring it.
- What is USERRA?
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Uniformed Services Employment and Reemployment Rights Act — protects the jobs and reemployment rights of employees who serve in the military.
- What is OSHA?
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Occupational Safety and Health Act/Administration — requires employers to provide a workplace free from recognized hazards; the General Duty Clause is the catch-all.
- What is the OSHA General Duty Clause?
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Section 5(a)(1) — requires employers to provide a workplace free of recognized hazards likely to cause death or serious harm, even without a specific standard.
- What are OSHA recordkeeping forms?
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Form 300 (log of injuries/illnesses), 300A (annual summary, posted Feb 1–Apr 30), and 301 (incident report).
- What is workers' compensation?
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A no-fault state insurance system paying medical costs and lost wages for work-related injuries/illnesses, in exchange for limiting the employer's tort liability.
- Quid pro quo vs hostile-environment harassment?
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Quid pro quo = job benefits conditioned on submitting to sexual advances. Hostile environment = severe/pervasive conduct that creates an abusive workplace.
- What is retaliation (employment law)?
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Adverse action against an employee for engaging in protected activity (e.g., filing a complaint, whistleblowing). It's the most common EEOC charge.
- What is an EAP?
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Employee assistance program — a confidential benefit offering counseling and referrals for personal, financial, legal, or substance issues.
- What is a collective bargaining agreement (CBA)?
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The written contract between an employer and union covering wages, hours, and working conditions, including a grievance procedure.
- What is a grievance procedure?
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The formal, usually multi-step process in a CBA for resolving employee complaints about contract violations, often ending in binding arbitration.
- Whistleblower protection?
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Laws (e.g., SOX, OSHA, False Claims Act) protecting employees who report illegal conduct from retaliation.
- What is the WARN notice period?
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60 calendar days' advance written notice to affected workers before a mass layoff or plant closing (employers of 100+).
- What is a non-compete agreement?
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A contract restricting an employee from competing after leaving; enforceability varies by state and is increasingly restricted.
- What is a separation/severance agreement?
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A contract giving departing employees pay/benefits in exchange for a release of claims; OWBPA rules apply for workers 40+.
- What is the OWBPA?
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Older Workers Benefit Protection Act — amends the ADEA; sets requirements (e.g., consideration/revocation periods) for valid waivers of age claims.
- What is a reduction in force (RIF)?
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An involuntary, often permanent, elimination of positions; requires careful, non-discriminatory selection criteria and possible WARN notice.
- What is documentation in employee relations?
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Accurate, contemporaneous records of performance and conduct — the foundation for defensible discipline and termination decisions.
- What is a workplace investigation?
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A prompt, thorough, impartial fact-finding into a complaint (e.g., harassment), with documented findings and appropriate action.
- What is the Drug-Free Workplace Act?
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Requires certain federal contractors/grantees to maintain a drug-free workplace policy and awareness program.
- What is the WARN 'plant closing' threshold?
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A shutdown of a single site causing 50+ employment losses in a 30-day period triggers WARN notice for employers of 100+.
- What is a no-strike clause?
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A CBA provision in which the union agrees not to strike during the contract term, usually paired with binding grievance arbitration.
- What is concerted protected activity (non-union)?
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Employees acting together about working conditions (e.g., discussing pay) are protected under NLRA Section 7 even without a union.
- What is the difference between a layoff and a furlough?
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A layoff is a separation (with possible recall); a furlough is a temporary, unpaid leave where employment continues.
- What is the difference between exempt-employee discipline and at-will termination?
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Exempt status concerns overtime pay; at-will concerns the right to end employment. They are separate concepts often confused on the exam.
- What is the EEOC charge process?
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An employee files a charge; the EEOC investigates, may mediate, and either finds cause (and may sue) or issues a right-to-sue letter.
- What is the difference between Title VII and Section 1981?
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Both address race discrimination; Section 1981 (Civil Rights Act of 1866) covers contracts with no employer-size minimum and a longer filing window.
- What is a protected class?
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A group covered by anti-discrimination law (race, color, religion, sex, national origin, age 40+, disability, genetic info, and more under state law).
- What is the difference between a grievance and a complaint?
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A grievance is a formal allegation that a contract/policy was violated, usually with a defined process; a complaint is an informal concern.
- What is the difference between mediation and conciliation?
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Both use a neutral third party to help resolve disputes; conciliation (often EEOC-led) is typically more directive in proposing settlement terms.
- What is the difference between primary and secondary picketing?
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Primary picketing targets the employer in a dispute (lawful); secondary picketing targets a neutral business to pressure the primary (generally unlawful).
- What is the difference between a union steward and a business agent?
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A steward is an employee who represents coworkers on-site; a business agent is a paid union official handling broader union affairs.
- What is decertification?
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A process by which employees vote to remove a union as their bargaining representative, conducted through the NLRB.
- What is a bargaining unit?
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The group of employees with a community of interest that a union represents in collective bargaining, as defined by the NLRB.
- What is the difference between economic and ULP strikers?
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Economic strikers (over wages/conditions) can be permanently replaced; unfair-labor-practice strikers (protesting employer ULPs) must be reinstated.
- What is the difference between a lockout and a strike?
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A strike is a work stoppage initiated by employees; a lockout is the employer barring employees from work to pressure the union in bargaining.
- What is religious accommodation under Title VII?
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Employers must reasonably accommodate sincerely held religious beliefs/practices unless it causes undue hardship (a substantial cost burden after Groff v. DeJoy).
References
- 1.HR Certification Institute. “PHR Exam Content Outline (2024).” hrci.org. ↑
- 2.U.S. Equal Employment Opportunity Commission. “Laws Enforced by the EEOC.” eeoc.gov. ↑
- 3.U.S. Department of Labor. “Fair Labor Standards Act (FLSA) & FMLA.” dol.gov. ↑

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