- What body grants the PHR?
- 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)?
- 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?
- PHR = operational/tactical, US-law and implementation focus. SPHR = strategic/policy, organization-wide, business-leadership focus. Same body (HRCI).
- PHR vs SHRM-CP?
- 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?
- Business Management; Talent Planning & Acquisition; Learning & Development; Total Rewards; Employee & Labor Relations.
- PHR passing score?
- A scaled score of 500 on a 100–700 scale (a fixed standard, not a raw percentage).
- PHR exam length and time?
- 115 items total (about 90 scored + 25 unscored pretest), with roughly a 2-hour testing time.
- Strategic management vs operational management?
- 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?
- Strengths, Weaknesses, Opportunities, Threats — a framework that scans internal strengths/weaknesses and external opportunities/threats to inform strategy.
- PESTLE analysis?
- Political, Economic, Social, Technological, Legal, Environmental — a scan of the macro-environment outside the organization.
- Mission vs vision statement?
- Mission = why the organization exists today (its purpose). Vision = the aspirational future state it is working toward.
- What is benchmarking?
- 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)?
- An organization managing its impact on society and the environment — operating ethically and contributing beyond legal minimums.
- ADKAR change model?
- Awareness, Desire, Knowledge, Ability, Reinforcement — Prosci's individual-level model for managing change.
- Lewin's change model?
- Unfreeze (prepare for change), Change (implement), Refreeze (lock in the new state).
- What is a balanced scorecard?
- A strategy tool measuring performance across four perspectives: financial, customer, internal process, and learning & growth.
- What are HR metrics vs HR analytics?
- 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?
- Separations ÷ average headcount over a period, expressed as a percentage. High turnover signals retention or culture problems.
- Cost per hire?
- Total recruiting costs (internal + external) ÷ number of hires in a period. A core talent-acquisition efficiency metric.
- Centralized vs decentralized HR?
- 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)?
- 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)?
- 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?
- 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?
- 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?
- 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?
- 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?
- Federal contractors above thresholds (under Executive Order 11246, enforced by the OFCCP) must maintain written affirmative action plans.
- What is the OFCCP?
- Office of Federal Contract Compliance Programs — enforces affirmative-action and nondiscrimination obligations of federal contractors.
- Sarbanes-Oxley (SOX) and HR?
- Corporate-governance law with whistleblower protections; HR supports anti-retaliation, ethics reporting, and document-retention controls.
- What is enterprise risk management (ERM)?
- A structured, organization-wide approach to identifying, assessing, and responding to risks that could affect objectives.
- Independent contractor vs employee — why it matters?
- Misclassification affects taxes, overtime, benefits, and liability. The IRS and DOL use control-based tests (behavioral, financial, relationship) to decide.
- What is a job analysis?
- 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?
- Job description = the duties and responsibilities of the role. Job specification = the qualifications (KSAs) a person needs to perform it.
- What are KSAs?
- Knowledge, Skills, and Abilities required to perform a job — the basis for selection criteria and competency models.
- Workforce planning?
- 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?
- Identifying and developing internal talent to fill key leadership and critical roles, ensuring continuity when incumbents leave.
- Internal vs external recruiting?
- 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?
- 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)?
- 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)?
- 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?
- Criterion-related (predicts performance), content (samples the job), and construct (measures a trait like leadership). Validity supports defensible hiring.
- Structured vs unstructured interview?
- Structured = same job-related questions and scoring for every candidate (more valid and legally defensible). Unstructured = open, inconsistent, higher bias risk.
- Behavioral interview question?
- 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)?
- Giving candidates an honest picture of the job's positives and negatives before hire to improve fit and reduce early turnover.
- Yield ratio?
- 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?
- 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?
- The structured process of integrating new hires — paperwork, orientation, training, and socialization — to speed productivity and improve retention.
- Form I-9 — what is it?
- 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?
- A voluntary (sometimes mandatory) federal system that confirms employment eligibility by comparing I-9 data to government records.
- Immigration Reform and Control Act (IRCA)?
- 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?
- 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?
- 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?
- 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)?
- Transferring all or part of recruiting to an external provider that manages the hiring process on the employer's behalf.
- Diversity recruiting?
- Sourcing and selection practices that widen and balance the candidate pool across demographics to build a more inclusive workforce.
- What is the ADDIE model?
- Instructional-design framework: Analysis, Design, Development, Implementation, Evaluation — a cycle for building effective training.
- First phase of ADDIE?
- Analysis — identify the learning/performance gap, audience, and objectives before any content is designed.
- What is a training needs assessment?
- 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?
- 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?
- Results — the organizational impact of training (e.g., productivity, quality, cost, retention), the hardest level to attribute.
- What is a learning management system (LMS)?
- Software to administer, deliver, document, track, and report on training and e-learning programs.
- Andragogy vs pedagogy?
- Andragogy = adult learning (self-directed, experience-based, problem-centered). Pedagogy = teaching children. PHR training design follows adult-learning principles.
- Knowles' adult-learning assumptions?
- 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?
- 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?
- Training focused on the specific skills/abilities needed to perform a role, with mastery measured against defined competencies.
- On-the-job training (OJT)?
- 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?
- Performance feedback gathered from multiple sources — supervisor, peers, subordinates, and sometimes customers — to give a well-rounded development view.
- Coaching vs mentoring?
- Coaching = short-term, performance- and skill-focused. Mentoring = longer-term relationship focused on career and personal development.
- What is talent management?
- An integrated approach to attracting, developing, engaging, and retaining talent — linking recruiting, development, performance, and succession.
- What is a performance appraisal?
- A formal review of an employee's job performance against expectations, used for feedback, development, pay, and personnel decisions.
- Common appraisal rating errors?
- Halo/horns, recency, central tendency, leniency/strictness, and contrast — biases that distort ratings; training and structure reduce them.
- What is MBO?
- Management by objectives — setting specific, measurable goals jointly with employees and appraising against goal achievement.
- What are SMART goals?
- Specific, Measurable, Achievable, Relevant, Time-bound — a framework for writing clear, trackable objectives.
- What is a skills gap analysis?
- 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?
- Human performance improvement diagnoses whether a gap is caused by skills, motivation, environment, or resources before defaulting to training.
- What is the Fair Labor Standards Act (FLSA)?
- 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)?
- 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?
- Executive, Administrative, Professional, Computer, and Outside Sales — each has a specific duties test plus salary requirements.
- Compensation philosophy: lead, match, lag?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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?
- A benefit plan letting employees choose among pre-tax benefit options (e.g., health premiums, FSAs), reducing taxable income.
- What is ERISA?
- Employee Retirement Income Security Act — sets standards for private pension and welfare benefit plans: fiduciary duties, vesting, funding, and disclosure (SPD).
- What is COBRA?
- 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)?
- 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?
- 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)?
- 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?
- 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?
- 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?
- 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?
- Agreements letting select executives defer income beyond qualified-plan limits — flexible but lacking ERISA's funding protections.
- What is total rewards?
- The full value an employer provides: compensation, benefits, work-life balance, recognition, and development — used to attract, motivate, and retain talent.
- What is the National Labor Relations Act (NLRA / Wagner Act, 1935)?
- 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?
- 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?
- 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)?
- 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)?
- 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?
- 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?
- A state (allowed by Taft-Hartley) that bars requiring union membership or fees as a condition of employment.
- What are Beck rights?
- 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?
- 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?
- 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?
- 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'?
- 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?
- Going through the motions of bargaining with no real intent to reach agreement — an unfair labor practice.
- What is a bargaining impasse?
- 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)?
- 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)?
- Threaten, Interrogate, Promise, Spy — the four things supervisors must NOT do during a union-organizing campaign (they are ULPs).
- What is the Excelsior list?
- 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?
- 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?
- A strike by employees without union authorization, typically violating a no-strike clause in the collective bargaining agreement.
- What is 'salting'?
- 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?
- Mediation = a neutral facilitates a voluntary settlement (non-binding). Arbitration = a neutral hears the dispute and issues a binding decision.
- Interest vs rights arbitration?
- Interest arbitration sets the terms of a new contract. Rights (grievance) arbitration interprets/applies an existing contract.
- What is 'just cause'?
- A fair-discipline standard: the employer must show a legitimate, documented reason and follow due process before discipline or termination.
- What is progressive discipline?
- Escalating corrective steps — verbal warning, written warning, suspension, termination — giving employees notice and a chance to correct.
- What is employment at-will?
- 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?
- When an employer makes conditions so intolerable that a reasonable person resigns — treated legally as if the employee was fired.
- What is the FMLA?
- 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?
- 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?
- Americans with Disabilities Act — bars disability discrimination (15+ employees) and requires reasonable accommodation absent undue hardship.
- What is 'reasonable accommodation'?
- 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)?
- A good-faith dialogue between employer and employee to identify the disability-related limitation and an effective reasonable accommodation.
- What is the ADEA?
- 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)?
- 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)?
- Pregnant Workers Fairness Act — requires covered employers (15+) to provide reasonable accommodations for known limitations from pregnancy or childbirth.
- What is GINA?
- Genetic Information Nondiscrimination Act — prohibits using genetic information in employment decisions and restricts acquiring it.
- What is USERRA?
- Uniformed Services Employment and Reemployment Rights Act — protects the jobs and reemployment rights of employees who serve in the military.
- What is OSHA?
- 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?
- 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?
- Form 300 (log of injuries/illnesses), 300A (annual summary, posted Feb 1–Apr 30), and 301 (incident report).
- What is workers' compensation?
- 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?
- 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)?
- 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?
- Employee assistance program — a confidential benefit offering counseling and referrals for personal, financial, legal, or substance issues.
- What is a collective bargaining agreement (CBA)?
- The written contract between an employer and union covering wages, hours, and working conditions, including a grievance procedure.
- What is a grievance procedure?
- The formal, usually multi-step process in a CBA for resolving employee complaints about contract violations, often ending in binding arbitration.
- Whistleblower protection?
- Laws (e.g., SOX, OSHA, False Claims Act) protecting employees who report illegal conduct from retaliation.
- What is the WARN notice period?
- 60 calendar days' advance written notice to affected workers before a mass layoff or plant closing (employers of 100+).
- Vesting (retirement benefits)?
- 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?
- Requires payment of locally prevailing wages and benefits to laborers on federally funded construction contracts over $2,000.
- What is the Walsh-Healey Act?
- Sets labor standards (minimum wage, overtime, safety) for contractors on federal supply/manufacturing contracts over $10,000.
- What is the Portal-to-Portal Act?
- Clarifies which pre- and post-work activities are compensable 'hours worked' under the FLSA (commuting generally is not).
- What is gross-up pay?
- Increasing a payment so that, after taxes are withheld, the employee receives the intended net amount (common for relocation or bonuses).
- What is broadbanding?
- Collapsing many narrow pay grades into a few wide bands, giving flexibility in pay and de-emphasizing promotions through grades.
- What is pay compression?
- 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 strategic and operational HR?
- 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?
- The collective knowledge, skills, and abilities of an organization's people, viewed as an asset that creates value.
- What is an HRIS?
- Human resource information system — software managing employee data, payroll, benefits, time, and reporting.
- What is the Privacy Act / employee data privacy?
- Employers must safeguard personal employee data and comply with privacy/security rules; mishandling exposes the organization to liability.
- What is span of control?
- 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?
- Centralization keeps decision-making at the top; decentralization pushes it down to lower levels for speed and local fit.
- What is organizational culture?
- 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)?
- Functional groups by specialty; divisional by product/region/customer; matrix has dual reporting (function + project).
- Theory X vs Theory Y (McGregor)?
- Theory X assumes people dislike work and need control; Theory Y assumes people are self-motivated and seek responsibility.
- Maslow's hierarchy of needs?
- Physiological, safety, social, esteem, self-actualization — needs are pursued in order; satisfied needs no longer motivate.
- Herzberg's two-factor theory?
- Hygiene factors (pay, conditions) prevent dissatisfaction; motivators (achievement, recognition, growth) drive satisfaction and motivation.
- What is expectancy theory (Vroom)?
- Motivation = expectancy (effort→performance) × instrumentality (performance→reward) × valence (value of the reward).
- What is employee engagement?
- The emotional commitment and discretionary effort employees give the organization; high engagement links to retention and performance.
- What is a high-potential (HiPo) employee?
- An employee identified as capable of advancing into broader or leadership roles, typically targeted for accelerated development.
- What is a learning organization?
- An organization that continuously acquires and shares knowledge to adapt and improve (Senge's concept).
- What is blended learning?
- Combining instructor-led and self-paced/e-learning methods to leverage the strengths of each.
- What is the 70-20-10 development model?
- Development comes ~70% from on-the-job experience, ~20% from others (coaching/mentoring), and ~10% from formal training.
- What is gamification in training?
- Applying game elements (points, badges, leaderboards) to learning to boost engagement and motivation.
- What is a competency model?
- 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?
- Mapping the sequence of roles and development steps an employee can take to progress within the organization.
- What is the difference between an exemption duties test and salary test?
- 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)?
- The hourly rate used to compute overtime; it includes most compensation (e.g., nondiscretionary bonuses), not just base wage.
- Discretionary vs nondiscretionary bonus?
- 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)?
- Extra pay for working undesirable shifts, hazardous duties, or special conditions, added on top of base pay.
- What is gainsharing?
- A group incentive that shares the financial gains from improved productivity or cost savings with the employees who achieved them.
- What is profit sharing?
- A plan distributing a portion of company profits to employees, tying rewards to overall organizational performance.
- What is an ESOP?
- Employee stock ownership plan — a qualified plan that invests primarily in employer stock, giving employees an ownership stake.
- What is a 401(k) plan?
- 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?
- 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?
- Market pay data collected to benchmark the organization's compensation and ensure external competitiveness.
- What is point-factor job evaluation?
- Assigning points to compensable factors (skill, effort, responsibility, conditions) and summing them to rank jobs by relative worth.
- What is pay transparency?
- Sharing pay ranges or structures openly; a growing number of states require posting salary ranges in job ads.
- What is wage garnishment?
- 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)?
- 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?
- 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 a non-compete agreement?
- A contract restricting an employee from competing after leaving; enforceability varies by state and is increasingly restricted.
- What is a separation/severance agreement?
- A contract giving departing employees pay/benefits in exchange for a release of claims; OWBPA rules apply for workers 40+.
- What is the OWBPA?
- 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)?
- An involuntary, often permanent, elimination of positions; requires careful, non-discriminatory selection criteria and possible WARN notice.
- What is documentation in employee relations?
- Accurate, contemporaneous records of performance and conduct — the foundation for defensible discipline and termination decisions.
- What is a workplace investigation?
- 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?
- Requires certain federal contractors/grantees to maintain a drug-free workplace policy and awareness program.
- What is the WARN 'plant closing' threshold?
- 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?
- 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)?
- 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?
- 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?
- 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?
- 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?
- 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?
- 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 recruitment and selection?
- Recruitment attracts a pool of qualified candidates; selection chooses among them using valid, job-related criteria.
- What is an applicant tracking system (ATS)?
- Software that manages job postings, applications, screening, and the hiring workflow.
- What is the difference between active and passive candidates?
- 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?
- 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?
- 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?
- Contingent workers (temps, contractors, gig) are engaged on a non-permanent basis; regular employees hold ongoing positions.
- What is a pre-employment assessment?
- A validated test (cognitive, personality, skills, work sample) used to predict job performance and improve selection.
- What is adverse impact in selection?
- 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?
- Federal guidance defining how selection procedures must be validated to avoid unlawful discrimination.
- What is the difference between sourcing and recruiting?
- Sourcing finds and engages potential candidates (often passive); recruiting moves identified candidates through to hire.
- What is offer negotiation?
- 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?
- Turnover = all separations (often replaced). Attrition = reductions through natural departures not backfilled. Both reduce headcount.
- Voluntary vs involuntary turnover?
- Voluntary = employee chooses to leave (resignation). Involuntary = employer ends it (termination, layoff). Both feed the turnover rate.
- What is a stay interview?
- 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?
- A structured conversation with a departing employee to capture reasons for leaving and improvement opportunities.
- What is the difference between an employee and a volunteer/intern (FLSA)?
- 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?
- 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?
- 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?
- 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?
- 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?
- Merit pay rewards individual performance; a COLA raises pay across the board to offset inflation, regardless of performance.
- What is a wellness program?
- 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)?
- State programs (e.g., CA, NY) providing partial wage replacement for family/medical leave — distinct from the federal unpaid FMLA.
- What is unemployment insurance?
- 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?
- 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?
- 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.
- What is the role of HR in mergers and acquisitions?
- HR handles due diligence on people costs/liabilities, culture integration, retention, harmonizing pay/benefits, and managing change/communications.
- What is an HR audit?
- 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?
- A policy states what the organization will do and why; a procedure spells out the step-by-step how.
- What is an employee handbook?
- A document communicating policies, expectations, and benefits; it should include an at-will disclaimer and avoid implying a contract.
- What is records retention?
- 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?
- 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?
- 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?
- 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?
- 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)?
- The ability to work effectively across cultures — key for managing global teams, expatriates, and multinational policy.
- What is an expatriate?
- An employee assigned to work in a country other than their home country, requiring special pay, tax, and relocation considerations.
- What is repatriation?
- Reintegrating an expatriate back into the home organization after an international assignment — a frequent retention challenge.
- What is the difference between training and development?
- Training builds current job skills; development prepares employees for future roles and broader growth.
- What is a transfer of training?
- 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?
- A small-scale test of a new training program before full rollout to catch problems and gather feedback.
- What is microlearning?
- Delivering content in short, focused bursts (a few minutes) to fit busy schedules and improve retention.
- What is a learning objective?
- 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?
- 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?
- Calibration aligns managers' ratings for fairness/consistency across teams; an appraisal evaluates one employee's performance.
- What is a performance improvement plan (PIP)?
- A formal, time-bound plan with specific goals to correct underperformance, documenting support and consequences.
- What is the difference between a grievance and a complaint?
- 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?
- 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?
- 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?
- 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?
- A process by which employees vote to remove a union as their bargaining representative, conducted through the NLRB.
- What is a bargaining unit?
- 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?
- 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?
- 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 the difference between disparate impact and the bottom-line defense?
- Disparate impact challenges a specific practice; courts rejected a 'bottom-line' defense — overall balanced results don't excuse a discriminatory selection step.
- What is religious accommodation under Title VII?
- Employers must reasonably accommodate sincerely held religious beliefs/practices unless it causes undue hardship (a substantial cost burden after Groff v. DeJoy).
- What is the difference between a Type I and Type II HR strategy posture?
- 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?
- Ensuring people, communication, and staffing plans keep critical functions running during disruptions (disasters, pandemics).
- What is the difference between organizational development and training?
- OD is a planned, system-wide effort to improve effectiveness through change; training builds specific individual skills.
- What is the difference between an HR generalist and specialist?
- A generalist handles a broad range of HR functions; a specialist focuses deeply on one area (e.g., comp, benefits, labor relations).