Free PHR Exam Flashcards

Federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards. Requires overtime pay at 1.5x regular rate for non-exempt employees working over 40 hours per week. Critical for classifying employees as exempt or non-exempt.

Federal law providing eligible employees up to 12 weeks of unpaid, job-protected leave per year for family and medical reasons. Applies to employers with 50+ employees. Employees must have worked 1,250 hours in the past 12 months to qualify.

Prohibits discrimination against individuals with disabilities in employment, public services, and accommodations. Requires employers to provide reasonable accommodations unless it causes undue hardship. Applies to employers with 15+ employees.

Prohibits employment discrimination based on race, color, religion, sex, or national origin. Covers hiring, firing, promotion, compensation, and other employment terms. Enforced by the EEOC and applies to employers with 15+ employees.

Protects employees and job applicants age 40 and older from age-based discrimination. Applies to employers with 20+ employees. Prohibits mandatory retirement for most jobs and age-based harassment.

Federal law requiring employers to provide a safe workplace free from recognized hazards. Employers must comply with safety standards, maintain injury records, and allow OSHA inspections. Employees have the right to report unsafe conditions without retaliation.

Federal law setting minimum standards for retirement and health benefit plans in private industry. Requires plan fiduciaries to act in participants' best interests, provide plan information, and establish grievance procedures. Protects employee benefits.

Allows employees and dependents to continue group health insurance coverage after job loss or other qualifying events. Coverage typically lasts 18-36 months. Employees pay full premium plus 2% administrative fee. Applies to employers with 20+ employees.

Protects the privacy and security of individuals' health information. Limits pre-existing condition exclusions in group health plans. Requires employers to safeguard employee medical records and maintain confidentiality of health data.

Requires employers with 100+ employees to provide 60 days advance notice of plant closings or mass layoffs. Protects workers by giving time to seek new employment or retraining. Failure to comply results in back pay and benefits penalties.

Requires equal pay for men and women performing substantially equal work in the same establishment. Jobs must require equal skill, effort, and responsibility under similar working conditions. Part of FLSA and enforced by EEOC.

Prohibits discrimination based on genetic information in employment and health insurance. Employers cannot request, require, or purchase genetic information. Protects family medical history and genetic test results from misuse.

Protects job rights of military service members. Requires employers to reemploy returning service members in the position they would have attained if continuously employed. Prohibits discrimination based on military service or obligation.

Protects employees' rights to organize, form unions, and engage in collective bargaining. Prohibits unfair labor practices by employers and unions. Establishes the National Labor Relations Board (NLRB) to enforce labor law.

Requires employers to verify employment eligibility using Form I-9 for all new hires. Prohibits hiring or continuing to employ unauthorized workers. Also prohibits discrimination based on national origin or citizenship status.

Systematic process of collecting information about a job's duties, responsibilities, skills, outcomes, and work environment. Foundation for job descriptions, recruitment, selection, training, and performance evaluation. Ensures legal compliance and organizational effectiveness.

Process of attracting qualified candidates to apply for job openings. Includes internal methods (promotions, transfers) and external methods (job boards, social media, referrals). Effective recruitment builds a strong talent pipeline and reduces time-to-fill.

Systematic approach to choosing the best candidate from the applicant pool. Includes screening resumes, conducting interviews, testing, checking references, and making job offers. Must be valid, reliable, and legally defensible to avoid discrimination claims.

Process of integrating new employees into the organization. Includes orientation, training, socialization, and providing resources for success. Effective onboarding improves retention, engagement, and time-to-productivity. Typically lasts 90 days to one year.

Ongoing process of setting goals, providing feedback, evaluating performance, and developing employees. Includes performance appraisals, coaching, and development plans. Links individual performance to organizational objectives and supports continuous improvement.

Programs designed to improve employee skills, knowledge, and abilities. Training addresses current job needs; development prepares for future roles. Methods include on-the-job training, e-learning, workshops, and mentoring. Increases productivity and employee engagement.

Strategic process of identifying and developing internal candidates to fill key leadership positions. Ensures business continuity and reduces risk of talent gaps. Includes talent assessment, development programs, and knowledge transfer from senior leaders.

Emotional commitment employees have to their organization and its goals. Engaged employees are more productive, provide better customer service, and stay longer. Measured through surveys and improved through recognition, development, and meaningful work.

Strategic process of analyzing current workforce, forecasting future needs, and developing plans to meet organizational goals. Identifies talent gaps, succession risks, and hiring needs. Aligns human capital with business strategy.

Software system for managing employee data, payroll, benefits, time tracking, and HR processes. Automates administrative tasks, improves data accuracy, and provides analytics for decision-making. Essential for compliance and strategic HR management.

Employee not entitled to overtime pay under FLSA. Must meet salary basis test (minimum $684/week in 2026), salary level test, and duties test (executive, administrative, professional, computer, or outside sales). Paid fixed salary regardless of hours worked.

Employee entitled to overtime pay at 1.5x regular rate for hours over 40 per week under FLSA. Typically paid hourly but can be salaried. Employer must track hours worked and maintain accurate time records.

Situation where little difference exists between pay for experienced employees and new hires, or between supervisors and subordinates. Caused by market rate increases, minimum wage changes, or poor pay structure management. Leads to morale and retention issues.

Metric comparing an employee's actual pay to the midpoint of their salary range. Formula: (Actual Salary ÷ Range Midpoint) × 100. Ratio of 100% means at midpoint; below 100% is below market; above 100% is above market.

Principle of equal pay for equal work regardless of gender, race, or other protected characteristics. Requires regular pay audits to identify and correct unjustified pay disparities. Critical for legal compliance and employee trust.

Employer-sponsored retirement savings plan allowing employees to contribute pre-tax dollars. Employers may match contributions up to a percentage. Contributions grow tax-deferred until withdrawal. Annual contribution limits set by IRS ($23,000 in 2026 for under 50).

Process by which employees earn non-forfeitable rights to employer contributions in retirement plans. Cliff vesting grants full ownership after a set period (e.g., 3 years). Graded vesting provides incremental ownership over time. Employee contributions are always 100% vested.

Tax-advantaged account for medical expenses, paired with high-deductible health plans. Contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free. Funds roll over year to year and are portable.

Pre-tax benefit account for healthcare or dependent care expenses. Employees elect annual contribution amount during open enrollment. Use-it-or-lose-it rule applies (funds forfeit if not used by year-end, with limited carryover or grace period options).

State-mandated insurance providing benefits to employees injured on the job. Covers medical expenses, lost wages, and rehabilitation. Employees give up right to sue employer in exchange for guaranteed benefits. Employers must maintain coverage and report injuries promptly.

State-federal program providing temporary income to workers who lose jobs through no fault of their own. Funded by employer payroll taxes. Eligibility requires sufficient work history and active job search. Benefits typically last 26 weeks.

Comprehensive approach to compensation including base pay, incentives, benefits, work-life balance, recognition, and development opportunities. Strategic total rewards attract, motivate, and retain talent while supporting organizational goals and culture.

Systematic approach to correcting employee behavior through escalating consequences. Typical steps: verbal warning, written warning, suspension, termination. Provides employees opportunity to improve while documenting issues for legal protection. Must be applied consistently.

Employment relationship where either party can terminate at any time for any legal reason without notice. Exceptions include discrimination, retaliation, public policy violations, and implied contracts. Most U.S. employment is at-will unless modified by contract.

Situation where working conditions are so intolerable that a reasonable person would feel compelled to resign. Treated legally as involuntary termination. Examples include harassment, discrimination, or significant pay cuts. Employer may be liable for wrongful termination.

Structured conversation with departing employees to gather feedback about their experience, reasons for leaving, and suggestions for improvement. Provides valuable insights into organizational issues, culture, and retention challenges. Should be conducted by HR, not direct supervisor.

Document outlining company policies, procedures, expectations, and benefits. Communicates workplace rules, code of conduct, and employee rights. Must include at-will disclaimer and be regularly updated. Employees should acknowledge receipt in writing.

Process of addressing and resolving workplace disputes between employees or between employees and management. Methods include mediation, facilitation, and formal grievance procedures. Effective resolution improves morale, productivity, and reduces legal risk.

Formal inquiry into allegations of misconduct, harassment, discrimination, or policy violations. Must be prompt, thorough, impartial, and confidential. Includes interviewing parties, gathering evidence, and documenting findings. Results determine appropriate corrective action.

Organization's ability to keep employees and reduce turnover. Strategies include competitive compensation, career development, recognition, work-life balance, and positive culture. High retention reduces recruitment costs and maintains institutional knowledge.

Percentage of employees who leave during a period. Formula: (Number of Separations ÷ Average Number of Employees) × 100. Voluntary turnover is employee-initiated; involuntary is employer-initiated. High turnover indicates retention problems and increases costs.

Number of days from job requisition approval to candidate acceptance. Measures recruitment efficiency. Long time-to-fill increases costs, impacts productivity, and may indicate process inefficiencies or unrealistic requirements. Industry average is 30-45 days.

Total recruiting costs divided by number of hires. Includes advertising, recruiter salaries, technology, travel, and relocation. Formula: (Internal Costs + External Costs) ÷ Total Hires. Helps evaluate recruitment ROI and budget planning.

Percentage of scheduled workdays missed due to unplanned absences. Formula: (Days Absent ÷ Total Scheduled Days) × 100. High absenteeism indicates morale, health, or engagement issues. Costs include lost productivity and overtime for coverage.

Measures return on investment in employees. Formula: (Revenue - Operating Expenses - Compensation Costs) ÷ Compensation Costs. Demonstrates HR's contribution to organizational profitability. Higher ratios indicate more effective workforce utilization.