PHR/SPHR Exam Articles

Article / Updated 07-28-2022

Individuals choose to take the Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) exams and become professionally certified for many reasons, and those reasons come from multiple perspectives. More and more employers are looking for certified professionals to draw higher value from their HR talent. The HR industry is seeking to establish a common language and thus encourages professional certification as the way to link best practices and industry standards for work affecting both national and global commerce. From a personal perspective, individuals seeking certification by taking the PHR or SPHR exam believe that the credentials will validate both competencies and knowledge, allowing for more career opportunities and higher income. Regardless of the filter from which you’re viewing the need for certification, the following sections make the argument that those initials after your name are well worth the time, effort, and investment. Getting certified compared to obtaining a degree In some minds, career growth is a three-step process, staged as a hierarchy: get a college degree, intern at a large firm, and then obtain professional certifications to prove your status as a subject matter expert. The real truth however is that career development is more like a jungle gym than a ladder. You must be willing to go up, down, sideways, and under to create a career of passion and to maximize your natural talent. Countless examples abound of successful visionaries who lacked a traditional degree, and certification is a credible alternative for individuals who didn’t run the college track. More compelling is the fact that as organizations evolve so must their human resource advisers. In order to stay relevant (translation, job security), HR professionals must be valuable advisers to those companies and individuals that they serve. You can’t achieve it if you fail to keep pace with the emerging trends of business in general, which includes the need to develop both competencies and knowledge. The PHR and SPHR exams achieve this by providing credentials that are accredited in accordance with professional exam standards as rigorous as any other credentialed exam. The most impressive argument however is simply that the management of human talent is one of the most important issues facing competition in business today. HR professionals must commit to the process of continuing education and staying in front of trends that impact the lives of American and global workers. Certification is the baseline from which that expertise is built and the anchor of the committed professional. Competing certifications For individuals who dwell in neutral gear for a living, HR practitioners sure are opinionated about the industry’s certifications. In fact, some of you may be familiar with the recent dust up when the Society for Human Resource Management (SHRM) announced competing certifications to the PHR and SPHR exams. Change is not unfamiliar to the experienced HR professional, so avoid getting caught up in the drama playing out over which certification exam to take. There have always been multiple choices in the HR field, from certified safety professionals to certified compensation specialists. Stay the course and commit to excellence. Even better, focus on being the business partners and advocates that the people you serve are counting on. Take a few moments and give some thought to where you are in your career and where you want to go. Try not to think about only the next year or so, but further into your career future. Identify your passion and select the certification that will best build the foundation for a career made up of your own choices, rather than random acts of fate. The PHR or SPHR exam serves as an excellent foundation from which to build your career profile. These exams establish a baseline of knowledge that will serve you well in any human resource position. After you’re certified, you can identify other professional development activities that build toward your passion, such as in safety, training, or business management. Writing PHR and SPHR exam prep content The process of writing exam preparation material is a huge responsibility. Exam takers rely upon the quality of the material presented, giving their trust to book reviews and the word of others in selecting the best preparation resource on the market. For this reason, it’s important for you to understand how the material is developed so that you can make an educated choice about how to allocate your exam prep resources — time and money — for maximum effect. Here is a list of things to look for: Credible authors: Professional item writers exist and are able to effectively take words and translate them into exam items. This simply isn’t enough for the PHR and SPHR exams. Because the exam content is highly based on experience, you need authors who are both practitioners and educators. Understanding how a recruiting source impacts your ability to do your job is much different than writing questions about using newspapers or the Internet to find qualified candidates. All knowledge-based questions are useless, but context matters, which means that you must be asked to combine the knowledge of resources with the application of them to the job. Assessment tests: Two types of assessment tests exist. Review: Review tests sharpen the knife of your baseline knowledge, which means that you should understand the merits of a variety of recruiting sources, including the Internet, trade schools, and newspapers. Exam readiness: This type means that the questions are closely modeled after the retired exam questions made available by HRCI. This distinction is important, because you must utilize a combination of both types in order to have a well-rounded and prepared approach for the exam day experience. Exam bodies of knowledge: When looking at resources, seek to find content that is built to the exam bodies of knowledge (BOK). As with any industry, there are best practices to performing the day-to-day operations of the businesses you represent. There are also respected thought leaders whose ideas and processes are regularly applied across industrial boundaries. Although experienced HR practitioners understand these specifics, they aren’t specifically outlined in the exam objectives. One example is the exam objective that applies to motivating and modifying the behaviors of employees. Experts such as B.F. Skinner, Abraham Maslow, and Douglas McGregor are respected sources for best practices to do so and yet their names aren’t mentioned in the BOK. Don’t be afraid to ask questions. Credible sources are highly interested in getting it right. For you, it’s probably personal. You take pride in your pass rates and want to positively impact your success by providing what you need to pass these exams. Selecting effective resources With thousands of test questions available and only 175 questions on your specific exam, you’re bound to have prepared for information that won’t show up on your test. Conversely, limiting yourself to only one resource puts you at the mercy of a single perspective. You can control information overload just slightly by avoiding redundancy of material and focusing your studying efforts on the exam specific content that is identified in effective preparation resources. For example, if you have a trusted resource for benchmark knowledge, seek out resources that add another dimension to your preparation activities. Here is a helpful online article that discusses the use of smartphone apps for another perspective. Furthermore, you must be prepared to go beyond the text when studying for both exams. Consider Michael Porter. He has written thousands of words about the competitive forces affecting commerce today. Yet most exam prep material will only allocate a section or two to his work. Use your resources as a starting point, a compass if you will that places you on the necessary path to follow to get ready. Finally, don’t shoot the messenger. There are so many moving targets when preparing for these exams, not the least of which is your own work experience and exam choice. What takes some people months to prepare for takes others only weeks. Where you may be strong in risk management, you may have very little exposure to strategic compensation. The goal of most exam prep materials is to give you a go-to resource to both learn exam content and serve as a guide to get you where you want to go. Take ownership of the process and be strategic in your decision-making when it comes to preparing for the exams.

Article / Updated 07-15-2022

The lure of “free” is everywhere — free shipping, free samples, free resources. The PHR and SPHR exams are no exception. Here are a few ways to access free and low-cost assessments to supplement your primary study materials as you prepare for these exams. Using your existing resources The best place to start is to ensure the exam prep materials you select come with free assessment exams. For example, PHR/SPHR Exam For Dummies comes with more than 700 questions for both the PHR and SPHR, including four total exams — two PHR exams and two SPHR exams. No matter what assessment guides you use, make sure that they mirror the content of the exam, which means that the question content should be approximately as follows: Functional Area Number of Questions SPHR Number of Questions PHR Business Management and Strategy 53 19 Workforce Planning & Employment 30 42 Human Resource Development 33 32 Compensation & Benefits 23 33 Employee and Labor Relations 25 35 Risk Management 12 14 Be aware that all assessment tests aren’t created equally. It’s no big deal if you spend time on tests that review key concepts, but make sure that isn’t your only source. As a general rule, chapter review questions review chapter content. They’re usually formatted in equal parts, such as 20 or 25 questions per chapter. The logical conclusion then is that the review questions aren’t exam simulators and may leave you underprepared if you rely solely upon them for practice. Maximizing HRCI resources The Human Resource Certification Institute (HRCI) as the exam administrator is the most reliable place to start when seeking exam simulation. For less than $100, students may purchase two practice exams that use retired exam questions for content, which is a realistic preview of what to expect when facing exam day format. Take one before you begin to study to identify areas of weakness and take the second one about two weeks before your exam to see where you still need support. Don’t underestimate these exams. They are difficult, and being overprepared is better than being underprepared. Check out hrci.org for more information. For less than $30, you may want to consider purchasing HRCI’s Certification Study Guide. You can find sample questions in all functional areas along with answer explanations. It’s a bonus because you’re taking an exam simulation while also learning content all at the same time. Tapping into free sources Other exam preparers offer free or low-cost assessments and worksheets such as upstarthr.com which also offers a bank of test questions. Consider joining HR forums such as at indeed.com to tap into other exam-taker recommendations. goconqr.com and quizlet.com have past student materials such as flashcards that you can study in quiz mode. Tapping into the experiences of others is an excellent way to get out of the textbook and round out your studying efforts.

Cheat Sheet / Updated 03-15-2022

If you decide to take the Professional in Human Resources (PHR) or the Senior Professional in Human Resources (SPHR) exam to earn your HR certification, you have chosen to undergo an important pursuit in your career. These exams test you on what you should know to be a proficient human resources professional. You may begin to study before you're approved to test, so the application process often runs concurrent with your study efforts. Keep this cheat sheet handy for reminders on how to schedule your exam, information about what to do with your score report, and how to begin to recertify your credential.

Article / Updated 03-31-2021

Collective bargaining knowledge is something you need for both the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) exams. You need to have knowledge of labor union implications and common law compliance. For the SPHR, you also need some knowledge of labor union avoidance. Navigating labor union implications Unions tend to target the baseline needs of employees—job security, better pay and benefits, and safer working conditions. In their early years, these elements were subject to employer discretion, which led to all sorts of horror stories for employees. Now that these bits are actually addressed via labor law (such as the FLSA, PPACA, and OSHA), unions have been in a continual decline. Regardless, the labor laws governing the employer and unions must be understood for the exams. Understanding compliance Some days, it feels like all you do in your job is try to figure out how to comply with labor law. Therefore, employee relations includes the ability to navigate an especially complex web of regulations, particularly because it applies to the right of employees to form unions. Passed in 1935 and enforced by the National Labor Relations Board (NLRB), the National Labor Relations Act (NLRA) gave workers the right to organize, including striking against employers who were treating them unfairly. This act sets restrictions on employers during the union-organizing process, attempting to ensure that workers may collect together unfettered to make a decision about whether to unionize or not. For purposes of this exam, you should understand the two types of lawful strikes protected by the NLRA: Economic strike: An economic strike is when employees refuse to work because they want higher wages, shorter working hours, or better working conditions. Economic strikers can’t be discharged, but the employer may replace them. Unfair labor practice (ULP) strike: An unfair labor practice strike occurs when workers are protesting a prohibited employer behavior. Prohibited behavior includes the employer threatening or interfering with a worker’s right to organize, or refusing to bargain in good faith. The employer may not discharge or permanently replace ULP strikers. The NLRB also defines the phrase protected concerted activity, which applies to most American workers whether organized in a union or not. According to the NLRB, concerted activity “. . . is when two or more employees take action for their mutual aid or protection regarding terms and conditions of employment. A single employee may also engage in protected concerted activity if he or she is acting on the authority of other employees, bringing group complaints to the employer’s attention, trying to induce group action, or seeking to prepare for group action.” A few examples of protected concerted activities are: Two or more employees addressing their employer about improving their pay Two or more employees discussing work-related issues beyond pay, such as safety concerns, with each other An employee speaking to an employer on behalf of one or more co-workers about improving workplace conditions This describes the collective behaviors of workers that are protected as part of the union organizing activities, and the protection exists for activity that occurs in the workplace, in the parking lot, outside of the workplace, and online, such as through social media. In 1947, Congress felt compelled to respond to the growing imbalance of power that the unions had gained, so it passed the Labor-Management Relations Act (LMRA). This act focused on defining union unfair labor practices and gave examples of prohibited policies and strikes. These prohibited practices include: Wildcat strikes: When workers walk off the job without union authorization to strike, they’re considered to have gone wild, hence the name wildcat strike. The LMRA prohibits these strikes. Secondary boycotts: A secondary boycott occurs when employees refuse to work at their company because their company buys from another site that is on strike. Jurisdictional strikes: Think of a jurisdictional strike as a territory dispute. These strikes occur when unions are engaged in a turf war over who should be able to represent a group of workers. The Labor-Management Reporting and Disclosure Act (LMRDA) was passed in 1959, and it created a bill of rights for union members. This bill of rights gave equal status to union members in terms of voicing opinions, and the bill restricted the dues increases to those that were passed by a majority vote of members. The LMRDA was necessary because there was evidence of corrupt union practices that didn’t serve the interests of the union members. Context matters on these exams. Think about what was going on in 1935 when the NLRA was passed. The effects of the Great Depression were severe, and worker exploitation was the norm. Employees were looking for security and fair treatment. By the time the LMRA was passed in 1947, the unions had used strikes as threats to shut down businesses and were impacting commerce, so Congress responded with a bill to balance the equation. More than 20 years after unions had been officially recognized, the LMRDA was passed in response to reports of corruption among union leadership. An interesting read on this time of labor organizing is The Hoffa Wars: The Rise and Fall of Jimmy Hoffa by Dan E. Moldea (Open Road Media). Hoffa helped fight for the right to organize as a young man, and as a union leader he engaged in the corrupt practices that led in some part to the protections necessary under the LMRDA. Understanding context should help you solve exam questions that are tied to reasoning. Union organizing Regardless of the overall decline of unions, the essence of union organizing has remained fairly constant. The process, along with the various types of unfair labor practices (ULP) that can occur at each stage, looks like this: The campaign: A union campaign is similar to a political campaign in that the union and the employer are opponents with the winner decided by a majority vote. The union may contact employees at home or hold offsite meetings to woo employees over to its side, which is accomplished when at least 30 percent of the targeted workers sign authorization cards, authorizing a vote. Campaign strategies include signage, mailers, phone calls, town hall meetings, and propaganda — it’s an intense time for all involved. For the exams, note the various unfair labor practices that may occur. An employer may not interfere with, restrain, or coerce employees during a union campaign. Examples of prohibited behavior include promising employees benefits if they remain union free, polling employees to determine their support of the union, and photographing or videotaping employees engaged in protected activities. Representation election: After 30 percent of the targeted workers have signed authorization cards, a representation election is scheduled. A union ballot (voting card for employees to cast their vote) is created showing the candidates (the union and the employer) petitioning to be the employee representative. The option that receives the most votes of the majority that voted (not number of employees) wins. For this reason, many employers subject to a representation election encourages all affected employees in the bargaining unit to vote. ULPs that may occur during the representation election include an employer spying on voting activity, threatening employees who vote one way, or trying to bribe workers to vote in the employer’s favor. Union certification: The NLRB issues official certification after a successful election. The union is now authorized by the employees to make decisions on their behalf through the collective bargaining process. Collective bargaining: Union employees are no longer at-will (see the common law doctrines later in this chapter for more on employment at-will); an employment contract governs them. The union and the employer negotiate the contract, which addresses typical issues such as wages, hours, pensions, seniority, working conditions, and cause for discipline or termination. HR supports this stage by providing the data necessary for contract costing, such as the cost of labor and benefits. The contract also stipulates the length of the contract, grievance procedures (such as arbitration or mediation), and any security provisions desired by the union. A union may file a ULP against the employer during the collective bargaining process if the employer fails to send someone in with the authority to bargain in good faith. Ratification: After an agreement has been reached through collective bargaining, the union representatives take it back to the workers who vote whether to accept the terms. A union may be charged with a ULP if it lacks transparency in presenting the final contract to the union members or changes parts of the agreement after the membership has voted to ratify. A bargaining unit consists of only the employees eligible to be represented by a union. These employees must have shared interests, such as supervision, wages, benefits, physical location, and industry description. The community of interest doctrine establishes the criteria that must be met in order to be considered a bargaining unit. It states that the proposed members of a bargaining unit have enough shared employment interests that an agent can effectively represent the group without conflict. Supervisors can’t be part of a bargaining unit because they’re considered part of the management team rather than part of the labor. For follow-up, study the NLRB’s definition of a supervisor, which is especially important because there have been several attempts by employers to categorize groups of employees as supervisors (such as nurses) in order to impede their ability to organize. After the agreement is in place, a union steward, who is both an employee of the company and a union official, is put into place to handle employee grievances. For larger issues, union members may strike against their employer by refusing to come to work. A special issue for the SPHR: union avoidance Employers want to avoid union organizing when possible. While in some industries an organized workforce is business as usual, there are some steps SPHR leaders can do to reduce this relationship from developing at their place of work. They include Aligning ELR activities with the company mission, vision, and values: Writing polices and activating procedures in alignment with the corporate mission, vision and values (MVV) will help to ensure that employees are on the same page with management. Doing so communicates to an employee that she is part of a bigger picture and encourages a direct line of communication between management and employees. Supporting this link reduces the need for a third-party facilitator. Training the supervisors to be a fair and accurate reflection of the MVV: An old saying goes, “Employees don’t leave companies; they leave bosses.” Twisted up a bit, one could argue that employees don’t invite a union in, but rather bad managers open the door. As a result, training supervisors, coaching leaders, and teaching management to model desired behavior is a frontline defense against union organizing. Evaluating management and program effectiveness: Soliciting employee feedback isn’t enough. HR must take action. And taking action doesn’t mean giving employees everything they ask for, but rather communicating to employees the information used to arrive at a decision. Putting policies to good use: No-solicitation and open-door policies are preventive in nature, but they must be applied judiciously to avoid charges of interference. If you’re taking the SPHR, familiarize yourself with how and why policies can help avoid a positive outcome to a union election. Remember that so much of HR is about relationships, and any efforts made toward fostering a positive culture will help improve employee job satisfaction. This supports union avoidance efforts in that happy employees generally do not seek out union representation. Be sure to seek out additional information about utilizing third-party union busters as part of the resistance efforts should a campaign get going at your facility. Common law doctrines In addition to the labor code, Employee and Labor Relations deals with employees’ rights granted by law, called statutory rights. Examples include the right to be free from harassment in the workplace and the right to privacy. Added to these laws must be a conversation about common law doctrines. A common law doctrine doesn’t require an act of Congress to have the force of law; it’s based on consistent court interpretations. Because of these court interpretations, HR professionals have to stay up-to-date on new lawsuits and court rulings every year, because the status of HR law changes with each ruling. More than likely, the PHR and SPHR exams will ask you questions about the common law doctrine of employment at-will (EAW). EAW is the right for either party in employment to terminate the relationship at any time. Employers don’t have to give a reason, and employees don’t have to give notice. The challenges with true EAW come in the form of three exceptions: Public policy exception: Employees may not be terminated for engaging in a protected activity. Examples include filing a workers’ compensation claim or refusing to alter employee timecards to avoid overtime payments. Good faith and fair dealing: The duty of good faith and fair dealing is simply the expectation that employers should act in a fair manner when making employment decisions. An employer can’t fire an employee under the at-will doctrine to avoid paying a large sales commission or fire an older worker to avoid retirement obligations. Implied contract: If an employee has longevity and good performance reviews, an implied contract may exist, which means that the at-will doctrine is no longer in effect, and the employee may only be terminated for cause. Implied contracts have been created by statements from supervisors to the effect of “as long as you do good work, you’ll have a job here for life.” Formal employment contracts such as ones used for executive leaders and collective bargaining agreements are examples of explicit contracts that negate employment at-will. Example common law question The common law doctrine of at-will employment can be defined as: (A) refusing to hire an individual based on a protected class characteristic (B) holding the employer liable for the actions of its supervisors (C) providing an untrue employment reference (D) being able to terminate an employee at any time, for any reason, unless unlawful The correct answer is (D). The common law doctrine of employment at-will states that the employer or employee may terminate the relationship at any time, for any reason, unless prohibited by law. Choice (A) refers to unlawful discrimination. Choice (B) is the common law doctrine known as respondeat superior, and Choice (C) is defamation of character or slander. In addition to common law doctrines, there is another set of laws not passed by Congress that require employer compliance. They’re called executive orders, signed off by the President of the United States. The exam-related executive orders mainly identify classes of protected groups.

Article / Updated 03-31-2021

When the Core Knowledge and Risk Management functional area was eliminated from the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) exams, health, safety, and security content was included on both PHR and SPHR candidate study plans. Managing enterprise risk You can understand the risks to the business or project through the following filters. It’s helpful to get organized by understanding these big three areas of knowledge: Financial risks: Financial risks include corporate espionage, sabotage, embezzlement, and other types of theft. Minimizing these risks may be best accomplished through the use of technology to limit access to sensitive information. HR can also develop policies and procedures such as procurement policies, credit card and expense policies, and ones that limit loss from these work efforts through checks and balances. Physical risks: The employees’ physical well-being used to be the largest focus of workplace safety efforts, so a lot of information is related to this HR activity. Target your studying on education and prevention efforts such as compliance with safety standards and commonsense work rules. Areas include hazard communication, workplace safety, emergency response, and violence prevention. Information risks: The loss of critical information can be devastating to both the employer and employee. The exam objectives and knowledge components address information risks through the use of data security techniques, such as passwords and monitoring software. Example enterprise risk question The BEST way to protect confidential employee information is to (A) Not collect it in the first place (B) Store it digitally, with no paper trail (C) Limit access to only those who need to refer to the data for business purposes (D) Create a buddy system in which information is accessed only with witnesses present The correct answer is (C). Whether confidential information is stored as paper files or digitally, HR must control access through passwords and keys. Choice (A) is unrealistic because labor laws require that employers collect and store information. Choice (B) doesn’t address protecting the information, just the storage, so it’s an incomplete answer. Choice (D) is unrealistic and unnecessary for the types of information collected and stored by HR. Complying with safety standards in the workplace The Occupational Safety and Health Act (OSHA) and administration are your go-to resources for workplace safety compliance. As with all of the functional areas, each begins with the need for HR professionals to ensure that activities are compliant with the law. The exam objectives take you on a nice little journey to tell you how to do so, as this figure illustrates. All you have to do is fill in the blanks of the requirements. Look at some examples of OSHA standards on how you can accomplish these tasks: Hazard assessment: Although the exam objective calls them a needs assessment, OSHA gets a bit more specific. OSHA requires you to conduct a hazard assessment to determine, for example, what personal protective equipment is required for each job, and OSHA asks you to conduct a job hazard analysis to identify hazards before they cause injury. OSHA publishes the top ten most cited standards on its website, and it’s a good idea to be familiar with these hazards and relevant compliance requirements for the exams. Ones that seem to make the top ten year after year include fall protection, hazard communication, scaffolding, respiratory protection, powered industrial trucks, lockout/tagout, ladders, electrical, wiring methods, machine guarding. Injury and illness prevention programs (IIPP): OSHA identifies the common elements that should be present in all company IIPP. Although some states may have differing standards, all must meet or exceed federal requirements. Therefore, you can confidently assume the baselines will include management leadership, worker participation, hazard identification, hazard prevention and control, education and training, and program evaluation and improvement. Obtain a copy of your employer’s IIPP and compare it to the common elements defined by OSHA. Doing so can give you an experience layer to apply to the exam requirement. Disaster preparedness and emergency response: Called emergency preparedness by OSHA, compliance efforts focus on both disaster response and recovery. In some standards, OSHA requires companies with more than ten employees to have these plans in writing. I provide a more detailed look at this HR activity in the next section. Training of the workforce: Most OSHA compliance efforts require some measure of communicating hazards to employees. Communicating hazards is most often accomplished through employee training. Accurate documentation of training efforts includes a description of the training content, the date(s) of training, who conducted the training, and signatures of the training participants. General duty clause: OSHA states that employers are required to provide their employees with a place of employment that “is free from recognizable hazards that are causing or likely to cause death or serious harm to employees.” This is more commonly referred to as the general duty clause. The courts have interpreted OSHA’s general duty clause to mean that an employer has a legal obligation to provide a workplace free of conditions or activities that either the employer or industry recognizes as hazardous and that cause, or are likely to cause, death or serious physical harm to employees when there is a feasible method to abate the hazard. Example safety standards question How should an employer communicate the contents of an IIPP? (A) Give it to employees at the time of hire. (B) Make it available on a company intranet. (C) Conduct annual training on the various hazards addressed in the IIPP. (D) All of the above The correct answer is (D). There are several acceptable methods for communicating the contents of the employer’s injury and illness prevention program (IIPP), and they include a need to present it at the time of hire, Choice (A); giving employees access if they have questions, as in Choice (B); and conducting compliance training for known hazards that are identified in the document, Choice (C). Creating preparedness plans The Federal Emergency Management Agency is an excellent resource for businesses. The agency’s website has free checklists and disaster preparedness materials that you can use to brush up on your disaster preparedness knowledge for the exams. FEMA also has a five-step process for designing an effective workplace preparedness plan. This plan is an excellent way to approach the process and compare your organization’s current plan. According to the FEMA, these steps include the following: Manage the program. The first step establishes a committed leadership effort out of the gate, which means that HR may need to make the case to executive management that resource allocation will provide a return on investment should a disaster occur. Communicating customer and financial impacts and identifying mitigation efforts such as insurance coverage are both elements to gaining upper management buy-in at this stage. Conduct the needs assessment and business impact analysis. Upon getting the green light, the planning stage formally begins, which involves identifying potential hazards that could affect your business. A commonsense approach may be helpful. For example, earthquakes are likely in California, whereas hurricane preparedness is more likely in the Southern states. Large corporations in multiple locations must create custom programs suited to the unique natural threats in the communities of business. Implement the plan. As with all great plans, proper execution is arguably the most important step. It actually begins by writing the multitude of plans that are identified as necessary in the assessment process. Consider business continuity plans, information technology plans to recover data, and the crisis communication plan so that information flows as freely as possible in the middle of a crisis. An ad hoc committee is one that meets to address a specific need. Identifying participants for an ad hoc crisis management meeting may be a helpful prevention effort. Use job titles rather than employee names for a practical approach to maintenance, but be sure the participants are properly trained in their roles. Test and conduct simulations and drills. Employee training is a significant element of program effectiveness. Rather than holding classroom-based training, hands-on simulations and exercises are more likely to condition employees on how to respond in an emergency. Where possible, bring in outside experts to validate the company’s point of view. These experts are also helpful in spotting program deficiencies before a crisis, enhancing the overall effect of a good response plan. Update, maintain, and improve the program. As an R & D technician once put it to me, his goal was to “break it, then build it better.” This stress-the-system philosophy serves the program improvement step of disaster preparedness well. Running the tests and simulations on a regular basis should identify where the program is deficient. Calendaring this activity on an annual basis allows HR to update the plan based on business changes such as expansions, turnover of key personnel, and training of new hires. Reducing the risk of workplace violence Although the exam content appears to focus on having a plan to respond to workplace violence, OSHA also addresses the issue in its standards. Refer to OSHA’s specific definition of workplace violence. In addition, OSHA has conducted research to identify who is at greatest risk for workplace violence and concluded that positions that involve an exchange of money, working in isolated locations, and working with unstable individuals all have an increased risk for violence on the job. As with most safety standards, the employer’s response should be aimed at reducing the risk of harm to its employees. This effort begins by having a zero-tolerance policy for any intimidating or violent behavior in the workplace. OSHA also offers support in the development of a workplace violence prevention program, which aligns your work efforts with the exam objective. These programs include policy development, employee training, and administrative controls. Another area of concern for employers includes the threat of terrorism. FEMA describes several different types of potential terrorism threats, including biological, cyber, chemical, and nuclear. Visit Ready.gov, an excellent resource to find out more about employer responsibilities. This website is a public service campaign affiliated with FEMA. Ready.gov states that more than 40 percent of businesses affected by a natural or man-made disaster never reopen. From an HR perspective, you should anticipate questions on the exam that relate to preparing your company to respond as quickly and effectively as possible to avoid short-term or long-term business impact. Example preparedness question Disaster preparedness is most effective when built on a foundation of what? (A) Leadership (B) Regulatory compliance (C) Business needs (D) Understanding hazards The correct answer is (A). A foundation of leadership commitment involves providing the resources necessary to prepare. Choices (B), (C), and (D) are all important, but unlikely without the commitment of the executive management team. Completing common reports and tools As with all the other functional areas of human resources, risk management has a fair share of paperwork. These reports and tools are very useful in demonstrating compliance with safety laws, such as the safety audit and safety training matrix. Other reports assist employers in making decisions about risk, such as workers’ compensation reports and data reports from their human resource information system. Read on for more information about these useful options. Safety audits Safety audits differ from hazard assessments in that they’re used to evaluate compliance with safety programs rather than identify hazards. Even though hazard identification may certainly be a byproduct, their primary focus is to evaluate whether the controls established in the safety planning process are firmly rooted in place. Depending on the need, a safety audit can be conducted by visual walkthroughs, data collection, drills, or stressing the system to see what works and what doesn’t. Workers’ compensation reports Keeping track of workers’ compensation claims should be a monthly activity. Doing so requires HR professionals to be familiar with the workers’ compensation laws in their states. The compensation reports help track the accrued versus paid amounts on open claims and allow you to manage the accruals where possible by working with the administrator. Compensation reports are useful to trigger status checks on injured workers still off work. This gives you the opportunity to engage in one of the exam objectives by building return-to-work programs such as modified duty. By doing so, the employee returning to work in a limited capacity is paid through regular payroll rather than through the workers’ compensation insurance, lowering the overall claim costs. Because workers’ compensation insurance is experience rated, this strategy is an effective way to keep insurance costs down long term. Safety training matrix Depending on the industry from which you practice, safety training can be a mixed bag. A training matrix is a spreadsheet that compiles all of the required safety training in one place. The following figure gives you an example of one such matrix that can be modified on several levels to account for the who, what, where, when, and how often aspects of safety training. It can also help employers demonstrate a commitment to compliance. Another option is to utilize your human resource information system (HRIS) to track dates and send reminders to management that safety training is coming due. Managing it from the time of hire and through the tenure of the employees is a streamlined way to keep track and run reports.

Article / Updated 03-31-2021

Human relations and motivation content are included on both the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) exams. The updates in 2018 eliminated the Core Knowledge and Risk Management functional area from the exams, spreading the content throughout the remaining domains. Human relations and motivation are two areas that are necessary to know about for both exams. What is human relations? Human relations is many things, including a science. This means that there is a substantial body of research available on—wait for it—how to be human and treat humans. While it may seem counterintuitive, this data can be useful to outline some of the more important behaviors that affect relationships at work. The key element of human relations hinges on how we can make employees feel like valued, contributing members of our organization, and not just numbers. This approach goes back to the 1920s, when researchers discovered that employees work for reasons beyond economics. Organizational behaviors that supported the other, more “human” needs will help build an engaged workforce. And as modern-day studies show, an engaged workforce leads to positive job attitudes, such as improved job satisfaction, greater worker engagement, and an increased organizational commitment. A basic model for human relations includes three fundamentals that leaders should remember: Attitudes toward people: Our employees share a set of common needs, including being respected and valued for their contributions. Amount and kind of participation: We must consider the “whole” of employees as opposed to only their output. This includes giving them the context behind decision-making and allowing teams to be self-directed where appropriate. Expectations: How information is shared is just as important as what kind of information is shared. These processes establish expectations and can satisfy basic needs for belonging and esteem. Modern-day application includes applying motivational techniques to discover how to change and drive adult behavior. The three factors noted in the model of human relations is an excellent lens through which to measure a company’s diversity and inclusive practices. Motivation on the PHR and SPHR exams There is so much data out there about how to motivate workers. When faced with an underperforming employee, many supervisors take up the cry, “We need to pay them more.” With limited budgets and job worth factors, HR needs to model and communicate ways that supervisors can motivate their team members beyond the paycheck. There are three categories of the theories of motivation: content, process, and reinforcement. Content theories of motivation are founded on the idea that there are ways we can explain and predict employee behaviors. These theories include one of the more famous: Abraham Maslow’s hierarchy of needs. Depicted as a pyramid, Maslow’s theory indicates that until the lower needs are met, the higher needs will never be a motivating factor in an employee’s behavioral choices. The order of needs, starting from the bottom, are physiological, safety, belonging, esteem, and eventually, self-actualization. Many years after Maslow, Frederick Herzberg published an expanded version called the two-factor theory that helped clarify what factors motivate (intrinsic, such as personal pride in performance), and what factors are dis-satisfiers (extrinsic, such as salary). Process theories are grounded by principles that seek to understand the employee needs that drive behavioral choices. These include J. Stacy Adams’ equity theory (employees are motivated when their rewards are equal to their efforts) and Victor Vroom’s expectancy theory (people believe they can do the work, they know they will be rewarded, and the rewards are worth the effort). Reinforcement theories take free will out of the equation, benchmarked by the ideas that we are all conditioned through reward and punishment to act. The behavioral scientist BF Skinner wrote his operant conditioning theory, which noted that all human behaviors are learned through reinforcement—either positive or negative. If you have ever had trouble leaving a slot machine, you have experienced conditioning through rewards that occurred on a schedule of reinforcement. All three theories are true to a certain extent! Regardless of which one you subscribe to or which one feels most natural, you can use the knowledge to begin to change behavior, a major focus of organizational risk management techniques. Job Characteristics Model The way jobs are structured can serve as an extrinsic motivator for individuals. A 2012 study of federal workers validated the Job Characteristics Theory (JCT) built by Richard Hackman and Greg R. Oldham. JCT is a model of how the work is organized and the characteristics of the tasks that will have a direct influence on employee performance. The five characteristics are as follows: Task identity: Employees who know the whole as opposed to only the parts feel a sense of achievement when the task is complete. Task significance: The more important the task or body of work, the greater the impact it has on others and the more it contributes to a sense of purpose. Skill variety: The ability to use multiple skill sets in work contributes to a sense of fulfillment and reduces boredom. Autonomy: The extent to which an employee is allowed to use independent judgment affects her sense of control over her work life. Feedback: Feedback gives employees the information they need to be successful. Most employees crave both positive and constructive feedback. The Association for Talent Development published an article about the 2012 study of federal workers. Search for the title Job Characteristics Key to Motivating Federal Employees to find out more.

Article / Updated 03-31-2021

In 2018, the Core Knowledge and Risk Management functional area was eliminated from both the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) exams, spreading the content throughout the remaining domains. Diversity and inclusion are two of the concepts that are inherently necessary to know about for both exams. A CNN Business report in 2020 written by Johnny C. Taylor of the Society for Human Resource Management clearly articulated the excruciating fact that businesses are failing at their diversity and inclusiveness practices. It’s not that they want to fail or don’t recognize the value in succeeding. It may be that organizations are underestimating the magnitude of what this commitment entails. Successful implementation of these practices requires a significant investment of resources—financial and human. Diversity is represented at two levels: surface and deep. When looking to build an organizational design intervention aimed at increasing diversity, some employers stop at surface level—those observable characteristics such as race or gender. While this is a good first step, focusing only on demographic diversity does not equate to fairness, nor does it harness the benefits that a diverse workforce brings. We must go deeper, and begin to understand the values, attitudes, and beliefs held by individuals and then find ways to include these elements into HR practices, including hiring, as well as in day-to-day operations. For example, who is leading committees? How are problems solved? What voices are being heard? What behaviors get rewarded, and which ones are disciplined? Diversity on a national scale: Did you know that in 2020, eight of the sitting Supreme Court justices held law degrees from either Yale or Harvard? While they're an impressive bunch who clearly were educated by the top scholars of our time, think about how the lack of diversity on the highest court in the land affects justice in America. How do you think laws would change or precedent would be set if our Justices were educated at more diverse schools, such as Temple University’s Beasley School of Law in Philadelphia, or Washburn University School of Law in Kansas? What values might be better represented if the educational backgrounds of the Justices were more diverse? In order to ensure that diversity and inclusion efforts are tied to organizational results, the process of improving diversity and inclusion initiatives should be treated similarly to strategic planning and systems development. Take a page from Uber’s playbook as an example. After the bruising headline-making behavior of co-founder and former CEO Travis Kalanick (including his handling of sexual harassment at work) that resulted in his resignation, the new CEO knew he had an uphill road to redefining the culture and establishing trust. Instead of going on an executive retreat with senior leaders to write a new set of values, he conducted a poll of all stakeholders. The result? Twelve hundred employee submissions that were voted on more than 22,000 times resulted in a final set of eight values, one of which was simply: “We celebrate differences.” Of course, having a diversity component as part of the written values is good, but it’s not enough to truly affect change or repair damage. Leadership teams must take steps to practice what they preach if they truly want to change their culture. This begins with a comparison of current state to desired state, and then the creation of an action plan to bridge the gap. The process will never fully be complete, as HR must lead the way in measuring program effectiveness and recommending real-time changes as needed. Hiring a C-suite leader of diversity and inclusion is another common step employers are taking. Keep in mind, however, that if HR requires 20 years of experience of this candidate, they could be creating a barrier to an effective hire in two ways: First, this role has not existed for that long. Second, protected class groups that can offer the necessary perspective are historically underrepresented at senior levels in all industries. HR can serve their teams well by clearly defining the desired outcome of the role and then recruiting for competencies that go beyond education or experience. Human resources can also help improve outcomes (and manage risk) through the use of HR audits. This involves reviewing hiring data, compensation data, and demographics at all organizational levels, and measuring for disparate impact. If lack of diversity or unlawful behavior comes to light, they must take steps to remedy the situation. Ultimately, being good stewards of the lives (and livelihoods) of the individuals who choose to work with us is a primary purpose of our industry. It begins by building healthy ways to manage all relationships at work—the hierarchical and the network. This happens by taking a good look at some of the more nontransactional aspects of HR. How to calculate disparate impact Metrics continue to be a valuable tool in the day-to-day operations of HR. To measure disparate impact, you must call upon the definitions from Uniform Guidelines on Employee Selection Procedures (UGESP): "Disparate treatment occurs where members of a race, sex, or ethnic group have been denied the same employment, promotion, membership, or other employment opportunities as have been available to other employees or applicants." The UGESP provides the formula for calculating when a disparate, or an adverse, impact has occurred: "A selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80 percent) of the rate for the group with the highest rate. . . ." This means that you can calculate the rate of terminations of protected class groups when compared to nonprotected class groups by using the four-fifths rule. Here is an example: Christmas Trees Inc.’s busy season has ended, and as has been the case in past practices, it must lay off workers. Of its 500 employees, 100 employees older than 40 and 75 employees younger than 40 were selected for termination. Of the 500 total employees, 200 were older than 40, with the remaining 300 younger than 40. To calculate whether disparate impact occurred against older workers, do the following: Calculate the layoff selection rate for the workers older than 40: 100 ÷ 200 = 50% Calculate the layoff selection rate for workers who are younger than 40: 75 ÷ 300 = 25% Divide the selection rates to identify the impact ratio: 25 ÷ 50 = 5% The impact ratio of 0.5 percent is less than 0.8 percent, so there is evidence that disparate impact occurred. Get more information on disparate impact (also referred to as adverse impact).

Article / Updated 03-31-2021

Weighting the Professional in Human Resources (PHR) or the Senior Professional in Human Resources (SPHR) exam content allows the test builders to rank information in the order of importance and level of difficulty. Exam weights are expressed as percentages—the higher the percentage, the more important or difficult the information and the more likely it is that you will see it on your test. For example, the functional area of Leadership and Strategy weighs in at approximately 40 percent of the content of the SPHR exam, making it a top priority for SPHR exam takers. PHR candidates should pay special attention to the category of Employee and Labor Relations, weighing in at 39 percent of that exam. The Human Resource Certification Institute (HRCI) has this to say about exam weighting: "The weighting indicates the percentage each Functional Area contributes to the exam total. If you were to add each Functional Area’s weight, the total would equal 100 percent. This allows you to see how much each Functional Area contributes to the total exam." From this we can infer that certain functional areas and questions will carry more weight in calculating your final score—and that you will probably see much more content related to the depth of these areas on your respective exam. Take a look at the calculations of the following tables to give you a glimpse at what this may look like. PHR Exam Weights Functional Area Exam Weight Number of Questions Business Management 20 percent 35 Talent Planning and Acquisition 16 percent 28 Learning and Development 10 percent 18 Total Rewards 15 percent 27 Employee and Labor Relations 39 percent 68 SPHR Exam Weights Functional Area Exam Weight Number of Questions Leadership and Strategy 40 percent 70 Talent Planning and Acquisition 16 percent 28 Learning and Development 12 percent 21 Total Rewards 12 percent 21 Employee Relations and Engagement 20 percent 35 The two exams may have similar content, but the exam questions will be different. For example, even though both exams may have questions related to recruiting, the PHR exam will deal with operational specificity, whereas the SPHR exam will be more focused on oversight and strategic implications. Here are two sample questions asking a very similar question with a different correct answer to illustrate this difference. Example PHR question A position has just opened for a quality technician in the Research and Development department of the company you work for. The position is part-time, requires some education, and could have a flexible schedule for the right talent. Which of the following recruiting sources would BEST result in qualified applicants? (A) Staffing agencies (B) College or trade school recruiting (C) Online sources, such as recruiting sites and social media (D) Daycares and elementary schools Although all of the answers have potential to result in a qualified individual, the correct answer is Choice (B). College or trade schools is a targeted resource and most likely to have candidates who are interested in part-time work while having some education/skill in the field. Choice (A) is a more expensive option than necessary at this stage of the recruit and for this type of hire. Choice (D) doesn’t target the labor pool adequately. Choice (C) is a broader scope than may be necessary for this job opening. Example SPHR Question ABC Manufacturing has launched a total quality management program in order to be eligible to service international clientele. As a result, the company will need to regularly add quality inspectors to its R & D department over the next three to five years, with newly trained employees being deployed to the national and global clients in need. The position will be part time, require some technical aptitude, and have nontraditional hours. Which of the following recruitment sources would BEST result in a steady flow of qualified candidates? (A) Staffing agencies (B) College or trade school recruiting (C) Online sources, such as recruiting sites and social media (D) Daycares and elementary schools In this example, Choice (A) is best. A global staffing agency with locations near clients can help HR build the partnership necessary for a sustained effort. Choices (B) and (C) are quite useful for short-term recruiting needs but don’t achieve the regional partnership necessary to achieve sustainable results. Choice (D) isn’t targeted at all toward the position. Being armed with information about the exams, such as assessment results and question formatting, can feel a bit overwhelming. The exam content is already cumbersome and tricky, and tracking and managing information about the exams rather than what is on the exams may seem unnecessary. However, doing the legwork before you dive into the exam content is worth it. It can reduce anxiety and ensure that you have adequate time to prepare for both the exam content and the pitfalls to avoid. In this case, context matters.

Article / Updated 03-31-2021

Business Management is the functional area of the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR) exams that focuses specifically on the need for human resources to be strategic business partners. It requires a thorough understanding of the relationships between human resources and the stakeholders. These stakeholders may include Executive management Employees and their families Suppliers and vendors Investors Community For purposes of Business Management, the stakeholders are anyone within or outside of the organization that has an interest in the future of the company. Meeting the needs of these stakeholders requires first a thorough understanding of the environment under which businesses perform. Relationships are how business gets done, simply because people are at the core of work, and how people work together affects outcomes. Internal relationships exist between departments and co-workers as well as between supervisors and employees. Several exam components deal with these relationships, including the following: Managing change: Change is an inevitable part of the day-to-day activities of an HR professional, and it occurs throughout all HR functions. Although driven by strategy, PHR candidates are tasked with implementing the changes throughout the business operations. When studying change management, you can easily identify solutions by looking at the functional areas of HR. For example, paying more for higher-level skill sets is a consideration of total rewards. Another example is shoring up your knowledge about union avoidance strategies when introducing change to a skeptical workforce, a function of employee relations. Motivating workers: Among the core knowledge requirements of both exams is the need to motivate people to do the work that needs to be done. Behavior management has several theories that are grounded in scientific research. B.F. Skinner’s operant conditioning and Abraham Maslow’s hierarchy of needs are two examples of such theories that Chapter 2 covers in greater detail. Management development: Both exams have the objective of helping supervisors and managers model and communicate expected standards of behavior. Some supervisors need help, and it’s up to HR to identify opportunities for management development in this area. External relationships reflect other stakeholders, such as customers, investors, and communities. On the exam, you should anticipate questions related to the employer brand, which is just a fancy name for the company reputation communicated in tandem with the marketing department. Managing these relationships is often classified as the need to be both the employer and employee advocate. This HR task serves to remove obstacles, communicate shared responsibilities, and move the proverbial ball of business forward toward goals. Managing external relationships falls into three organizational behaviors: corporate citizenship, corporate social responsibility, and corporate governance. Corporate citizenship, according to the Human Resources Certification Institute (HRCI), means taking care of employees and the communities where they live. This may be applied by offering volunteer pay, where employees are given a number of hours each month to work in their communities. Corporate social responsibility is defined by the HRCI as helping to improve social and environmental problems, such as building internet infrastructures in parts of the country where access is limited. Corporate governance has a legal tinge to it. It refers to how an organization acts on its responsibilities to stakeholders. Laws beyond what we understand as labor laws exist to direct corporate governance behaviors that are related to anti-trust, monopolies, and whistleblowing.

Article / Updated 03-31-2021

In order to effectively manage risk, HR professionals at all stages of their career must be up to date on the major labor laws that affect each functional area represented on the exam. Hence, make sure that you’re prepared for the Professional in Human Resources (PHR) or the Senior Professional in Human Resources (SPHR) exam, and know these laws. Rote memorization isn’t sufficient, though; you need to understand the implications of application and what to do when major laws (such as state versus federal) are involved. When studying, focus on the following: The number of employees that triggers coverage: Regardless of the size of the employer you work for, a labor law applies. Some of the test questions attempt to distract you with incorrect information based on the number of employees required to trigger protection. Make yourself a table that has a few columns, as shown. Head each of the columns with a number and fill in the blanks with the labor laws that are triggered by that number of employees. Resist the temptation to download a complete table from the Internet. You need to do the legwork here. The practice of doing the research to find the numbers takes you deep into the material, which is a sure way to reinforce the concept for recall on the exam. Who the law is designed to protect: Some of these laws protect the worker, some grant the employer certain rights, and a few others protect a union. Know who the law is protecting so you can interpret exam questions more effectively. Why the law was passed in the first place: Adult learners tend to retain information best when they understand why something is relevant. If this describes you, pay attention to a bit of the history surrounding the law or court case to improve your ability to recall the details on test day. The employment context: Many of these laws apply to more than one legal domain. Be sure and focus your studying on how the law defines the employment context. Test Preparation Sample 1 15 20 50 Workers compensation laws Americans with Disabilities Act Age Discrimination in Employment Act Executive order 11246 Fair Labor Standards Act Title VII of the Civil Rights Act of 1964 Family Medical Leave Act Most of these labor laws in the following table have some form of a frequently asked question (FAQ) or fact sheet document online. Take the time to access these documents (use credible sources such as the Department of Labor or the Equal Employment Opportunity Commission), and then use the documents to create digital flashcards or quizzes on free websites such as GoConqr or Quizlet. You can also use the information in this table to create flashcards. Important Employment Laws and Bureaus Name Year Description Payne vs. The Western & Atlantic Railroad Company 1884 Defined employment at-will. Bureau of Labor Statistics (BLS) 1869 Established to study industrial accidents and maintain accident records. Sherman Antitrust Act 1890 Controlled business monopolies; allowed court injunctions to prevent restraint of trade. Used to restrict unionization efforts. Clayton Act 1914 Limited the use of injunctions to break strikes; exempted unions from the Sherman Antitrust Act. Federal Employees Compensation Act (FECA) 1916 Provided benefits similar to workers’ compensation for federal employees injured on the job. Longshore and Harbor Workers’ Compensation Act 1927 Provided workers’ compensation benefits for maritime workers injured on navigable waters of the United States or on piers, docks, and terminals. Railway Labor Act 1926 Protected unionization rights; allowed for a 90-day cooling-off period to prevent strikes in national emergencies. Covers railroads and unions. Norris-La Guardia Act 1932 Protected the right to organize; outlawed yellow-dog contracts. National Labor Relations Act (NLRA); also referred to as the Wagner Act 1935 Protected the right of workers to organize and bargain collectively; identified unfair labor practices; established the National Labor Relations Board (NLRB) to regulate the relationship of employers and unions. Federal Insurance Contributions Act (FICA)/Social Security Act 1935 Required employers and employees to pay Social Security taxes. Federal Unemployment Tax Act (FUTA) 1936 Required employers to contribute a percentage of payroll to an unemployment insurance fund. Public Contracts Act (PCA); also referred to as the Walsh-Healey Act 1936 Required contractors to pay prevailing wage rates. Fair Labor Standards Act (FLSA) 1938 Defined exempt and nonexempt employees; required and set the minimum wage to be paid to nonexempt workers; required time-and-a-half to be paid for nonexempt overtime hours; limited hours and type of work for children; established record-keeping requirements. Labor-Management Relations Act (LMRA); also referred to as the Taft-Hartley Act 1947 Prohibited closed shops; restricted union shops; allowed states to pass “right to work” laws; prohibited jurisdictional strikes and secondary boycotts; allowed employers to permanently replace economic strikers; established the Federal Mediation and Conciliation Service; allowed an 80-day cooling-off period for national emergency strikes. Portal-to-Portal Act 1947 Clarified the definition of “hours worked” and “compensable time," such as time spent putting on PPE, for the FLSA. Patent Act 1952 Established the U.S. Patent and Trademark Office to protect inventions and the rights of the inventors. Labor-Management Reporting and Disclosure Act (LMRDA); also referred to as the Landrum-Griffin Act 1959 Controlled internal union operations; provided a bill of rights for union members; required a majority vote of members to increase dues; allowed members to sue the union; set term limits for union leaders. Equal Pay Act 1963 Required that women performing substantially similar or identical work to men be paid the same wage or salary rate. Title VII of the Civil Rights Act 1964 Established the Equal Employment Opportunity Commission (EEOC); prohibited employment discrimination on the basis of race, color, religion, national origin, or sex. Executive Order (EO) 11246 1965 Prohibited employment discrimination on the basis of race, creed, color, or national origin; required affirmative steps for all terms and conditions of employment; required a written Affirmative Action Plan (AAP) for contractors with 50 employees. Immigration and Nationality Act (INA) 1965 Eliminated national origin, race, and ancestry as bars to immigration; set immigration goals for reunifying families and preference for specialized skills. Service Contract Act 1965 Required government contractors to pay prevailing wages and benefits. Age Discrimination in Employment Act (ADEA) 1967 Prohibited discrimination against persons 40 years of age or older; established conditions for bona fide occupational qualification (BFOQ) exceptions. EO 11375 1967 Added sex to the protected classes in EO 11246. Consumer Credit Protection Act (CCPA) 1968 Limited garnishment amounts on employee wages; prohibited discharge of employees for a single garnishment order. EO 11478 1969 Included disabled individuals and those 40 years of age or older in the protected classes established by EO 11246. Black Lung Benefits Act (BLBA) 1969 Provided benefits for coal miners suffering from pneumoconiosis due to mine work. Occupational Safety and Health Act (OSH Act) 1970 Required employers to provide a safe workplace and comply with safety and health standards; established the Occupational Safety and Health Administration (OSHA) to enforce safety regulations; established the National Institute for Occupational Safety and Health (NIOSH) to research, evaluate, and recommend hazard reduction measures. Fair Credit Reporting Act (FCRA) 1970 Required employers to notify candidates that credit reports may be obtained; required written authorization by the candidate and that the employer provides a copy of the report to the candidate before taking an adverse action. Griggs vs. Duke Power 1971 USSC: Required employers to show that job requirements are related to the job; established that lack of intention to discriminate isn’t a defense against claims of discrimination. Equal Employment Opportunity Act (EEOA) 1972 Established that complainants have the burden of proof for disparate impact; provided litigation authority for the EEOC; extended the time to file complaints. Rehabilitation Act (RA) 1973 Expanded opportunities for individuals with physical or mental disabilities; provided remedies for victims of discrimination. Privacy Act 1974 Prohibited federal agencies from sharing information collected about individuals. Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) 1974 Provided equal opportunity and affirmative action for Vietnam veterans. Employee Retirement Income Security Act (ERISA) 1974 Established requirements for pension, retirement, and welfare benefit plans including medical, hospital, accidental death and dismemberment (AD&D), and unemployment benefits. Albemarle Paper vs. Moody 1975 USSC: Required that employment tests be validated; subjective supervisor rankings aren’t sufficient validation; criteria must be tied to job requirements. NLRB vs. J. Weingarten, Inc. 1975 USSC: Established that union employees have the right to request union representation during any investigatory interview that could result in disciplinary action. Washington vs. Davis 1976 USSC: Established that employment-selection tools that adversely impact protected classes are lawful if they have been validated to show future success on the job. Copyright Act 1976 Defined fair use of copyrighted work; set the term of copyright effectiveness. Mine Safety and Health Act (MSHA) 1977 Established mandatory mine safety and health standards and created the Mine Safety and Health Administration (MSHA). Automobile Workers vs. Johnson Controls, Inc. 1977 USSC: “Decisions about the welfare of the next generation must be left to the parents who conceive, bear, support, and raise them, rather than to the employers who hire those parents.” Uniform Guidelines on Employee Selection Procedures (UGESP) 1978 Established guidelines to ensure that selection procedures are both job related and valid predictors of job success. Pregnancy Discrimination Act (PDA) 1978 Required that pregnancy be treated the same as any other short-term disability. Civil Service Reform Act 1978 Created the Senior Executive Service, the Merit Systems Protection Board (MSPB), the Office of Personnel Management (OPM), and the Federal Labor Relations Authority (FLRA). Revenue Act 1978 Established Section 125 and 401(k) plans for employees. EO 12138 1979 Created the National Women’s Business Enterprise Policy; required affirmative steps to promote and support women’s business enterprises. Guidelines on Sexual Harassment 1980 Assisted employers to develop antiharassment policies, establish complaint procedures, and investigate complaints promptly and impartially. Retirement Equity Act 1984 Lowered the age limits on participation and vesting in pension benefits; required written spousal consent to not provide survivor benefits; restricted conditions placed on survivor benefits. Consolidated Omnibus Budget Reconciliation Act (COBRA) 1986 Consolidated Omnibus Provided continuation of group health coverage upon a qualifying event. Tax Reform Act 1986 Reduced income tax rates and brackets. Immigration Reform and Control Act (IRCA) 1986 Prohibited employment of individuals who aren’t legally authorized to work in the United States; required I-9s for all employees. Drug-Free Workplace Act 1988 Required federal contractors to develop and implement drug-free workplace policies. Employee Polygraph Protection Act (EPPA) 1988 Prohibited the use of lie-detector tests except under limited circumstances. Worker Adjustment and Retraining Notification Act (WARN Act) 1988 Required 60 days’ notice for mass layoffs or plant closings; defined mass layoffs and plant closings; identified exceptions to the requirements. Americans with Disabilities Act (ADA) 1990 Required reasonable accommodation for qualified individuals with disabilities. Older Worker Benefit Protection Act (OWBPA) 1990 Amended ADEA to prevent discrimination in benefits for workers 40 years of age and older; added requirements for waivers. Immigration Act 1990 Required the prevailing wage for holders of H1(b) visas; set H1(b) quotas. Civil Rights Act (CRA) 1991 Allowed compensatory and punitive damages; provided for jury trials; established defenses to disparate impact claims. Glass Ceiling Act 1991 Established a commission to determine whether a glass ceiling exists and identify barriers for women and minorities. As a result, the Office of Federal Contract Compliance Programs (OFCCP) conducts audits of the representation of women and minorities at all corporate levels. Unemployment Compensation Amendments 1992 Reduced rollover rules for lump-sum distributions of qualified retirement plans; required 20 percent withholding for some distributions. Energy Policy Act of 1992 1992 Allowed employers to provide a nontaxable fringe benefit to employees engaged in qualified commuter activities such as bicycling and mass transit. Family and Medical Leave Act (FMLA) 1993 Required qualifying employers to provide 12 weeks of unpaid leave to eligible employees for the birth or adoption of a child or to provide care for defined relatives with serious health conditions or to employees unable to perform job duties due to a serious health condition. Taxman vs. Board of Education of Piscataway 1993 Found that in the absence of past discrimination or underrepresentation of protected classes, preference may not be given to protected classes in making layoff decisions. Harris vs. Forklift Systems 1993 USSC: Defined an actionable hostile work environment as that which falls between merely offensive and that which results in tangible psychological injury. Omnibus Budget Reconciliation Act (OBRA) 1993 Revised rules for employee benefits; set the maximum deduction for executive pay at $1 million; mandated some benefits for medical plans. Uniformed Services Employment and Reemployment Rights Act (USERRA) 1994 Protected the reemployment and benefit rights of reservists called to active duty. Congressional Accountability Act (CAA) 1995 Required all federal employment legislation passed by Congress to apply to congressional employees. Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) 1996 Reduced the number and types of acceptable documents used to prove identity and employment eligibility, and launched the eVerify pilot programs. Mental Health Parity Act (MHPA) 1996 Required insurers to provide the same limits for mental health benefits that are provided for other types of health benefits. Health Insurance Portability and Accountability Act (HIPAA) 1996 Prohibited discrimination based on health status; limited health insurance restrictions for preexisting conditions; required a Certificate of Group Health Plan Coverage upon plan termination. Personal Responsibility and Work Opportunity Reconciliation Act 1996 Required employers to provide information about all new or rehired employees to state agencies to enforce child-support orders. Small Business Job Protection Act 1996 Redefined highly compensated individuals; detailed minimum participation requirements; simplified 401(k) tests; corrected qualified plan and disclosure requirements. Small Business Regulatory Enforcement Fairness Act (SBREFA) 1996 Provided that a Small Business Administration (SBA) ombudsman act as an advocate for small business owners in the regulatory process. EO 13087 1998 Expanded coverage of protected classes in EO 11246 to include sexual orientation. Burlington Industries vs. Ellerth 1998 USSC: Established that employers have vicarious liability for employees victimized by supervisors with immediate or higher authority over them who create an actionable hostile work environment. Faragher vs. City of Boca Raton 1998 USSC: Established that employers are responsible for employee actions and have a responsibility to control them. Oncale vs. Sundowner Offshore Services, Inc. 1998 USSC: Extended the definition of sexual harassment to include same-sex harassment. NLRB: Epilepsy Foundation of Northeast Ohio 2000 Extended Weingarten rights to nonunion employees by allowing employees to request a co-worker be present during an investigatory interview that could result in disciplinary action. NLRB: M. B. Sturgis, Inc. 2000 Established that temporary employees may be included in the client company’s bargaining unit and that consent of the employer and temp agency aren’t required to bargain jointly. Needlestick Safety and Prevention Act 2000 Mandated recordkeeping for all needlestick and sharps injuries; required employee involvement in developing safer devices. Energy Employees Occupational Illness Compensation Program Act (EEOICPA) 2000 Provided compensation for employees and contractors subjected to excessive radiation during production and testing of nuclear weapons. EO 13152 2000 Added “status as a parent” to protected classes in EO 11246. Circuit City Stores vs. Adams 2001 USSC: Arbitration clauses in employment agreements are enforceable for employers engaged in interstate commerce except for transportation workers. EO 13201 2001 Applies to federal contractors and subcontractors. Sarbanes-Oxley Act (SOX) 2002 Mandated improved quality and transparency in financial reporting and increased corporate responsibility and the usefulness of corporate financial disclosure; required companies to establish and maintain an adequate internal control structure and procedures for financial reporting. Pharakhone vs. Nissan North America, Inc. 2003 Established that employees who violate company rules while on FMLA leave may be terminated. NLRB: IBM Corp. 2004 NLRB reversed its 2000 decision in Epilepsy, withdrawing Weingarten rights from nonunion employees. Jespersen vs. Harrah’s Operating Co. 2004 Established that a dress code requiring women to wear makeup doesn’t constitute unlawful sex discrimination under Title VII. Smith vs. City of Jackson, Mississippi 2005 USSC: Established that ADEA permits disparate impact claims for age discrimination comparable to those permitted for discrimination based on sex and race. Pension Protection Act (PPA) 2006 Amended ERISA financial obligations for multiemployer pension plans; changed plan administration for deferred-contribution plans. Burlington Northern Santa Fe Railway Co. vs. White 2006 USSC: Established that all retaliation against employees who file discrimination claims is unlawful under Title VII, even if no economic damage results. Sista vs. CDC Ixis North America, Inc. 2006 Established that employees on FMLA may be legally terminated for legitimate, nondiscriminatory reasons, including violations of company policy if the reason is unrelated to the exercise of FMLA rights. Bates vs. United Parcel 2006 Established that when employers apply an unlawful standard that bars employees protected by the ADA from an application process, the employees don’t need to prove they were otherwise qualified to perform essential job functions. The employer must prove the standard is necessary to business operations. Taylor vs. Progress Energy, Inc. 2007 Established that the waiver of FMLA rights in a severance agreement is invalid. FMLA clearly states that “employees cannot waive, nor may employers induce employees to waive, any rights under the FMLA.” Repa vs. Roadway Express, Inc. 2007 Established that when an employee on FMLA leave is receiving employer-provided disability payments, he may not be required to use accrued sick or vacation leave during the FMLA absence. Phason vs. Meridian Rail Corp. 2007 Established that when an employer is close to closing a deal to sell a company, WARN Act notice requirements are triggered by the number of employees actually employed and the number laid off on the date of the layoff, even if the purchasing company hires some of the employees shortly after the layoff. Davis vs. O’Melveny & Myers 2007 Established that arbitration clauses in employment agreements won’t be enforced if they’re significantly favorable to the employer and the employee doesn’t have a meaningful opportunity to reject the agreement. Velazquez-Garcia vs. Horizon Lines of Puerto Rico, Inc. 2007 Established that the burden of proof that a termination wasn’t related to military service is on an employer when an employee protected by USERRA is laid off. Genetic Information Nondiscrimination Act (GINA) 2008 Prohibits employment discrimination on the basis of genetic information. Prohibits employers from requesting, requiring, or purchasing genetic information, and describes exceptions. Patient Protection and Affordable Health Care Act 2010 Created new requirements for employer-sponsored healthcare plans. Amended the FLSA to require large employers to provide lactation breaks and facilities for employees who are breast-feeding. In day-to-day practice and also on the exams, the first piece of information to consider from a compliance perspective is the size of the employer. The following table shows you the major labor laws that apply based on the number of employees. Use this table to test your knowledge. Laws Sorted by Employer Size Law 1 or more employee 15 or more employees 20 or more employees 50 or more employees 100 or more employees Age Discrimination in Employment Act (ADEA) X Americans with Disabilities Act (ADA) X Consolidated Omnibus Budget Reconciliation Act (COBRA) X Fair Credit Reporting Act (FCRA) X Family & Medical Leave Act (FMLA) X Genetic Information Nondiscrimination Act (GINA) X Immigration Reform & Control Act (IRCA) X Occupational Safety & Health Act (OSHA) X Older Workers Benefit Protection Act (OWBPA) X Pregnancy Discrimination Act (PDA) X Title VII of the Civil Rights Act of 1964 X Uniformed Services Employment and Reemployment Rights Act (USERRA) X Worker Adjustment and Retraining Notification Act (WARN Act) X