Free PHR Practice Test

Rights arbitration, also known as grievance arbitration, is a mechanism for resolving disputes about the interpretation and application of an existing collective bargaining agreement. It addresses grievances alleging that management has violated the terms of the contract currently in force. A neutral third-party arbitrator hears the case and makes a binding decision on the "rights" of the parties under their contract. This process occurs during the life, or administration, of an agreement, not during its negotiation.

A. Arbitration is an alternative dispute resolution method, distinct from a lawsuit which takes place in a court of law.
B. This describes interest arbitration, which resolves disputes over the terms of a new contract being negotiated.
D. This is incorrect; rights arbitration focuses specifically on interpreting the agreed-upon contract, not the external impact of laws.

1. Colvin, A. J. S. (2011). An Empirical Study of Employment Arbitration: Case Outcomes and Processes. Journal of Empirical Legal Studies, 8(1), 1-23. https://doi.org/10.1111/j.1740-1461.2010.01200.x (Distinguishes between types of arbitration, including rights/grievance arbitration in the union context).

2. Budd, J. W. (2007). The Wright-Line and Other Rules of Adjudication in Employment Law: A Law and Economics Perspective. Industrial Relations: A Journal of Economy and Society, 46(2), 326-350. (Discusses the role of arbitration in interpreting collective agreements, Section on "Grievance Arbitration").

The phrase "that's the way we do things around here" is a widely recognized, informal definition of organizational culture. It was popularized by Terrence Deal and Allan Kennedy in their seminal 1982 book, Corporate Cultures: The Rites and Rituals of Corporate Life. While other theorists like Edgar Schein provided more complex academic frameworks, Deal and Kennedy's definition is noted for its simplicity and practical application in describing the shared behaviors and norms within an organization.

A. Frederick Herzberg: Known for the Two-Factor Theory of motivation (Hygiene factors and Motivators), not this specific definition of organizational culture.
C. Edgard Schein: Defined culture more academically as a pattern of shared basic assumptions learned by a group, a more complex, multi-layered model.
D. W. Edwards Deming: A key figure in quality management, known for the Plan-Do-Check-Act cycle and his 14 Points for Management, not culture theory.

1. Deal, T. E., & Kennedy, A. A. (1982). Corporate Cultures: The Rites and Rituals of Corporate Life. Addison-Wesley Publishing Company. (This is the primary source of the quote).

2. Schein, E. H. (2010). Organizational Culture and Leadership (4th ed.). John Wiley & Sons. In Chapter 1, Schein discusses various definitions of culture, distinguishing his more formal model from simpler definitions like Deal and Kennedy's.

The whole job ranking technique is a non-quantitative job evaluation method. It involves having a committee of experts compare jobs based on their overall worth or contribution to the organization. Each job is considered as a whole rather than being broken down into compensable factors. The process results in a simple ordered list of jobs, ranked from lowest to highest or most important to least important. While straightforward, its subjectivity is a primary limitation. It is most suitable for smaller organizations with a limited number of jobs.

B. This describes an organizational performance review or a balanced scorecard approach, not a method for evaluating the relative worth of individual jobs.
C. This describes the job classification or grading method, where jobs are sorted into predefined classes or grades based on common characteristics.
D. This describes the process of "slotting" a new job into an existing pay structure, which occurs after a job evaluation method has been used.

1. Martocchio, J. J. (2017). Strategic Compensation: A Human Resource Management Approach (9th ed.). Pearson. (Chapter 6, "Job Evaluation," describes job ranking as a job content evaluation technique).

2. Bussin, M. H. R. (2011). The Remuneration Handbook for Africa: A practical and informative handbook for managing reward and recognition in Africa. Knowres Publishing. (Section on "Non-quantitative job evaluation methods," pp. 102-103, details the whole job ranking method).

3. Henderson, R. I. (2006). Compensation Management in a Knowledge-Based World (10th ed.). Pearson Prentice Hall. (Chapter 9, "Job Evaluation," pp. 258-259, explains the ranking method of job evaluation).

Non-monetary rewards are components of a total rewards system that do not involve direct cash payments to employees. An on-site cafeteria is a tangible perquisite, or "perk," that a company provides to enhance the work environment and employee well-being. While this benefit has a financial cost to the employer, it is not given to the employee as cash. It is a form of indirect compensation and is a classic example of a non-monetary reward, alongside other benefits like employee wellness programs, on-site fitness centers, or flexible work arrangements.

A. Satisfaction from challenging assignments is an intrinsic reward—a psychological outcome—not a tangible reward provided by the company.
B. Esteem from working with talented people is also an intrinsic, psychological reward derived from the work environment.
C. Cash compensation is the primary form of a monetary reward and is the direct opposite of a non-monetary reward.

1. Milkovich, G. T., Newman, J. M., & Gerhart, B. (2019). Compensation (12th ed.). McGraw-Hill Education. Chapter 1, "The Pay Model," distinguishes between direct cash compensation and indirect benefits/perquisites, classifying items like on-site services as part of the total rewards package but not direct pay (p. 10-12).

2. WorldatWork. (2015). The WorldatWork Total Rewards Model: A Framework for Strategies to Attract, Motivate and Retain Employees. This foundational model in compensation studies includes "Work-Life Effectiveness" and "Recognition" as key non-monetary components, with programs like on-site conveniences (e.g., cafeterias) falling under this umbrella.

3. Martocchio, J. J. (2020). Strategic Compensation: A Human Resource Management Approach (10th ed.). Pearson. Chapter 1, "Strategic Compensation: A Component of Human Resource Systems," discusses non-monetary rewards as part of a total compensation system, including protection programs, paid time off, and services like on-site cafeterias (p. 7).

The Form I-9 divides acceptable documents into three lists. List A documents establish both identity and employment eligibility. List B documents establish identity only, while List C documents establish employment eligibility only. A driver's license is a List B document that proves identity but NOT employment eligibility. To complete Form I-9 using a driver's license, an employee must also provide a List C document. The other options (expired U.S. passport, Certificate of Naturalization, and unexpired reentry permit) are all List A documents that prove both identity and employment eligibility in a single document.

B. An expired U.S. passport is specifically acceptable as a List A document per USCIS guidance.
C. Certificate of Naturalization is a List A document proving both identity and employment eligibility.
D. An unexpired reentry permit (I-327) is a List A document establishing both requirements.

1. U.S. Citizenship and Immigration Services. (2023). Form I-9, Employment Eligibility Verification. Pages 3-4, Lists of Acceptable Documents. https://www.uscis.gov/i-9

2. U.S. Citizenship and Immigration Services. (2023). Handbook for Employers M-274, Section 4.0, List A Documents. https://www.uscis.gov/i-9-central/form-i-9-resources/handbook-for-employers-m-274

3. Department of Homeland Security. (2023). I-9 Central: Acceptable Documents for Verifying Employment Authorization and Identity. List B - Documents that Establish Identity Only section.

The Employer Information Report EEO-1 is a mandatory annual compliance survey required by the U.S. Equal Employment Opportunity Commission (EEOC). It requires all private employers with 100 or more employees, and federal contractors with 50 or more employees and a contract of $50,000 or more, to submit demographic data about their workforce. The report collects data on the number of employees categorized by job category, sex, and race/ethnicity. This data is used to enforce civil rights laws and analyze employment patterns. Although the option incorrectly states the report is submitted to the Department of Labor, it is the most accurate description of the report's threshold and content among the choices.

A. This is incorrect because the report requires detailed demographic breakdowns, not just the total number of employees.
B. This is incorrect because the threshold is not "all employers," and sensitive data like Social Security numbers are not collected.
D. This is incorrect because the threshold is not "all employers," and the report requires data on job category and gender, not just race and income.

1. U.S. Equal Employment Opportunity Commission. (n.d.). EEO-1 Data Collection. Retrieved from the official EEOC website, which states, "The EEO-1 Component 1 report is a mandatory annual data collection that requires all private sector employers with 100 or more employees...to submit demographic workforce data, including data by race/ethnicity, sex and job categories."

2. U.S. Equal Employment Opportunity Commission. (2023). 2022 EEO-1 Component 1 Instruction Booklet. This official document provides the specific filing requirements, thresholds, and definitions for job categories, race, and ethnicity (p. 5-7).

3. Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2019). Fundamentals of Human Resource Management (8th ed.). McGraw-Hill Education. Chapter 3, "Providing Equal Employment Opportunity and a Safe Workplace," describes the EEO-1 report, its purpose, and filing requirements (p. 82).

The Fair Labor Standards Act (FLSA) is a cornerstone of U.S. labor law, establishing federal standards in four primary areas. These are: (1) the federal minimum wage, (2) overtime pay for all hours worked over 40 in a workweek for nonexempt employees, (3) specific recordkeeping requirements for employers, and (4) child labor provisions that restrict the hours and types of work for minors. While the FLSA does regulate how commissions and tips are incorporated into wage and overtime calculations, "Commissions, royalties, and tips" is not considered one of the four foundational pillars of the act.

B. Overtime pay for nonexempt employees working more than 40 hours in a workweek is a core provision of the FLSA.
C. The FLSA explicitly mandates that employers must keep accurate records of wages, hours, and other employment information.
D. Establishing a federal minimum wage for covered, nonexempt employees is one of the most fundamental provisions of the FLSA.

- U.S. Department of Labor. (n.d.). Wages and the Fair Labor Standards Act. Retrieved from dol.gov. (This page outlines the major provisions).

- Cornell Law School, Legal Information Institute. (n.d.). Fair Labor Standards Act (FLSA). Retrieved from law.cornell.edu. (Provides a summary of the Act's main components).

- Fossum, J. A. (2015). Labor Relations: Development, Structure, Process (12th ed.). McGraw-Hill Education. (Chapter 3, Section on The Fair Labor Standards Act of 1938).

Mandatory arbitration is a form of alternative dispute resolution (ADR) where an employee agrees, as a condition of employment, to resolve any future legal disputes with their employer through a binding process with a neutral third-party arbitrator instead of through the court system. This agreement waives the employee's right to sue the employer in court. The Supreme Court's decision in Epic Systems Corp. v. Lewis (2018) affirmed the enforceability of these agreements under the Federal Arbitration Act, even for claims arising under other federal employment statutes.

B. This describes an internal complaint procedure, which may precede legal action but is not arbitration.
C. This describes a background check or investigation, which is unrelated to dispute resolution methods.
D. This describes a non-compete agreement or restrictive covenant, not an arbitration agreement.

1. Colvin, A. J. S. (2018). The growing use of mandatory arbitration. Economic Policy Institute. Retrieved from https://www.epi.org/publication/the-growing-use-of-mandatory-arbitration/. (This report provides a comprehensive overview of the prevalence and implications of mandatory arbitration in employment).

2. Cornell Law School Legal Information Institute. (n.d.). Arbitration. Retrieved from https://www.law.cornell.edu/wex/arbitration. (Provides the legal definition and context of arbitration).

3. Epic Systems Corp. v. Lewis, 584 U.S. (2018). (The landmark Supreme Court case affirming the legality of mandatory arbitration clauses in employment contracts).

The Pregnancy Discrimination Act of 1978 (PDA) is an amendment to Title VII of the Civil Rights Act of 1964. As such, it follows the same coverage requirements as Title VII. The law applies to employers (including private and public sector employers), employment agencies, and labor organizations with 15 or more employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year.

A. All organizations with employees must abide by this law: This is incorrect, as federal EEO laws like the PDA have specific employee-count thresholds for coverage.
B. Organizations with 100 or more employees: This threshold is primarily associated with the requirement to file the EEO-1 Report, not with coverage under Title VII or the PDA.
D. This law only addresses federal government employees: This is incorrect. The PDA applies to private employers, state and local governments, and other entities meeting the 15-employee threshold.

1. U.S. Equal Employment Opportunity Commission. (n.d.). Pregnancy Discrimination. Retrieved from https://www.eeoc.gov/pregnancy-discrimination. The EEOC explicitly states, "The Pregnancy Discrimination Act (PDA) forbids discrimination based on pregnancy when it comes to any aspect of employment... The PDA covers employers with 15 or more employees, including state and local governments."

2. Walsh, D. J. (2019). Employment Law for Human Resource Practice (6th ed.). Cengage Learning. Chapter 4, "Title VII of the Civil Rights Act of 1964," clarifies that the Pregnancy Discrimination Act amended Title VII and thus applies to employers with fifteen or more employees (p. 126).

The Employee Retirement Income Security Act (ERISA) of 1974 mandates that plan administrators provide participants with a Summary Plan Description (SPD). This document clearly communicates plan features, funding, and participant rights. According to the U.S. Department of Labor, which enforces ERISA, the plan administrator is legally required to furnish the SPD to participants free of charge. While a reasonable charge may be assessed for requests for additional copies of the SPD, the initial copy and any required updates must be provided at no cost. The SPD is not distributed monthly.

A. ERISA requires the SPD to be provided free of charge, not for a fee. A fee is only permissible for extra, requested copies.
C. The SPD is not distributed monthly, and it must be provided for free, making both aspects of this option incorrect.
D. The SPD is not distributed on a monthly basis; it is provided upon enrollment and updated periodically as required by law.

1. U.S. Department of Labor, Employee Benefits Security Administration. (2021). What You Should Know About Your Retirement Plan. Section: "Summary Plan Description (SPD)". The publication states, "The plan administrator must give you a copy of the SPD free of charge when you become a participant." (p. 6).

2. U.S. Department of Labor. (n.d.). ERISA § 104(b)(1). 29 U.S. Code § 1024 - Filing and furnishing of information. This section of the statute mandates the furnishing of the summary plan description and other documents to participants and beneficiaries. The associated regulations (29 CFR 2520.104b-1) clarify that no charge may be imposed for documents required to be automatically furnished.

3. Martocchio, J. J. (2020). Strategic Compensation: A Human Resource Management Approach (10th ed.). Pearson. Chapter 10, "Legally Required Benefits," discusses ERISA's communication provisions, including the requirement to provide an SPD at no charge (p. 301).