HRCI  PHR Exam Dumps & Practice Test Questions

Question 1:

During a union organizing campaign, once a union has been officially recognized, the employer is legally obligated to submit a list of employees who are eligible to vote in the union election. 

What is the official name of this list?

A. Constituent List
B. Union Prospectus List
C. Excelsior List
D. Candidate List

Correct Answer: C

Explanation:

The Excelsior List is a critical component in the process of union elections, mandated by the National Labor Relations Board (NLRB). The term originates from a landmark 1966 NLRB ruling in the case of Excelsior Underwear, Inc., which established the requirement for employers to provide a comprehensive list of eligible voters when a union organizing drive is underway and a union election is imminent.

This list, commonly known as the Excelsior List, must be submitted by the employer to both the NLRB and the petitioning union. It contains detailed contact information—including full names, home addresses, and sometimes available personal contact details—of all employees within the bargaining unit who are eligible to vote in the upcoming election.

The primary goal of the Excelsior List is to promote transparency, fairness, and informed participation in union elections. By ensuring the union has direct access to potential voters, the rule helps balance the communication channels between employers and unions. Without this requirement, employers would have a significant advantage in reaching employees, while the union would face logistical difficulties in sharing its platform and objectives.

Employers are typically required to provide the Excelsior List within seven days after the election agreement is approved or directed. The failure to provide a complete or timely list may result in the NLRB invalidating an election or ordering a rerun.

Now, let's assess the incorrect options:

• A. Constituent List: While this term is used in political or group representation contexts, it has no relevance to labor law or union election procedures.

• B. Union Prospectus List: This term does not exist in legal or HR terminology. A “prospectus” generally refers to investment disclosures or educational offerings—not labor union operations.

• D. Candidate List: This implies a list of individuals running for a position (e.g., political office or internal leadership), which is unrelated to identifying eligible voters in a union election.

In conclusion, the Excelsior List is essential to fair labor practices, giving all parties equal access to information and preserving the integrity of the union election process.

Question 2:

Within the framework of the HR Impact Model, which of the following options does not represent a core component that defines how HR professionals operate and deliver value in an organization?

A. Consultation
B. Client
C. Catalyst
D. Programs and Processes

Correct Answer:  C

Explanation:

The HR Impact Model outlines the essential domains that shape the influence and effectiveness of Human Resources within an organization. It provides a strategic lens for HR professionals to understand their multifaceted roles and how those roles contribute to achieving business goals.

The model is typically structured around three core components:

1. Consultation – HR acts as a strategic partner and advisor to business leaders, providing insights and recommendations on human capital issues such as workforce planning, performance management, and employee relations. This role emphasizes the importance of aligning HR practices with organizational strategy and advising on complex people-related decisions.

2. Client – This refers to the individuals and groups HR serves, both internally (employees, managers, leadership teams) and externally (vendors, consultants, and regulatory bodies). Understanding client needs is vital for HR to provide tailored solutions that address real organizational challenges.

3. Programs and Processes – This encompasses the systems and practices HR implements to manage talent effectively. Examples include onboarding programs, learning and development initiatives, succession planning, performance management, and compensation structures. These operational functions ensure consistency, compliance, and strategic alignment.

Now, let’s examine the option C. Catalyst. While it is true that HR professionals often play a catalytic role in driving change, innovation, or cultural transformation, "Catalyst" is not a formally recognized component within the standard HR Impact Model. It is more of a metaphorical or secondary role that can be assumed within the broader framework of HR influence but does not stand as one of its foundational pillars.

The inclusion of "Catalyst" might suggest HR’s influence on transformation and agility, but in academic and practical applications of the HR Impact Model, this term is not explicitly cited as a distinct category.

Therefore:

• A. Consultation is a central pillar focused on HR’s advisory capacity.

• B. Client defines who HR serves and whose needs guide HR strategies.

• D. Programs and Processes represent the tools and operational structures HR uses.

• C. Catalyst is not a standard component in this model, making it the correct answer.

In summary, while HR may act as a change agent or catalyst in various contexts, “Catalyst” is not one of the core, defined components of the HR Impact Model, distinguishing it from the others listed.

Question 3:

Holly, a senior employee and union member, has been informed that her role will be eliminated in 60 days. To avoid unemployment, she asks the union to assign her to a lower-level role and terminate a junior employee instead. 

If the union agrees, what is this practice commonly called?

A. Bumping
B. Displacement
C. Releasing
D. Re-organization

Correct Answer: A

Explanation:

The correct term for the situation described is bumping. Bumping is a process used within unionized workplaces that allows a more senior employee, whose position is being eliminated, to displace a junior employee from their job. The concept is grounded in the principle of seniority rights, a core tenet in many collective bargaining agreements.

In this case, Holly is exercising her seniority to remain employed, even if that means accepting a role that is lower in rank or responsibility. Rather than being laid off, she requests to "bump" a less senior colleague from a comparable or lower position. This approach ensures that the most experienced or longest-serving employees are given priority in employment decisions, especially during layoffs or restructures.

Bumping typically occurs during periods of downsizing, restructuring, or job elimination. Union contracts often contain specific "bumping rights" clauses that detail how the process should work—outlining eligibility, the sequence of displacement, and the types of roles that can be claimed by senior employees.

Let’s review the incorrect options:

• B. Displacement: While bumping does involve one employee being displaced, the term "displacement" is more general. It refers broadly to someone losing their position and doesn’t capture the seniority-driven substitution element that bumping implies.

• C. Releasing: This refers to the act of terminating or laying off an employee, which is only part of the broader bumping scenario. Releasing does not involve the strategic reassignment of a senior worker.

• D. Re-organization: A re-organization is a company-wide structural change that might lead to position eliminations, but it’s not the term used to describe the act of a senior employee replacing a junior one.

In summary, bumping is a union-recognized procedure that allows senior employees to avoid unemployment by taking over less senior roles. It’s a protection mechanism embedded in many labor agreements, and Holly’s request fits this definition precisely. Therefore, A. Bumping is the correct answer.

Question 4:

In arbitration between union representatives and management, when the arbitrator resolves a dispute by interpreting the collective bargaining agreement, what is this final ruling called?

A. Resolution
B. Interpretation
C. Decision
D. Outcome

Correct Answer: C

Explanation:

The correct term for the arbitrator’s formal conclusion in a dispute is a decision. Arbitration is a dispute resolution mechanism commonly used in labor relations to settle disagreements between management and unionized employees, especially regarding the interpretation of the collective bargaining agreement (CBA).

In arbitration, a neutral third-party arbitrator is chosen by both parties to evaluate the case. This individual reviews all relevant documentation, listens to testimony, and examines the language of the labor contract. After this review, the arbitrator issues a decision, which is a binding and final judgment on the matter. This decision becomes enforceable and must be honored by both the union and the employer.

Here’s how the other options compare:

• A. Resolution: While the purpose of arbitration is to achieve a resolution, this term is too broad and does not reflect the formal and legal weight of the arbitrator’s ruling. A resolution can occur in mediation or informal negotiations, but it doesn’t necessarily imply a binding outcome like a decision does.

• B. Interpretation: This is a process used within arbitration—specifically, the arbitrator interprets the language of the contract. However, "interpretation" refers to an action or analysis, not the final authoritative ruling.

• D. Outcome: Though "outcome" can describe the result of a process, it lacks the specificity and legal precision of "decision." In legal and labor contexts, "decision" is the recognized term used to denote the arbitrator’s binding judgment.

Ultimately, arbitration is a formal mechanism, and its conclusions carry legal significance. The arbitrator’s decision is the defining action that ends the dispute and provides clarity on the contractual interpretation in question.

Therefore, the correct answer is C. Decision.

Question 5:

As an HR professional, which legal case established that an employment test causing adverse impact on a protected group is still legally permissible if it is job-related and valid?

A. Washington v. Davis (1976)
B. Griggs v. Duke Power (1971)
C. McDonnell Douglas Corp. v. Green (1973)
D. Albemarle Paper Co. v. Moody (1975)

Correct Answer: B

Explanation:

The Griggs v. Duke Power Co. (1971) decision is a cornerstone in U.S. employment discrimination law. This Supreme Court case directly addressed the concept of disparate impact—a situation where an employment practice or test, though neutral on its face, disproportionately excludes members of a protected class under civil rights law, such as race or gender.

Before this case, Duke Power required applicants for certain positions to have a high school diploma and pass two aptitude tests, despite no clear correlation between these requirements and actual job performance. While the employer did not intend to discriminate, the effect of the policy was that African American applicants were disproportionately rejected. The Supreme Court ruled that intent was not necessary to establish discrimination; rather, if an employment practice has an adverse impact, the employer must prove the requirement is job-related and consistent with business necessity.

This ruling was pivotal because it introduced the principle that employment tests must be validated to demonstrate they genuinely assess skills needed for the job. It shifted the legal landscape, making employers more accountable for the actual consequences of their selection tools, even if those tools appear fair or neutral.

Now let’s assess the incorrect options:

• A. Washington v. Davis (1976): This case ruled that for a claim under the Equal Protection Clause, discriminatory intent must be proven. It addressed constitutional law, not employment law under Title VII, and diverges from the disparate impact approach.

• C. McDonnell Douglas v. Green (1973): This case established the burden-shifting framework used in cases of disparate treatment, where intentional discrimination is alleged. It doesn't directly address adverse impact from testing.

• D. Albemarle Paper v. Moody (1975): This ruling clarified the standards for validating employment tests, reinforcing Griggs’ principles, but it wasn’t the origin of the legal standard about job-relatedness for tests with adverse impact.

Therefore, Griggs v. Duke Power remains the foundational case for understanding how adverse impact is handled under Title VII of the Civil Rights Act, and why validation and business necessity are essential when employment practices disproportionately affect protected groups. Hence, B is the correct answer.

Question 6:

Under the Employee Retirement Income Security Act (ERISA), what is a company required to provide to all retirement plan participants?

A. Provide a summary plan description yearly at a cost of up to $7 per participant
B. Distribute a summary plan description to each participant at no cost
C. Deliver monthly updates about plan features for $7 per participant
D. Provide monthly plan information free of charge

Correct Answer: B

Explanation:

The Employee Retirement Income Security Act of 1974 (ERISA) was enacted to protect the interests of employees participating in employer-sponsored retirement and health benefit plans. One of ERISA’s key provisions mandates that plan administrators provide participants with clear, detailed information about their benefits.

A central document in meeting this requirement is the Summary Plan Description (SPD). The SPD outlines essential aspects of the plan, including its structure, benefits, eligibility requirements, funding mechanisms, and procedures for claims and appeals. It must be written in a manner understandable to the average plan participant and must be provided at no cost.

The correct answer is B: Employers must provide the SPD to participants free of charge. This is essential to ensure participants can make informed decisions about their retirement savings and fully understand their rights under the plan. ERISA strictly enforces this provision to maintain transparency and prevent mismanagement or abuse of benefit plans.

Let’s analyze the incorrect answers:

• A. This suggests the SPD can be distributed for a fee, specifically $7 per participant annually. This is false; ERISA mandates that this information be provided at no cost. Charging for the SPD would violate the law.

• C. This option introduces a monthly reporting requirement with an associated cost. ERISA does not require monthly SPD distribution or permit associated charges. The SPD is typically distributed upon enrollment, every 5 years if amended, or every 10 years if unchanged.

• D. Although it correctly states that participants should not be charged, it inaccurately suggests a monthly distribution of plan details, which ERISA does not require. The SPD is not a monthly document but a periodic summary.

In summary, ERISA ensures that employees have free and timely access to critical information regarding their retirement plans. The SPD is the cornerstone of this transparency. Answer B is the only option aligned with legal requirements and best practices under ERISA.

Question 7:

Fran, an HR specialist, is conducting interviews for a warehouse role. One applicant has listed Spanish as a spoken language on his application, and Fran chooses to conduct his interview in Spanish. However, all other applicants are interviewed in English.

What type of employment discrimination does this behavior represent?

A. Disparate treatment
B. Disparate impact
C. Accommodation
D. Perpetuating past discrimination

Correct Answer: A

Explanation:

The scenario involving Fran interviewing one candidate in Spanish while interviewing all others in English highlights a classic case of disparate treatment. This concept arises in employment law when individuals are treated differently based on characteristics such as language, ethnicity, gender, religion, or other protected categories. In this context, Fran intentionally alters the interview conditions for one applicant due to the language mentioned on his application—an action not mirrored for the other candidates.

Disparate treatment is not determined by malicious intent alone but by the presence of unequal treatment during any stage of employment, including hiring. The key issue here is the inconsistency in the interview process. Even if the intent was to accommodate or engage the Spanish-speaking candidate, unless fluency in Spanish is a core job requirement, such differential treatment can be viewed as unfair and potentially discriminatory. It undermines the principle of providing a consistent and equitable evaluation process for all applicants.

Let’s analyze the other options:

• B. Disparate impact occurs when a neutral policy unintentionally affects a protected group more harshly than others. In this case, however, Fran’s action is deliberate and targets a specific candidate, making this option incorrect.

• C. Accommodation typically refers to adjustments made for disabilities, religious practices, or specific personal needs. Conducting an interview in a different language, especially if it’s not required for the job, doesn’t qualify as a reasonable accommodation.

• D. Perpetuating past discrimination relates to actions or policies that continue historical patterns of exclusion or bias. There is no indication in this scenario that Fran’s behavior is tied to past discriminatory practices.

To avoid legal and ethical risks, all applicants should be assessed under consistent conditions unless there is a business necessity—such as language being essential to the job—that justifies the deviation. Organizations must train hiring personnel to ensure fairness and compliance with equal employment opportunity laws.

Therefore, A. Disparate treatment is the best answer.

Question 8:

Which of the following is the best example of a non-financial incentive that a company might offer to its employees?

A. The sense of achievement from tackling engaging and complex tasks
B. Respect gained from working alongside high-performing colleagues
C. Salary or bonus payments
D. Access to a company-provided cafeteria

Correct Answer: A

Explanation:

Non-monetary rewards are essential tools organizations use to foster motivation, engagement, and loyalty without directly offering financial compensation. These rewards tap into employees' intrinsic motivations and are often tailored to support personal growth, recognition, and workplace satisfaction.

Option A, which describes the satisfaction gained from challenging and stimulating work, is the most fitting example of a non-monetary reward. This type of incentive supports internal motivation, where employees feel inspired by their tasks and see value in their contribution. Many professionals thrive when their roles allow them to solve complex problems, innovate, or grow their skills. Such fulfillment often leads to higher retention and improved job performance.

Option B describes working with talented peers and the esteem that may come with it. While this can positively influence workplace morale, it’s more of a social or environmental factor rather than a structured reward. It's not something the company actively provides in the form of a policy or program, making it a less precise example of a non-monetary reward.

Option C—cash compensation—is clearly a monetary reward. It includes direct financial benefits like wages, bonuses, or commissions. These are typically what employees expect in return for their labor but do not fall into the non-monetary category.

Option D, the presence of an on-site cafeteria, is a tangible benefit or physical perk. Although it adds convenience and may reduce costs for employees, it’s not directly linked to emotional or psychological satisfaction in the way non-monetary rewards such as recognition, autonomy, or meaningful work are.

In conclusion, companies that emphasize non-monetary rewards like career development, exciting projects, public recognition, or flexible work conditions tend to build a more engaged and loyal workforce. These rewards complement traditional compensation and can drive performance and satisfaction without incurring high financial costs.

Question 9:

As the HR Professional, you're responsible for explaining how the organization will use the point factor method to evaluate job roles. 

Which of the following best summarizes the key process of the point factor technique?

A. Identify compensable factors and document performance levels for each factor.
B. Identify compensable factors and weigh their importance from the employee’s point of view.
C. Let employees identify job performance factors and weigh them based on organizational priorities.
D. Identify compensable factors, document their levels, and assign weights to those factors based on their importance.

Correct Answer: D

Explanation:

The point factor method is a structured and analytical job evaluation technique used to determine the relative worth of jobs within an organization. It helps ensure internal equity in compensation by objectively evaluating positions based on predefined compensable factors. These factors often include skill, responsibility, effort, and working conditions—all of which are considered critical in assessing the value a job brings to the organization.

Option D correctly outlines this methodology: it involves first identifying specific compensable factors, then documenting the different levels or degrees of each factor as they relate to the job. For example, a job might be evaluated on its level of decision-making responsibility or physical effort. After defining these levels, each factor and its corresponding levels are assigned numerical weights or point values that reflect their importance to the organization’s goals.

These point totals are then added up for each job role, and the cumulative score serves as the basis for comparing roles and aligning them with salary grades or pay bands. This process reduces bias and supports fair pay practices by ensuring that job value—not subjective opinions—drives compensation decisions.

Now let’s clarify why the other options are incorrect:

• Option A fails to mention that weights are applied, which is a critical step in the point factor technique. Simply documenting levels is not sufficient for establishing value or comparison.

• Option B inaccurately suggests that compensable factors are weighed based on what the employee values, which contradicts the principle of organizational alignment in job evaluation.

• Option C is also incorrect because it puts the responsibility on employees to identify performance factors, which is not the standard in structured evaluation methods like the point factor system. In reality, these factors are predetermined by HR or compensation professionals based on business strategy and internal equity.
  In summary, Option D best describes the comprehensive process of the point factor technique: identifying job-relevant factors, defining levels within those factors, and applying a weighting system to quantify their importance. This approach provides a consistent and defensible framework for job evaluation across the organization.

Question 10:

According to the FairPay regulations, what is the minimum annual salary a worker must earn to be classified as a highly compensated employee (HCE)?

A. $110,000 or more
B. $150,000 or more
C. $100,000 or more
D. $125,000 or more

Correct Answer: B

Explanation:

The designation of a Highly Compensated Employee (HCE) has significant implications in employment law, particularly under the Fair Labor Standards Act (FLSA) and IRS benefit plan rules. This classification affects an employee's exemption status, as well as how companies handle benefit eligibility, nondiscrimination testing in retirement plans, and overtime rules.

According to recent guidelines, an individual is considered a highly compensated employee if they earn $150,000 or more annually. This threshold is part of the FairPay rules introduced by the Department of Labor to simplify the determination of whether an employee can be exempt from overtime under the FLSA. The rules assume that individuals earning above this amount often have sufficient authority, independence, and influence in their roles to justify exemption from certain wage and hour protections.

This $150,000 figure is periodically updated to reflect economic conditions, but it has become a widely accepted benchmark in recent years. Under this rule, the employee must customarily and regularly perform at least one of the duties of an executive, administrative, or professional employee, as defined by FLSA standards, in addition to meeting the salary requirement.

Let’s examine the incorrect options:

• Option A ($110,000) may be a recognizable figure in certain compensation structures, but it is not the regulatory standard for HCE classification.

• Option C ($100,000) reflects an older threshold used under prior FLSA exemptions but has since been updated in line with inflation and wage growth.

• Option D ($125,000), while high, does not align with the official definition of a highly compensated employee as currently recognized by both the IRS and DOL for wage and benefit compliance purposes.

Understanding this classification is critical for HR professionals, especially when ensuring compliance in retirement plan testing (like the 401(k) ADP/ACP tests), managing overtime eligibility, or designing executive compensation packages.

In conclusion, $150,000 is the correct salary threshold for defining a highly compensated employee under FairPay and related FLSA guidelines, making Option B the accurate answer.