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document.doc A Absenteeism The failure of an employee to report to work when scheduled to do so. Abusive discharge Also called wrongful discharge, the termination of an at-will employee for engaging in protected activity or for refusing to commit an illegal act. Accidental death and dismemberment insurance (AD&D) Insurance coverage for loss of life, limbs, or eyesight resulting from a work related accident. Accommodation A change in workplace methods, procedures, equipment, schedules, or plant arrangement that facilitates the performance of job tasks by workers with special needs. Adverse impact A situation in which a significantly higher percentage of members of a protected group (African- Americans, Hispanics, Women, Native Americans, and others) in the available population are being rejected for employment, placement, or promotion. Affirmative action Gives preferential treatment in hiring, recruitment, promotion, and development to groups which have historically been discriminated against. Age Discrimination and Employment Act (ADEA) Federal antidiscrimination law to protect job applicants and employees age 40 and over from employment discrimination due to their age. This act also includes discrimination involving pay, benefits, and other conditions of employment. Agency fees Payments to firms that refer prospective job applicants to employers with vacant positions. Agency shop A situation, specified in a union security agreement, in which all employees pay union dues and fees whether or not they are union members. Refusal to pay results in employee termination. Allegation An unproved statement. Alternate payee An employee’s spouse, child, or other dependent, who pursuant to a Qualified Domestic Relations Order (QDRO) alternative dispute resolution (ADR) A method used to resolve a dispute out of court. An adr can be beneficial to employers because it usually costs less and is less adversarial than going to court. Americans with Disabilities Act (ADA) Federal antidiscrimination law designed to remove barriers which prevent qualified individuals with disabilities from enjoying the same employment Page 1 of 42 HR Page 1 4/21/2022
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Page 1: HR Terminology and Abbreviations

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AAbsenteeism The failure of an employee to report to work when scheduled to do so. Abusive discharge Also called wrongful discharge, the termination of an at-will employee

for engaging in protected activity or for refusing to commit an illegal act. Accidental death and dismemberment insurance (AD&D)

Insurance coverage for loss of life, limbs, or eyesight resulting from a work related accident.

Accommodation A change in workplace methods, procedures, equipment, schedules, or plant arrangement that facilitates the performance of job tasks by workers with special needs.

Adverse impact A situation in which a significantly higher percentage of members of a protected group (African-Americans, Hispanics, Women, Native Americans, and others) in the available population are being rejected for employment, placement, or promotion.

Affirmative action Gives preferential treatment in hiring, recruitment, promotion, and development to groups which have historically been discriminated against.

Age Discrimination and Employment Act (ADEA)

Federal antidiscrimination law to protect job applicants and employees age 40 and over from employment discrimination due to their age. This act also includes discrimination involving pay, benefits, and other conditions of employment.

Agency fees Payments to firms that refer prospective job applicants to employers with vacant positions.

Agency shop A situation, specified in a union security agreement, in which all employees pay union dues and fees whether or not they are union members. Refusal to pay results in employee termination.

Allegation An unproved statement. Alternate payee An employee’s spouse, child, or other dependent, who pursuant to a

Qualified Domestic Relations Order (QDRO) alternative dispute resolution (ADR)

A method used to resolve a dispute out of court. An adr can be beneficial to employers because it usually costs less and is less adversarial than going to court.

Americans with Disabilities Act (ADA)

Federal antidiscrimination law designed to remove barriers which prevent qualified individuals with disabilities from enjoying the same employment opportunities available to those without disabilities.

Annuity A payment of money that is made yearly for the life of the person who is entitled to the payment.

Arbitration A method of dispute resolution in which the parties agree to present evidence and arguments to a neutral umpire (or team of umpires) and abide by the umpire's decision.

Assessment Use of an instrument to determine traits, skills, past behaviors in order to relate them to current requirements.

Assessment center A selection technique that uses simulations, tests, interviews, and observations to obtain information about candidates.

Assessment instrument A questionnaire which has been designed to elicit specific choices or alternatives in order to predict behavior, personality, or skill preferences.

Assumption of risk A legal doctrine that places responsibility for injury on the injured person because the person knowingly undertook an action involving a risk of harm.

Attitude survey A set of written questions and responses completed by employees expressing their reactions to employer policies and procedures.

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Attrition Loss of employees (as a result of resignation, retirement, death) who are not replaced by their employer, thus reducing the size of that employer's workforce.

Audit An investigation, especially a review of records and procedures, whose purpose is to assess compliance with a legal or practical requirement.

Autonomy The degree to which the job provides substantial freedom, independence, and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.

BReturn to topBackpay Earnings granted to an employee, usually by the court, which represent

the difference between wages already, paid the employee and higher wages to which he or she was entitled but did not receive. (back pay is often awarded in cases of proven discrimination.)

Bankruptcy Insolvency; inability to pay debts. Bargaining unit A group of employees which, by reason of the similarity of their jobs,

form a unit appropriate for bargaining with management on questions of wages, benefits, and working conditions.

Behavior modeling Participants learn by observing a role mode behavior. The fundamental characteristic of modeling is that learning takes place by observation or imagination of another individual’s experience.

Behavioral observation scale (bos)

A method similar to the BARS that uses the critical incident technique to identify a series of behaviors that describe the job. A 1 (Almost Never) to 5 (Almost Always) format is used to rate the behaviors.

Behaviorally anchored rating scale (bars)

A rating scale that uses critical incidents as anchor statements placed along a scale. Typically 6 to 10 performance dimensions, each with 4 – 6 critical incident anchors, are rated per employee.

Benchmarking A program in which employees send their employees to visit other companies to discover other ways to identify and improve practices within the parent company.

Bfoq (bona fide occupational qualification)

A specific job-related requirement which is legitimate and considered a precursor to hiring a candidate for a position. Race cannot be a bfoq, but gender, age, religion or national origin may be claimed as a bfoq provided that reasonable proof exists for such a claim.

Blacklist The act of communicating information about a person, particularly information about union activities, that is intended to interfere with the person's ability to find employment.

Blind ad A newspaper or magazine advertisement for employment, requesting replies to any address which does not reveal the hiring company.

Bona fides Good faith; authenticity. Boycott A primary boycott finds union members not patronizing the boycotted

firm. In a secondary boycott, a supplier of a boycotted firm is threatened with a union strike unless it stops doing business with the firm. Secondary boycotts are illegal under the taft-hartley act.

Broad banding The technique of consolidating salary grades into wider or broader bands to create more flexible pay structures.

Bumping The reassignment of a senior employee to a position vacated by a junior employee as a result of a reduction in workforce.

Bureau of labor statistics (bls)

Department within the Federal Department of Labor which is responsible for collecting and reporting national statistics for wage and salary surveys.

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Business necessity Specific job-related requirement which is considered by the employer to be fundamental to the mission of the business; sometimes used as a defense against discrimination claims regarding employee selection.

CReturn to topCafeteria benefits A benefit plan in which an employee can pick and choose among a

number of fringe benefits up to a designated dollar amount in addition to the universal benefits granted to all employees.

Cafeteria plan See cafeteria benefits Carpal tunnel syndrome A painful disorder of the wrist and hand caused by the repeated

performance of some manual task such as typing or meat-cutting. Career Individually perceived sequences of attitudes and behaviors associated

with work-related experiences and activities over the span of an individual’s work life.

Career path A sequence of positions through which an organization moves an employee.

Career stages The different stages that individuals go through in their careers, normally divided into four stages – education (or pre work), initial work, mature work, and retirement (or post work)

Caveat A warning. Central tendency error A rating tendency to give rated employees an average rating on each

criterion. Certified benefits professional (cbp)

A Compensation and Benefits professional who has met the rigid certification program of the American Compensation Association.

Certified employee benefits professional (cbp)

A benefits professional who has met the rigid certification program of the International Benefits Association and the Wharton School.

Chain of command The managerial or supervisory reporting function within an organization. Civil rights act of 1964 – title vii

The major federal civil rights act which prohibits discrimination in employment due to race, color, religion, gender, or national origin.

Civil rights act of 1991 (cra)

Federal civil rights law that provides for compensatory and punitive damages for intentional discrimination and also allows jury trials.

Classification system A job evaluation method which groups jobs together into a specific grade or classification, especially in compensation.

Closed shop A situation in which a new employee must be a union member when hired, primarily used in the construction, maritime, and printing industries.

Collective bargaining A procedure for attaining agreement with an employer on matters involving wages, benefits, and working conditions by a group of employees or their representative

Coinsurance Insurance benefits plans which require that the insured pay some portion of covered claims expenses, for example either a set fee ($25 co-pay) or a percentage of the expense (20% co-pay)

Compensable factors A term used in job evaluation as part of the compensation design which denotes criteria for comparing relative between or among jobs. Most frequently used are skill, education, effort, responsibility, working conditions, and hazardous working conditions.

Compensatory damages Money that is awarded in a judicial proceeding to compensate a party for injury to person or property.

Comparable worth The belief that employees in comparable positions should receive equal pay – the concept of equal pay for equal work.

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Comparable worth theory

A theory of pay structures requiring that jobs, which though not similar in duties, are of comparable economic value to the employer, should carry equal rates of pay. Some states require that comparable worth jobs be paid equally, particularly in the public sector.

Compressed work week (cww)

A work schedule in which a trade is made between the number of hours worked pre day, and the number of days worked per week, for example, four ten-hour work days.

Conciliation The settlement of a conflict in an amicable fashion. Consolidated omnibus budget reconciliation act of 1985 (cobra)

A Federal law which covers employee benefits. A major effect of the act is the requirement of employers to provide continuation of employer’s group health benefits for terminated employees and their eligible dependents under specific conditions.

Construct validity A relationship between the underlying traits inferred from behavior and a set of test measures related to those traits.

Content validity The degree to which a test, interview, or performance evaluation measures skill, knowledge, or ability to perform.

Contingency plan A plan for dealing with emergencies and extraordinary situations of various kinds.

Contingency search A search firm which collects its commission upon the hire of one of its presented candidates. Contingency search firms usually work without a contract.

Contributory negligence A legal doctrine that places the responsibility for injury upon the injured person because of that person's own negligence.

Core work time A period of time in a flextime work schedule in which all employees in a particular unit or group must be at work.

Cost of living adjustment

A salary / wage increase for all employees or for a specific class of employees due to inflation.

Criterion-related validity The extent to which a selection technique is predictive of or correlated with important elements of job behavior.

Critical incident rating The system of selecting very effective and ineffective examples of job behavior and rating whether an employee displays the behaviors specified in the critical incidents.

DReturn to topDamages Money or other compensation recovered in the courts by any person

who has suffered a loss. Data base A collection of information that is stored electronically and that can be

retrieved by the use of a computer. Davis-beacon act A Federal law which applies to employers with government contracts

and which mandates that employees be paid at prevailing wages. De facto In fact, in deed, actually. Decertification election An election in which employees that are represented by a union vote to

drop union representation. Deductible Amount of money insured must pay before insurance benefits are

payable. Defamation Any statement that has been communicated to another and that tends

to hold a person up to contempt, ridicule, or ill-repute. A defamatory statement forms the grounds for a lawsuit if it is untrue. A defamatory statement is a libel if it is written and a slander if it is communicated orally.

Direct deposit A program which allows employees to authorize the employer to make

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automatic deposits of their paychecks directly into their savings or checking account in any financial institution.

Disability A physical or mental impairment that substantially limits one or more of a person's major life activities.

Disclaimer A statement repudiating or renouncing a claim or representation. Disparate impact A disproportionate adverse effect on a particular disadvantaged group. Diversity The overall process of assimilating, training, promoting, managing, and

increasing the number of minority personnel into the workforce. Downsizing A euphemism used for cutting back on the number of employees; a

layoff of workers.

EReturn to topEap (employee assistance program) also referred to as (employee assistance plan)

Employer-sponsored program(s) designed to provide counseling to identify and rectify problems concerning health, marital difficulties, alcohol and drug abuse, stress, financial, legal, emotional, or other things that may affect an employee's work performance.

Early retirement Retirement that commences before the designated standard age of retirement, which is usually accompanied by lesser pension benefits. In some cases, however, companies will offer early retirement programs as a way to avoid layoffs, and for purposes or incentive, benefits are not diminished.

Eeo-1 form Form required by the Department of Labor for employers with 100 or more employees. Summarizes workforce by job category, race, and color.

Employee retirement income security act of 1974 (erisa)

A Federal law which regulates private employer pension, retirement, and welfare plans.

Employee stock ownership plan (esop)

A type of profit-sharing program where employees receive stock ownership based on a percentage formula relating to annual company profitability. Eligibility is usually determined by length of service, with the actual number of shares being determined by a ratio of the employee’s annual wage or salary.

Employment-at-will An employment arrangement that grants employers the right to fire employees for any reason, or for no reason at all, and likewise, allows employees to quit their jobs at any time for any reason with or without advance notice.

Empowerment The act of giving employees more power and authority to make decisions that directly affect their job.

Equal pay act of 1963 An amendment to the Fair Labor Standards Act of 1938 which prohibits gender-based wage discrimination between men and women who are performing essentially similar work.

Ergonomics Pertaining to an arrangement of physical tasks in such a way as to accommodate the functions and limitations of the human body.

Equal pay theory The theory that men and women should be paid equally for performing equal work, made into law by the federal Equal Pay Act.

Essential functions Duties that are basic or fundamental to a position; under ADA, reasonable accommodation must be made in order for a qualified individual with a disability to perform the essential functions of a position.

Executive order 11246 Requires companies which have federal contracts or subcontracts to

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implement written affirmative action plans to increase minority and female representation in the workplace.

Experience rating A figure used by workers' compensation insurers and state unemployment authorities in calculating premium rates or contribution rates that make appropriate adjustments to reflect an employer's claims history.

Exempt employee Employees who are working in positions which are considered exempt from the Fair Labor Standards Act of 1938 (FLSA). Examples include – directors, managers, supervisors, outside salespeople, and contract employees.

Exit interview An interview with an employee who is leaving the company; such a meeting gives employer opportunity to pass along information regarding health care coverage and other benefits. The employer is also able to inquire the employee as to their reason for leaving and their opinion of the company, which may be helpful to the employer regarding future employee policies and relations.

External equity Term primarily associated with compensation design, whereby company salary and wages are equivalent with the prevailing salary and wages in the local area.

FReturn to topFactor comparison method

A job evaluation method which uses a factor-by-factor comparison. A factor comparison scale, instead of a point scale, is sed. Five universal job factors used to compare jobs are

Physical effort, mental effort, working conditions, responsibilities, and skills. Fair employment practice

A manner of operating in which there is no discrimination on the basis of factors that do not apply to job performance- for example, race, gender, religion-in employment practices.

Fair employment practice agency (fepa)

A state or local governmental agency. Charges of discrimination under Title VII and ADA must be deferred to state or local FEPA’s for processing, investigation, and adjudication.

Fair labor standards act of 1938 (flsa)

A Federal law which mandates minimum wage, overtime pay, equal pay for men and women in the same type of job, establishes record-keeping requirements, and prohibits certain child labor.

Family and medical leave act of 1993 (fmla)

A Federal law which requires private sector employers with 50 or more employees, and public agencies to provide up to 12 weeks of unpaid leave to eligible employees for certain specified family and medical reasons; to maintain preexisting group health insurance during periods of FMLA leave; and, to restore eligible employees to their same or equivalent positions at the conclusion of their FMLA leave.

Federal insurance contributions act (fica)

Requires payroll withholding and matching employer contributions to the social security program.

Fee for service Most traditional means of compensating health care professionals for medical / surgical services performed. Fees vary according to procedures performed, or the usual, customary, and/or reasonable fees scheduled by the insurance provider.

Feedback The degree to which carrying out the work activities required by the job results in the worker receiving direct and clear information about the effectiveness of his/her performance.

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Fiduciary A trustee; a person to whom money or property had been turned over, to be managed and taken proper care of for the benefit of others.

First quartile Associated with compensation which is the amount of compensation that falls in the range between the minimum wage and the half-way point between the minimum and the median. This area is where most new hires compensation is derived.

Flexible spending account (fsa)

An arrangement where employees are permitted under IRS rules to contribute specific percentages of pretax wages to an individual spending account for reimbursement of eligible child care or health care expenses.

Flextime (also flexible work time)

A flexible working arrangement where the employee is present during core (critical) working hours but has the ability to arrive and/or depart at different times each day, while still meeting the agreed upon number of hours worked each week (usually 40).

Flow chart A document that shows the progression of a product, a piece of information, or a delegation of authority from one person or department to another within an organization.

4/5ths rule Discrimination is likely to occur if the selection rate for a protected group is less than 4/5ths of the selection rate for a majority group.

Fourth quartile In compensation, a salary or wage which falls in the range between the maximum and the point which is half-way between the mid-point and the maximum. This range is hardly ever used in hiring new hires and is reserved for performance awards and career progression.

Fsa (flexible spending account)

An account set up for employees by an employer as a benefit plan, to which employees contribute a portion of their gross earnings each month. Employees can make withdrawals from these accounts to pay for specified expenses (but lose any funds they do not spend at the end of the year).

Functional job analysis (fja)

A job analysis method that attempts to identify what a worker does in performing a job in terms of data, people, and things.

GReturn to topGarnishment A legal proceeding that takes property or money from a person to

satisfy a debt. (for example, an employee may have money automatically deducted from his or her check until a debt is repaid.)

Good faith Genuineness; sincerity. Grading system See classification system 'Grandfather' clause Language in a statute or regulation that exempts an otherwise covered

entity because of its status prior to the adoption of the statute or regulation.

Green card Another term for an INS Alien Registration Receipt Card (Form I-151 or I-551), an immigrant visa that allows an alien to become a permanent resident of the U.S. and lawfully secure work

Green circle rate A salary rate that is below the minimum for its salary range. Grievance A complaint about a job that creates dissatisfaction or discomfort for the

worker. Gross misconduct Behavior which causes someone to lose their job as the result of

actions that are more serious than poor performance or judgment.

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Halo effect or halo error A rating error that occurs when a rater assigns ratings based on an overall impression (positive or negative) of the person being rated.

Harshness rating tendency or harshness rating error

A tendency to rate everyone low on the criteria being evaluated.

Honesty test Any of a number of psychological surveys that attempt to expose an individual's tendency to be dishonest.

Hostile environment A term used for the result of sexual harassment that creates an abusive or intimidating working environment for the person being harassed.

Hot cargo agreement The employer permits union members to avoid working with materials that come from employers whose employees are on strike. This type of boycott is illegal.

Human resources information system (hris)

Computerized personnel management and records keeping system which covers all major HR operations, usually encompassing compensation and benefits, manpower planning, payroll administration, timekeeping, training, government required reporting, etc.

Human resource planning

The process which provides adequate human resources to achieve organizational goals. It includes forecasting future needs for employees of all types, identifying current capabilities and limitations, and determines the numbers of specific types of employees who need to be recruited or phased out of the organization and when.

IReturn to topI-9 form The employment eligibility form which must be completed by new

employees and employers certifying employment eligibility in compliance with U.S. regulations.

Immigration and reform control act of 1986

A Federal regulation which controls illegal immigration to the U.S. and prohibits employment of unauthorized foreign nationals.

Impairment The state of being physically, mentally, or psychologically damaged or weakened.

Implied contract A legal relation in which mutual obligations may be inferred, without formal agreement, simply from the conduct of the parties and their mutual understandings and expectations.

Indemnity Protection against loss; surety; guarantee; insurance. Verb - indemnify Independent contractor A person who performs work for another person but is not that person's

employee. Indexing The periodic and automatic adjustment of employee compensation to

account for inflation in the economy. Injunction A court order to refrain from particular conduct. Insolvency The state of having insufficient assets to satisfy debts. Internal equity A term primarily associated with compensation design whereby all

jobs / job classifications of a similar nature are compensated at an equivalent rate.

Interquartile range In an ordered series of numbers (pay scale or range for example), the distance between the third quartile and the first quartile. It contains the middle 50 percent of data along with the arithmetic mean.

JReturn to topJob analysis The process of defining a job in terms of tasks or behaviors and

specifying the education, training, and responsibilities needed to

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successfully perform the job. Job description A description of what a specific job entails along with employee

characteristics necessary to successfully perform it. Job enrichment A method of designing a job so that employees can satisfy needs while

performing the job. Job evaluation The formal process by which the relative worth of various jobs are

determined for pay purposes. Job family A group of two of more jobs that have similar job duties. Job loss A condition in which there is no work and the individual is sent home

permanently. Job posting A listing of job openings that includes job specifications appearing on a

bulletin board or in a company publication. Job ranking A job evaluation method often used in smaller organizations, in which

the evaluator ranks jobs from the simplest to the most complex / challenging.

Job search The set of activities a job candidate initiates to seek and find a position which will be comfortable and rewarding.

Job sharing A situation in which two or more part-time employees share on job. The job itself is usually a full time job; however, the position is filled with two or more part-time employees.

Job specification The traits and experience necessary to perform a job.

KReturn to top

LReturn to topLabor-management relations act of 1947 (taft-hartley act)

Defines labor relations rights of both employees and employers, prohibits unfair labor practices, and specifies collective bargaining rights.

Labor relations The continuous relationship between a defined group of employees (e.g., a union or association) and the employer.

Landrum-griffin act A federal labor law passed in 1959 that defines the rights of union members. It regulates and audits the internal affairs of unions.

Leave allotment Refers to the total number of weeks of leave eligibility granted to an eligible employee per year under applicable leave laws; i.e., the leave allotment under federal law is 12 weeks per year to eligible employees.

Leave bank (sometimes referred to as a paid time off or PTO bank) 1. A lump disbursement of a certain number of days or hours of leave, from which an employee can draw time and self-designate it as vacation time, sick time, personal leave, etc; 2. A bank maintained by the employer to which employees can "donate" vacation or sick time, to be used by co-workers with catastrophic illnesses requiring extensive time off the job. Some employers maintain leave banks on an ongoing basis; others establish such banks on a case-by-case basis when a particular employee is in need of extended leave.

Leniency rating error The tendency to rate everyone high or excellent on every criteria. Liability A debt; a disadvantage; vulnerability to a lawsuit. Libel A defamatory statement that is published (i.e., disclosed to another

person) in writing. Liquidation Conversion to money; sale of assets. Lockout A work stoppage by the employer in connection with a labor dispute; or,

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the securing of an item of equipment, especially electrical equipment during repair and maintenance, so that the equipment cannot be activated accidentally.

Lump-sum distribution Payment of an entire amount due, all at one time (as opposed payment in installments or annuity payments).

MReturn to topManaged care A health care delivery system which stresses preventive health care in

a group practice environment. Major deliverers include ppo, hmo, and ipa systems.

Management by objectives (mbo)

A management technique in which management and employees collaboratively set goals for the ensuing performance review period.

Management by walking around (mbwa)

A theory that managers cannot possibly do an effective job of supervising unless they leave their office or desk to observe and collect data and impressions by informal visits to worksites.

Management development

The process by which managers gain experience, skills, and/or attitudes necessary to become or remain successful organizational leaders.

Material safety data sheet (msds)

A document containing information about the properties and safe handling of a substance, especially, a hazardous substance.

Median The middle number in a set or numbers arranged from highest to lowest.

Mediation A method of dispute resolution in which the parties present evidence and arguments to an impartial third party, whose obligation is to help bring about an agreed settlement.

Merit pay Method of compensating employees based on established company standards of performance. This system has principally replaced the older step-grade system or systems of automatic promotions based on tenure or seniority.

Merit system A system used by federal and state governments for hiring and promoting governmental employees to civil service positions, on the basis of competence.

Mid point The middle pay rate in a compensation system for a specific pay scale, it can be determined by subtracting the minimum wage from the maximum, then dividing by two, and adding the result to the minimum.

Multiculturalism Political or social philosophy promoting cultural diversity. It generally relates to the contributions of women, non-europeans, asians, african-americans, and hispanic ancestry.

Multirater assessments A performance rating technique which includes evaluations from other persons in addition to the employee’s immediate superior. Input may be solicited from co-workers, subordinates, or even customers.

NReturn to topNational labor relations act of 1935 (nlra)

See Wagner Act

National labor relations board (nlrb)

Federal Agency created to enforce the Wagner Act.

National origin A term that refers to the country in which a person was born or from which his or her ancestors came; discrimination based on national origin is considered a violation of an individual's civil rights.

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Negligence The failure to use proper care. Negligent referral A failure by the former (or soon to be former) employer of an employee

to inform future potential employers of job-related negative information regarding that employee, when acting as a reference on their behalf.

Nepotism The employment of relatives and friends of the employer and of other employees.

No-fault leave policy A leave policy in which employees are automatically terminated after they have been on leave for a certain amount of time, regardless of the reason for taking the leave.

Non-compete agreement An agreement between the employer and an employee that if the employee leaves the company, the employee will be barred from working for a competing company, work within a certain distance of the employer, or both, for a specified time.

Non-exempt employee An employee in a position which requires compliance with the overtime and minimum wage requirements of the Fair Labor Standards Act (FLSA).

OReturn to topOccupational safety and health act of 1970 (osha)

Federal legislation which prescribes occupational safety and health requirements and standards for employers along with mandatory reporting requirements.

Old age, survivors, disability, and health insurance program (oasdhi)

Federal legislation which primarily enables the operation of the Social Security and Medicare programs.

Open shop A work situation where a union is not present and there is not active campaign to keep a union out.

Outplacement Providing help to terminated employees in finding new employment. Outsourcing To subcontract a service or function which may have been performed or

conducted internal to the organization at one time.

PReturn to topPart-time employee (employment)

A job in which the employee works less than 35 hours per week

Pay class A convenient grouping of a variety of jobs that are similar in their work difficulty and responsibility requirements.

Percentile A numerical value which defines the value below which a given percentage of the data fall. It is primarily used in wage and salary surveys and ranges.

Pecuniary Monetary, financial, and usually used to identify the type of damages awarded to a plaintiff.

Peer review A procedure for handling employee grievances in which a committee consisting of representatives of employees and management hear and decide all grievances.

Per diem Per day; an amount of money that is payable per day. Performance analysis A systematic procedure that is used to determine if training is needed to

correct behavior deficiencies. People principle Principle practiced by a company when it shows genuine respect for its

employees and recognizes dignity of work as well as the dignity of the individual. Employees, even in our modern era of eroding employee

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loyalty, will still respond favorably to a management that demonstrates sincere concern for their welfare.

Performance evaluation The activity used to determine the extent to which the employee is effectively performing the job.

Performance management system

The entire collection of performance analysis, evaluation, goal setting, deficiency correction, and rewards for outstanding performance in an organization.

Piecework A method of employee compensation in which the employee is paid for output (by the "piece") rather than for time (by the hour).

Point factor evaluation A job evaluation system which uses numerical values to compare and evaluate the relative worth of different positions.

Point of service plan (pos)

A health insurance plan which enables the insured to have the option of either managed care services or out-of-network care. Out-of-network services may require either coinsurance or deductibles since they are usually more expensive.

Point system The most widely used job evaluation method. It requires evaluators to quantify the value of the elements of the job.

Portability The right of an employee to transfer pension credits from one employer to another.

Position The responsibilities and duties performed by an individual, along with the budgeting of sufficient dollars to pay employee compensation and benefits.

Position control system (pcs)

An automated computer-based system which enables management to plan, budget, and control staffing.

Polygraph An electrical apparatus that purports to identify untruthful responses by measuring various physiological functions during questioning.

'Portal-to-portal' Short for the Portal-to-Portal Act, which relieved employers of the obligation to pay employees for time spent traveling to and from the worksite.

Preexisting condition A condition (usually physical) of an employee that exists prior to the commencement of health care under a group medical plan, which is oftentimes refused coverage.

Preferential shop The union is recognized and union members are given preference in some areas. This action is a violation of the taft-hartley act.

Premium An amount of money paid for the purchase of an insurance policy, usually calculated in proportion to the risk insured against.

Premium sharing Employees share a percentage of the cost of group monthly premium costs with their employer. This is primarily used in covering eligible dependents.

Prevailing wage The wage, as determined by the government, that prevails among workers in a particular occupation and geographical area and that must be paid to workers in similar occupations on projects that are performed under government contracts.

Preventive program A program within an organization to achieve a high level of employee wellness and to decrease health impairment / maintenance costs. Programs typically involve – health exams, stress management, stop smoking programs, and physician recommendations, and may include a physical exercise program.

Prima facie Sufficient, in terms of evidence, to establish a fact. Professional in human resources (phr)

A certification awarded to HR professionals who pass a comprehensive examination and meet the stringent requirements for both education and experience specified by the Society for Human Resource Management (SHRM) and the Human Resource Certification Institute (HRCI).

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Progressive discipline A specific set of procedures regarding employee discipline in which disciplinary actions "progress" in their severity at each instance where it becomes necessary to impose it. For example, the first step could be one or more verbal warnings, followed by one or more written warnings, followed by suspension, and finally termination. Practicing consistently applied progressive discipline thwarts both hasty terminations and/or playing favorites on the part of management as well as claims of discrimination on the part of employees.

Prohibited factor That which cannot be used as criterion for making an employment decision, such as the race, gender, or religion of the candidate.

Proprietary information That which belongs exclusively to a person or company. Protected class A group that is covered by antidiscrimination or fair employment

practices laws, such as minorities, women, the disabled, etc. Protected concerted activity

Section 9(a) of the National Labor Relations Act that provides that any employee or group of employees has the right to present grievances to the employer whether or not that employee is represented by a labor union.

'Public policy' A societal objective or interest; a legal right or obligation, expressed in a constitution, statute, regulation, or judicial decision, that benefits the general public.

Punitive damages Money that is awarded to a plaintiff in a judicial proceeding to punish a defendant for a wrongful act.

QReturn to topQualified beneficiary A term used by COBRA that refers to an employee or his/her spouse

and/or dependent children when they are eligible to receive coverage under COBRA because health care coverage was lost as the result of a qualifying event.

Qualifying event A term used by COBRA that refers to specific events that result in an employee or his/her spouse and/or dependents children's loss of health coverage, such as divorce, layoff, or termination. Such events "qualify" that individual or individuals to be covered under COBRA.

RReturn to topRealistic job preview A briefing that provides a job candidate with accurate and clear

information about the attractive and unattractive features of a job. Rjp’s are as realistic as possible in order to honestly establish realistic job expectations.

Reasonable accommodation

A change in workplace methods, procedures, equipment, schedules, or plant arrangement that facilitates the performance of job tasks by workers with special needs, without exorbitant cost.

Recall The act of bringing employees back to work after a temporary layoff. Usually, recall will proceed on the basis of seniority- those with the most seniority will return to work first- or on a "last to be fired, first to be hired" basis.

Recency error A rating tendency to use the most recent events to evaluate an employee’s performance instead of considering the whole rating period.

Red circle rate A salary above the maximum for the salary range. Reengineering A procedure whereby a company reorganizes its work process to more

effectively create its product or service for the customer. Reengineering

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often eliminates layers of jobs. Rehabilitation act of 1973

Federal legislation which prohibits employers with federal contracts from discriminating against the handicapped. It requires employers to have written affirmative action plans for hiring the handicapped.

Release A document that relieves a party of legal responsibility toward the signer.

Reliability Refers to a selection technique’s freedom from systematic errors of measurement and its consistency under varying conditions.

Remuneration Payment for goods provided or services rendered; compensation. Repetitive motion injury Any bodily injury sustained as a result of repetitive motions over a long

period, particularly those performed in connection with employment. Representation A statement which induces a party to undertake an obligation. Representation election A secret ballot vote to determine if a particular group will represent the

workers in a collective bargaining relationship. It is monitored by the national labor relations board (nlrb).

Respondent superior A legal doctrine that holds the employer responsible for acts committed by employees in the course of their employment.

Restraining order A court order to refrain from particular conduct; an injunction. Restricted shop A practice initiated by management to keep a union out without

violating labor laws. A restricted shop an attitude rather than a formal arrangement.

Restructuring A process of reorganizing businesses and/or getting rid of unnecessary operations.

Retained search When a search firm is granted exclusive rights to fill a particular position. Company is paid a portion in advance, and presents, in its opinion, the five highest qualified candidates for the company to choose from. The search firm takes responsibility for everything up to the final interview. Usually, it may also involve a satisfaction guarantee for one year, to fill the position should the selected candidate vacate the position.

Retaliation An action taken by an employer that has a negative impact on an employee because the employee has complained about or claimed wrongdoing against the employer.

Reverse discrimination Prejudice exercised against a person or class for the purpose of correcting a pattern of discrimination against another person or class.

Right to work A classification of employment determined by law by the state of employment, which allows any employee to work for the organization without regards to union membership. 19 states (including texas) have right to work laws.

Rightsizing Eliminating or scaling back unnecessary or outdated jobs to achieve more efficient operations.

SReturn to topSalary midpoint The rate of pay half way between the minimum and maximum salaries

for a specified range. 'Same actor' inference The claim that if the person who fires an employee was the same

person who hired that employee, then it logically follows that there is no basis for a complaint of discrimination against the employer.

Scab Slang term for a worker who replaces a striking employee. Second quartile In compensation – any wage or salary which falls in the range between

the middle point of the salary range down to the point which is half-way

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between the minimum and the middle point. Some new hires with exceptional experience or high performance expectations may be hired in this area.

Selection The process by which an organization chooses from a list of applicants the person or persons who best meet the selection criteria for a position available, considering current environmental conditions.

Spd (summary plan description)

A document that explains the claims procedure and other benefit information of a health care insurance plan to employees.

Seniority Relative duration of service. Senior professional in human resources (sphr)

Certification awarded to HR professionals who pass a comprehensive examination and meet the stringent experience and educational requirements specified by the Society for Human Resource Management (SHRM) and the Human Resource Certification Institute (HRCI).

Service letter A letter provided to an employee by a former employer, describing the nature and duration of the employment and the reason for termination.

Set-asides A proportion of government contracts that are reserved for businesses owned by members of disadvantaged groups.

Severance pay Money offered by employers to workers who have been terminated or laid off.

Sexual harassment Unwelcome sexual advances or conduct on the job, which can ranges from offensive jokes to pornography to outright sexual assault. Sexual harassment is prohibited by the federal civil rights act of 1991.

Sit-down strike The occupation of an employer's facilities by striking employees. Skill variety The degree to which a job requires a variety of different activities in

carrying out the work. Skills inventory A list of the names, characteristics, skills, and knowledges of

employees. It provides a way to acquire data and make it available where needed in an efficient manner.

Slander A defamatory statement that is published (i.e., disclosed to another person) orally.

Small necessities Term coined by several states to refer to certain family obligations of workers, such as attending to children's school conferences and pediatrician visits, and/or assisting elderly relatives with doctors visits and personal care. Several states now mandate that employers give time off to attend to those matters pursuant to small necessities leave laws.

Statute of frauds The legal requirement that certain contracts (e.g., for the sale of land, for services that cannot be performed within a year) be in writing.

Statutes of limitations Laws that establish deadlines for the institution of various kinds of legal actions.

Strict liability Legal responsibility for injury, without regard to fault. Strike A work stoppage by employees in connection with a labor dispute. Subcontractor An individual or company that takes on a portion of a contract originally

assigned to a primary contractor. Subsidies Government grants given to businesses, which can occur in a number

of ways and for a number of reasons. Generally, the government grants subsidies when they have a vested interest in the company or organization or believe it to be beneficial to the public.

TReturn to top

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Taft-hartley act See Labor-Management Relations Act of 1947. Tagout The tagging of a piece of equipment, especially electrical equipment

during repair or maintenance, that prevents the equipment from being activated accidentally.

Task A coordinated and aggregated series of work elements used to produce an output.

Task identity The degree to which the job requires completion of a whole an identifiable piece of work.

Team building A development method which attempts to improve the cooperation between team members or among various teams.

Telecommuter An employee who works at home and communicates with the employer by telephone, often including the transfer of computerized data.

Telemarketing Sales via telephone. Tenure Incumbency in a job; in academic employment especially, an

entitlement to "lifetime" employment that is granted to faculty members who satisfy certain criteria.

Termination for cause Termination of an employee on grounds that any reasonable person would view as justified.

Third quartile In compensation, a salary or wage which falls in the range between the mid point and the point which is half-way from the mid-point to the maximum. This range is usually not paid to new hires and is reserved for career progression and performance awards.

Tort A wrongful act for which a person can be sued. Total quality management (tqm)

Attempt by employee teams to find ways to improve their own productivity and the quality of their product or service.

Training The systematic process of altering the behavior of employees in a direction to produce organizational goals.

Transitional workplace A worksite that occupies workers who are recovering from illness or injury with "light" duties until they regain their ability to resume their regular jobs.

Type “a” behavior An action-emotion complex that can be observed in a person who is aggressive, in a struggle against time, competitive, and chronically impatient.

UReturn to topUndue hardship A term which refers to unreasonable or excessive expense or

inconvenience that would be necessary on the part of an employer to accommodate an employee.

Unemployment insurance

Established by the Social Security Act of 1935 to provide a subsistence payment to employees when they are between jobs. Both employer and employee contribute to a fund from which the subsistence allowance is drawn.

Union A group of employees who have joined together to achieve present and future goals that deal with employment conditions.

Union avoidance Either the acts of a company to quickly resolve employee concerns and ensure an attractive workplace environment in order to not attract an organizing campaign or the hiring of a third party organization to meet with employees during the six week period between employees filing the petition with the NLRB and the election.

Union security agreement

A collective bargaining agreement that requires all employees in the bargaining unit to be union members or to pay union dues.

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Union shop A situation in which the employee is required to join a union after being hired.

Union steward A union representative who works at the job site to solve disputes in connection with the labor-management labor contract.

VReturn to topVest To give an immediate right of present or future ownership. Vested benefits Benefits that have been accrued and are, therefore, owned by an

employee; not conditional or contingent in any way. Under erisa, all retirement plans must offer vested benefits.

Vietnam era veterans readjustment act

Federal legislation which requires employers with federal contracts or subcontracts to take affirmative action in hiring Vietnam era veterans.

Voucher A document that bears witness to a payment made. Vocational rehabilitation Occupational training to facilitate the reassignment of a disabled

worker.

WReturn to topWage and hour law See Fair Labor Standards Act Wagner act (national labor relations act of 1935)

Legislation that essentially gives employees the right to join a labor organization of their choice. Also created the national labor relations board to control and administer the legislation.

Waive To forego a legal right. Waiver A written or oral acknowledgment that a person has given up a legal

right. Warrant To promise. Warranty A representation regarding the quality or fitness of particular goods or

services. Weighted average A numerical value which is calculated by weighting each individual

average by the number of salaries in the set. May also be referred to as the weighted mean.

Whistle-blower A person who reports illegal or improper conduct, especially improper conduct on the part of the whistleblower's employer.

Willful Intentional, deliberate. Worker adjustment and retraining notification act (warn)

Federal regulation which requires employers with 100 or more employees to provide advance warning of plant closings or significant reductions in force.

Workers' compensation A program that provides fixed payments for wages lost and medical expenses to employees who are injured on the job. Usually, such payments can be extended to a worker's spouse and dependents. This benefits both employees and employers, because incapacitated employees continue to receive income and employers are protected from law suits resulting from injured workers.

Wrongful discharge Also referred to as an abusive discharge, a reason for termination of an employee that is not legitimate. A wrongful discharge is usually in violation of law (or the employee handbook).

YReturn to top

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Yellow-dog contract A promise by an employee or group of employees not to join a labor union.

401(k) plan An employee savings plan based upon section 401(k) of the Internal Revenue Code, which allows eligible employees to contribute a percentage of their salary on a tax-deferred basis into a company-administered investment plan.

403(b) plan Same as 401(k) except for non-profit organizations.

Acronyms & Abbreviations

A

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AAAffirmative Action AAAAmerican Arbitration Association AACaffirmative action clause AAIASPA Accreditation Institute AAOHNAmerican Association of Occupational Health Nurses AAPAffirmative Action Program AARPAmerican Association of Retired Persons ABCAmerican Benefits Council ABOaccumulated benefit obligation ACAAmerican Compensation Association now known as World at Work ACCCAssociate Certified Career Coach – certification granted by the Career Coach Institute AD&Daccidental death and dismemberment ADAAmericans with Disabilities Act ADEAAge Discrimination in Employment Act ADEC

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accumulated deductible employee contributions ADRalternative dispute resolution AFLCIOAmerican Federation of Labor and Congress of Industrial Organizations

AFSCAir Force – Air Force Specialty Classification (Job Title) AFSCMEAmerican Federation of State, County, and Municipal Employees AHAAmerican Hospital Association AIDSacquired immune deficiency syndrome AIHAAmerican Industrial Hygiene Association AMAAmerican Management Association ANSIAmerican National Standards Institute APA American Payroll Association, also American Psychological Association ARCAIDSrelated complex

ASAAmerican Statistical Association ASHPAAmerican Society for Hospital Personnel Administration ASISAmerican Society for Industrial Security ASSEAmerican Society of Safety Engineers ASTDAmerican Society for Training and Development

B

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BATBureau of Apprenticeship and Training BFOQbona fide occupational qualification BLRBusiness & Legal Reports, Inc., Old Saybrook, CT 06475 (8007275257) BLS

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Bureau of Labor Statistics (Department of Labor) BPIBusiness Periodicals Index

C

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CBPCertified Benefits Professional – certification granted by World at Work CCCCertified Career Coach – certification granted by Career Coach Institute CCPCertified Compensation Planner – certification granted by World at Work CCRCommission on Civil Rights CDCCenters for Disease Control and Prevention CEBSCertified Employee Benefits Specialist – certification granted by Wharton School and International Benefits Society CEOChief Executive Officer CFOChief Financial Officer CFRCode of Federal Regulations CIOchief information officer CMSCenters for Medicare and Medicaid Services

COBRA— Consolidated Omnibus Budget Reconciliation Act of 1985COLA—costofliving adjustment

COO—Chief Operating Officer

CPA—certified public accountant

CPC—chemical protective clothing

CPI—Consumer Price Index

CRA—Civil Rights Act of 1991

CSRA—Civil Service Reform Act of 1978

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CTD—cumulative trauma disorder (see also RSI)

CWPS—Council on Wage and Price Stability

D

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DDB—defined dollar benefit

DEP.—dependent

D&O—directors and officers (liability insurance)

DHHS—Department of Health and Human Services

DHS—Department of Homeland Security

DOD—Department of Defense

DOE—Department of Education or Department of Energy

DOJ—Department of Justice

DOL—Department of Labor

DOT—Department of Transportation

E

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EAP—Employee Assistance Program

EAPA—Employee Assistance Professionals Association

EBRI—Employee Benefit Research Institute

EBSA—Employee Benefits Security Administration (DOL)

EEO—Equal Employment Opportunity

EEOC—Equal Employment Opportunity Commission

EMA—Employment Management Association

EMTALA—Emergency Medical Treatment and Active Labor Act

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EO—executive order

EOE—equal opportunity employer

EOS—equal opportunity specialist

EPA—Equal Pay Act or Environmental Protection Agency

EPLI—employment practices liability insurance

ERISA—Employee Retirement Income Security Act (1974)

ERTA—Economic Recovery Tax Act of 1981

ESA—Employment Standards Administration (DOL)

ESGR—Employer Support of the Guard and Reserve

ESOA—Employee Stock Ownership Association

ESOP—employee stock ownership plan

ETA—Employment and Training Administration (DOL)

E&O—Errors and Omissions

F

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FASB—Financial Accounting Standards Board

FCRA—Fair Credit Reporting Act

FDA—Food and Drug Administration

FEP—fair employment practice

FEPAfair employment practice agency FICA—Federal Insurance Contributions Act

FLRA—Federal Labor Relations Authority

FLSA—Fair Labor Standards Act

FMCS—Federal Mediation and Conciliation Service

FMLA—Family and Medical Leave Act

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FPCA—Federal Pay Comparability Act of 1970

FSA—flexible spending account

FSB—Federal Supplemental Benefits (Program)

FSIP—Federal Services Impasses Panel

FT—Fulltime FTC—Federal Trade Commission

FTE—fulltime equivalent FTR—fulltime regular FTT—fulltime temporary FUTA—Federal Unemployment Tax Act

G

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G&R—guards and reserve

GAO—General Accounting Office

GIC—guaranteed investment contract

GSA—General Services Administration

H

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HIAA—Health Insurance Association of America

HIPAA—Health Insurance Portability and Accountability Act of 1996

HIV—Human Immunodeficiency Virus

HMIS—Hazardous Materials Identification System

HMO—health maintenance organization

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HMOA—Health Maintenance Organization Act of 1973

HRCI—Human Resource Certification Institute

HRIS—Human Resources Information System

HSA—Health Savings Account

HUD—Department of Housing and Urban Development

I

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I9 IAWP—International Association of Workforce Professionals IBS—International Benefits Society

ICC—Interstate Commerce Commission

IFEBP—International Foundation of Employee Benefit Plans

IHF—Industrial Health Foundation

ILR—industrial and labor relations

IME—independent medical examination

INS—Immigration and Naturalization Service now part of Department of Homeland Security

IPMAHR—International Public Management Association for Human Resources IR—Industrial relations, investor relations

IRA—Individual retirement account

IRCA—Immigration Reform and Control Act of 1986

IRRA—Industrial Relations Research Association

IRS—Internal Revenue Service

ISO—incentive stock option

ISPIInternational Society for Performance Improvement ISR—Institute for Social Research

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J

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JAN—Job Accommodation Network

JIMS—job information matrix system

JTPA—Job Training Partnership Act

L

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LMRA—Labor Management Relations Act

LMRDA—LaborManagement Reporting and Disclosure Act

M

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MCCC—Master Certified Career Coach – certification granted by Career Coach Institute

M/F—male or female

MFBE—minority/female business enterprise

MHPA—Mental Health Parity Act

MIS—management information systems

MOSarmy – military occupational specialty – job title MRO—Medical Review Officer

MSDS—material safety data sheet (OSHA)

N

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NCPE—National Committee on Pay Equity

NIOSH—National Institute for Occupational Safety and Health

NLRA—National Labor Relations Act

NLRB—National Labor Relations Board

NMB—National Mediation Board

NQSO—nonqualified stock option

O

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O*NET—Occupational Information Network

OASDHI—Old Age, Survivors, and Disability Health Insurance (Act)

OBRA—Omnibus Budget Reconciliation Act (1987)

OFCCP—Office of Federal Contract Compliance Programs (DOL)

OLMS—Office of LaborManagement Standards (DOL) OMB—Office of Management and Budget

OPM—Office of Personnel Management

OSH—Occupational Safety and Health (Act)

OSHA—Occupational Safety and Health Administration

OSHRC—Occupational Safety and Health Review Commission

OWBPA—Older Workers Benefit Protection Act

OWCP—Office of Workers’ Compensation Programs (DOL)

P

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PBGC—Pension Benefit Guaranty Corporation

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PCCC—Professional Certified Career Coach – certification granted by the Career Coach Institute

PCS— Position Control System also Permanent Change of Station

PDA—Pregnancy Discrimination Act

PHI—protected health information

PHR—professional in human resources

PPE—personal protective equipment

PPI—Producer Price Index

PPO—preferred provider organization

PRO—peer review organization

PT—parttime PTRparttime regular

PTTparttime temporary

Q

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QA—quality assurance

QC—quality control

QDRO—qualified domestic relations order

QJSA—qualified joint and survivor annuity

QPSA—qualified preretirement survivor annuity

R

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R&D—research and development

REA—Retirement Equity Act (1984)

Rev.—Revised

RIF—reduction in force

RSI—repetitive stress injury

RTK—right to know

S

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SAR—Summary Annual Report (benefits)

SHRM—Society for Human Resources Management

SIMPLE—Savings Incentive Match for Employees of Small Employers

SOC—standard occupational classification

SPD—summary plan description (benefits)

SPHR—senior professional in human resources

SPRW—Senior Professional Resume Writer – certification granted by Association of Professional Resume Writers

SSA—Social Security Act or Social Security Administration

SSAN—Social Security Account Number

SSD—Social Security Disability (Insurance)

SSI—Social Security Income or Supplemental Security Income

Stat.—statute

SUB—supplemental unemployment compensation benefit trust

T

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TADmilitary – temporary duty TDYmilitary – temporary duty TRATax Reform Act (1986) TRASOPTax Reduction Act Stock Ownership Plan TROtemporary restraining order

U

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UCunemployment compensation ULPunfair labor practice URLuniform resource locator USCU.S. Code USCISU.S. Citizenship and Immigration Services, an agency of the Department of Homeland Security. Formerly the Bureau of Citizenship and Immigration Services (BCIS) and—before that—the Immigration and Naturalization Service (INS). USDOLU.S. Department of Labor USERRAUniformed Service Employment and Reemployment Rights Act

V

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VADepartment of Veterans Affairs VDTvideo or visual display terminal VEBAVoluntary Employees’ Beneficiary Association VETSVeterans’ Employment and Training Service (DOL) VEVRAAVietnam Era Veterans Readjustment Assistance Act of 1974

W

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WARNWorker Adjustment and Retraining Notification (Act) of 1988 WAWWorld at Work WCworkers’ compensation WFPMAWorld Federation of Personnel Management Associations WHDWage and Hour Division (DOL) WIAWorkforce Investment Act WPMwords per minute W&Swage and salary

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