Glossary of Human Resource Terms
Hiring & Onboarding
At Will Employment: Employment that can be ended by either the employer or employee at any time, for almost any lawful reason.
Applicant Tracking System (ATS): Software used to post jobs, collect resumes, and manage candidates during hiring.
Independent Contractor (1099): A worker who is self-employed and not on payroll, responsible for their own taxes and benefits.
Employee vs. Contractor Misclassification: Incorrectly treating an employee as a contractor, which can lead to tax penalties and legal risk.
Onboarding / New Hire Orientation (NHO): The process of welcoming, training, and setting up a new employee for success.
Pay, Payroll & Time
Exempt vs. Non Exempt Employee: Determines whether an employee is eligible for overtime under federal wage laws.
Fair Labor Standards Act (FLSA): The federal law that governs minimum wage, overtime, and child labor rules.
Overtime: Additional pay required when eligible employees work more than 40 hours in a workweek.
Base Pay: An employee’s regular hourly rate or salary before bonuses or incentives.
Total Compensation: The full value of pay plus benefits, bonuses, and perks.
Paid Time Off (PTO): A bank of paid vacation, sick, and personal time employees can use.
Leave Without Pay (LWOP): Approved time away from work that is unpaid.
W 2: The annual tax form showing an employee’s wages and taxes withheld.
Benefits
Open Enrollment (OE): The yearly period when employees can choose or change their benefits.
Health Savings Account (HSA): A tax advantaged savings account used to pay eligible medical expenses.
Flexible Spending Account (FSA): A pretax account for healthcare or dependent care costs.
COBRA: A law that allows employees to continue health insurance after leaving a job.
Explanation of Benefits (EOB): A statement from the insurance company explaining what was covered and what the employee owes.
Compliance & Risk
Equal Employment Opportunity (EEO): The requirement to provide fair treatment and avoid discrimination in employment decisions.
Americans with Disabilities Act (ADA): A law requiring reasonable accommodations and protecting individuals with disabilities.
Family and Medical Leave Act (FMLA): A federal law providing eligible employees unpaid, job protected medical and family leave.
Undue Hardship: When an accommodation would cause significant difficulty or expense for the employer.
Workers’ Compensation (WC): Insurance that covers medical costs and wages for employees injured on the job.
Employment Practices Liability Insurance (EPLI): Insurance that protects employers from claims like discrimination or wrongful termination.
Separation & Transitions
Offboarding: The process of managing an employee’s exit, including final pay, benefits, and system access.
Reduction in Force (RIF): A layoff or workforce reduction due to business or financial reasons.
Return to Work (RTW): Programs that help employees safely come back after injury or medical leave.
HR Systems & Metrics
HRIS (Human Resources Information System): Software used to manage employee records, payroll, benefits, and HR processes.
Key Performance Indicators (KPI): Metrics used to track progress and measure business or employee performance.
Return on Investment (ROI): A way to measure whether an HR program or business decision is worth the cost.