HR Glossary

US HR laws, payroll terms, and people-operations concepts — FLSA, FMLA, COBRA, ATS, OKR, KPI, PTO, ICHRA, BIPA, and more — explained in plain English with examples.

3 4 A B C E F H I K O P S T U W

3

Feedback collected from an employee's manager, peers, direct reports, and self — a full-circle view.

4

An employer-sponsored retirement savings plan that allows employees to defer pre-tax (or Roth post-tax) wages to a retirement account.

A

The Affordable Care Act — requires applicable large employers (50+ FTEs) to offer affordable health coverage or pay a penalty.

The Americans with Disabilities Act — prohibits employment discrimination against qualified individuals with disabilities.

At-Will Employment

The default US doctrine that allows either employer or employee to end the employment relationship at any time, with or without cause or notice — subject to anti-discrimination law.

Applicant Tracking System — software that manages job postings, candidate pipelines, and the recruiting workflow.

B

Biometric Attendance

An attendance system that verifies employee identity using fingerprint, face, palm, or iris recognition.

The Illinois Biometric Information Privacy Act — regulates the collection, storage, and use of biometric identifiers in employment.

C

The California Consumer Privacy Act — gives California residents rights over their personal information, including HR data.

The Consolidated Omnibus Budget Reconciliation Act — gives employees the right to continue group health coverage for up to 18 months after a qualifying event.

E

The Equal Employment Opportunity Commission — the federal agency that enforces US workplace anti-discrimination laws.

Exempt vs Non-Exempt

FLSA classification distinguishing employees entitled to overtime (non-exempt) from those who are not (exempt) based on duties and salary tests.

F

The Federal Insurance Contributions Act — payroll taxes that fund Social Security and Medicare.

The Fair Labor Standards Act — the US federal law that establishes minimum wage, overtime pay, recordkeeping, and child-labor standards.

The Family and Medical Leave Act — provides eligible US employees with up to 12 weeks of unpaid, job-protected leave per year for qualifying family or medical reasons.

H

Human Resource Information System — software that centralizes employee data, payroll, time, leave, and HR workflows.

I

USCIS Form I-9 — used to verify identity and US work authorization for every newly hired employee.

Individual Coverage Health Reimbursement Arrangement — lets employers reimburse employees for individually purchased health insurance.

K

Key Performance Indicator — a measurable value showing how effectively an individual or team is achieving objectives.

O

The structured process of separating an employee from the organization, including final pay, benefits cutoff, and asset return.

Objectives and Key Results — a goal-setting framework combining ambitious objectives with measurable key results.

The structured process of integrating a new hire into the organization during their first weeks.

The Occupational Safety and Health Administration — federal agency that sets and enforces workplace safety standards.

Pay at 1.5x the regular rate (or 2x in some states) for hours worked beyond statutory thresholds — typically 40 hours per workweek under the FLSA.

P

The process of calculating and disbursing employee compensation each pay period, including taxes and statutory deductions.

Performance Review

A formal evaluation of an employee's work performance, typically conducted annually or semi-annually.

Paid Time Off — a single combined leave category covering vacation, sick, and personal days.

The Pregnant Workers Fairness Act — requires reasonable accommodations for pregnancy, childbirth, and related medical conditions.

S

Salary Threshold

The minimum salary level for an employee to qualify as exempt from FLSA overtime — currently $1,128/week in 2026.

T

Total Compensation

The full annual cost of employing someone — salary, bonuses, benefits, equity, and employer payroll taxes combined.

U

The Uniformed Services Employment and Reemployment Rights Act — protects military service members from employment discrimination and ensures reemployment rights.

W

The IRS form US employers must issue to each employee by January 31 reporting annual wages and taxes withheld.

IRS Form W-4 — the Employee's Withholding Certificate that determines how much federal income tax to withhold from each paycheck.

The Worker Adjustment and Retraining Notification Act — requires 60 days advance notice for plant closings or mass layoffs by employers with 100+ employees.