PART TWO of 50 Free PHR & SHRM Practice Questions From New Book: 1,000 PHR/SHRM Questions With Explanations! (PHR, SPHR, SHRM-CP, SHRM-SCP Exams)

Hello everyone, this post has 50 FREE PRACTICE QUESTIONS FOR THE PHR AND SPHR!!!

I am so grateful to everyone who purchased my books above , 500 HR Certification Practice Questions With Explanations..

I went ahead to also work on 1,000 HR Certification Questions which is available in the banner above.

In this post there are an additional 50 free practice questions to test your PHR and SPHR preparation skills on :). These questions are different from the first set of questions I posted from the first book,  so this means you can find 100 FREE PHR/SHRM-CP QUESTIONS on this blog :)

Here are the questions below. As always, please let me know your thoughts, I always love to hear from readers and learn/help where I can!

I wish you success!

  50 PHR& SHRM-CP Questions With Explanations And Answers.

1. Which of the following communications is an employer legally required to inform employees?  

1. Affirmative Action Plan as required by the OFCCP.
2. Fiduciary requirements and responsibilities.
3. When WARN applies in the case of a mass layoff or plant closing.
4. Information about Independent contractors.

Explanation: The Worker Adjustment and Retraining Notification (WARN) requires a 60 days advance notice to be given to employees and their union representatives in a mass layoff or plant closing.

2. Which of the following occurs if an employee comes to work in an inappropriate attire and is promptly sent home to change clothes?

1. Negative reinforcement.
2. Punishment.
3. Extinction.
4. Positive reinforcement.

Explanation: Punishment is a process by which a consequence immediately follows a behavior which decreases the likelihood of repetition. This is from B.F. Skinner’s theory of operant conditioning which entails changing behavior by the use of reinforcement.

3. Tim works in Ohio where the state minimum wage is $8.00. However, his company pays him $7.25 which is the current federal minimum wage. Tim’s friend, Ann  tells him this is illegal. Is Ann right?

1. Yes, the minimum wage payable to Tim is the state minimum wage because he is a resident of Ohio.
2. No, The federal minimum wage prevails over the state minimum wage always.
3. Yes, the higher minimum wage prevails when considering either the federal or the state minimum wage.
4. No, Tim is an exempt employee and exempted from minimum wage pay.

Explanation: When determining what minimum wage to pay between the federal and state minimum wage, the higher rate supersedes the lower rate. Tim should be paid the higher rate of $8.00.

4. What is the formula for calculating turnover rates in an organisation according to the Department of Labor?

1. (Total Terminations x 100) / (Avg. Number of Employees)
2. (Number of Terminations x 10/ (Avg. Number of Employees)
3. (Avg. Number of Employees) / (Number of Terminations)
4. (Avg. Number of Employees) / (Number of Terminations x 10)

Explanation: Turnover formula: Number of employees who left during the given time period   x 100

Average number of employees during the given time period.

5. Most FLSA exemption requirements require the salary requirement of $455 per week, which of the following exemptions do not require a salary requirement?

1. Computer professional exemption.
2. Learned professional exemption.
3. Outside sales exemption.
4. Administrative exemption.

Explanation: The outside sales exemption is the only exemption that does not require the salary requirement of $455 per week or $23,660 annually. Please note that effective December 1, 2016, there shall be an increase in the salary requirements for an exempt employee;(from $455 to $913 per week; from $23,660 to $47,476 annually) and Highly Compensated Employees (HCE)  total annual compensation requirement (from $100,000 to $134,004 per year).

6. Unemployment benefits are paid by the ------- government to workers who have become unemployed through no fault of their own. These benefits are funded by federal and state unemployment taxes levied against employers.

1. State.
2. Federal.
3. Local.
4. County.

Explanation: Unemployment benefits are generally paid by state governments.

7. Which of the following is another name for an Ishikawa diagram?

1. Bell Curve.
2. Pareto Diagram.
3. Cause and Effect Diagram.
4. None of the above.

Explanation: The Ishikawa diagram created by Kaoru Ishikawa is also called the cause and effect diagram or the fishbone diagram. It helps identify many possible causes for an effect or problem.

8. The Halz company has 300 employees and intends to lay off 100 employees due to redundancy. The HR Manager is debating whether the WARN Act applies to this layoff. Does it?

1. No, WARN applies to layoffs of at least 500 employees.
2. No, WARN applies to companies that have a total of 500 employees.
3. Yes, WARN applies to mass layoffs where 33% of the workforce will be laid off.
4. Yes, WARN applies to companies that have a minimum of 200 employees.

Explanation: The Worker Adjustment and Retraining Notification (WARN) Act of 1988 applies to mass layoffs and plant closings, requiring a 60-days advance notice to workers. A mass layoff is one where 500 employees OR 33% of the workforce (consisting of at least 50 employees) will be laid off. 33% of 300 employees is 99, so WARN applies to the Halz company’s planned layoff.

9. Ann, a HR professional has discovered green circle employees and intends to correct this to avoid discrimination claims as other employees in the same job are paid in the correct range. What is a green circle employee?

1. An employee covered under the 5 protected classes by Title VII.
2. An employee that is paid above the maximum salary range for the job position.
3. An employee that is paid under the minimum salary range for the job position.
4. An employee that is entitled to bonus plans.

Explanation: A green circle employee is an employee that is paid below the minimum salary range for the job position. The green circle employee is paid less than the job is worth to the company. Red circle employees, the opposite, are paid over the maximum salary range established for the job positions.  

10. What class of employers are exempt from keeping OSHA records of employee occupational injury and illness?

1. Employers with ten or fewer employees
2. Low hazard industries.
3. Employers in the educational sector.
4. A and B.

Explanation: There are two classes of employers that are exempt from keeping OSHA records; employers with 10 or fewer employees and low hazard industries.

11. Due to a layoff of 20% of its employees, the CEO of Nikky Jones Inc. has instructed the HR Manager to provide services to help smooth the transition for the exiting employees. These services can best be described as?

1. Severance packages.
2. Layoff benefits.
3. Outplacement services.
4. Unemployment Insurance.

Explanation: Outplacement services are designed to make career transition easier for laid off employees, These services could be employee counseling, career guidance, resume writing and job placement help and events.

12. Two of your employees cannot work as full-time employees anymore, one has a disabled son and another has begun a budding business. They have decided to share the duties of a full-time position between themselves, this is an example of?

1. Part-time employees.
2. Telecommuting.
3. Contingent Workforce.
4. Job sharing.

Explanation: Job sharing is an alternative staffing method that allows two employees to share the responsibilities of a job.

13. Workers’ compensation generally covers the following except?

1. Wage replacement benefits.
2. Medical treatment
3. Vocational rehabilitation.
4. Restricted stock.

Explanation: Workers’ compensation provides compensation to employees who suffer job-related injuries and illnesses. Benefits do not include restricted stock which are company stock issued to executives, the stock is not fully transferable to them until certain conditions have been met.

14. The federal program that provides aid to workers who lose their jobs or whose hours of work and wages are reduced as a result of increased imports is called?

1. Workforce Investment Act.
2. Trade Adjustment Assistance Program.
3. Unemployment Assistance Program.
4. Readjustment Assistance Program.

Explanation: The Trade Adjustment Assistance (TAA) program offers benefits and reemployment services to help unemployed workers who lose their jobs as a result of increased imports. Workers may be eligible for training, job search and relocation allowances, income support, and other reemployment services.

15. Which of the following organizations should employers contact for information about substances used in work processes to determine whether or not they are toxic?

1. Equal Employment Opportunity Commission.
2. National Institute for Occupational Safety and Health.
3. Occupational Health and Safety Administration.
4. Department of Labor.

Explanation: The National Institute for Occupational Safety and Health (NIOSH) is the federal agency responsible for conducting research and making recommendations for the prevention of work-related injury and illness.

16. Ted had his wages recently garnished for child support payments. Ted has a wife and children aside from the child for whom he is to pay child support. What is the maximum child support payments that can be garnished from Ted’s wages?

1. 25% of Ted’s wages before legally mandated deductions.
2. 50% of Ted’s wages after legally mandated deductions.
3. 60% of Ted’s wages after legally mandated deductions.
4. 25% of Ted’s wages after legally mandated deductions.

Explanation: Child support (and alimony) garnishments can be up to 50% of disposable earnings if the employee is supporting a spouse or child. If the employee is not supporting a spouse or child, up to 60% of disposable earnings can be garnished. An additional 5 percent may be garnished for support payments more than 12 weeks in arrears.Disposable earnings are earnings after legally mandated deductions (Social Security, Medicare) have been made. Other debts can be garnished up to 25% of disposable earnings.

17. The Clips company recently acquired the Line enterprises. A major concern for the CEO of the Clips company is how to retain the executives of the Line enterprises. Which of the following should the HR Manager of the Clips company recommend?

1. Gold Parachute.
2. Golden Handshake.
3. Golden Handcuffs.
4. Golden Life Jacket.

Explanation: Golden Life Jacket (also called stay bonus) is part of a compensation package that is offered to top executives of a company that is being acquired by another company. The purpose of this offer is to retain the executives in their current roles. These could be large bonuses or company stock options.

18. Jean has been offered an executive role at a Software engineering firm. She is concerned though about the stock options offered her which will not vest until she has been with the company for 10 years, and agreements that state she must return certain bonuses if she leaves the company before 5 years. The benefits stated above are most likely?

1. Executive pay trends.
2. Golden Parachutes.
3. Golden Handcuffs.
4. Qualified stock options.

Explanation: Golden handcuffs are offered by employers as a means of holding onto key employees and increasing employee retention.

19. Which of the following is not included in the OSHA general duty clause?

1. Employers are to provide a place of employment free from recognized hazards.
2. Employers are to comply with occupational safety and health standards.
3. Employees are to comply with occupational safety and health standards.
4. Employees are required to take workplace violence prevention training.

Explanation: The OSHA general duty clause does not include a requirement to take workplace violence prevention training.

20. For training that requires practical understanding of a realistic business situation, which of the following instructional methods is best?

1. Virtual training.
2. Case study.
3. Conference.
4. Presentation.

Explanation: Case studies are descriptions of a real life experience which are used to conduct trainings and enhance the participants’ understanding and learning experience.

21. A clause which prevents the reopening of collective bargaining negotiations during the term of the contract is called?

1. Closed clause.
2. Prevention clause.
3. Zipper clause.
4. Union clause.

Explanation: A zipper clause in the collective bargaining contract means that both parties waive the right to bargain during the term of the contract. Zipper clauses should be “clear and unmistakable.”

22. Wayne, the CEO of your company is searching for a performance program that clearly indicates to employees that performance impacts rewards. What kind of compensation program is this?

1. Internal equity compensation program.
2. Total-rewards compensation program.
3. Line of sight compensation program.
4. Entitlement compensation program.

Explanation: Line of sight is a compensation program based on the premise where employees can clearly see that their performance impacts their pay.

23. Which group has authority over unfair labor practices for federal employees?

1. National Arbitration Board.
2. National Labor Relations Board.
3. Federal Labor Board.
4. Federal Labor Relations Authority.

Explanation: The Federal Labor Relations Authority is an independent agency of the United States government that governs labor relations between the federal government and its employees.

24. Sandra’s employer refuses to offer her light duty during her pregnancy as the Pregnancy Discrimination Act (PDA) states that Sandra be treated as any other employee. Is this accurate?

1. Yes, that is an exact statement from the PDA.
2. No, the PDA states pregnant employees be treated the same as any other employee with a short-term disability.
3. Yes, the PDA is not the same as the ADA.
4. None of the above.

Explanation: The Pregnancy Discrimination Act of 1978 states that pregnant employees receive the same treatment as employees with any other short-term disability.

25. Which of the following will help you determine if a measurement actually measures something that cannot be directly observed?

1. Content validity.
2. Construct validity.
3. Concurrent validity.
4. Predictive validity.

Explanation: Construct validity refers to the degree to which a test or other measure assesses the theoretical construct it is supposed to measure. Content validity measures the significant parts or contents of the job e.g. a practical driving test.

26. The ADEA and the FLSA require that payroll records be kept for how long?

1. 3 years for exempt employees.
2. 4.5 years.
3. 2 years.
4. 3 years for all employees.

Explanation: The Age Discrimination in Employment Act(ADEA) and the Fair Labor Standards Act (FLSA) require that payroll records be kept for 3 years for all employees.

27. With regards to affirmative action, comparison of incumbency to availability means?

1. The availability of a particular protected group in the organisation.
2. Protected class in job groups in relation to availability in labor pool.
3. Demographic data on the labor pool.
4. Modification of current employment practices.

Explanation: One of the Affirmative action plan components is comparison of incumbency to availability which compares protected classes employed in each job group with availability in the labor force within a reasonable recruiting area.

28. The Dante company evaluates jobs by identifying and benchmarking job positions, with an emphasis on internal equity. This method of job evaluation is called?

1. Factor-point method
2. Classification Method.
3. Rating Method.
4. Ranking Method.

Explanation: Jobs can be evaluated by two methods, the classification and ranking methods. The classification method evaluates jobs by identifying benchmark positions and determining internal equity. Internal equity means the value of a job relative to other jobs in the company.

29. Your Head of IT has received complaints from his team members with similar responsibilities who claim that there is a wide disparity in their respective base pay. As the HR Business Partner, which of the following is likely to be the issue?

1. Distributive justice
2. Procedural justice.
3. Lack of equity pay.
4. Lack of pay equity.

Explanation: Procedural justice is the perception of how fair the process of arriving at pay ranges are perceived to be. Distributive justice indicates how closely pay reflects performance. Pay equity is the means of eliminating race and sex discrimination from pay or wages. Equity pay is a form of non-cash compensation that offers a form of ownership interest in a company.

30. In conducting a needs assessment for a payroll system in your organisation, which of the following should be your first step?

1. Identify organizational needs.
2. Compare various independent contractors and their rates.
3. Determine the payroll system of competitors.
4. None of the above.

Explanation: The first step to a needs assessment is identify the needs and describe objectives clearly before reviewing existing and collecting new data.

31. Which of the following is not a statutory deduction?

1. Medicare.
2. Income tax.
3. Wage garnishment.
4. Employee Stock Purchase Plans (ESPP).

Explanation: ESPPs are not legally required deductions.

32. The Binc company is not certain on how to process three wage garnishment orders for Ned, an employee in the Sales department who receives 25% of his base pay in commission. How should the wage garnishment orders be processed?

1. Fire Ned, the Consumer Credit Protection Act doesn’t protect employees that have more than one wage garnishment order.
2. Process all of the court-ordered garnishments.
3. Process no more than 25% of Ned’s total income.
4. Process no more than 25% of Ned’s disposable income.

Explanation:Wage garnishments are deductions made to satisfy a debt and should not exceed 25% of an employee’s disposable income. Disposable income is an employee’s pay after legally required deductions have been made.Firing Ned, though an option, doesn’t answer the question.

33. The business management tool that focuses on 4 key areas; financial results, customer results, internal business processes and learning and innovation is called?

1. Six Sigma.
2. Balanced scorecard.
3. Management by Objectives.
4. Total Quality Management.

Explanation: The balanced scorecard is the management tool that ties the outcomes of each department into one measurement system. It tracks information in 4 key areas as detailed on the question.

34. Which of the following is not one of the five phases of a project?

1. Planning
2. Budgeting.
3. Controlling.
4. Closing.

Explanation: Budgeting is a management function, not a project phase.

35. Your company receives a court order to garnish Fred's wages for unpaid child support. Can Fred be terminated for a child support wage garnishment order?

1. No, Title III prohibits termination if pay is garnished for only one debt.
2. Title III does not prohibit termination for any wage garnishment.
3. Employees are under the employment at-will doctrine and can be terminated for no cause.
4. Fred can be terminated as the wage garnishment is for child neglect.

Explanation: A wage garnishment is a legal procedure through which some portion of a person's earnings is required to be withheld by an employer for the payment of a debt. Title III of the Consumer Credit Protection Act (CCPA) prohibits employers from terminating employees whose wages are garnished for one debt. We can assume from the information that Fred has only one wage garnishment order.

36. Which law states that the statute of limitations (period within which legal action can be brought) for pay discrimination lawsuits resets every time an allegedly discriminatory paycheck is issued?

1. Equal Pay Act.
2. Workplace Anti-Discrimination Act
3. Wagner Act
4. Lilly Ledbetter Fair Pay Act.

Explanation: The Lilly Ledbetter Fair Pay Act (LFPA) states that an employee has 180 days to sue from the last discriminatory paycheck received. Prior to the LFPA, the statute of limitations of 180 days began to run from when the discriminatory act occurred and expired when 180 days were up; with the LFPA, the 180 days period within which legal action can be taken resets with each new discriminatory paycheck.The employee can also collect back-pay for the last two years.

37. What is the key differentiating factor to determine whether an individual is an employee or an independent contractor?

1. If the employer pays bonuses to the individual.
2. The degree of control over the work processes by the employer.
3. If the individual works in the employer’s business location.
4. If the individual is exempt under the FLSA.

Explanation: The degree of control an employer has over an individual’s work processes is the key consideration in determining if he/she is an employee or an independent contractor.

38. Which of the following is not a requirement by the Employee Retirement Income Security Act of 1974 (ERISA) ?

1. Private employers must set up a retirement plan and ensure all full-time employees are participants.
2. Employers are to provide participants with information about health & pension plans called the Summary Plan Description (SPD).
3. Fiduciary accountability.
4. Participants have the right to sue for benefits.

Explanation: ERISA does not require any employer to establish a pension plan. It only requires employers who establish plans to meet certain minimum standards.

39. Allen has analyzed an employee’s base salary in comparison with the midpoint of the company’s salary range. He divided the employee’s base pay of $50,000 by the midpoint which is $60,000 and multiplied this by 100 to get a percentage. Allen determines that the percentage is 83.3%. What is Allen calculating?

1. Regression Analysis.
2. Salary Adjustment.
3. Compa-ratio.
4. Merit increase matrix.

Explanation: Compa-ratio compares an employee’s pay with the midpoint of the salary range. Compa-ratios are used to measure an employee’s pay relative to the market average pay for his/her position for salary equity analyses. The salary range midpoint is usually 100% and here the compa-ratio for the employee’s pay is 83.3% of the salary range midpoint.

40. Tope will not receive her employer’s contribution to her pension plan till she has worked for the employer for 5 years. This is what type of vesting?

1. Graded vesting.
2. Immediate vesting.
3. Cliff vesting.
4. Participant vesting.

Explanation: Cliff vesting is when the employee becomes fully vested at a specified time rather than becoming partially vested in increasing amounts over an extended period of time (graded vesting). An example of "cliff vesting" is when an employee is fully vested in a pension plan after 5 years of full time service. An example of graded vesting could be a five-year schedule in which the employee receives 20 percent vesting each year.

41. In labor relations, the peer-review panel procedure is a function of:

1. Harassment resolution.
2. Promissory estoppel.
3. Conflict resolution.
4. Union organizing.

Explanation: Conflict resolution can be an internal procedure, one of which is known as peer-review panel. A Peer Review panel is a problem-solving process where an employee takes a dispute to a group or panel of fellow employees and managers for a decision. The decision is not binding on the employee, and he/she would be able to seek relief in traditional forums for dispute resolution if dissatisfied with the decision.

42. The EEOC makes many records publicly available on its website but will not release confidential records. Which of the following is not a confidential record?

1. An employer's EEO report.
2. Social Security numbers.
3. Records that reflect EEOC's internal decision-making.
4. Guidance documents.

Explanation: EEOC guidance documents are in the public domain and generally accessible; this includes the coverage and compliance requirements of the EEOC as well as enforcement guidance.

43. A voluntary resolution practice used by the EEOC for resolving charges of discrimination is called?

1. Witness interviews.
2. Mediation.
3. Litigation.
4. Constructive discharge.

Explanation: At the start of an investigation of a discrimination charge, the EEOC will notify the employer of the charge within 10 days, then advise both the organization and the charging party if the charge is eligible for mediation and settlement. Mediation and settlement are voluntary resolutions.

44. Which of the following employment laws does not require the employer to place a poster of the laws in a conspicuous location in the workplace?

1. Equal Employment Opportunity Commission (EEOC).
2. Fair Labor Standard Act (FLSA).
3. Occupational Safety and Health Act (OSHA).
4. None of the above.

Explanation: All the employment laws listed in the options above require employers to have posters of the laws placed in a conspicuous location in the workplace.

45. The LRMA is also known as which of the following Acts:

1. Landrum-Griffith Act.
2. Taft-Hartley Act.
3. Wagner Act.
4. Norris-LaGuardia Act.

Explanation: The Taft-Hartley is also known as the Labor Management Relations Act (LMRA); the Landrum-Griffith Act is also known as the Labor Management Reporting and Disclosure Act (LMRDA); the Wagner Act is also called the National Labor Relations Act.

46. Which of the following are exceptions to the definition of discrimination in the workplace?

1. Essential job functions & BFOQs.
2. Merit systems.
3. Piece-rate systems.
4. All of the above.

Explanation: Option A through C are valid exceptions allowable under Title VII of the Civil Rights Act of 1964.

47. Which of the following is not an Unfair Labor Practice by an employer?

1. Refusal to bargain.
2. Discrimination on the basis of labor activity.
3. Discrimination in retaliation for going to the NLRB .
4. Threats of bodily injury to non-striking employees.

Explanation: A threat of bodily injury to non-striking employees is a Union ULP not an Employer ULP. An employer will not threaten an employee who refuses to go on a strike.

48. Tayo has questions about labor union officer elections, union financial practices and transparency in labor union operations. Which of the following agencies should she contact?

1. EEOC.
2. NLRB.
3. Office of Labor Management Standard.
4. Wage and Hour Division of the DOL.

Explanation: The Office of Labor-Management Standards (OLMS) of the U.S. Department of Labor administers and enforces most provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). The LMRDA promotes union democracy, transparency and financial integrity in private sector labor unions through standards for union officer elections, union trusteeships and safeguards for union assets.

49. The first step in the process for an election to bring in a union is?

1. Decertification.
2. Union organizing.
3. Petition Filing.
4. Deauthorization.

Explanation: To start the election process for a union, a petition must be filed with the nearest NLRB Regional Office showing interest in the union from at least 30% of employees.

50. Vinney is to calculate the turnover rate in the Yen company. The number of employees that have left are 500 while the total number of employees are 1,500. What is the turnover rate for the Yen company?

1. 83.3%
2. 33.3%.
3. 25%.
4. 45%.

Explanation: The turnover rate is calculated as number of separations divided by the average number of employees multiplied by 100. The answer in this case is 33.3%.

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