HR Glossary

An employment relationship in which either the employer or the employee can end the relationship at any time, for any lawful reason, without prior notice. Most U.S. employment is at-will, subject to exceptions such as discrimination and retaliation protections.

The practice of keeping different categories of employee records in separate, access-controlled files rather than in one folder. The main personnel file, confidential medical records, I-9 forms, and payroll and tax records are stored apart from one another. Keeping medical information separate from the personnel file is a legal requirement, and a clean filing structure also supports audits, due diligence, and fundraising.

A classification that determines whether a worker is an employee, subject to tax withholding and employment protections, or an independent contractor engaged for services. Misclassifying a worker can create tax and legal exposure, and the standards vary by jurisdiction.

A unique number issued by the IRS that identifies a business for tax purposes. It is required to hire employees, run payroll, and file employment tax returns.

A third-party organization that becomes the legal employer of a company’s workers for payroll, tax, and compliance purposes, often used to hire in states or countries where the company does not have its own entity.

The federal form used to verify a new employee’s identity and authorization to work in the United States. Employers must complete it for every employee within the timeframes set by federal law and retain it according to required schedules.

The annual wage and tax statement an employer provides to each employee and files with the government, summarizing wages paid and taxes withheld for the year.

The federal tax form an employee completes so the employer knows how much income tax to withhold from their pay. Employees can update it when their tax situation changes.

A unit that expresses workforce size by converting employee hours into the equivalent number of full-time positions. Two half-time employees, for example, equal one FTE.

The software system an organization uses to store and manage employee data, such as records, payroll information, benefits enrollment, and time off. It serves as the central system of record for the workforce.

A requirement that employers report basic information about each newly hired or rehired employee to a designated state agency, usually within a set number of days of the start date. States use this information primarily to enforce child support orders.

The structured process of managing an employee’s departure from an organization, including knowledge transfer, return of property, final pay, benefits continuation notices, and system access removal.

A written document extending a job offer to a candidate, typically stating the position, start date, compensation, and key terms of employment. It usually clarifies that employment is at-will and is not a contract guaranteeing a fixed term.

The structured process of integrating a new hire into an organization, including completing required paperwork, setting up systems and access, and introducing the person to their role, team, and expectations.

A visual map of an organization’s structure showing roles, reporting relationships, and how teams and functions relate to one another.

The process of calculating and distributing employee pay, including wages, tax withholdings, and deductions, and remitting the required amounts to tax authorities and benefit providers.

The official set of records an employer maintains for each employee, such as offer letters, tax forms, performance documentation, and acknowledgments. Certain records, like medical and immigration documents, must be kept separately from the main file.

A firm that enters into a co-employment arrangement with a client company, taking on responsibilities such as payroll, benefits administration, and compliance support while the client retains day-to-day management of its workforce.

A documented policy that specifies how long each type of employment record must be kept and when it can be securely destroyed. Retention periods vary by record type and by federal, state, and industry requirements.

A joint federal-state program that provides temporary income to eligible workers who lose their jobs through no fault of their own. Employers fund the program through payroll taxes, and benefit amounts and duration vary by state.

A state-mandated insurance program that provides medical benefits and wage replacement to employees who are injured or become ill as a result of their job. Requirements and coverage details vary by state.

A decision that negatively affects a candidate or employee, such as declining to hire based on a background check. Certain adverse actions trigger specific notice requirements under the law.

Software used to manage the hiring process, including posting jobs, collecting applications, tracking candidates through stages, and storing hiring records.

A review of a candidate’s history, which may include employment verification, education, criminal records, or credit, conducted within the limits set by applicable law and typically with the candidate’s consent.

Laws that restrict when employers may ask about criminal history during hiring, typically prohibiting such questions on applications and in early interviews. Requirements vary by state and locality.

An interview technique that asks candidates to describe how they handled real past situations, based on the premise that past behavior is a useful indicator of future performance.

A candidate’s overall perception of an organization based on their interactions throughout the hiring process, from application through decision.

The pool of candidates at various stages of the hiring process, as well as prospects maintained for future openings.

An interview method focused on the specific skills and behaviors a role requires, using questions designed to assess whether a candidate has demonstrated those competencies.

A term, used notably in Massachusetts, for criminal record information and the rules governing how employers may request and use it in hiring.

A web-based federal system that allows employers to confirm the employment eligibility of new hires by comparing Form I-9 information against government records. Some states and federal contracts require its use.

A candidate recommended by a current employee. Referral programs are a common sourcing channel, sometimes paired with an incentive for successful hires.

An organization’s reputation as a place to work and the value proposition it offers employees, which influences its ability to attract and retain talent.

A standardized form candidates complete to provide consistent information for evaluation. Certain questions are restricted or prohibited in some jurisdictions.

A conversation with a departing employee, usually near their last day, to understand why they are leaving and gather feedback about their experience. The insights can help an organization improve retention and the workplace.

The leader responsible for the open role, who defines its requirements, participates in interviews, and typically makes the final hiring decision.

A case-by-case evaluation of whether specific information, such as a criminal record, is relevant to a particular role before taking adverse action, rather than applying a blanket exclusion.

A standardized form interviewers use to rate candidates against defined criteria. It creates a documented, comparable basis for hiring decisions.

A written summary of a role’s responsibilities, required skills, qualifications, and reporting relationships. It supports consistent hiring, compensation decisions, and performance expectations.

The public advertisement of an open role, typically drawn from the job description and written to attract qualified candidates. Some jurisdictions require pay ranges to be included in postings.

An internal request to open and fill a position, usually including the role details, budget, and approvals needed before recruiting begins.

The process of preparing, approving, extending, and negotiating job offers, and tracking their acceptance.

An interview conducted by multiple interviewers at the same time, allowing several perspectives on a candidate within a single session.

A qualified individual who is currently employed and not actively seeking a new role but may be open to the right opportunity.

An early-stage conversation, often by phone or video, used to confirm basic qualifications and interest before investing in more in-depth interviews.

An initial period of employment, sometimes called an introductory period, during which performance and fit are assessed. In at-will settings it does not change the at-will nature of employment.

The person who manages the hiring process for open roles, including sourcing candidates, coordinating interviews, and guiding both candidates and hiring managers through to a decision.

Contacting a candidate’s former employers or professional contacts to verify experience and gather insight into past performance.

An interview technique that presents candidates with hypothetical scenarios to learn how they would approach challenges they may encounter in the role.

The proactive identification and engagement of potential candidates, including those not actively applying, to build a pool of talent for open or future roles.

An interview approach in which every candidate is asked the same predetermined questions and evaluated against consistent criteria. It improves fairness and comparability across candidates.

A recruiting metric measuring the number of days from opening a role to a candidate accepting the offer. It helps assess the efficiency of the hiring process.

A signed confirmation that an employee has received and reviewed a document, such as the employee handbook or a specific policy. It provides a record that the information was distributed.

A federal law that protects applicants and employees age 40 and older from age-based employment discrimination. It generally applies to employers with 20 or more employees.

A federal law that prohibits discrimination against qualified individuals with disabilities and requires employers to provide reasonable accommodations, absent undue hardship. It generally applies to employers with 15 or more employees.

A statement, often in offer letters and handbooks, clarifying that employment is at-will and that the document does not create a contract for a fixed period of employment.

The published set of federal agency regulations. Many employment and industry obligations are defined by specific CFR sections.

A schedule of recurring compliance deadlines and obligations, such as required filings and notices, used to help an organization stay current throughout the year.

A form of unintentional discrimination in which a neutral policy or practice disproportionately disadvantages a protected group. It can create legal exposure even without discriminatory intent.

Time off that employees accrue and can use for their own or a family member's illness, medical appointments, or related needs. Requirements vary by state; in Massachusetts, employees earn sick time in most workplaces, and it must be paid once an employer reaches eleven employees.

An annual report that certain employers must file with the federal government showing workforce numbers by job category, sex, race, and ethnicity. Private employers with one hundred or more employees, and some federal contractors with fifty or more, are required to file.

The process of correctly categorizing workers, such as exempt or non-exempt and employee or contractor, to comply with wage, tax, and benefits requirements.

A document that communicates an organization’s policies, expectations, and benefits to employees. It helps ensure consistency and typically includes acknowledgments and required legal notices.

The principle and body of law that require employment decisions to be made without unlawful discrimination against protected characteristics.

The federal agency that enforces laws prohibiting workplace discrimination and investigates related complaints.

A classification under the FLSA that determines whether an employee is entitled to overtime pay. Non-exempt employees must receive overtime; exempt employees meet specific salary and duties tests and do not.

The federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. It also sets the framework for exempt and non-exempt classification.

A federal law that provides eligible employees with unpaid, job-protected leave for specified family and medical reasons. It generally applies to employers with 50 or more employees within a 75-mile radius.

A federal law that prohibits employers with fifteen or more employees from using genetic information, such as family medical history, in employment decisions. It also limits when employers may request or share that information.

A collective term for “good practice” quality guidelines in regulated industries such as life sciences. GxP obligations can affect HR areas like training documentation and record retention.

Training designed to help prevent workplace harassment and educate employees and supervisors on standards and reporting. Some states require it on a set schedule for certain employers.

A federal law that, among other provisions, protects the privacy and security of individuals' health information. Employers who sponsor group health plans have specific obligations regarding how protected health information is handled.

An approved period during which an employee is away from work, either paid or unpaid, for reasons such as medical needs, family care, or personal circumstances. Some leaves are protected by law, while others are offered at the employer's discretion.

A Massachusetts law that requires employers with fifty or more employees to provide up to fifteen days of job-protected leave in a twelve-month period to employees who are victims of abusive behavior, such as domestic violence, or whose family members are victims. Employers must keep the information confidential and may not retaliate against employees who use the leave.

A Massachusetts law requiring employers with six or more employees to provide up to eight weeks of leave for the birth or adoption of a child. It applies to both parents and runs alongside the state's paid family and medical leave program.

A Massachusetts law that requires employers with six or more employees to provide reasonable accommodations for pregnancy and related conditions, such as more frequent breaks, seating, and a private, non-bathroom space to express breast milk. It also requires employers to give employees written notice of these rights. The state threshold of six employees is lower than the federal one, which begins at fifteen.

A Massachusetts law that allows eligible employees of employers with fifty or more employees to take up to twenty-four hours of unpaid, job-protected leave in a twelve-month period for certain family obligations, such as a child's school activities, a child's routine medical appointments, or accompanying an elderly relative to appointments. Eligibility mirrors the federal FMLA.

A required rest period during the workday. In Massachusetts, employees who work more than six consecutive hours must receive a thirty-minute meal break, which is unpaid only when the employee is fully relieved of duties; if they must work or remain on site, the time must be paid. The requirement applies regardless of employer size.

A contract provision restricting an employee from working for a competitor or starting a competing business for a period after leaving. Enforceability varies widely by state; Massachusetts limits non-competes to 12 months with specific requirements, and some states prohibit them entirely.

A contract provision that restricts a departing employee from soliciting the former employer’s clients, customers, or employees for a defined period. Generally more enforceable than non-competes.

The federal agency that sets and enforces workplace safety and health standards, including certain recordkeeping and reporting obligations for employers.

State-level programs that provide paid leave for qualifying family and medical reasons. Eligibility, benefits, and funding vary by state.

A federal law requiring covered employers to provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, unless doing so would cause undue hardship.

A structured approach to addressing performance or conduct issues through escalating steps, such as verbal warning, written warning, and final warning, before moving to termination. It does not change the at-will nature of employment but creates a documented record.

A federal law that requires most employers to provide nursing employees with reasonable break time and a private space that is not a bathroom to express breast milk, for up to one year after a child's birth. It applies at essentially any size, though employers with fewer than fifty employees may claim an exemption only where compliance would cause genuine undue hardship.

A modification to a job, work environment, or process that enables a qualified individual with a disability to perform essential job functions, required under the ADA unless it would cause undue hardship to the employer.

The elimination of positions due to business reasons such as restructuring, financial constraints, or strategic changes, as distinguished from termination for individual performance. A RIF may trigger specific legal requirements depending on the number of affected employees.

An adverse action taken against an employee for engaging in a legally protected activity, such as filing a discrimination complaint, reporting a safety concern, or participating in an investigation. Retaliation claims are among the most common charges filed with the EEOC.

A contract between an employer and a departing employee that typically provides compensation or benefits in exchange for a release of legal claims. Terms often include continued pay, benefits continuation, and confidentiality provisions.

The state-level body that enforces anti-discrimination and harassment laws. Examples include the Massachusetts Commission Against Discrimination (MCAD) and California’s Civil Rights Department (formerly DFEH). Multi-state employers need to know which agency applies in each state where they have employees.

State-level legislation governing how personal information, including employee and applicant data, may be collected, used, and stored. California’s CCPA is the most widely known example, but a growing number of states have enacted their own privacy frameworks. Multi-state employers should track which laws apply to their workforce.

The formal end of an employment relationship, whether voluntary (resignation) or involuntary (dismissal). Proper documentation, final pay timing, and benefits continuation notices are important compliance considerations.

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, and national origin. It generally applies to employers with 15 or more employees.

A legal process in which a portion of an employee’s earnings is withheld by the employer and sent to a creditor or agency, typically to satisfy a court order, tax levy, or child support obligation.

A federal law requiring employers with 100 or more employees to provide 60 days' advance written notice before a mass layoff or plant closing. Some states have their own versions with different thresholds.

A feedback process in which an employee receives confidential input from multiple sources, typically including their manager, peers, direct reports, and sometimes clients, to provide a well-rounded view of performance and behavior.

A talent assessment tool that plots employees on two dimensions, typically performance and potential, to support development and succession discussions.

A process in which managers review performance ratings together to ensure standards are applied consistently and fairly across teams.

An approach that emphasizes regular, ongoing feedback throughout the year rather than relying solely on periodic formal reviews.

The practice of assigning responsibility and authority for tasks or decisions to others, a core skill for scaling a manager’s effectiveness and developing the team.

The degree to which employees feel invested in, motivated by, and connected to their work and organization. It is commonly measured through surveys and is linked to retention, productivity, and overall performance.

An employee stepping into a people-management role for the first time, who often needs support developing skills such as delegation, feedback, and performance management.

The practice of defining clear, measurable objectives for individuals and teams, often aligned to broader organizational priorities.

Key Performance Indicators, specific metrics used to evaluate how effectively an individual, team, or organization is achieving its objectives.

Objectives and Key Results, a goal-setting framework in which teams define qualitative objectives and pair them with measurable key results to track progress. Widely used to align individual, team, and organizational priorities.

Regular individual meetings between a manager and an employee to discuss progress, priorities, feedback, and development.

A structured, documented plan that outlines specific performance gaps, expectations, and a timeframe for improvement, along with the support to be provided.

The ongoing process of setting expectations, providing feedback, and evaluating employee performance to support development and organizational goals.

A periodic evaluation of an employee’s performance against expectations, typically documented and used to guide development, recognition, and decisions.

A chart that maps each task or decision to four roles: Responsible (does the work), Accountable (owns the outcome), Consulted (provides input before a decision), and Informed (notified after). It helps create clarity across the organization about who owns what, especially as teams grow and handoffs become more complex.

A goal-setting approach in which objectives are defined as Specific, Measurable, Achievable, Relevant, and Time-bound, to improve clarity and accountability.

The process of identifying and developing internal talent to fill key roles in the future, reducing risk when leaders or critical employees depart.

The rate at which employees leave an organization over a given period, whether voluntarily or involuntarily. High turnover can signal issues with engagement, management, or compensation and carries significant replacement costs.

A tax-advantaged retirement savings plan that lets employees contribute a portion of their pay, often with an employer match, subject to annual limits and plan rules.

A federal law governing health coverage that includes employer responsibilities, such as offering coverage above certain size thresholds and related reporting.

Base pay is the fixed salary or hourly wage an employee earns, while variable pay is performance- or outcome-based compensation such as bonuses or commissions.

Non-wage compensation provided to employees, such as health insurance, retirement plans, and paid leave. Some benefits are legally required and others are offered to attract and retain talent.

The framework an organization uses to determine and organize pay, including levels, ranges, and how roles relate to one another.

A federal law that allows eligible employees and dependents to continue group health coverage for a limited time after certain qualifying events, typically at their own expense. It generally applies to employers with 20 or more employees and carries specific notice requirements.

An employer-sponsored benefit that provides confidential support services to employees, which may include counseling and referrals for personal or work-related concerns.

A federal law setting standards for most private-sector benefit plans, including fiduciary responsibilities and required disclosures to participants.

A federal law requiring that men and women receive equal pay for equal work in the same establishment. Many states have enacted broader pay equity laws.

Equity is an ownership interest granted to employees, such as stock options or shares. Vesting is the schedule over which an employee earns the right to that equity, often over time or upon milestones.

A tax-advantaged account that lets employees set aside pre-tax dollars for eligible expenses, such as health or dependent care, typically within annual limits and use-it-or-lose-it rules.

IRS forms used for Affordable Care Act reporting of health coverage offered and provided. Applicable employers must furnish and file them on set schedules.

A tax-advantaged account paired with a qualifying high-deductible health plan, used to pay for eligible medical expenses. Funds generally roll over year to year.

A Massachusetts law addressing pay equity, including provisions on comparable work and restrictions on certain salary history inquiries.

A pay raise awarded based on an employee's individual performance, typically determined during an annual review cycle and guided by the organization's compensation structure and budget.

The lowest hourly pay rate an employer may legally pay most employees. Federal, state, and local minimums can differ, and employers must follow whichever rate is highest for the employee's work location.

A designated period, typically once a year, during which employees can enroll in, change, or drop benefits such as health insurance and retirement plans. Outside this window, changes generally require a qualifying life event.

Additional pay required for non-exempt employees who work more than a set number of hours, generally more than forty in a workweek under federal law. Overtime is usually paid at one and one-half times the employee's regular rate of pay.

Employer-provided paid leave that employees can use for various purposes. Some jurisdictions have specific requirements, such as paid sick leave.

The minimum-to-maximum pay defined for a role or level, used to guide consistent and competitive pay decisions.

The principle that employees receive equal pay for equal or comparable work, without unlawful disparities. Analyzing and maintaining pay equity is a growing legal and organizational focus.

State or local legislation requiring employers to disclose pay ranges in job postings or to employees, and in some cases to file pay data reports. Massachusetts, California, Colorado, New York, and several other states have enacted versions of these laws, each with different thresholds and requirements.

A required document that explains a benefit plan’s features and participant rights in understandable terms. Plans must provide it to participants within defined timeframes.

The complete value an organization provides to employees, including compensation, benefits, and other elements such as development and workplace experience.