SHRM-CP FINAL EXAM PREP | Actual Questions And Answers
Latest Updated 2026/2027 (Graded A+)
•
Statutes
- ✔✔hard, fast laws that are created by the government
•
Regulations
- ✔✔Created by agencies
•
Example of Executive Order
- ✔✔dropping convictions of small drug infractions
•
Who can create an Executive Order?
- ✔✔The President of the United States
•
Common Law
- ✔✔how laws are interpreted
•
Example of Common Law
- ✔✔in 1962, a man can sexually harass a woman and there were no laws surrounding that.
In 1964, congress created the Civil Rights Act of 1964, to say sexually assaulting a woman
was illegal. This had to be between a man and woman at the time because same sex sexual
harassment was impossible
•
What does EPLI stand for?
- ✔✔Employment Practices Liability Insurance
•
Employment practices liability insurance (EPLI)
i. - ✔✔- Protects against the risk of heavy financial losses resulting from employment claims
and lawsuits
ii. - Must be carefully considered and reviewed to ensure that it provides the level of
protection needed
•
What is the benefit of an HR audit?
- ✔✔To check compliance issues and to check if we are in compliance
•
Attorney-Client Privilege
,- ✔✔right of individual to have discussions with his/her attorney kept private and
confidential
•
discoverability rule
- ✔✔a rule that allows plaintiffs to sue outside the limitation period where the information
needed to support a suit was unavailable within that period
•
What does IRCA stand for?
- ✔✔(Immigration Reform and Control Act)
•
IRCA (Immigration Reform and Control Act)
- ✔✔federal law passed in 1986 that enlists employers in the effort to prevent illegal aliens
from working in this country. Required all employers to have all employees hired after 1986
complete I-9 verification paperwork.
•
What does a VISA do?
- ✔✔Visas authorize someone to work in the United States that is not from here. It allows
work authorization
•
DACA
- ✔✔program that allowed children of undocumented workers to stay in the US
•
Employment at Will
- ✔✔employment principle that if there is no specific employment contract saying otherwise,
the employer or employee may end an employment relationship at any time, regardless of
cause
•
Fair Credit Reporting Act (FCRA)
- ✔✔U.S act that protects privacy of background information and ensures that information
supplied is accurate. Why we have to ask for permission to pull someone's credit
•
Credit Report
- ✔✔a report on a person's creditworthiness that includes identifying information, credit
cards, late payments, bankruptcies, and savings balances
•
When can you pull a credit report without permission?
- ✔✔Example: If you are missing money, you can pull the credit report without permission as
long as it is through a 3rd party.
,•
Equal Opportunity
- ✔✔the right to equivalent opportunities for employment regardless of race, color, sex,
national origin, or any other protected class
•
Disparate Treatment
- ✔✔results when employees from protected groups are intentionally treated differently.
Direct discrimination that treats someone in a protected class differently from other
applicants or employees
•
Disparate Impact
- ✔✔occurs when an employer creates a seemingly fair employment practice that has an
unintentional negative impact on members of a protected class. Indirect discrimination that
results when a policy that appears to be neutral has a discriminatory effect.
•
What is the main difference between Disparate Treatment and Disparate Impact?
- ✔✔Intent
•
What is the minimum amount of money someone has to make to be considered salary?
- ✔✔$35,568
•
Safe Harbor
- ✔✔Provision in a law or regulation that provides some measure of protection from liability
if certain conditions are met. If you find you made a mistake and you try to initiate the fix,
you may be exempt from the penalties that come from the DOL
•
Safe Harbor Example
- ✔✔misclassifying someone as exempt when they should be non exempt and trying to fix it
without being told you need to.
•
What is overtime pay based on?
- ✔✔Time worked
•
Portal-to Portal Act
- ✔✔U.S. act that defines what is included as hours worked and is therefore compensable
and a factor in calculating overtime.
•
Equal Pay Act
, - ✔✔1963 law that required both men and women to receive equal pay for equal work
•
How many days do you have to file an EEOC claim?
- ✔✔180
•
EEOC (Equal Employment Opportunity Commission)
- ✔✔INDEPENDENT agency created in 1964-works to eliminate employment discrimination
based on race, color, religion, gender, disability, age or other criteria unrelated to job
performance. Created from the Civil Rights Act
•
Retaliation
i. - ✔✔-The most difficult construct for managers to wrap their heads around and the easiest
thing to occur in a workplace
ii. - the easiest form of discrimination to prove
•
Title 7 of the Civil Rights Act of 1964
- ✔✔Banned discrimination in employment on the basis of race, color, religion, sex or
national origin.
•
What does Title 7 do?
- ✔✔Talks about hiring practices but also have to look at recruiting efforts and
advancements. This means we have to give equal opportunity to everyone to learn and
grow.
•
Title 7 Exceptions (when we can discriminate)
i. - ✔✔- Work related requirements
ii. - Bona Fide seniority systems
iii. - Bona Fide Occupational Qualification (BFOQ) ; meaning you can have a very special
person for what you need
iv. - Affirmative action plan
v. -
•
Example of BFOQ
- ✔✔Hiring a female attendant in a woman's dressing room, but can't do that for the team
that comes in to clean the dressing rooms after everyone has gone home.
•
- ✔✔
Latest Updated 2026/2027 (Graded A+)
•
Statutes
- ✔✔hard, fast laws that are created by the government
•
Regulations
- ✔✔Created by agencies
•
Example of Executive Order
- ✔✔dropping convictions of small drug infractions
•
Who can create an Executive Order?
- ✔✔The President of the United States
•
Common Law
- ✔✔how laws are interpreted
•
Example of Common Law
- ✔✔in 1962, a man can sexually harass a woman and there were no laws surrounding that.
In 1964, congress created the Civil Rights Act of 1964, to say sexually assaulting a woman
was illegal. This had to be between a man and woman at the time because same sex sexual
harassment was impossible
•
What does EPLI stand for?
- ✔✔Employment Practices Liability Insurance
•
Employment practices liability insurance (EPLI)
i. - ✔✔- Protects against the risk of heavy financial losses resulting from employment claims
and lawsuits
ii. - Must be carefully considered and reviewed to ensure that it provides the level of
protection needed
•
What is the benefit of an HR audit?
- ✔✔To check compliance issues and to check if we are in compliance
•
Attorney-Client Privilege
,- ✔✔right of individual to have discussions with his/her attorney kept private and
confidential
•
discoverability rule
- ✔✔a rule that allows plaintiffs to sue outside the limitation period where the information
needed to support a suit was unavailable within that period
•
What does IRCA stand for?
- ✔✔(Immigration Reform and Control Act)
•
IRCA (Immigration Reform and Control Act)
- ✔✔federal law passed in 1986 that enlists employers in the effort to prevent illegal aliens
from working in this country. Required all employers to have all employees hired after 1986
complete I-9 verification paperwork.
•
What does a VISA do?
- ✔✔Visas authorize someone to work in the United States that is not from here. It allows
work authorization
•
DACA
- ✔✔program that allowed children of undocumented workers to stay in the US
•
Employment at Will
- ✔✔employment principle that if there is no specific employment contract saying otherwise,
the employer or employee may end an employment relationship at any time, regardless of
cause
•
Fair Credit Reporting Act (FCRA)
- ✔✔U.S act that protects privacy of background information and ensures that information
supplied is accurate. Why we have to ask for permission to pull someone's credit
•
Credit Report
- ✔✔a report on a person's creditworthiness that includes identifying information, credit
cards, late payments, bankruptcies, and savings balances
•
When can you pull a credit report without permission?
- ✔✔Example: If you are missing money, you can pull the credit report without permission as
long as it is through a 3rd party.
,•
Equal Opportunity
- ✔✔the right to equivalent opportunities for employment regardless of race, color, sex,
national origin, or any other protected class
•
Disparate Treatment
- ✔✔results when employees from protected groups are intentionally treated differently.
Direct discrimination that treats someone in a protected class differently from other
applicants or employees
•
Disparate Impact
- ✔✔occurs when an employer creates a seemingly fair employment practice that has an
unintentional negative impact on members of a protected class. Indirect discrimination that
results when a policy that appears to be neutral has a discriminatory effect.
•
What is the main difference between Disparate Treatment and Disparate Impact?
- ✔✔Intent
•
What is the minimum amount of money someone has to make to be considered salary?
- ✔✔$35,568
•
Safe Harbor
- ✔✔Provision in a law or regulation that provides some measure of protection from liability
if certain conditions are met. If you find you made a mistake and you try to initiate the fix,
you may be exempt from the penalties that come from the DOL
•
Safe Harbor Example
- ✔✔misclassifying someone as exempt when they should be non exempt and trying to fix it
without being told you need to.
•
What is overtime pay based on?
- ✔✔Time worked
•
Portal-to Portal Act
- ✔✔U.S. act that defines what is included as hours worked and is therefore compensable
and a factor in calculating overtime.
•
Equal Pay Act
, - ✔✔1963 law that required both men and women to receive equal pay for equal work
•
How many days do you have to file an EEOC claim?
- ✔✔180
•
EEOC (Equal Employment Opportunity Commission)
- ✔✔INDEPENDENT agency created in 1964-works to eliminate employment discrimination
based on race, color, religion, gender, disability, age or other criteria unrelated to job
performance. Created from the Civil Rights Act
•
Retaliation
i. - ✔✔-The most difficult construct for managers to wrap their heads around and the easiest
thing to occur in a workplace
ii. - the easiest form of discrimination to prove
•
Title 7 of the Civil Rights Act of 1964
- ✔✔Banned discrimination in employment on the basis of race, color, religion, sex or
national origin.
•
What does Title 7 do?
- ✔✔Talks about hiring practices but also have to look at recruiting efforts and
advancements. This means we have to give equal opportunity to everyone to learn and
grow.
•
Title 7 Exceptions (when we can discriminate)
i. - ✔✔- Work related requirements
ii. - Bona Fide seniority systems
iii. - Bona Fide Occupational Qualification (BFOQ) ; meaning you can have a very special
person for what you need
iv. - Affirmative action plan
v. -
•
Example of BFOQ
- ✔✔Hiring a female attendant in a woman's dressing room, but can't do that for the team
that comes in to clean the dressing rooms after everyone has gone home.
•
- ✔✔
