SHRM CP Exam (New 2026/ 2027 Update)
Questions & Answers {Grade A} 100%
Correct (Verified Solutions)
Ethics - Correct answer Set of behavioral guidelines by which all directors, managers,
and employees of an organization are expected to behave to ensure appropriate moral
and ethical business standards, typically beyond the letter of the law.
Exempt employees - Correct answer Employees who are excluded from U.S. Fair
Labor Standards Act minimum wage and overtime pay requirements.
Fair and Accurate Credit Transactions Act (FACT Act) - Correct answer U.S. act that
provides some relief to employers using third parties to conduct workplace
investigations.
Employee Retirement Income Security Act (ERISA) - Correct answer U.S. act that
established uniform minimum standards for employer-sponsored retirement and
health and welfare benefit programs.
,Employees - Correct answer Individuals who exchange work for wages or salary; in
the U.S. workers who are covered by Fair Labor Standards Act regulations as
determined by the IRS.
Employment practices liability insurance (EPLI) - Correct answer Type of liability
insurance covering an organization against claims by employees, former employees,
and employment candidates alleging that their legal rights in the employment
relationship have been violated.
Equal Employment Opportunity Act - Correct answer U.S. act that amended Title VII
and gave the Equal Opportunity Commission authority to implement its administrative
findings and conduct its own enforcement litigation.
Drug-Free Workplace Act - Correct answer U.S. law that requires federal contractors
with contracts of $100,000 or more as well as recipients of grants from federal
government to certify they are maintaining a drug-free workplace.
,Duty of care - Correct answer Principle that organizations should take all steps that
are reasonably possible to ensure the health, safety, and well-being of employees and
protect them from foreseeable injury.
Employee Polygraph Protection Act (EPPA) - Correct answer U.S. act that generally
prevents most private employers engaged in or affecting interstate commerce from
using lie detector tests either for pre-employment screening or during the course of
employment, with certain exemptions.
Employee resource group (ERG) - Correct answer Voluntary group for employees who
share a particular diversity dimension (race, religion, ethnicity, sexual orientation, etc);
also known as affinity group or network group.
Diversity council - Correct answer Task force created to define a diversity and
inclusion initiative and guide the development and implementation process.
, Diversity dimensions - Correct answer Framework for understanding the range and
complexity of diversity; includes four layers (personality, internal dimensions, external
dimensions, and organizational dimensions); also known as identity group.
Diversity of thought - Correct answer Concept describing the presence of different
types of cognitive processes in a workplace; opposed to "groupthink" or similarity of
though processes and opnions.
Divestiture - Correct answer Sale by company of an asset that is not performing well,
that is not core to the company's business, or that is worth more as a separate entity.
Disability - Correct answer Physical or mental impairment that substantially limits
major life activities.
Disparate impact - Correct answer Type of discrimination that results when a neutral
policy has a discriminatory effect; also known as adverse impact.
Questions & Answers {Grade A} 100%
Correct (Verified Solutions)
Ethics - Correct answer Set of behavioral guidelines by which all directors, managers,
and employees of an organization are expected to behave to ensure appropriate moral
and ethical business standards, typically beyond the letter of the law.
Exempt employees - Correct answer Employees who are excluded from U.S. Fair
Labor Standards Act minimum wage and overtime pay requirements.
Fair and Accurate Credit Transactions Act (FACT Act) - Correct answer U.S. act that
provides some relief to employers using third parties to conduct workplace
investigations.
Employee Retirement Income Security Act (ERISA) - Correct answer U.S. act that
established uniform minimum standards for employer-sponsored retirement and
health and welfare benefit programs.
,Employees - Correct answer Individuals who exchange work for wages or salary; in
the U.S. workers who are covered by Fair Labor Standards Act regulations as
determined by the IRS.
Employment practices liability insurance (EPLI) - Correct answer Type of liability
insurance covering an organization against claims by employees, former employees,
and employment candidates alleging that their legal rights in the employment
relationship have been violated.
Equal Employment Opportunity Act - Correct answer U.S. act that amended Title VII
and gave the Equal Opportunity Commission authority to implement its administrative
findings and conduct its own enforcement litigation.
Drug-Free Workplace Act - Correct answer U.S. law that requires federal contractors
with contracts of $100,000 or more as well as recipients of grants from federal
government to certify they are maintaining a drug-free workplace.
,Duty of care - Correct answer Principle that organizations should take all steps that
are reasonably possible to ensure the health, safety, and well-being of employees and
protect them from foreseeable injury.
Employee Polygraph Protection Act (EPPA) - Correct answer U.S. act that generally
prevents most private employers engaged in or affecting interstate commerce from
using lie detector tests either for pre-employment screening or during the course of
employment, with certain exemptions.
Employee resource group (ERG) - Correct answer Voluntary group for employees who
share a particular diversity dimension (race, religion, ethnicity, sexual orientation, etc);
also known as affinity group or network group.
Diversity council - Correct answer Task force created to define a diversity and
inclusion initiative and guide the development and implementation process.
, Diversity dimensions - Correct answer Framework for understanding the range and
complexity of diversity; includes four layers (personality, internal dimensions, external
dimensions, and organizational dimensions); also known as identity group.
Diversity of thought - Correct answer Concept describing the presence of different
types of cognitive processes in a workplace; opposed to "groupthink" or similarity of
though processes and opnions.
Divestiture - Correct answer Sale by company of an asset that is not performing well,
that is not core to the company's business, or that is worth more as a separate entity.
Disability - Correct answer Physical or mental impairment that substantially limits
major life activities.
Disparate impact - Correct answer Type of discrimination that results when a neutral
policy has a discriminatory effect; also known as adverse impact.
