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HR comes with a lot of acronyms. Here are plain-English definitions of the terms small business owners run into most — no legalese.
Talk to an HR Expert Call (248) 638-0926Bookmark this — and when a term turns into a real question for your business, we're here to help.
An arrangement where either the employer or employee can end employment at any time, for any lawful reason — the default in most U.S. states, with important exceptions.
Whether an employee is exempt from overtime under the FLSA. Misclassifying non-exempt workers as exempt is a common, costly wage-and-hour mistake.
The Fair Labor Standards Act — the federal law governing minimum wage, overtime, and related pay rules.
The Family and Medical Leave Act — provides eligible employees of covered employers with job-protected unpaid leave for certain family and medical reasons.
The Americans with Disabilities Act — prohibits disability discrimination and may require reasonable accommodations.
The Equal Employment Opportunity Commission — the federal agency that enforces workplace anti-discrimination laws.
The federal form used to verify an employee's identity and authorization to work in the U.S. Required for every employee.
The Occupational Safety and Health Administration — sets and enforces workplace safety standards.
A Professional Employer Organization — provides HR and benefits through co-employment. See our PEO comparison.
An experienced HR professional or team working part-time or on demand — the core of outsourced HR.
Whether a worker is an employee or independent contractor. Getting it wrong carries significant tax and legal risk.
Paid Time Off — a policy combining vacation, personal, and sometimes sick time into one bank.
A federal law letting employees temporarily continue group health coverage after leaving, at their own cost (for covered employers).
A step-by-step approach to addressing performance or conduct issues, creating documentation and a fair chance to improve.
Ending employment in a way that violates the law or an agreement — the risk consistent, documented practices are designed to reduce.
The process of integrating a new hire — paperwork, training, and setup — that strongly influences early retention.
The federal law prohibiting employment discrimination based on race, color, religion, sex, or national origin.
The Affordable Care Act — includes employer health-coverage responsibilities that apply once you reach a certain size.
Insurance covering medical costs and lost wages for work-related injuries, required in most states.
An adjustment that lets a qualified employee with a disability perform their job, often required under the ADA.
Pay or benefits offered when employment ends, often in exchange for a signed agreement releasing claims.
A court- or agency-ordered deduction from an employee's pay that employers are required to administer correctly.
The highest-stakes ones tend to be exempt vs. non-exempt classification, worker classification (employee vs. contractor), at-will employment, and the major federal laws — FLSA, FMLA, and ADA. Getting these wrong is where small businesses most often run into trouble.
That's what we do. If any of these terms has become a real question for your business, book a free consultation and we'll help you sort out exactly what applies and what to do.
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