HR & Employment-Law Glossary

A–C

• Affirmative Action (AA) — Proactive steps an employer takes to recruit, hire, and advance members of groups historically underrepresented in the workforce; often required of federal contractors.
• ADA — Americans with Disabilities Act — Federal law prohibiting discrimination against qualified individuals with disabilities and requiring reasonable accommodation absent undue hardship.
• ADEA — Age Discrimination in Employment Act — Federal law protecting workers age 40 and older from age-based discrimination.
• Aggregate Base Pay — An employee's base salary or wages, typically including overtime and shift premiums but excluding bonuses and similar incentive pay.
• At-Will Employment — The default rule (in most U.S. states) that either the employer or the employee may end the relationship at any time, with or without cause or notice, subject to legal exceptions.
• Base Pay — An employee's fixed salary or hourly wage, before bonuses, overtime, or other premiums.
• COBRA — Federal law letting employees and dependents continue group health coverage for a limited time after a qualifying event, generally at their own cost.
• Compa-Ratio (C/R) — An employee's pay compared to the midpoint of the salary range, expressed as a percentage (e.g., $40,000 against a $50,000 midpoint = an 80% compa-ratio).

D–H

• Disparate Impact — A neutral policy or practice that disproportionately harms a protected group, which can be unlawful even without discriminatory intent.
• EAP — Employee Assistance Program — A confidential benefit offering counseling and referral services for personal or work-related problems.
• EEO — Equal Employment Opportunity — The principle of basing employment decisions on qualifications, not on protected characteristics.
• EEOC — Equal Employment Opportunity Commission — The federal agency that enforces anti-discrimination laws in employment.
• Exempt / Non-Exempt — Classifications under the FLSA. Non-exempt employees are entitled to overtime; exempt employees (meeting salary and duties tests) are not. As of 2026, the standard salary threshold for most white-collar exemptions is $684/week ($35,568/year), with a $107,432/year total-compensation threshold for the highly-compensated-employee exemption.
• FLSA — Fair Labor Standards Act — Federal law setting minimum wage, overtime, recordkeeping, and child-labor standards.
• FMLA — Family and Medical Leave Act — Federal law providing eligible employees of covered employers up to 12 weeks of job-protected, unpaid leave for specified family and medical reasons.
• Garnishment — A court- or agency-ordered withholding from an employee's wages to satisfy a debt.
• HRIS — Human Resources Information System — The software/database used to store and manage employee payroll, benefits, and personnel data.

I–P

• I-9 — The federal form used to verify an employee's identity and authorization to work in the United States.
• IDP — Individual Development Plan — A document outlining an employee's strengths, development needs, and a plan of action to grow skills and performance.
• Incentive / Bonus Plan — A program paying variable compensation tied to individual, team, or company performance, typically over a defined plan year.
• Last Day Worked (LDW) — An employee's final day of active work; used to time leaves of absence and separations.
• Long-Term Disability (LTD) — An insurance benefit replacing part of an employee's income when a qualifying disability extends beyond the short-term period.
• Long-Term Incentive Plan (LTIP) — A program rewarding eligible employees over multiple years, often through equity such as stock options or restricted stock.
• OSHA — Occupational Safety and Health Administration — The federal agency setting and enforcing workplace safety and health standards.
• Plan Year — The 12-month period a benefit or incentive program runs on (often the calendar year).
• Protected Characteristic — A trait covered by anti-discrimination law (e.g., race, color, religion, sex, pregnancy, national origin, age, disability, genetic information, or veteran status), plus others added by state and local law.
• PTO — Paid Time Off — Employer-provided paid leave, sometimes combining vacation, sick, and personal days into one bank.

R–Z

• Reasonable Accommodation — A change to a job or workplace that lets a qualified individual with a disability (or a religious or pregnancy-related need) work, unless it causes undue hardship.
• Red Circling — Holding an employee's pay above the maximum of their salary range, typically after a downgrade or range change, until the range catches up.
• Restricted Stock Unit (RSU) — A grant of company shares that vests over time or on milestones, used as long-term incentive pay.
• Retaliation — An adverse action against someone for engaging in legally protected activity, such as filing a complaint or participating in an investigation; prohibited by law.
• Salary Range — The minimum-to-maximum pay band for a job or grade, usually defined by a midpoint that reflects the market rate.
• Severance / Salary Continuation — Pay and sometimes benefits provided to an employee after an involuntary separation, often in exchange for a release of claims.
• Short-Term Disability (STD) — An insurance benefit replacing part of an employee's income during a temporary, non-work-related disability.
• Title VII — The section of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, or national origin. Under Bostock v. Clayton County (2020), the Supreme Court held that discrimination based on sexual orientation or gender identity is a form of sex discrimination covered by Title VII.
• Total Cash Compensation (TCC) — An employee's total salary and wages including bonus payments.
• WARN Act — Federal law requiring covered employers to give advance notice of certain mass layoffs or plant closings (state "mini-WARN" laws may add requirements).