Reference · 580 terms

The Urban Glossary

Nobody was ever going to tell you how it works, so I did; now pass it on. Every term here has a plain definition and one sentence on why it matters. Terms labeled Urban term are the vocabulary this practice uses to name what standard HR leaves out.

California rules are summarized for general information, current as of September 2026, and are not legal advice for your situation.

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580 terms

Urban terms Pay and offers Negotiation Career moves Equity and corporate Benefits and rewards California employment law Hiring and people operations Employee relations and separations AI, data, and bias AI for HR teams HR foundations

15 terms

Urban terms

These are the terms this practice uses. See them at work in career tiers for urban professionals, HR services for urban organizations, and AI and HR.

Urban professional: A first-generation or underrepresented professional who earned their seat on merit and is negotiating for what that seat is worth, without an inherited playbook.; Why it matters: Urban professionals carry more to the same table than suburban professionals, and the standard advice was never written for that load.; Urban term, coined by Urban Human Resources.
Urban organization: Any employer built by or for the people the system reads last, growing on its own revenue: startups, minority-owned businesses, and nonprofits of 10 to 150 people, in any legal structure.; Why it matters: HR consulting is built to serve the company; urban organizations needed a term for the employers it forgot.; Urban term, coined by Urban Human Resources.
Urban corporation: An urban organization that is legally incorporated as a C or S corporation, with equity, officer roles, a board, and investor questions in the HR picture.; Why it matters: Incorporation changes the advice, so it earns its own term.; Urban term, coined by Urban Human Resources.
Suburban professional: A professional who arrived with an inherited playbook: parents, mentors, or a network who already knew how offers, raises, and promotions work.; Why it matters: The contrast shows what the urban professional is missing, which is information, not ability.; Urban term, coined by Urban Human Resources.
The system reads last: Describes the people and employers that hiring, pay, lending, and AI systems evaluate with the least attention and the most suspicion.; Why it matters: It names the pattern without naming a ZIP code, which is why urban describes people rather than places.; Urban term, coined by Urban Human Resources.
Inherited playbook: The unwritten rules about pay, negotiation, and promotion passed down inside families and networks that already hold senior roles.; Why it matters: Most career advice assumes you have one; urban professionals usually do not.; Urban term, coined by Urban Human Resources.
The load: Everything an urban professional carries into a negotiation beyond the job itself: family expectations, being the first, and the cost of being read wrong.; Why it matters: The same ask weighs more when you carry more, and the plan has to account for it.; Urban term, coined by Urban Human Resources.
First-offer tax: The lifetime pay lost by accepting an employer's first offer without negotiating, compounded through every raise that follows.; Why it matters: A $10,000 difference at the start can grow to about $269,000 over twenty years at 3% raises.; Urban term, coined by Urban Human Resources.
Anomaly trap: What happens when an AI system or pay model treats a person whose background does not fit the average as an error to be corrected rather than a signal to be read.; Why it matters: If a model rules out your ZIP code, it rules out you; knowing the trap is the first step to getting around it.; Urban term, coined by Urban Human Resources.
Same words, different risk: The finding that two people can make the identical request and face different consequences depending on how they are read.; Why it matters: The negotiation plan has to protect how the ask is received, not only raise the number.; Urban term, coined by Urban Human Resources.
Counterprogramming: Content built for the audience the default leaves out, offered at the same time the default runs.; Why it matters: Urban Human Resources is counterprogramming for HR: the same rules, written for the people standard HR advice skips.; Urban term, coined by Urban Human Resources.
Keep It Real answer: An answer that gives the standard AI reply and then corrects it for the person actually asking, including what the average leaves out.; Why it matters: It shows the gap between advice for everyone and advice for you.; Urban term, coined by Urban Human Resources.
Price the person, not the average: The principle that pay and value should be set on what an individual brings, not on the averages of where they come from.; Why it matters: Averages were built on people who were never the urban professional.; Urban term, coined by Urban Human Resources.
Urban Human Resources (UHR): An Oakland HR practice founded in 2017 by McKinley Malbrough III, J.D., MS-HRM, serving urban professionals negotiating pay and career moves and urban organizations building HR that hires right and keeps people.; Why it matters: The knowledge that usually stays inside HR goes to both sides of the table.
Online Facilitation Skills (OFS): The sister brand of Urban Human Resources for facilitation training: courses that teach people to run meetings, workshops, and trainings that work online. Its home is onlinefacilitationskills.com.; Why it matters: Where UHR and OFS overlap, UHR sets the standard, so model, pricing, and delivery stay consistent across both brands.

48 terms

Pay and offers

Base salary: The fixed annual pay for a role before bonuses, equity, or benefits.; Why it matters: Most future raises and bonuses are calculated as a percentage of base, so it compounds.
Total compensation: Base salary plus bonus, equity, benefits, and other pay combined into one annual value.; Why it matters: Comparing offers on base alone can hide a large difference in total value.
Pay band: The minimum-to-maximum range an employer sets for a role or level.; Why it matters: Knowing the band tells you how much room exists before you ask.
Pay range disclosure: California's requirement that employers with 15 or more employees include the pay scale in job postings, and that every employer give the pay scale to applicants on reasonable request and to current employees on request (Labor Code 432.3).; Why it matters: The range is your first data point, and it is required by law.
Midpoint: The middle of a pay band, often treated as the rate for someone fully competent in the role.; Why it matters: Offers below the midpoint signal room to negotiate for an experienced hire.
Compa-ratio: Your pay divided by the midpoint of your band.; Why it matters: A compa-ratio well below 1.0 for a strong performer is evidence for a raise.
Market rate: What employers are paying for comparable roles in the same labor market.; Why it matters: Market data turns a request into a fact rather than a feeling.
Signing bonus: A one-time payment for accepting an offer, often used to close a gap the employer cannot fix in base pay.; Why it matters: It is easier to win than base pay, but it does not compound.
Clawback: A clause requiring you to repay a signing bonus or relocation money if you leave before a set date.; Why it matters: Read the clawback before you count the bonus as yours.
Relocation package: Money or services an employer provides to cover the cost of moving for a job.; Why it matters: It is negotiable and often left unasked for.
Offer letter: The written document stating the terms of a job offer: title, pay, start date, and conditions.; Why it matters: If it is not in the letter, it is not guaranteed.
Exploding offer: An offer with a short deadline designed to prevent comparison shopping.; Why it matters: A reasonable request for more time is almost always granted.
Counteroffer: An improved offer made in response to a competing offer or a resignation.; Why it matters: Accepting one without a plan can leave you marked as a flight risk.
Salary history ban: California's prohibition on employers asking about your past pay (Labor Code 432.3).; Why it matters: Your past pay cannot legally be used to anchor your new pay.
Anchoring: The tendency for the first number stated in a negotiation to shape everything that follows.; Why it matters: Whoever anchors first, with evidence, usually moves the final number.
Pay compression: When newer hires earn close to or more than longer-tenured employees in the same role.; Why it matters: It creates retention risk for employers and leverage for the people being compressed.
Pay equity: Paying employees fairly for substantially similar work regardless of sex, race, or ethnicity.; Why it matters: California requires it under the Equal Pay Act, Labor Code 1197.5.
Pay data report: The annual report California employers with 100 or more employees file with the Civil Rights Department, showing pay by job category, race, ethnicity, and sex (Government Code 12999).; Why it matters: The data exists; employers can be asked what it shows.
Cost of living adjustment: A raise tied to inflation rather than performance.; Why it matters: A cost of living raise keeps you even; it does not move you forward.
Merit increase: A raise tied to performance ratings.; Why it matters: Knowing the merit budget tells you the ceiling before you ask.
Promotion increase: The raise that comes with a move to a higher level.; Why it matters: The pay at the new level is negotiable, just like an outside offer.
Retention bonus: A payment to keep a valued employee through a set period, often during a merger or project.; Why it matters: If you are being offered one, you have leverage.
Pay scale: The good faith estimate of the salary or hourly wage range an employer reasonably expects to pay for a position (Labor Code 432.3).; Why it matters: Employers with 15 or more employees must put it in postings and give it on reasonable request.
Payroll: The process of calculating, paying, and reporting employee wages, taxes, and deductions.; Why it matters: Payroll errors turn into wage claims and tax penalties quickly.
Variable pay: Pay that changes with performance or results, such as bonuses, commissions and incentives, paid on top of base pay.; Why it matters: Variable pay is not guaranteed, so compare offers on what is written down, not on the target.
Total cash compensation: Base pay plus variable pay such as bonuses and commissions, before equity and benefits.; Why it matters: It is the cleanest number for comparing two offers before equity enters the picture.
Commission: Pay calculated as a share of sales or another result. California requires a written commission agreement that says how the commission is computed and paid (Labor Code 2751).; Why it matters: Get the formula in writing before you accept a role that pays on commission.
Salary structure: The framework of pay grades and ranges an organization uses to set pay for every job.; Why it matters: A structure is what lets a company explain why a role pays what it does.
Pay grade: A level in a salary structure with its own minimum, midpoint and maximum, shared by jobs of similar value.; Why it matters: The grade tells you how much room a role has to grow before you hit the top of the range.
Salary survey: A study of what employers pay for common jobs, used to set pay ranges.; Why it matters: Surveys differ in quality, so ask where a range came from.
Market pricing: Setting the pay range for a job by matching it to salary survey data for comparable jobs.; Why it matters: It is how most employers turn a market number into your offer.
Compensation philosophy: An organization's written position on how it pays, such as where it aims relative to the market and what it rewards.; Why it matters: Without one, pay tends to follow whoever negotiates hardest.
Position in range: Where an employee's pay sits between the minimum and the maximum of the pay range, shown as a percentage.; Why it matters: Sitting near the bottom of a range for years is a retention and pay equity flag.
Red-circle rate: Pay that sits above the maximum of the range for the job, often after a restructure or a move to a lower grade.; Why it matters: It explains why some people are paid above the posted range, and why raises for them can stall.
Geographic pay differential: An adjustment to pay ranges for the cost of labor in a location.; Why it matters: Remote work raises the question of whether pay follows the person or the job.
Internal equity: Fair pay relationships among employees inside one organization, based on the value of the work each does.; Why it matters: People notice when a new hire earns more than the person who trains them.
Unadjusted pay gap: The raw difference in average pay between two groups, with no controls for job, level or tenure.; Why it matters: It shows where to look, not why a gap exists.
Adjusted pay gap: The difference in pay between groups that remains after accounting for job, level, tenure and performance.; Why it matters: The gap left after the controls is the one that needs an explanation.
Unexplained pay gap: A pay difference between similar employees that no legitimate factor accounts for.; Why it matters: It is the gap a regulator or a plaintiff goes after, which is why an audit looks for it first.
Comparator group: Employees doing substantially similar work, grouped together so their pay can be compared in an audit.; Why it matters: How the group is built can hide a gap or reveal one.
Retention counteroffer: An offer from your current employer, made after you announce another job, to keep you.; Why it matters: Ask why the raise was not offered before you had a competing offer.
Pay transparency law: A law that requires employers to share pay information. In California, employers with 15 or more employees must include a pay scale in job postings and give the scale to an applicant on request (Labor Code 432.3).; Why it matters: A posted range makes internal pay gaps visible to everyone, so fix them before you post.
SB 642: The 2025 California law, in effect January 1, 2026, that amended the Equal Pay Act. It lets an employee file up to three years after the last affected paycheck and recover up to six years of the pay difference.; Why it matters: It gives employees more time to bring a pay claim, so an old gap carries a longer tail.
Occupational Employment and Wage Statistics (OEWS): A federal survey, run with the Bureau of Labor Statistics, that estimates employment and wages by occupation and area. California's Employment Development Department publishes the state results.; Why it matters: It is a free, government source for checking whether a range is fair for your role and region.
Consumer Price Index (CPI): The Bureau of Labor Statistics measure of how prices change for the goods and services households buy, used to track inflation.; Why it matters: It is the yardstick behind cost of living adjustments and the case for a raise.
Job Openings and Labor Turnover Survey (JOLTS): A monthly Bureau of Labor Statistics survey of job openings, hires and separations.; Why it matters: It shows how fast hiring and quitting are moving, which tells you how much leverage a job seeker has.
Wages: Payment for labor whether measured by time, piece or commission, including non-cash items such as housing or meals when they are part of the compensation.; Why it matters: What counts as wages decides what an employer owes on the last day and what a claim can recover.
Nondiscretionary bonus: A bonus that is promised in advance or tied to a goal, as opposed to one the employer decides to give entirely at its own discretion.; Why it matters: It counts in the regular rate of pay used to calculate overtime for non-exempt employees, so an attendance or productivity bonus can raise overtime owed.

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24 terms

Negotiation

BATNA: Best alternative to a negotiated agreement: what you will do if this deal does not happen.; Why it matters: Your walk-away option sets how hard you can push.
Walk-away number: The lowest offer you will accept, decided before the conversation starts.; Why it matters: Deciding it in advance keeps the moment from deciding it for you.
Target number: The specific figure you are aiming for, supported by market data.; Why it matters: A precise, sourced number reads as research rather than a wish.
Range ask: Stating a range instead of one number, with the bottom set at your real target.; Why it matters: Employers tend to land near the bottom, so the bottom has to be the number you want.
Counter: Your response to an offer, proposing different terms.; Why it matters: Most employers expect at least one counter and build room for it.
Package trade: Moving value between pay components, such as more equity for less base, to close a gap.; Why it matters: When base is capped, value can still move.
Deadline extension: A request for more time to decide on an offer.; Why it matters: It protects your ability to compare offers without signaling a lack of interest.
Competing offer: An offer from another employer used as evidence of your market value.; Why it matters: It is leverage only when it is real.
Verbal offer: An offer stated in conversation before anything is written.; Why it matters: Negotiate after the verbal, confirm after the written.
Framing: Naming how you want a statement understood before you make it.; Why it matters: Framing takes the heat off the messenger.
Recap email: A short written summary sent after a conversation, stating what was asked, said, and agreed.; Why it matters: It turns a conversation into a record.
Scripting: Preparing the exact words for the hardest moments of a negotiation.; Why it matters: Under pressure, people say what they have rehearsed.
Rehearsal: Practicing the negotiation out loud, with pushback, before the real conversation.; Why it matters: Delivery decides how the words land.
Silence: Pausing after an offer or counter instead of filling the space.; Why it matters: The first person to fill the silence often gives something up.
Recruiter: The person managing a hiring process, usually paid by the employer.; Why it matters: A recruiter can be helpful, but works for the company.
Hiring manager: The person who will supervise the role and usually makes the final hiring decision.; Why it matters: They often have more flexibility than the recruiter says.
Leveling: Deciding which level or title a hire comes in at.; Why it matters: Level sets the band, and the band sets the ceiling for years.
Title negotiation: Asking for a higher title when pay is fixed.; Why it matters: Title shapes the next offer, even when it does not change this one.
Start date negotiation: Asking for a later start to finish obligations, rest, or collect a bonus from your current employer.; Why it matters: Leaving money on the table at the old job is also a cost.
Written confirmation: Getting every agreed change reflected in a revised offer letter.; Why it matters: Promises made on a call do not always survive to the paperwork.
Salary expectations: The number or range an employer asks you to state during hiring.; Why it matters: The first number spoken tends to anchor the talks, so know your range before you are asked.
Rescinded offer: A job offer an employer withdraws after you accepted it.; Why it matters: Get the offer in writing and hold your resignation until conditions such as a background check clear.
Offer comparison: Putting two or more offers side by side on total value, not salary alone.; Why it matters: A lower salary can beat a higher one once bonus, equity and benefits are counted.
Emotional salary: The non-monetary value of a job, such as flexibility, recognition, growth and meaning.; Why it matters: When pay is capped, these are the items you can still negotiate.

53 terms

Career moves

Career Blueprint: The Urban Human Resources tier that builds your target roles, resume, LinkedIn, and 90-day plan.; Why it matters: A plan makes every later step faster.
90-day plan: A written plan for your first three months in a role: what you will learn, fix, and deliver.; Why it matters: It shapes how the new employer sees you from the start.
Target role: The specific job title and level you are aiming for next.; Why it matters: Every document you write should point at one.
Resume: The document summarizing your experience, written for the role you want next rather than the one you have.; Why it matters: Recruiters read for the next job, not the last one.
Applicant tracking system (ATS): Software employers use to collect, sort, and filter applications, often by keywords.; Why it matters: A resume that is not readable by the system may never reach a person.
Keywords: Words and phrases from a job posting that an applicant tracking system or recruiter looks for.; Why it matters: Matching them honestly gets you read.
Referral: An introduction to an employer from someone who already works there.; Why it matters: Referred candidates are hired at higher rates than cold applicants.
Networking: Building relationships that lead to information, referrals, and opportunities.; Why it matters: The inherited playbook is mostly a network.
Informational interview: A conversation to learn about a role, team, or company rather than to apply.; Why it matters: It builds a network without asking for a job.
Sponsor: A senior person who uses their influence to advocate for you when you are not in the room.; Why it matters: Mentors advise; sponsors act.
Mentor: A more experienced person who gives advice and guidance.; Why it matters: Useful, but advice does not get you promoted by itself.
Promotion case: The written evidence of impact that supports a request for promotion.; Why it matters: Decisions are made in rooms you are not in, from documents you wrote.
Performance review: A formal assessment of your work, usually tied to raises and promotions.; Why it matters: What goes in the file follows you.
Calibration: Meetings where managers compare ratings across a team or company.; Why it matters: Your manager has to defend your rating, so give them the evidence.
Skip-level meeting: A conversation with your manager's manager.; Why it matters: It makes your work visible above your direct chain.
Stay interview: A conversation an employer holds with a current employee to learn what would keep them.; Why it matters: If you are asked for one, you have leverage.
Exit interview: A conversation when an employee leaves, about why they are going.; Why it matters: Say what is useful, not everything you feel; references remain.
Reference check: An employer contacting people you have worked with before making or finalizing an offer.; Why it matters: Prepare your references for the role you want.
Background check: A review of records such as employment, education, and in some cases criminal history.; Why it matters: In California, criminal history cannot be asked about before a conditional offer at employers with 5 or more employees.
Gap in employment: Time between jobs on a resume.; Why it matters: Explain it briefly and move on; the question is about the next job.
Lateral move: A move to a different role at the same level.; Why it matters: It can build the skills a promotion requires.
Career capital: The skills, credentials, relationships, and reputation that make you more valuable over time.; Why it matters: Every move should add some.
Career ladder: The written steps, skills and time that move a person from one level of a role family to the next.; Why it matters: A visible path answers the limited-growth reason many workers give for leaving.
Ghost job: A job posting for a role the company is not actively trying to fill right now.; Why it matters: Applying to ghost jobs costs time, so check how old a posting is and whether the role appears elsewhere on the company site.
Low-hire, low-fire market: A labor market where employers add few jobs and cut few jobs, so unemployment stays low while moving jobs is hard.; Why it matters: In this market searches run longer, so plan the search for the long run.
Cover letter: A short letter sent with a resume that explains why you fit a specific role.; Why it matters: Some recruiters read it only when the resume is borderline, so make it specific.
Boolean search: A search that combines keywords with AND, OR and NOT to include or exclude results.; Why it matters: Recruiters use it on LinkedIn, so the words in your profile decide whether you appear.
LinkedIn Recruiter: LinkedIn's paid search tool that lets recruiters filter members by title, skills, location and more.; Why it matters: Your headline and skills determine whether those searches surface you.
Career pivot: A move into a different field or function rather than a step up in your current one.; Why it matters: A pivot needs a plan that translates past work into the target role's language.
Transferable skills: Skills that carry from one job or industry to another, such as managing projects or analyzing data.; Why it matters: They are the bridge in a pivot, so name them in the target role's words.
Adjacent industry: An industry close to yours that uses similar skills or serves similar customers.; Why it matters: It is often the easiest first step in a pivot.
Chronological resume: A resume that lists work history from the most recent job to the oldest.; Why it matters: It is the format applicant tracking systems and most recruiters expect.
Functional resume: A resume organized around skills instead of dates.; Why it matters: Many recruiters distrust it because it can hide gaps, so use it sparingly.
Executive recruiter (headhunter): A recruiter paid by an employer to find candidates for a role, often a senior one.; Why it matters: They work for the employer, not for you, though a good one can open doors.
Retained search: A search in which the employer pays a recruiter upfront to fill a role exclusively, usually a senior one.; Why it matters: Recruiters on retainer are invested in finding the right person, not the fastest one.
Contingency search: A search in which the recruiter is paid only if the employer hires a candidate the recruiter presented.; Why it matters: Several firms may work the same role, so speed matters.
Staffing agency: A firm that places workers with client companies, often as temporary or contract workers.; Why it matters: Know who your employer is: the agency, the client, or both.
Contract-to-hire: A role that starts as a contract assignment with a possible later offer of permanent employment.; Why it matters: Ask in writing how and when conversion works, and what benefits apply in the meantime.
Notice period: The time between telling an employer you are leaving and your last day, commonly two weeks.; Why it matters: Check your offer letter and any agreement for required notice before you resign.
Boomerang employee: A former employee who returns to the same employer.; Why it matters: Leave on good terms, because the door is often open.
Imposter syndrome: The persistent feeling of being a fraud despite evidence of competence.; Why it matters: It can quietly lower the number you ask for.
Code-switching: Changing how you speak, dress or present yourself to fit the norms of a workplace.; Why it matters: It takes effort every day, and the cost is real and rarely counted.
Elevator pitch: A short summary of who you are and what you do, brief enough to say in a short ride.; Why it matters: Have one ready for networking, interviews and the question "so what do you do?"
Warm introduction: An introduction to someone made by a mutual contact.; Why it matters: It is read and answered far more often than a message from a stranger.
Cold outreach: Contacting someone you do not know to ask for a conversation or an opportunity.; Why it matters: Keep it short, specific and easy to say yes to.
Weak ties: People you know loosely, such as former colleagues, who often connect you to opportunities your close circle cannot.; Why it matters: Reaching out to them is often the fastest way to a referral.
Interview loop: The series of interviews a candidate completes with different people for one role.; Why it matters: Ask at the start how many stages there are and what each one covers.
Take-home assignment: A work task a candidate completes outside the interview, such as a case or a sample.; Why it matters: Ask about the time expected and whether it is paid before you start.
First-generation professional: A professional who is the first in their family to build a career in an office or professional setting.; Why it matters: Many unwritten rules arrive through family, so without that channel you have to learn them on purpose.
Career coaching: Working with a coach to set career goals, build a plan and prepare for the search and the negotiation.; Why it matters: It is guidance on strategy and preparation, not legal advice or a guarantee of an offer.
Executive coaching: One-to-one coaching for senior leaders focused on leadership and performance.; Why it matters: Hire a coach for a specific goal and a defined time, not open-ended support.
Visibility at work: How well decision makers know what you do and what it achieves.; Why it matters: People who get promoted are often the ones whose work leaders can describe.
Career plateau: A point where advancement slows or stops in a role or at an organization.; Why it matters: A plateau is a signal to decide whether to stay, stretch or leave.

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41 terms

Equity and corporate

Vesting: The schedule on which you earn equity over time.; Why it matters: Unvested equity usually disappears when you leave.
Cliff: The period before any equity vests, often one year.; Why it matters: Leaving before the cliff means leaving with nothing.
Restricted stock unit: A promise of company shares delivered as they vest, common at public companies.; Why it matters: It is taxed as income when it vests.
Stock option: The right to buy company shares at a set price, called the strike price.; Why it matters: It is only worth something if the shares rise above the strike price.
Incentive stock option: A stock option that can qualify for favorable tax treatment if holding rules are met.; Why it matters: The tax rules decide how much you keep.
Nonqualified stock option: A stock option taxed as ordinary income on the spread when exercised.; Why it matters: Know which kind you have before you exercise.
Strike price: The price at which a stock option lets you buy a share.; Why it matters: A lower strike price means more upside.
409A valuation: An independent valuation of a private company's common stock used to set option strike prices.; Why it matters: It sets what your options cost to exercise.
83(b) election: A tax filing that lets you pay tax on restricted stock when granted instead of when it vests, due within 30 days.; Why it matters: Missing the 30-day window cannot be fixed later.
Exercise window: The time you have to buy vested options after you leave, often 90 days.; Why it matters: A short window can force a large purchase or the loss of your equity.
Dilution: The reduction in your ownership percentage when a company issues more shares.; Why it matters: The number of shares matters less than the percentage.
Cap table: The record of who owns what in a company.; Why it matters: Ask what percentage your grant represents, not only how many shares.
Liquidation preference: The right of preferred investors to be paid first when a company is sold.; Why it matters: Common shareholders, usually employees, are paid after them.
Acceleration: A clause that speeds up vesting, often on a sale of the company.; Why it matters: Double-trigger acceleration protects you if you are let go after an acquisition.
Option pool: Shares set aside for future employee grants.; Why it matters: The pool size affects how much equity new hires can get.
Officer: A person appointed to run the corporation, such as the chief executive or chief financial officer.; Why it matters: Officers carry legal duties that ordinary employees do not.
Board of directors: The group elected by shareholders to oversee a corporation.; Why it matters: In an urban corporation, executive pay and equity usually need board approval.
Reasonable compensation: The IRS requirement that S corporation owners who work in the business pay themselves a reasonable salary.; Why it matters: Paying too little in salary to avoid payroll tax invites an audit.
Asset sale: A sale in which the buyer acquires equipment, contracts and goodwill and takes on the staff as a new employer.; Why it matters: The DLSE manual treats the sale as a termination, so final pay and new-hire steps come into play.
Stock sale: A sale in which the buyer acquires the owners' shares and the company keeps operating as the same employer.; Why it matters: Most employment obligations carry over unchanged, and under the COBRA regulation it is not a qualifying event for employees who stay.
Equity grant: An award of company stock or options to an employee, usually subject to vesting.; Why it matters: Ask for the number of shares, the total shares outstanding, the strike price and the vesting schedule.
Equity refresh: A new equity grant to an existing employee, often given as earlier grants vest.; Why it matters: A grant that has mostly vested stops holding you in place, so ask about refreshes.
Common stock: The ordinary ownership shares most employees receive, which rank behind preferred stock in a sale.; Why it matters: Common shares are paid after investors, so their value depends on the deal terms.
Preferred stock: A class of shares, usually held by investors, with rights such as a liquidation preference.; Why it matters: It ranks ahead of common stock in a sale, which changes what your shares are worth.
Single-trigger acceleration: Vesting that speeds up on one event, usually a change of control.; Why it matters: It protects you in a sale, though buyers often resist it.
Double-trigger acceleration: Vesting that speeds up only if two events happen, usually a company sale and the loss of your job afterward.; Why it matters: It is the more common version, and it protects you if the buyer lets you go.
Early exercise: The right to exercise stock options before they vest.; Why it matters: It can start the tax clock sooner but puts your own money at risk, so ask a tax professional.
Employee stock purchase plan (ESPP): A plan that lets employees buy company stock, often at a discount, through payroll deductions.; Why it matters: Read the discount, the purchase periods and any lookback before you enroll.
Initial public offering (IPO): A company's first sale of shares to the public on a stock exchange.; Why it matters: Until an IPO or a sale, private-company shares are hard to turn into cash.
Lockup period: A period after an IPO during which insiders and employees are barred from selling shares.; Why it matters: Shares you hold on paper may not be sellable for months after the IPO.
Tender offer: An offer to buy shares from existing holders, sometimes used by private companies to let employees sell some equity.; Why it matters: Ask whether the company runs tenders and who is eligible.
Phantom equity: A bonus plan that pays like equity, based on the company's value, without issuing shares.; Why it matters: You get the upside without ownership, so read when and how it pays out.
Venture capital: Investment from firms that fund early-stage companies in exchange for ownership.; Why it matters: Venture funding shapes how fast a company hires, and how long it will stay independent.
Seed round: An early round of outside investment, usually before a company has much revenue.; Why it matters: At this stage HR is often one person with a spreadsheet, and the basics still apply.
Series A: The first major round of venture funding after the seed round, often used to build the team and scale a product that is working.; Why it matters: Hiring picks up fast after a Series A, and so do the HR obligations that come with headcount.
Runway: How many months a company can operate before it runs out of cash at its current spending.; Why it matters: Runway tells you how long you can count on payroll and how much room there is to hire.
Burn rate: The amount of cash a company spends each month beyond what it earns.; Why it matters: A high burn rate means layoffs come sooner if funding slips.
501(c)(3): The federal tax category for most charitable nonprofits.; Why it matters: Nonprofit employers still follow wage and hour law, and a volunteer cannot be a substitute for a paid employee.
Form 990: The annual information return most tax-exempt organizations file with the IRS. It is public and reports the pay of top officers and key employees.; Why it matters: It lets anyone check what a nonprofit pays its leaders.
Due diligence: The investigation a buyer or investor does into a company before a deal, including contracts, pay practices and HR records.; Why it matters: Messy HR records slow deals down, so clean them before you need them.
Change of control: A sale or transfer of ownership of a company, which can trigger clauses in equity, bonus and employment agreements.; Why it matters: Read your agreements for what changes if the company is sold.

44 terms

Benefits and rewards

Total rewards: Everything an employer offers in exchange for work: pay, benefits, equity, time off, and development.; Why it matters: It is the full picture to compare when pay alone falls short.
401(k) match: Money an employer adds to your retirement account when you contribute.; Why it matters: Not contributing enough to get the full match leaves pay unclaimed.
Vesting of employer contributions: The schedule on which employer retirement contributions become fully yours.; Why it matters: Leaving early can mean forfeiting part of the match.
CalSavers: California's state retirement program that employers with at least one employee must offer if they have no retirement plan of their own.; Why it matters: The deadline for the smallest employers was December 31, 2025.
Health insurance premium: The amount paid each month for health coverage, often split between employer and employee.; Why it matters: A lower salary with a richer plan can be worth more.
Deductible: What you pay for covered care before insurance begins to pay.; Why it matters: Compare deductibles when comparing offers.
Health savings account: A tax-advantaged account for medical costs, paired with a high-deductible plan.; Why it matters: Employer contributions to it are part of pay.
COBRA: Federal law letting employees keep group health coverage after leaving a job at employers with 20 or more employees, at their own cost.; Why it matters: The cost of continuing coverage belongs in any decision to leave.
Cal-COBRA: California's version of COBRA for employers with 2 to 19 employees.; Why it matters: Smaller employers carry continuation obligations too.
Paid time off (PTO): Time away from work that is paid, combined or split into vacation and sick leave.; Why it matters: In California, earned vacation cannot be taken away and must be paid out at separation.
Use-it-or-lose-it: A policy that forfeits unused vacation.; Why it matters: It is not allowed in California; a reasonable cap on accrual is.
Paid sick leave: California requires employers to provide at least 40 hours or five days of paid sick leave a year.; Why it matters: It applies from the first employee.
Tuition reimbursement: Employer payment for education costs, often with a stay-or-repay clause.; Why it matters: Read the repayment terms before enrolling.
Stipend: A fixed payment for a cost such as home internet or wellness.; Why it matters: It is easy to negotiate because it does not change the band.
Expense reimbursement: California's requirement that employers repay necessary business expenses, including a share of personal phone use (Labor Code 2802).; Why it matters: Remote work costs are part of it.
Employee assistance program: A confidential benefit offering short-term counseling and referrals.; Why it matters: It costs the employer little and helps retention.
Benefits administration: Managing enrollment, eligibility, changes, and carrier or plan data for employee benefits.; Why it matters: Errors here become denied claims and missed coverage, so accuracy matters more than the interface.
Open enrollment: The yearly window when employees can choose or change their benefits.; Why it matters: Miss it and most people wait until a qualifying life event, so clear reminders prevent real hardship.
Benefits broker: A licensed intermediary who helps employers shop for and manage insurance plans, usually paid by carrier commission or a fee.; Why it matters: Ask how they are paid, because it shapes which plans they show you.
Workers' compensation: Insurance that pays medical costs and part of lost wages for work-related injuries and illness.; Why it matters: California requires employers with employees to carry it, and operating without it carries serious penalties.
Earned wage access: A product that lets employees draw part of their earned pay before payday.; Why it matters: Some versions charge fees or tips, so check the terms and how the provider is regulated before offering one.
Affordable Care Act (ACA): The federal health law that requires employers with 50 or more full-time equivalent employees to offer affordable coverage that meets minimum standards, or face penalties.; Why it matters: Headcount crossing 50 triggers new obligations, so plan for it before you hire the 50th person.
ERISA: The Employee Retirement Income Security Act, the federal law that sets standards for most private-sector retirement and health plans.; Why it matters: It governs how plans are run, reported and disclosed to participants.
Cafeteria plan (Section 125): A plan under Section 125 of the tax code that lets employees pay for certain benefits with pre-tax dollars.; Why it matters: Pre-tax premiums lower taxable pay, so enrollment choices change take-home pay.
Flexible spending account (FSA): An employer-sponsored account funded with pre-tax pay for medical or dependent care costs, with limits on carrying money over.; Why it matters: Check the deadline for spending the balance before the plan year ends.
Health reimbursement arrangement (HRA): An employer-funded account that reimburses employees for medical costs and premiums.; Why it matters: The employer funds it, so the money does not follow you when you leave.
Health maintenance organization (HMO): A health plan that generally covers care only from a network of providers and usually requires a primary care referral for specialists.; Why it matters: It often costs less but limits your choice of doctors.
Preferred provider organization (PPO): A health plan with a network of preferred providers that also covers some care out of network at a higher cost.; Why it matters: It trades higher premiums for more choice.
Copay: A fixed amount you pay for a covered service, such as a doctor visit.; Why it matters: Copays are easy to compare, while deductibles and coinsurance are where the real cost sits.
Coinsurance: The percentage of a covered cost you pay after you meet your deductible.; Why it matters: A plan with low premiums can carry high coinsurance, so look at both.
Out-of-pocket maximum: The most you pay for covered care in a plan year, after which the plan pays covered costs in full.; Why it matters: It is the worst-case number to weigh when you compare plans.
Qualifying life event: A change such as marriage, birth, adoption or loss of other coverage that lets you change benefits outside open enrollment.; Why it matters: Missing the window can mean waiting until the next open enrollment.
Fully insured plan: A health plan in which the employer pays premiums to an insurance carrier, which takes on the claims risk.; Why it matters: The carrier carries the risk, so costs are more predictable for the employer.
Self-funded plan: A health plan in which the employer pays employee claims directly and usually hires an administrator.; Why it matters: The employer carries the claims risk, so large claims hit the company's budget.
Short-term disability: Insurance or a plan that replaces part of your pay for a limited time when you cannot work because of illness or injury.; Why it matters: Know how long it lasts and how it coordinates with state benefits and leave.
Long-term disability: Insurance that replaces part of your income during a long period of disability, after short-term benefits end.; Why it matters: Check the waiting period and the definition of disability in the policy.
State Disability Insurance (SDI): A California program funded by employee payroll deductions that pays partial wage replacement for time off work because of a non-work illness or injury, or for family leave.; Why it matters: It also funds Paid Family Leave, so know how it works with your employer's benefits.
Paid parental leave: Paid time off to bond with a new child, offered by an employer or provided through a state program.; Why it matters: Ask how employer-paid leave coordinates with state programs and protected leave.
Sabbatical: An extended leave, paid or unpaid, offered after long service for rest, study or renewal.; Why it matters: It is a retention tool, so ask whether it exists before you assume it does not.
Voluntary benefits: Optional benefits employees buy at group rates, usually through payroll, such as accident, critical illness or pet insurance.; Why it matters: They cost the employer little, so ask about them when you cannot move pay.
Commuter benefits: Pre-tax accounts or subsidies for transit and parking costs.; Why it matters: They can cut taxable pay and are easy to miss in an offer.
Waiting period: The time between your start date and the day benefits begin. Federal law caps the wait for group health coverage at 90 days.; Why it matters: Ask the date coverage starts so you do not have a gap between jobs.
Summary plan description: The document that explains in plain language how a benefit plan works, what it covers and how to claim.; Why it matters: It is the document to read when a benefit question comes up.
Cash equivalent: A gift card or similar item that works like cash and can be spent almost anywhere.; Why it matters: The IRS treats cash and cash equivalents as taxable wages, so a gift card given as recognition needs withholding and payroll tax.

A woman reading on the floor with a stack of books — Photo: Planetnehemiah on Nappy. About the photos

104 terms

California employment law

At-will employment: Employment either side can end at any time for any lawful reason.; Why it matters: Lawful is doing the work in that sentence.
ABC test: California's test for independent contractor status: free from control, work outside the usual course of the business, and an independently established trade (Labor Code 2775).; Why it matters: Failing any one part makes the worker an employee.
Misclassification: Treating an employee as an independent contractor, or a nonexempt employee as exempt.; Why it matters: It brings back wages, penalties, and taxes.
Exempt employee: An employee not entitled to overtime because of their duties and a salary of at least twice the state minimum wage for full-time work.; Why it matters: Title alone does not make someone exempt.
Nonexempt employee: An employee entitled to overtime, meal and rest breaks, and hourly protections.; Why it matters: Most California employees are nonexempt.
Daily overtime: California's requirement to pay time and a half over 8 hours in a day and double time over 12.; Why it matters: California counts by the day, not only the week.
Meal break: A 30-minute unpaid break that must begin before the end of the fifth hour of work.; Why it matters: A missed or late meal break costs an extra hour of pay.
Rest break: A paid 10-minute break for every four hours worked or major fraction of four.; Why it matters: Same penalty as a missed meal break.
Final paycheck: All wages due at separation: immediately when an employer ends employment, within 72 hours when an employee quits without notice (Labor Code 201 and 202).; Why it matters: Late final pay adds up to 30 days of wages in penalties.
Waiting time penalty: A day's wages for each day final pay is late, up to 30 days (Labor Code 203).; Why it matters: It is an avoidable penalty that grows daily, up to 30 days of wages.
Wage statement: The itemized pay stub California requires with every paycheck (Labor Code 226).; Why it matters: Missing items bring penalties per pay period.
PAGA: The Private Attorneys General Act, which lets employees sue for Labor Code penalties on behalf of the state.; Why it matters: It turns small violations into large claims.
FEHA: California's Fair Employment and Housing Act, which bans discrimination and retaliation at employers with 5 or more employees.; Why it matters: Harassment protections apply from the first employee.
Protected characteristic: A trait the law protects from discrimination, such as race, sex, age, disability, or religion.; Why it matters: California's list is longer than the federal one.
CROWN Act: California law protecting hair texture and protective hairstyles as part of race.; Why it matters: A grooming policy can be a discrimination policy.
Fair Chance Act: California's ban on asking about criminal history before a conditional offer at employers with 5 or more employees.; Why it matters: A second chance starts with the application.
Harassment prevention training: Training California employers with 5 or more employees must provide every two years: two hours for supervisors, one hour for others.; Why it matters: It is required, and it has to be documented.
CFRA: The California Family Rights Act, providing up to 12 weeks of job-protected leave at employers with 5 or more employees.; Why it matters: It applies far earlier than federal FMLA.
Pregnancy disability leave: Up to four months of job-protected leave for pregnancy-related disability at employers with 5 or more employees.; Why it matters: It stacks with CFRA baby-bonding leave.
Bereavement leave: Up to five days of leave after the death of a family member at employers with 5 or more employees.; Why it matters: The obligation begins earlier than most small employers expect.
Reproductive loss leave: Up to five days of leave after a failed adoption, surrogacy, miscarriage, stillbirth, or unsuccessful assisted reproduction, at employers with 5 or more employees.; Why it matters: It is newer, and many handbooks miss it.
Lactation accommodation: California's requirement to provide break time and a private, non-bathroom space for expressing milk (Labor Code 1030).; Why it matters: It applies at every employer size.
Noncompete agreement: A contract limiting where an employee may work after leaving.; Why it matters: Most are void in California (Business and Professions Code 16600).
Cal-WARN: California's requirement of 60 days' notice before a mass layoff, relocation, or closure at covered establishments with 75 or more employees.; Why it matters: Missing it means back pay for every affected employee.
Workplace violence prevention plan: A written plan most California employers have been required to keep since July 1, 2024 (Labor Code 6401.9).; Why it matters: It must be written, trained, and logged.
Off-duty cannabis protection: California law barring most employers from penalizing off-duty cannabis use or nonpsychoactive test results (Government Code 12954).; Why it matters: Drug policies written before 2024 may be out of date.
Retaliation: Punishing an employee for a protected act such as complaining, taking leave, or reporting a violation.; Why it matters: It is the claim that most often survives when others fail.
Reasonable accommodation: A change to the job or workplace that lets an employee with a disability or religious need do the work.; Why it matters: The interactive process has to be documented.
Interactive process: The good-faith conversation between employer and employee about a possible accommodation.; Why it matters: Skipping it is a separate violation in California.
Personnel file: The records an employer keeps about an employee, which current and former employees can request to inspect.; Why it matters: The response deadline is 30 days.
Employment practices liability insurance: Insurance covering claims such as discrimination, harassment, and wrongful termination.; Why it matters: Insurers ask what HR systems are in place.
Headcount thresholds: The employee counts at which California and federal obligations begin, including 5, 15, 20, 50, 75, and 100.; Why it matters: Growth triggers the law before anyone notices.
Labor Code: California's main body of workplace statutes, covering wages, hours, breaks, final pay, pay records, and workplace safety.; Why it matters: Nearly every California wage claim, and every PAGA claim, cites a Labor Code section.
Split shift premium: One extra hour of pay at the minimum wage owed when a nonexempt employee's workday is broken by an unpaid gap that is not a meal break, unless their pay for the day already covers it.; Why it matters: It is easy to miss in restaurant and retail schedules, and it adds up shift by shift.
Reporting time pay: Pay owed when a nonexempt employee reports for a scheduled shift and is sent home early or given less than half the shift: half the scheduled hours, at least two and no more than four, at the regular rate.; Why it matters: Cutting a slow shift short still costs payroll.
Tip pooling: Sharing tips among employees who serve customers. California allows it, but the employer and its agents, including managers who can hire, fire, or direct work, cannot take from the pool (Labor Code 351).; Why it matters: The pool rules decide who can receive tips, and one wrong name on the list is a Labor Code violation.
Service charge: A mandatory fee added to a customer's bill. Unlike a tip, it belongs to the employer unless the employer chooses to pass it to staff, and California requires it to be clearly disclosed.; Why it matters: Customers often assume a service charge goes to staff; stating where it goes prevents complaints and claims.
Labor Commissioner: The head of California's Division of Labor Standards Enforcement, the state office that hears wage claims and investigates wage and hour violations.; Why it matters: Most unpaid wage disputes start as a claim filed with this office, not a lawsuit.
Fair workweek ordinance: A local law requiring covered retail, restaurant, or other employers to post schedules in advance and pay premiums for last-minute changes. San Francisco, Berkeley, Emeryville, and Los Angeles each have a version.; Why it matters: Coverage turns on headcount and industry, so a growing business can cross into it without noticing.
Local minimum wage: A city or county minimum wage set above the state rate, such as those in Oakland, San Francisco, Berkeley, and San Jose.; Why it matters: Employers owe the highest rate that applies where the work happens, and Bay Area cities adjust theirs every year, some in January and some in July.
Civil Rights Department: The California agency, formerly the Department of Fair Employment and Housing, that enforces FEHA and takes discrimination and harassment complaints.; Why it matters: A FEHA lawsuit usually starts with a right-to-sue notice from this department.
Health Care Security Ordinance (HCSO): San Francisco's law requiring covered employers to spend a set amount per hour on health care for employees who work in the city.; Why it matters: The hourly spend covers part-time staff too, and the rate changes every year.
Paid Family Leave: California's state insurance program that pays partial wages to workers taking time off to bond with a new child, care for a seriously ill family member, or handle a military family need.; Why it matters: It replaces wages, not jobs; job protection comes from CFRA.
Exempt salary threshold: The minimum salary an employee must earn to be classified as exempt in California: twice the state minimum wage for full-time work, or $70,304 a year in 2026.; Why it matters: Pay below it and the job is owed overtime no matter what the title or duties say.
PAGA penalty cap: The limits the 2024 PAGA reform placed on civil penalties: 15% of the standard penalty for employers who took reasonable steps toward compliance before receiving notice, and 30% for those who take them within 60 days after.; Why it matters: Documented compliance work done before a notice arrives is what earns the lowest cap.
Cal/OSHA: California's Division of Occupational Safety and Health, which sets and enforces workplace safety rules, including state standards on heat illness and workplace violence that go beyond federal law.; Why it matters: An inspection can follow a single employee complaint.
Injury and Illness Prevention Program (IIPP): The written safety program California requires of nearly every employer, naming who is responsible for safety and how hazards are found, reported, and fixed.; Why it matters: It is among the most frequently cited Cal/OSHA violations, and a missing plan is easy to prove.
Regular rate of pay: The hourly rate used to calculate overtime, which includes nondiscretionary bonuses, commissions, and shift differentials, not just the base hourly wage.; Why it matters: Leaving a bonus out of the regular rate underpays every overtime hour it touches.
Independent contractor: A worker in business for themselves. In California, most workers are employees unless the hiring business passes the ABC test.; Why it matters: The label on the contract does not decide it; how the work is actually done does.
Back pay: Wages an employee earned and was not paid, such as overtime owed after a misclassification.; Why it matters: The claim can reach back years and carries interest, so it grows with every pay period you wait.
California Equal Pay Act: Labor Code 1197.5, which bars paying employees less than others for substantially similar work because of sex, race or ethnicity unless the employer shows a legitimate factor.; Why it matters: The burden is on the employer, and prior salary cannot justify a gap.
Employment Development Department (EDD): The California agency that collects payroll taxes and runs unemployment insurance, State Disability Insurance, and Paid Family Leave.; Why it matters: Registering with it and filing on time is one of the first compliance steps for any California employer.
EEOC: The U.S. Equal Employment Opportunity Commission, which enforces federal laws against workplace discrimination.; Why it matters: A discrimination complaint can go to the EEOC, the California Civil Rights Department, or both.
Liquidated damages: An extra amount, equal to the unpaid wages, that a court can add in certain wage cases, such as Labor Code 1197.5 equal pay claims and federal overtime claims under 29 USC 216(b).; Why it matters: It can double the wage exposure before fees.
New hire report: The report employers file with the Employment Development Department within 20 days of a new employee's start date (DE 34).; Why it matters: A buyer in a business sale files it for the acquired staff too.
OSHA: The federal Occupational Safety and Health Administration, which sets and enforces workplace safety standards.; Why it matters: California runs its own program, Cal/OSHA, so California employers answer to that one.
Adverse action: A decision to deny a job, withdraw an offer, or take other negative action based in whole or in part on a background report.; Why it matters: Federal law requires advance notice with a copy of the report before you finalize it, and California adds its own steps for criminal history.
Successor in interest: A buyer that steps into a seller's position in a business, which can affect who keeps the I-9 records and who answers for certain obligations.; Why it matters: It changes who must do what on the closing date.
Wage theft prevention notice: The written notice of pay rate, pay day and employer details that Labor Code 2810.5 requires at hire, with changes noted within seven days.; Why it matters: It is one of the first documents a new hire should receive.
Wage order: A regulation of California's Industrial Welfare Commission that sets minimum wages, hours and working conditions for an industry or occupation.; Why it matters: Which wage order applies decides the overtime, meal and rest rules you must follow.
Division of Labor Standards Enforcement (DLSE): The California Labor Commissioner's office, which enforces wage and hour laws and hears wage claims.; Why it matters: It is where unpaid wage complaints from employees land.
Labor and Workforce Development Agency (LWDA): The California agency that oversees the state's labor departments and receives notices of Private Attorneys General Act claims.; Why it matters: A PAGA claim starts with a notice to this agency.
PAGA notice: The written notice a worker must send to the LWDA and the employer before suing under the Private Attorneys General Act.; Why it matters: Receiving one starts a clock, so call your employment attorney right away.
Workweek: A fixed and regularly recurring period of 168 hours, seven consecutive 24-hour periods.; Why it matters: Overtime is figured per workweek, so the definition decides what counts.
Workday: A consecutive 24-hour period beginning at the same time each calendar day.; Why it matters: Daily overtime in California is figured by the workday.
Double time: Pay at twice the regular rate, required in California for certain hours, such as hours worked beyond 12 in a workday.; Why it matters: It is easy to miscalculate, which is why payroll audits find it.
Duties test: The part of the exempt test that looks at the work an employee actually does, not the job title.; Why it matters: A title or a salary alone does not make a role exempt.
Off-the-clock work: Work an employee does without being paid, such as prep before a shift or tasks after clocking out.; Why it matters: Employers owe pay for work they know or should know about.
Premium pay for missed breaks: An extra hour of pay owed in California when an employer does not provide a required meal or rest break.; Why it matters: It is a common source of wage claims, so track breaks.
Alternative workweek schedule: A schedule, adopted by a valid employee vote, that sets workdays longer than eight hours without daily overtime.; Why it matters: The adoption steps are strict, and mistakes void the schedule.
Piece-rate pay: Pay based on the number of units produced rather than hours worked.; Why it matters: California requires separate pay for rest breaks and non-productive time under piece-rate systems.
Joint employer: Two businesses that share control over a worker and may both be responsible for the worker's wages and rights.; Why it matters: Using a staffing firm does not remove the risk.
W-2 employee: A worker who receives a W-2 tax form because the employer controls how the work is done and withholds taxes.; Why it matters: Employees have rights to overtime, breaks and protections that contractors do not.
1099 contractor: A worker paid as an independent business who receives a Form 1099 and controls how the work is done.; Why it matters: Calling someone a contractor does not make them one, so the test decides.
Title VII: The federal civil rights law that bars discrimination based on race, color, religion, sex and national origin in employers with 15 or more employees.; Why it matters: It is the base of federal discrimination law, and California adds more coverage.
Americans with Disabilities Act (ADA): The federal law that bars disability discrimination and requires reasonable accommodation, for employers with 15 or more employees.; Why it matters: The accommodation conversation, called the interactive process, is where most employers slip.
Age Discrimination in Employment Act (ADEA): The federal law that protects workers age 40 and older from age discrimination, for employers with 20 or more employees.; Why it matters: Layoff selection criteria are where age claims often start.
National Labor Relations Act (NLRA): The federal law that protects the right of most private-sector employees to organize and act together about working conditions.; Why it matters: It applies to non-union workplaces as well.
National Labor Relations Board (NLRB): The federal agency that enforces the National Labor Relations Act.; Why it matters: Charges filed there can arise from policies that limit talking about pay or conditions.
Protected concerted activity: Employees acting together, or for one another, to improve pay or working conditions.; Why it matters: Disciplining someone for talking about pay with coworkers can be illegal.
Hostile work environment: Harassment based on a protected trait that is severe or pervasive enough to change working conditions.; Why it matters: It is a pattern test, so one complaint left alone can grow into a claim.
Quid pro quo harassment: Harassment in which job benefits or consequences depend on submitting to unwelcome conduct.; Why it matters: One instance by a supervisor can be enough.
Disparate treatment: Treating a person worse because of a protected trait.; Why it matters: It is the classic discrimination claim and is often proved by comparing how similar people were treated.
Whistleblower protection: Legal protection against retaliation for reporting suspected violations of law. California's main statute is Labor Code section 1102.5.; Why it matters: Treat every internal report of wrongdoing as protected until counsel says otherwise.
Undue hardship: The point at which an accommodation costs an employer too much to be required, judged by a legal test.; Why it matters: Employers should document why, because the burden is theirs to show.
Non-disclosure agreement (NDA): A contract that bars sharing certain information.; Why it matters: California limits NDAs that stop workers from discussing unlawful conduct, so have counsel review them.
Non-disparagement clause: A contract term that bars saying negative things about the other party.; Why it matters: In California such clauses are limited, especially about unlawful workplace conduct.
Employment contract: A written agreement that sets terms of a job such as pay, duties and length of employment.; Why it matters: Most California jobs are at will, so a contract is where protections have to be written.
Wage and hour law: The body of law on minimum wage, overtime, meal and rest breaks, pay timing and recordkeeping.; Why it matters: It is the most frequently violated area of employment law for small employers.
Labor law poster: The notices employers must display where employees can see them, covering rights such as wages, safety and leave.; Why it matters: A missing poster is an easy violation to fix, and an easy one to be cited for.
California Consumer Privacy Act (CCPA): The California privacy law that gives residents rights over personal data, including employees and applicants.; Why it matters: It reaches HR data, so track what you collect and why.
California Invasion of Privacy Act (CIPA): The California law that, among other things, generally requires all parties to consent before a call or conversation is recorded.; Why it matters: Record interviews and calls only after everyone agrees.
Ban the box: A rule that delays questions about criminal history until later in hiring.; Why it matters: California's Fair Chance Act applies it to employers with five or more employees, so move the question off the application.
Living wage ordinance: A local law that sets a minimum wage above the state minimum for certain employers, often those with city contracts.; Why it matters: Local rules may be higher than the state, so check the city where people work.
WCIRB: The Workers' Compensation Insurance Rating Bureau of California, which collects data and recommends advisory premium rates.; Why it matters: Your classification code drives your premium, so make sure it fits the work.
No Robo Bosses Act (SB 947): A California law, effective July 1, 2027, that places limits on employers using automated decision systems on employees, with a $500 per violation penalty.; Why it matters: Start listing the tools that rank, score or discipline workers now.
Substantially similar work: In equal pay law, work that requires similar skill, effort and responsibility under similar working conditions.; Why it matters: It is the test for who your pay is compared with, even across job titles.
Attorney-client privilege: The legal protection for confidential communication between a client and a lawyer made to get legal advice.; Why it matters: An HR consultant is not a lawyer, so what you tell a consultant is not privileged.
Litigation hold: An instruction to preserve records that may matter in a dispute, suspending normal deletion.; Why it matters: Destroying records after a claim is expected is a serious problem, so hold first.
Discovery: The stage of a lawsuit when each side must hand over relevant documents and information.; Why it matters: HR files, emails and chat messages are routinely requested, so write as if they will be read.
Stay-or-pay provision: A contract term that requires a worker to repay money, or pay a fee or penalty, if the job ends before a set date.; Why it matters: California limits these terms for contracts entered into on or after January 1, 2027, with narrow exceptions for bonuses, advanced paid time off and certain tuition.
Technology displacement: A layoff caused in whole or in substantial part by an employer's use of artificial intelligence or other automating technology.; Why it matters: Under SB 951, a covered California layoff notice for this kind of event must carry the header "This notice is for a technology displacement" and extra detail.
Postuse notice: A separate, plain-language written notice an employer must give when it primarily relied on an automated decision system for a discipline or termination decision.; Why it matters: Under SB 947, from July 1, 2027, it tells the employee that software was used, who reviewed the decision and how to request their own data.
Human corroboration: A check by a person, using information beyond the software output, before an employer relies on an automated decision system for discipline or termination.; Why it matters: SB 947 requires it, and an employer should document who reviewed what and when.

76 terms

Hiring and people operations

Absence rate: Days or hours absent divided by days or hours scheduled over the same period.; Why it matters: Decide in advance which leave counts, and keep protected leave out of an attendance metric.
Full-time equivalent (FTE): Total hours worked by everyone in a period divided by the hours in one full-time schedule, so three people working 20 hours a week add up to 1.5 FTE when full time is 40.; Why it matters: Headcount counts people, FTE counts capacity, and cost per head and workload comparisons are only fair on FTE.
Involuntary turnover: Separations the employer chose, such as terminations and layoffs, divided by average headcount for the period.; Why it matters: A high rate points to hiring and onboarding quality or to business cuts, and it needs different fixes from voluntary turnover.
Network hiring: Filling roles through personal and community networks rather than open searches.; Why it matters: It builds trust fast and leaves pay and documentation inconsistent.
Job description: The written statement of a role's purpose, duties, requirements, and pay range.; Why it matters: It anchors classification, pay, and performance later.
Job architecture: The structure of roles, levels, and pay bands across an organization.; Why it matters: Without it, every hire is a one-off negotiation.
Pulse survey: A short survey, usually under a dozen questions, sent often to track a few topics over time.; Why it matters: It shows trends cheaply, but it only helps if the team sees action after each round.
Span of control: The number of direct reports a manager has.; Why it matters: Too wide and managers cannot coach, too narrow and layers add cost, so check it before you add a manager or a team.
Structured interview: An interview using the same questions and scoring for every candidate.; Why it matters: It predicts performance better and defends decisions better.
Scorecard: The written criteria each interviewer rates a candidate against.; Why it matters: It keeps the decision on the job instead of on gut feel.
Conditional offer: An offer contingent on a background check or other final step.; Why it matters: In California, criminal history questions wait until after it.
Onboarding: The process of bringing a new hire from signed offer to productive employee.; Why it matters: Early turnover is usually an onboarding problem.
I-9: The federal form verifying identity and work authorization, due within three business days of the start date.; Why it matters: Errors on it carry fines per form.
New hire paperwork: The forms California requires at hire, including the wage notice, sick leave notice, and required pamphlets.; Why it matters: Missing forms are easy penalties.
Employee handbook: The written policies governing employment at an organization.; Why it matters: A handbook more than a year old in California is likely out of date.
Classification review: An audit of whether each worker is correctly classified as employee or contractor, and exempt or nonexempt.; Why it matters: It is low-cost protection for an urban organization.
Pay transparency audit: A review of job postings and pay practices against California's disclosure rules.; Why it matters: One missing range is a violation; a pattern is a claim.
Turnover rate: The percentage of employees who leave in a period.; Why it matters: Voluntary turnover is the number that measures retention.
Cost of turnover: The cost of replacing an employee: recruiting, onboarding, lost productivity, and lost knowledge.; Why it matters: It commonly runs from half to twice the person's salary.
Retention: Keeping the employees you cannot afford to lose.; Why it matters: For an urban organization, one departure can be a crisis.
Fractional HR: An experienced HR professional working part-time inside your organization, on a monthly fee.; Why it matters: It gives a growing organization senior HR without a senior salary.
HR advisory: Ongoing access to an HR expert who advises while your own team does the work.; Why it matters: It fits organizations with someone already carrying HR.
Pay equity audit: A statistical review of pay across comparable roles to find gaps by gender, race, or ethnicity that job-related factors do not explain.; Why it matters: California's Equal Pay Act puts the burden on the employer to explain any gap.
Handbook acknowledgment: A signed or electronic record that an employee received the employee handbook and agrees to follow its policies.; Why it matters: Without it, proving an employee knew a policy becomes their word against yours.
Requisition: An approved request to fill a specific job opening, with budget, title, and level attached.; Why it matters: Without one, hiring starts before anyone has agreed on pay or headcount.
Sourcing: Finding and contacting candidates who have not applied.; Why it matters: It is how you reach strong people who never see your posting.
Job board: A website where employers post openings and candidates search them.; Why it matters: Where you post decides who sees the role, and California pay range rules apply wherever it appears.
Time and attendance: Systems that record when employees work, take breaks, and take leave.; Why it matters: In California, these records are your defense in a meal break, rest break, or overtime claim.
E-Verify: A federal online system that checks a new hire's Form I-9 information against government records to confirm work authorization.; Why it matters: California limits when employers may use it, so confirm the rules before you turn it on.
Attrition: Headcount that leaves and is not replaced, whether through resignations, retirements, or deliberate non-backfill.; Why it matters: Turnover counts everyone who leaves; attrition counts the seats that stay empty, so the two numbers can tell different stories.
Job hugging: Staying in a current job because the market feels uncertain, even when the person would otherwise leave.; Why it matters: Low turnover can hide disengagement, so do not read quiet as healthy.
Time to fill: The number of days between opening a job and the accepted offer.; Why it matters: A long time to fill usually means a pay, process or sourcing problem.
Cost per hire: The total spent on recruiting divided by the number of hires in the same period.; Why it matters: It shows what each hire costs and where the money is going.
Quality of hire: A measure of how well new hires perform and stay, compared with expectations.; Why it matters: Fast, cheap hiring that fails at six months is not a win.
Offer acceptance rate: The share of job offers that candidates accept.; Why it matters: A low rate often points to pay, timing or a slow process.
Candidate experience: How a candidate feels about the hiring process from application to decision.; Why it matters: Candidates tell their networks, so silence after an interview costs you.
Talent pipeline: A pool of people who might fill future roles, built before the job opens.; Why it matters: A pipeline cuts time to fill when the opening arrives.
Employer brand: How current and prospective employees view an organization as a place to work.; Why it matters: It shapes who applies and what they expect to be paid.
Employee value proposition: The total of what an employer offers in return for an employee's work, including pay, growth, culture and purpose.; Why it matters: A clear one helps you compete when you cannot match every salary.
Passive candidate: A person who is employed and not looking but might move for the right role.; Why it matters: Many strong hires are passive, so recruiters reach out first.
Behavioral interview: An interview built on questions about how you handled past situations.; Why it matters: Prepare short stories that show the skill the role needs.
Situational interview: An interview that asks how you would handle a hypothetical situation.; Why it matters: Answer by naming the steps and the reason for each one.
Panel interview: An interview in which several interviewers meet with a candidate at once.; Why it matters: Address each person and keep your answers focused on what the role needs.
Voluntary turnover: Separations the employee chose, such as resignations and retirements, divided by average headcount for the period.; Why it matters: It points to pay, management, growth or workload, so report it apart from involuntary turnover.
Work sample test: A task that mimics real work, used to judge how a candidate performs it.; Why it matters: It predicts performance better than a resume, if it is job related and consistent.
Skills-based hiring: Hiring based on demonstrated skills rather than degrees or titles.; Why it matters: It widens the pool, and it is one way to reduce bias.
Culture add: The idea of hiring for what a person adds to a team, rather than how closely they match it.; Why it matters: Culture fit can become a cover for bias, so define what you mean.
EEO-1 report: An annual federal report of workforce data by job category, sex, race and ethnicity, required of employers with 100 or more employees and of federal contractors with 50 or more.; Why it matters: The data feeds pay and diversity analysis, so keep your records clean.
Hiring freeze: A decision to stop filling open roles, often to control costs.; Why it matters: Plan how existing teams will absorb the work before you announce it.
Source of hire: The channel through which a hire first reached the employer, such as a referral or a job board.; Why it matters: It shows where to spend your recruiting budget.
Preboarding: The steps between offer acceptance and the first day, such as paperwork, equipment and a welcome.; Why it matters: The gap is when offers fall through, so stay in touch.
30-60-90 day plan: A plan that lays out goals for a new employee's first three months.; Why it matters: It gives a new hire and a manager a shared definition of a good start.
Employee life cycle: The stages an employee passes through, from attraction and hiring to development and exit.; Why it matters: It helps an HR team find where people are lost.
Code of conduct: A written statement of the behavior an organization expects from everyone.; Why it matters: It sets the standard that discipline refers back to.
Open-door policy: A stated practice that employees may bring concerns to management directly.; Why it matters: It only works if managers respond and nobody is punished for speaking up.
Anti-retaliation policy: A written policy that bars punishing people for raising concerns or taking part in an investigation.; Why it matters: Retaliation claims often succeed even when the original complaint does not.
HR audit: A review of an organization's HR practices, records and policies against the law and best practice.; Why it matters: It finds the problems before a regulator or a lawsuit does.
Compliance calendar: A schedule of the deadlines, filings, notices and trainings an employer must meet each year.; Why it matters: It turns obligations into dates someone owns.
Risk register: A list of identified risks with the likelihood, impact and owner of each.; Why it matters: It turns a vague worry into an item with an owner and a date.
Hybrid work: An arrangement in which employees split their time between a workplace and home.; Why it matters: Put the schedule and the expenses rules in writing.
Remote work: Work done from outside an employer's office, usually from home.; Why it matters: Where the employee lives decides which state's employment laws apply.
Multistate employer: An employer with employees working in more than one state.; Why it matters: Each state brings its own pay, leave and tax rules.
Internal mobility: The movement of employees into new roles inside the same organization.; Why it matters: It keeps talent and costs less than hiring from outside.
Career pathing: Mapping the roles and skills an employee needs to move from one position to another.; Why it matters: People stay when they can see where they are going.
Skills gap: The difference between the skills a role needs and the skills people have.; Why it matters: Name the gap before you choose between hiring and training.
Upskilling: Teaching employees new skills to do their current job better or take on more.; Why it matters: It is often cheaper than replacing the person.
Reskilling: Training employees for a different role, often because their current one is changing or ending.; Why it matters: It is an alternative to layoffs when roles shift.
Individual development plan: A written plan that sets an employee's growth goals and the steps to reach them.; Why it matters: It turns a career conversation into actions with dates.
360-degree feedback: Feedback collected from a person's manager, peers and direct reports, and sometimes customers.; Why it matters: It works best for development, not for pay decisions.
Objectives and key results (OKRs): A goal-setting method that pairs an objective with measurable key results.; Why it matters: Goals people can measure make reviews less subjective.
Key performance indicator (KPI): A measure used to track progress toward an important goal.; Why it matters: Choose a few that show the business's health, not dozens.
Forced ranking: A review method that ranks employees against each other and requires a set share to be rated low.; Why it matters: It can produce unfair ratings, and it creates legal risk if the results skew by a protected group.
Nine-box grid: A talent tool that plots people by performance and potential on a three-by-three grid.; Why it matters: Use it to plan development, and calibrate it so ratings are consistent.
Flight risk: An employee who seems likely to leave.; Why it matters: Talk to them before they have another offer.
Record retention: The rules and practices for how long an employer keeps employment records before destroying them.; Why it matters: Different records have different retention periods, and a hold overrides them.
HR outsourcing: Hiring an outside firm to handle some or all HR work, such as payroll or compliance.; Why it matters: The employer remains responsible for compliance, even if the work is outsourced.
HR generalist: An HR professional who covers many areas, such as hiring, employee relations and compliance.; Why it matters: Small employers usually need one before they need a specialist.
Chief Human Resources Officer (CHRO): The executive who leads an organization's HR function.; Why it matters: A fractional HR partner can fill this seat for a smaller company.
Human resources business partner (HRBP): An HR professional embedded with a business unit to advise its leaders on people matters.; Why it matters: The role connects HR policy to what the team actually needs.
Role outcome: A plain-verb statement of what a hire must accomplish in the first year, written before the job post.; Why it matters: It anchors the post, the interview, the offer and the 90-day review to the same standard.
Pre-start plan: The steps between an accepted offer and the first day: paperwork, a first-week schedule, team notice, workstation and a manager message.; Why it matters: It fills the quiet gap where candidates reconsider.
Early exit: A departure within the first months of employment, usually counted at 90 days.; Why it matters: Many early exits trace to a gap between what the hire was told and what they found.

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41 terms

Employee relations and separations

Employee relations: The work of managing the relationship between employer and employees, including complaints, conflict, and discipline.; Why it matters: Most claims start as relations problems that were handled late.
Documentation: Written records of performance, conduct, and decisions.; Why it matters: If it is not written down, it did not happen.
Performance improvement plan (PIP): A written plan setting specific goals and a timeline for an employee to improve.; Why it matters: A plan written to fail is visible to everyone, including a jury.
Progressive discipline: A sequence of increasing responses to problems, from coaching to warnings to termination.; Why it matters: Consistency is what makes it defensible.
Termination: Ending an employee's employment.; Why it matters: The conversation, the pay, and the file all have to be ready at once.
Separation agreement: An agreement offering pay or benefits in exchange for a release of claims.; Why it matters: In California, it cannot bar discussing unlawful workplace conduct.
Release of claims: A promise not to sue, given in exchange for something of value.; Why it matters: Employees 40 and older get extra time to review under federal law.
Layoff: Ending employment for business reasons rather than performance.; Why it matters: Selection criteria have to be neutral and documented.
Reduction in force: A layoff of several employees at once.; Why it matters: The group selected will be compared against the group kept.
Constructive discharge: When working conditions become so intolerable that a reasonable person would feel forced to resign.; Why it matters: A resignation can be treated as a firing.
Wrongful termination: Firing for an unlawful reason, such as discrimination or retaliation.; Why it matters: At-will does not protect an unlawful reason.
Complaint intake: The first step when an employee raises a concern: receiving it, documenting it, and deciding what happens next.; Why it matters: A complaint handled well at intake rarely becomes a claim.
Grievance: A formal complaint, usually under a union contract.; Why it matters: The contract sets the steps and deadlines.
Collective bargaining agreement: A contract between an employer and a union setting pay and working conditions.; Why it matters: It governs everything it covers for its full term.
Work stoppage: A strike or lockout that halts work.; Why it matters: The cost of one is measured in days that never come back.
Unemployment insurance: State payments to people who lose work through no fault of their own.; Why it matters: Employers must give the required notice at separation.
Neutral reference policy: A policy of confirming only dates of employment and title.; Why it matters: It protects the employer and the former employee.
Offboarding: The process of closing out an employee's departure: final pay, equipment, access, and records.; Why it matters: Most separation violations happen here.
Economic strike: A strike over wages, hours or other terms, as opposed to one over unfair labor practices.; Why it matters: Economic strikers can be permanently replaced under certain circumstances.
Impasse: A deadlock in bargaining after good faith efforts, when neither side will move.; Why it matters: Before impasse, an employer generally may not make unilateral changes to mandatory subjects.
Lockout: An employer's temporary shutdown of work to pressure a union in bargaining.; Why it matters: It is lawful only as economic pressure, and not during the 60 days after notice when a contract is in effect.
Mediation: A voluntary process in which a neutral helps two sides reach agreement, offered free in union bargaining by the Federal Mediation and Conciliation Service.; Why it matters: It can keep talks moving when they stall.
Older Workers Benefit Protection Act: The federal law (29 U.S.C. 626(f)) that sets the requirements for a valid waiver of age discrimination claims, including 45 days to consider a group release and 7 days to revoke it.; Why it matters: A release that skips these steps may not bar an age claim.
Surface bargaining: Going through the motions at the bargaining table without a real intent to reach agreement.; Why it matters: It violates the duty to bargain in good faith.
Unfair labor practice: Conduct by an employer or union that violates the National Labor Relations Act, such as refusing to bargain in good faith.; Why it matters: Workers who strike over one cannot be discharged or permanently replaced.
Workplace investigation: A fact-finding process into a complaint, run by a neutral investigator who interviews witnesses and documents findings.; Why it matters: Prompt, documented investigations are your best defense when a complaint turns into a claim.
Quiet cutting: Reassigning an employee to a lesser or unwanted role instead of laying them off, in hopes they leave on their own.; Why it matters: It can still create constructive discharge and retaliation claims, so document it like a termination decision.
Arbitration agreement: A contract in which an employee agrees to resolve workplace claims before a private arbitrator instead of a judge or jury.; Why it matters: In California it is enforceable only if it meets fairness rules, and AB 2155 now ties the state statute to the federal act's exclusions.
Probationary period: An employer's initial trial window for a new hire, often 90 days, also called an introductory period.; Why it matters: California law does not create or require one, so employment stays at will, and some rights start on day one while others wait.
Severance pay: Money or benefits an employer gives a departing employee, often in exchange for a signed release of claims.; Why it matters: There is no general right to it in California, so what is offered is a matter of negotiation.
Furlough: A temporary unpaid leave or reduction in hours, with the expectation that the employee returns.; Why it matters: Wage and benefit rules still apply, so plan it carefully.
Resignation: An employee's voluntary decision to leave a job.; Why it matters: Confirm it in writing and decide how to handle final pay and benefits.
Termination for cause: Ending employment because of the employee's serious misconduct or failure to meet standards.; Why it matters: Document the reason, since it is the first thing questioned in a dispute.
Preponderance of the evidence: The standard of proof used in most workplace investigations, meaning more likely than not.; Why it matters: It is lower than the standard in a criminal case, and it is what an investigator applies.
Interim measures: Temporary steps taken while an investigation is open, such as changing schedules or reporting lines.; Why it matters: Choose steps that protect people without punishing the person who complained.
Bargaining unit: A group of employees with shared interests who are represented together by a union.; Why it matters: The unit decides who is covered by the contract.
Good-faith bargaining: The duty of an employer and a union to negotiate sincerely over pay, hours and conditions.; Why it matters: Refusing to negotiate is an unfair labor practice.
Management rights clause: A contract term that reserves certain decisions for the employer, such as scheduling and assigning work.; Why it matters: It sets what a union contract leaves to management.
No-strike clause: A contract term in which a union agrees not to strike during the life of the agreement.; Why it matters: It trades labor peace for a grievance process.
Past practice: A long-standing, consistent way of handling something that can carry weight like a rule.; Why it matters: A change to a past practice can be challenged, even if it was never written down.
Ratification vote: A vote by union members to approve or reject a proposed contract.; Why it matters: A tentative agreement is not final until members vote to approve it.

31 terms

AI, data, and bias

Algorithmic bias: Systematic errors in an automated system that disadvantage some groups.; Why it matters: A model can discriminate without anyone intending it.
Training data: The examples an AI model learns from.; Why it matters: A model learns the patterns of whoever is in the data.
Demographic inference: When a system guesses a person's race, class, or background from indirect clues such as name, ZIP code, or school.; Why it matters: The guess can shape the answer you get.
Proxy variable: A data point that stands in for a protected characteristic, such as ZIP code standing in for race.; Why it matters: Removing race from a model does not remove the proxy.
Disparate impact: When a neutral policy falls harder on a protected group.; Why it matters: It can be illegal even without intent.
Statistical discrimination: Judging an individual by the average of a group they belong to.; Why it matters: It is the mechanism behind the anomaly trap.
Automated decision system: Software that makes or supports employment decisions such as screening, ranking, or scoring.; Why it matters: California regulations under FEHA have covered these systems since October 1, 2025.
Resume screening: Automated filtering of applications before a person reads them.; Why it matters: A qualified candidate can be screened out by format alone.
Hallucination: When an AI system states something false with confidence.; Why it matters: Every AI answer about the law needs a citation you can check.
Human in the loop: A process where a person reviews and decides after AI assists.; Why it matters: AI compacts the time; it does not do the thinking.
Large language model: An AI system trained on large amounts of text to predict and generate language, such as ChatGPT or Claude.; Why it matters: It answers from averages unless told who is asking.
Prompt: The question or instruction given to an AI system.; Why it matters: A better prompt tells the model who you are.
Default answer: The response an AI gives when it knows nothing about the person asking.; Why it matters: The default is written for the average, and the urban professional is not the average.
Bias audit: A review testing whether a system produces different outcomes for different groups.; Why it matters: It is the only way to know whether a tool is fair.
Data privacy: The protection of personal information from misuse.; Why it matters: Anything pasted into an AI tool may be stored or used for training unless the setting is off.
Agent washing: A vendor's practice of relabeling ordinary automation as agentic AI.; Why it matters: Gartner estimates only about 130 of thousands of vendors offer genuine agentic products, so ask what the tool can change on its own before you buy.
Agentic AI: AI that takes several steps toward a goal on its own, using the tools it is connected to, instead of only drafting text when asked.; Why it matters: An agent can change a schedule or a record before anyone reviews it, so build the review step before you switch it on.
Four-fifths rule: A guideline in the federal Uniform Guidelines (29 CFR 1607.4) that treats a group's selection rate below four-fifths, or 80 percent, of the highest group's rate as generally regarded as evidence of adverse impact.; Why it matters: It is a screening test, not proof, and it is the quickest way to check whether an AI screen treats groups differently.
Generative AI: AI that creates new text, images, audio or code from prompts.; Why it matters: Never paste confidential employee data into a public tool.
AI governance: The policies, roles and checks that guide how an organization chooses, uses and monitors AI.; Why it matters: Write the rules before the tools spread on their own.
Shadow AI: AI tools that employees use at work without approval from the employer.; Why it matters: It creates data and privacy risk, so give people approved options.
AI notetaker: A tool that records, transcribes and summarizes meetings.; Why it matters: Get consent before recording, and decide how long the transcripts are kept.
Automated employment decision tool (AEDT): A tool that uses computation to help or replace decisions about hiring or promotion. New York City Local Law 144 requires a bias audit and notice before using one.; Why it matters: If the tool screens candidates, you need to know how it works.
Explainability: The ability to describe how an automated system reached a result in terms a person can follow.; Why it matters: If you cannot explain a decision to a candidate, you cannot defend it.
Implicit bias: Unconscious attitudes that affect judgments without the person intending it.; Why it matters: Structured processes limit its effect better than good intentions do.
Affinity bias: The tendency to favor people who are like us.; Why it matters: It shows up in hiring when interviewers rate shared background as fit.
Proximity bias: Favoring people who are physically present over those who work remotely.; Why it matters: It can quietly hurt promotions of remote and hybrid workers.
Microaggression: A brief, everyday comment or action that communicates a slight toward a group, intended or not.; Why it matters: Individually small, they add up, and they are a common source of exits.
Workplace surveillance tool: A tool that monitors employees, such as a camera, call analytics, meeting software or a wearable.; Why it matters: California AB 1883 bars an AI-enabled one from inferring an employee's emotional state or collecting neural data.
Neural data: Information collected from a person's nervous system, including the brain.; Why it matters: California AB 1883 bars employers from collecting it with an AI-enabled workplace surveillance tool.
AI use policy: A one-page workplace rule that names approved tools, bars confidential data, requires human review and reserves decisions about people for a person.; Why it matters: It protects data and employees before any tool is bought.

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47 terms

AI for HR teams

The working vocabulary for using AI at a small employer: how tools are instructed, where their answers come from, what can go wrong and what keeps a person in charge. Every definition is written for HR leads, owners and managers, not engineers.

AI audit trail: A saved record of what was put into an AI tool, what came out, who reviewed it and what they changed.; Why it matters: It lets you show, months later, that a person made the decision and what it was based on.
AI disclosure: Telling people when AI helped create or inform something, such as a candidate message, a report or a published article.; Why it matters: Clear disclosure builds trust and keeps you inside many platform and client rules.
AI hackathon: A short working session where a team tests small AI uses on real tasks, then reviews what held up and what failed.; Why it matters: It turns ideas into tested pilots, but only if the rules on data and review are set before the session starts.
AI inventory: A list of every AI tool in use at the company, with its owner, the data it touches and the decisions it influences.; Why it matters: You cannot govern, test or disclose tools you do not know you have.
AI literacy: The working knowledge people need to use AI tools sensibly: what they can do, how they fail and what must always be checked.; Why it matters: A tool is only as safe as the least informed person using it.
AI pilot: A time-boxed test of one AI use on one task, with a written baseline, a review step and a keep, change or stop decision on a set date.; Why it matters: It gives you evidence from your own team in weeks instead of a vendor's promise.
AI use map: A one-page sort of HR tasks into green (use freely), yellow (use with a named reviewer) and red (a person decides), placed by who is affected, how reversible a mistake is and whether the law regulates the decision.; Why it matters: Staff get a fast answer at the moment they are about to paste something into a tool, and leadership sees that most of the map is open.
Artificial intelligence: Software that performs tasks that normally need human judgment, such as sorting, predicting, summarizing or writing.; Why it matters: The label covers very different tools, so always ask what the tool actually does on your behalf.
Automation bias: The habit of trusting a computer's output over your own judgment.; Why it matters: A reviewer who clicks approve on every output is not a safeguard.
Baseline: A measure of how long a task takes and how many errors it has before any new tool is used.; Why it matters: Without a baseline you cannot say whether a tool saved anything.
Black-box tool: A system that gives results without a reason a person can follow or explain.; Why it matters: If you cannot explain a result to the affected employee or applicant, you cannot defend it.
Chatbot: A program that answers questions in conversation, either from scripted rules or from an AI model.; Why it matters: An HR chatbot should answer only from approved policy and hand everything else to a person.
Context window: The amount of text an AI tool can consider at one time, including your instructions, pasted documents and the conversation so far.; Why it matters: In a long chat, early instructions can be crowded out, so a rule you set in the first message may stop applying.
Custom assistant: A saved set of instructions that makes an AI tool perform one task the same way each time, with a purpose, allowed inputs, output format, refusal rule and owner. Also called an AI skill.; Why it matters: It makes the instruction the thing you manage, so results stop depending on who wrote the prompt.
Data leakage: Information leaving its intended boundary, for example when confidential details are pasted into a tool that stores or reuses them.; Why it matters: Employee records, medical details and complaint facts should never enter an unapproved tool.
Data minimization: Using only the smallest amount of personal information a task needs.; Why it matters: If the task works without a name or an ID number, leave them out of the prompt.
Data retention: How long a tool or vendor keeps what you enter and what it produces.; Why it matters: Get it in writing, because retention decides how long an employee's information sits somewhere you do not control.
Deepfake: Audio, images or video that an AI system fabricated or altered to show someone saying or doing something they did not.; Why it matters: It can be used to impersonate an executive or fake evidence, so confirm unusual requests through a second channel.
Embedded AI assistant: An AI helper built into an everyday application such as email, documents or spreadsheets that drafts or suggests while a person works.; Why it matters: It can see whatever the application can see, so check which files and mailboxes it reaches.
Fine-tuning: Further training of an existing AI model on a selected set of examples to change how it behaves.; Why it matters: Ask whether your employees' records are being used to train anything outside your control.
Grounding: Tying an AI tool's answers to a source you supply, such as your handbook, and requiring it to show where each answer came from.; Why it matters: A policy answer that is not grounded in your policy is a guess.
Guardrails: Limits placed on what an AI tool can access, produce or do.; Why it matters: Write them down, because limits that live in one person's head disappear when that person leaves.
Impact assessment: A written review done before a tool is used on people, covering who is affected, what could go wrong, how it was tested and who reviews it.; Why it matters: It is the document you will want if a decision is ever challenged.
Iterative prompting: Improving a result by revising the request after reading the output, instead of accepting the first draft.; Why it matters: Keep the final reviewed version, because first drafts are where most errors sit.
Machine learning: A type of AI that finds patterns in examples instead of following rules a person wrote.; Why it matters: The patterns come from past data, so past unfairness can come with them.
Model: The trained system at the core of an AI tool, which turns an input into an output.; Why it matters: Different models behave differently, so a test on one does not carry over to another.
Model drift: A gradual change in a model's results over time as the data, the world or the vendor's updates shift.; Why it matters: A test you passed last spring may not describe the tool today, so retest on a schedule.
Multimodal model: A model that works with more than one kind of input, such as text, images and audio.; Why it matters: It widens what can be pasted in, including screenshots that contain personal details.
Natural language processing: Techniques that let software read, sort and produce human language.; Why it matters: It powers resume parsing, survey comment grouping and chatbots, each with its own risks.
Personally identifiable information (PII): Details that identify a person alone or in combination, such as a name with an address, a Social Security number or a medical detail.; Why it matters: It is the first thing to keep out of any tool you have not approved.
Predictive model: A model that estimates the likelihood of a future outcome, such as resignation or job performance, from past data.; Why it matters: When a score influences a decision about a person, the tool may become an automated decision system.
Prompt engineering: The practice of writing instructions so an AI tool gives reliable results.; Why it matters: Treat the instructions that work as company assets, with an owner and a review date.
Prompt injection: Text inside a document, email or web page that contains instructions an AI tool follows as if you had given them.; Why it matters: A tool that reads outside content and can take action needs firm limits on what it may do.
Prompt template: A reusable prompt with blanks to fill in.; Why it matters: It gives consistency, so give each template an owner and a review date.
Refusal rule: A written instruction telling an AI tool what to do when it lacks the information or is asked something outside its purpose, usually to say it cannot answer and route the question to a person.; Why it matters: It is what stops a policy assistant from guessing about leave, pay or breaks.
Responsible AI: Using AI under written rules for fairness, privacy, safety, accountability and human review.; Why it matters: It is practiced, not declared, because a policy nobody follows protects no one.
Retrieval-augmented generation (RAG): A setup where the tool first looks up passages in your approved documents and then writes its answer from them.; Why it matters: Answers are only as current as the document library, so someone must own keeping it up to date.
Review step: The point in a process where a named person checks AI output and has the authority to change or reject it.; Why it matters: A reviewer who can only approve is not a control.
Sentiment analysis: Software that labels text, such as survey comments, as positive, negative or neutral.; Why it matters: It can miss sarcasm, dialect and context, and a comment that is really a complaint still has to be read by a person.
Synthetic data: Artificially generated data that imitates the shape of real data.; Why it matters: It can let you test a tool without exposing real employee records, but it may not reflect real patterns.
System prompt: Standing instructions given to an AI tool before a conversation begins, which shape every answer it gives.; Why it matters: It is where an employer's rules belong, though weak instructions can still be worked around.
Token: A small chunk of text, often part of a word, that an AI model reads and writes, and in which usage and limits are counted.; Why it matters: It explains both the cost of a tool and the size of its context window.
Training opt-out: A setting or contract term that stops a vendor from using what you enter to train its models.; Why it matters: Check it before anyone pastes work in, because defaults vary by product and plan.
Transcription: Converting speech to text, often with AI.; Why it matters: Recording and transcribing meetings raises consent and confidentiality questions that vary by situation, so settle the rules first.
Use case: A specific task for which an AI tool is used, such as drafting a job post.; Why it matters: Approve and review by use case, not by tool, because one tool can be low risk for one task and high risk for another.
Vendor AI questionnaire: A standard set of written questions you ask an AI vendor about data use, retention, bias testing, human review and what happens to your inputs.; Why it matters: Asking every vendor the same questions makes them comparable and leaves a record.
Workflow automation: Software that moves information or triggers steps between tools without a person acting each time, with or without AI.; Why it matters: Automation without a review step can send one wrong result to every employee at once.

50 terms

HR foundations

Decision log: A short record of each people decision: the date, the number that prompted it, the options, the choice, the owner and the date to check results.; Why it matters: It captures the reasoning you will not remember later and supports consistent treatment.
Descriptive analytics: Counting and summarizing what happened in a past period, such as headcount, turnover and time to fill.; Why it matters: It is the base the other three kinds rest on, so agree on definitions before you try to forecast.
Diagnostic analytics: Cutting the same numbers by manager, tenure, role or pay position to find why something happened.; Why it matters: It turns a rate into a lead for a conversation, but on small groups it is a prompt, not a finding.
Human resources: The function that manages hiring, pay, compliance, and the employment relationship.; Why it matters: Standard HR is built to serve the company.
HR business partner: An HR professional aligned to a business unit as an adviser to its leaders.; Why it matters: It is the model most urban organizations cannot yet afford full time.
PEO: A professional employer organization that becomes your co-employer: it runs payroll, benefits, and much of the compliance filing while you keep direction of the daily work.; Why it matters: It handles transactions well and strategy rarely.
Co-employment: An arrangement where two companies share legal employer duties for the same workers, as with a PEO.; Why it matters: Know which duties transfer and which stay with you before you sign a PEO agreement.
ASO: Administrative services only: a contract where a provider handles payroll, benefits administration, or claims processing while you remain the sole employer.; Why it matters: You get the administrative relief without handing over employer status, and the legal exposure stays with you.
CPEO: A certified professional employer organization: a PEO the IRS has approved under a federal certification program, which lets it take on federal employment tax responsibility for the wages it pays your staff.; Why it matters: Certification is a checkable fact, so ask for it in writing instead of taking a sales claim.
Employer of record (EOR): A company that legally employs workers on another company's behalf, often across borders.; Why it matters: It solves where you can hire, not how you manage.
Predictive analytics: Using history and plans to estimate what is likely next, such as expected exits and hiring needs.; Why it matters: A small employer can do it with simple arithmetic, provided it has counted the past first.
Prescriptive analytics: Turning an analysis into a recommended action with an owner and a date.; Why it matters: In a small company it is a written decision a person owns, not software output.
Promise gap: The difference between what a candidate was told about the role, manager, pay and growth and what the first 90 days deliver.; Why it matters: It is a common cause of early exits, and a written promise ledger catches it early.
Total rewards statement: A one-page summary that adds the value of benefits, employer payroll taxes, paid time off and development to an employee's wages.; Why it matters: It shows people the full value of the job, but it must label estimates and never replace plan documents.
Workforce planning: Forecasting the people an organization will need and how it will get them.; Why it matters: Hiring ahead of need is how urban organizations lose cash.
Organizational design: Structuring roles, reporting lines, and decisions.; Why it matters: Structure decides who can say yes.
Employee engagement: How committed and motivated employees are.; Why it matters: It shows up first in turnover and last in surveys.
FLSA: The Fair Labor Standards Act, the federal law setting minimum wage, overtime, and child labor rules.; Why it matters: California law is stricter on most points, and employers follow whichever rule gives the employee more.
FMLA: The Family and Medical Leave Act, the federal law giving eligible employees up to 12 weeks of job-protected unpaid leave at employers with 50 or more employees.; Why it matters: In California it runs alongside CFRA, which reaches employers with as few as 5 employees.
HRIS: A human resources information system: the software that keeps employee records, pay, time off, and benefits in one place.; Why it matters: Clean HRIS data is what makes audits, pay data reports, and headcount decisions possible.
Retainer: A recurring monthly fee for ongoing access to an HR professional, as with fractional HR or HR advisory, instead of paying project by project.; Why it matters: It buys response time and continuity that a one-time project cannot.
Interim HR: A temporary HR lead who steps in during a leadership gap, a leave, or a search, running day-to-day HR until a permanent hire starts.; Why it matters: HR problems keep arriving while the search runs.
Human capital management (HCM): An HR software category that combines employee records, payroll, benefits, time tracking, and talent tools on one platform.; Why it matters: Vendors use the label loosely, so check which modules are included in the price.
Tacit knowledge: Know-how people carry from experience that has not been written down.; Why it matters: It leaves when the person leaves, and AI that absorbs routine work removes the practice that teaches it to juniors.
Talent management: The set of practices for attracting, developing, and keeping people: performance, learning, succession, and career paths.; Why it matters: It matters most once you have a first layer of managers to run it.
Employee experience: How people experience the company across their time with it, from first interview to exit.; Why it matters: It is where engagement and turnover get decided, and surveys only measure it after the fact.
People analytics: Using workforce data on hiring, pay, turnover, and engagement to guide decisions.; Why it matters: A few clean numbers do more for a small team than a dashboard nobody trusts.
Performance management: The ongoing cycle of setting goals, giving feedback, and reviewing results.; Why it matters: The review is one event inside it, and the documentation it creates protects both sides later.
Succession planning: Identifying and developing the people who can step into key roles when someone leaves.; Why it matters: If only one person can run payroll, you do not have a plan yet.
Contingent workforce: People who work for you without being regular employees: contractors, freelancers, and temporary workers.; Why it matters: Each group carries different classification and liability rules, so lumping them together causes mistakes.
Learning management system (LMS): Software that assigns, delivers, and tracks training, such as required harassment prevention courses.; Why it matters: The completion record is your proof if training is ever questioned.
Employee net promoter score (eNPS): A one-question survey asking how likely someone is to recommend the company as a place to work, scored as promoters minus detractors.; Why it matters: It gives you a trend line, not a diagnosis, so pair it with a follow-up conversation.
Diversity, equity and inclusion (DEI): Efforts to build workplaces that include people of different backgrounds, treat them fairly and let them take part fully.; Why it matters: Programs should be built on legal and policy foundations that hold up.
Employee resource group (ERG): A voluntary, employee-led group built around a shared background or interest.; Why it matters: ERGs help with belonging and retention, and they work best with executive sponsorship.
Psychological safety: A shared belief that people can speak up, ask questions and admit mistakes without being punished.; Why it matters: Teams that have it surface problems earlier.
Belonging: The feeling of being accepted and valued as yourself at work.; Why it matters: It is the outcome inclusion efforts are trying to reach.
Equal employment opportunity (EEO): The principle, and the body of law, that employment decisions should not be based on protected traits.; Why it matters: It applies to every step from the job posting to the exit.
HR certification: A credential that shows HR knowledge, such as the SHRM-CP, SHRM-SCP, PHR or SPHR.; Why it matters: A certification is a signal of knowledge, not a license or a legal credential.
Society for Human Resource Management (SHRM): The largest professional association for HR, which sets standards and offers certifications.; Why it matters: Its guidance is a useful baseline, though it does not replace legal advice.
HR Certification Institute (HRCI): The organization that offers the PHR, SPHR and related HR credentials.; Why it matters: It is one of the two main certification bodies for HR.
Manager playbook: A short written guide that tells managers how to handle the recurring people moments: hiring steps, feedback, schedule changes, discipline, complaints and when to escalate.; Why it matters: It turns good intentions into a routine a new supervisor can follow on day one.
Pay run review: A ten-minute check before each payroll run that matches the schedule to the time record, flags overtime and new hires, and compares totals with the last run.; Why it matters: It catches most pay errors before they become back-pay problems.
Coaching routine: A fixed weekly one-on-one of about 20 minutes built on the same three questions, ending with one agreed action.; Why it matters: Consistency matters more than cleverness, so untrained managers can keep it.
Learning plan: A one-page development plan with two skills per half-year, each with how it will be learned, who will help and how success will be seen.; Why it matters: It keeps development small enough to finish.
HR dashboard: A one-page view of a handful of people numbers, each with a formula, an owner and a review date.; Why it matters: It lets a small employer spot a trend before it becomes a crisis.
Inclusive HR system: A repeatable workplace process, such as structured hiring or a complaint channel, that can be inspected for who it works for and who it leaves out.; Why it matters: It replaces a statement of values with something an owner can check and fix.
Training transfer: The use of what people learned in training on the job, and the continued use of it over time.; Why it matters: Attendance numbers show the money was spent. Transfer shows whether anyone works differently, which is the reason you bought the training.
Career lattice: A career structure that offers growth up, sideways and deeper within a role, not only through promotion.; Why it matters: A small company cannot add layers, so a lattice with skill levels, lateral moves and stretch work gives strong people a path without invented titles.
Key-person risk: The risk that a task or process stops when one person who alone knows how to do it is absent or leaves.; Why it matters: In small HR teams one person often holds payroll, benefits and records, and deadlines such as final pay do not pause for an absence.
Data mapping: Matching each field in an old system to the field it will fill in a new one before data is imported.; Why it matters: A written map shows what will move, what will be fixed first and what will be left behind, and it is the record of what the software vendor agreed to do.

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