Certified Legal Manager (CLM) Human Resources Management Syllabus

What is the difference between merit pay and a cost-of-living adjustment (COLA)?

Merit pay is a permanent base-pay increase tied to individual performance; a COLA is an across-the-board increase tied to inflation (e.g., CPI) to maintain purchasing power, independent of performance.

What is the difference between exempt and nonexempt employees under the FLSA?

Nonexempt employees are covered by FLSA minimum wage and overtime rules (1.5x pay over 40 hours/week); exempt employees (meeting salary-basis and duties tests — e.g., executive, administrative, professional) are not entitled to overtime.

What is the difference between qualified and non-qualified employee benefit plans?

Qualified plans (e.g., 401(k), traditional pension) meet IRS/ERISA requirements for tax advantages and must be offered broadly without discrimination favoring highly compensated employees; non-qualified plans lack those tax benefits and can be offered selectively to executives.

What is COBRA and what does it provide?

The Consolidated Omnibus Budget Reconciliation Act lets employees and dependents continue group health coverage (typically up to 18 months) after a qualifying event such as job loss or reduced hours, with the individual paying up to 102% of the premium.

What is the difference between a defined benefit plan and a defined contribution plan?

A defined benefit plan (pension) promises a specific retirement payout based on a formula (salary/years of service), with investment risk on the employer; a defined contribution plan (e.g., 401(k)) defines only the contributions, with the eventual benefit and investment risk on the employee.

What is vesting in the context of retirement benefits?

The process by which an employee earns nonforfeitable ownership of employer-contributed retirement funds over time; common schedules include cliff vesting (full ownership after a set period) and graded vesting (gradual ownership year by year).

What law regulates the administration and fiduciary standards of private-sector employee benefit plans?

ERISA (Employee Retirement Income Security Act of 1974), which sets minimum standards for participation, vesting, funding, fiduciary responsibility, and disclosure for pension and welfare benefit plans.

What is the difference between gross pay and net pay in payroll?

Gross pay is total earnings before any deductions; net pay (take-home pay) is what remains after subtracting taxes, withholdings, and other deductions.

What are FICA taxes and what do they fund?

Federal Insurance Contributions Act taxes fund Social Security and Medicare. They are shared: the employee and employer each pay 6.2% for Social Security (up to the wage base) and 1.45% for Medicare, with an additional Medicare surtax on high earners paid by the employee.

What IRS form does a new employee complete so the employer can determine federal income tax withholding?

Form W-4 (Employee's Withholding Certificate); the employer uses it to calculate how much federal income tax to withhold from each paycheck.

What is the purpose of Form W-2?

The Wage and Tax Statement an employer must furnish annually to each employee (and the SSA) reporting total wages paid and taxes withheld for the year, used to file income tax returns.

What distinguishes an independent contractor from an employee for payroll/tax purposes?

An employee's work is controlled by the employer (who/what/how), with taxes withheld and a W-2 issued; an independent contractor controls how the work is done, pays self-employment tax, and receives a Form 1099-NEC. Misclassification carries IRS and DOL penalties.

What is performance management?

The ongoing, continuous process of setting expectations, monitoring progress, providing feedback and coaching, and evaluating and rewarding employee performance to align individual contributions with organizational goals.

What is a 360-degree (multi-rater) feedback appraisal?

A performance evaluation that gathers input from multiple sources around an employee — supervisor, peers, subordinates, and sometimes customers, plus self-assessment — to give a well-rounded view, typically used for development rather than pay decisions.

What are SMART goals in performance management?

Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound — a framework for setting clear performance objectives that can be tracked and evaluated.

What is a Performance Improvement Plan (PIP)?

A formal, documented plan that identifies specific performance deficiencies, sets measurable improvement goals and timelines, and outlines support and consequences; it gives the employee a chance to improve and creates a record supporting later action.

Name three common rating errors in performance appraisals.

Halo/horns effect (one trait colors the whole rating), recency bias (over-weighting recent events), central tendency (rating everyone average), leniency/strictness bias, and contrast error (rating relative to other employees).

What is the difference between training and development?

Training focuses on teaching specific skills and knowledge for an employee's current job (short-term, present-focused); development prepares employees for future roles and broader career growth (long-term, future-focused).

What are the five phases of the ADDIE instructional design model?

Analysis, Design, Development, Implementation, and Evaluation — a systematic framework for creating effective training programs.

What are the four levels of the Kirkpatrick model for evaluating training?

Level 1 Reaction (did learners like it), Level 2 Learning (did they acquire knowledge/skills), Level 3 Behavior (are they applying it on the job), and Level 4 Results (impact on business outcomes/ROI).

What is the 70-20-10 model of learning and development?

A guideline that about 70% of learning comes from challenging on-the-job experiences, 20% from social learning (mentoring, coaching, feedback), and 10% from formal training (courses).

What is the difference between voluntary and involuntary turnover?

Voluntary turnover is when an employee chooses to leave (resignation, retirement); involuntary turnover is employer-initiated separation (layoff, termination for cause). Tracking each separately helps target retention efforts.

How is the annual employee turnover rate calculated?

Turnover rate = (number of separations during the period / average number of employees during the period) x 100.

What is the difference between employee engagement and employee satisfaction?

Satisfaction measures how content employees are with their job conditions; engagement measures their emotional commitment and discretionary effort toward the organization's goals. Engagement is a stronger predictor of performance and retention.

What is a stay interview and how does it differ from an exit interview?

A stay interview is a proactive conversation with a current valued employee to learn what keeps them and what might cause them to leave, so issues can be fixed; an exit interview is conducted with a departing employee to learn why they left after the decision is made.

What is the difference between termination for cause and a layoff (reduction in force)?

Termination for cause is dismissal due to the employee's misconduct or poor performance; a layoff/RIF is a separation driven by business needs (restructuring, downsizing, economics) unrelated to individual fault, often involving severance.

What is 'employment at-will'?

The U.S. doctrine that either the employer or employee may end the employment relationship at any time, for any lawful reason or no reason, without notice — subject to exceptions such as discrimination, retaliation, public policy, and contractual limits.

What does the WARN Act require of employers during mass layoffs or plant closings?

The Worker Adjustment and Retraining Notification Act requires covered employers (generally 100+ employees) to give 60 calendar days' advance written notice of a plant closing or mass layoff to affected workers and government officials.

What is an offboarding checklist typically intended to cover?

The structured steps when an employee departs: collecting company property and access (badges, devices), revoking system/network access, final pay and benefits/COBRA processing, knowledge transfer, exit interview, and updating records.

What does Title VII of the Civil Rights Act of 1964 prohibit, and which agency enforces it?

It prohibits employment discrimination based on race, color, religion, sex, and national origin (applies to employers with 15+ employees); it is enforced by the EEOC (Equal Employment Opportunity Commission).

What does the Americans with Disabilities Act (ADA) require regarding qualified employees with disabilities?

It prohibits discrimination against qualified individuals with disabilities and requires employers (15+ employees) to provide reasonable accommodations unless doing so causes undue hardship.

What leave does the Family and Medical Leave Act (FMLA) provide, and who is eligible?

Up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family/medical reasons (and up to 26 weeks for military caregiver leave). Eligible: employees of covered employers (50+ within 75 miles) who worked 1,250 hours over the past 12 months.

What does the Age Discrimination in Employment Act (ADEA) protect?

It protects applicants and employees who are 40 years of age and older from age-based discrimination in hiring, firing, pay, and other terms (applies to employers with 20+ employees).

What does the Equal Pay Act of 1963 require?

That men and women be paid equally for substantially equal work (equal skill, effort, responsibility, and working conditions) in the same establishment; differences are allowed only for seniority, merit, quantity/quality of production, or factors other than sex.

What is the difference between a policy and a procedure in an employee handbook?

A policy is a high-level statement of an organization's rules, principles, and expectations (the 'what' and 'why'); a procedure is the step-by-step instructions for carrying out the policy (the 'how').

What is progressive discipline?

A graduated, documented approach to correcting employee misconduct or poor performance through escalating steps — typically verbal warning, written warning, suspension, then termination — giving the employee opportunities to improve.

What does OSHA require of employers regarding workplace safety?

The Occupational Safety and Health Act requires employers to provide a workplace free from recognized hazards, comply with safety standards, and (for covered employers) record and report serious workplace injuries and illnesses.

How long must employers retain Form I-9 records?

For the later of three years after the date of hire OR one year after the date employment ends, whichever is longer.

What is the difference between an exit interview and a separation/termination meeting?

A separation meeting is the conversation in which the employee is notified of and processed for termination; an exit interview is a separate, often later discussion to gather candid feedback about the employee's experience and reasons for leaving.

What is the purpose of maintaining confidential medical records separately from personnel files?

The ADA and other laws require employee medical information (e.g., disability, FMLA, workers' comp records) to be kept in separate, confidential files with restricted access, apart from general personnel records, to protect privacy and ensure legal compliance.