Free HRCI PHR Practice Exam with Questions & Answers

Under progressive discipline systems, an employee’s prior disciplinary history for similar misconduct is the most critical factor in determining the next step in the disciplinary process.

Official Extract:

"In progressive discipline systems, prior infractions and the severity of previous offenses determine the level of current disciplinary action."

(Source: HRCI PHR Content Outline 2024–2025, Employee and Labor Relations Section, Progressive Discipline Policies)

Self-insured employers take on the financial risk for providing health care benefits, and the main advantage is that they can share in any cost savings if claims are lower than expected, rather than paying fixed premiums to insurance companies.

Official Extract:

"Self-insurance enables employers to assume direct financial responsibility for health claims, allowing them to benefit from lower-than-expected claims costs."

(Source: HRCI PHR Content Outline 2024–2025, Total Rewards Section, Health Benefits Funding Strategies)

Supervisors may lawfully state the organization's position on unionization, but they cannot threaten, interrogate, promise, or spy (T-I-P-S) on employees during union organizing efforts.

Official Extract:

"Supervisors may communicate factual information and express opinions about unionization without violating employees' rights under the NLRA, provided they avoid coercion, threats, or interrogation."

(Source: HRCI PHR Content Outline 2024–2025, Employee and Labor Relations Section, Union Activity Compliance)

Leaving confidential employee information unsecured — such as paper files left on desks — is the most common breach of personnel file security. Even innocent access by unauthorized employees can lead to privacy violations under HIPAA and confidentiality policies.

Official Extract:

"Physical security protocols must be enforced to protect paper-based employee records. Common breaches occur when documents are left unattended in open office spaces, resulting in unauthorized viewing."

(Source: HRCI PHR Content Outline 2024–2025, Business Management Section, Data Privacy and Security)

Due process refers to the right of employees to fair procedures before being disciplined or terminated. When terminated employees successfully sue for wrongful discharge, they often prove that the employer failed to provide fair procedures (e.g., opportunity to respond to allegations, consistent application of policies). Denying due process can violate implied contracts or public policy protections even under employment-at-will doctrines.

Official Extract:

"Employees may claim wrongful termination when they can show that employers violated due process rights by failing to follow fair and consistent disciplinary procedures, or breached implied promises of fair treatment."

(Source: HRCI PHR Content Outline 2024–2025, Employee and Labor Relations Section, Wrongful Discharge and Due Process)

Clearly clarifying work expectations is fundamental for new supervisors to set the tone for performance, accountability, and trust-building with their teams. Employees are more engaged when they understand their roles and how they contribute to organizational goals.

Official Extract:

"Effective performance management begins with clear communication of performance standards and job expectations, creating transparency and strengthening employee-supervisor relationships."

(Source: HRCI PHR Content Outline 2024–2025, Learning and Development Section, Performance Management Principles)

Wage garnishments and other personal financial/legal documents must be stored separately from general personnel files to protect confidentiality and comply with data privacy regulations.

Official Extract:

"Confidential records, including wage garnishments, medical records, and background checks, must be maintained separately from personnel files to ensure privacy and legal compliance."

(Source: HRCI PHR Content Outline 2024–2025, Employee and Labor Relations Section, Recordkeeping and Confidentiality Standards)

The ADA allows drug testing during the pre-employment process, as long as it is conducted consistently for all candidates. Testing for illegal drug use is not considered a medical examination under ADA.

Official Extract:

"Under the ADA, employers may conduct drug testing of applicants or employees, provided that tests are administered fairly and consistently and do not target individuals based on protected characteristics."

(Source: HRCI PHR Content Outline 2024–2025, Employee and Labor Relations Section, ADA Compliance and Drug Testing)

Password complexity ensures strong passwords that are harder to guess or hack. Multi-factor authentication adds a second layer of security, verifying user identity beyond just passwords — both are best practices for HRIS protection.

Official Extract:

"Best practices for HRIS security include enforcing strong password policies, implementing multi-factor authentication, and limiting access to authorized users only."

(Source: HRCI PHR Content Outline 2024–2025, Business Management Section, Data Privacy and Security)

The first proactive step in reducing cyber liability is to develop an acceptable use policy. This policy clearly outlines what constitutes acceptable and prohibited behavior regarding company networks, systems, and data, helping to prevent security breaches before they happen.

Official Extract:

"Implementing an acceptable use policy is essential to mitigate cyber risks by informing employees about appropriate use of company systems and safeguarding sensitive information."

(Source: HRCI PHR Content Outline 2024–2025, Business Management Section, Cybersecurity Risk Management)