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HRCI PHR Exam
Professional in Human Resources (Page 3 )

Updated On: 7-Feb-2026
Page 3 of 34
PDF with 383 Questions

Your organization has a retirement benefits plan that is covered by ERISA . Under ERISA, which of the following is your organization required to do for the plan participants?

  1. Provide each participant with plan information, specifically about the features and funding of the plan through a summary plan description at a cost of no more than $7 per participant, per year.
  2. Provide each participant with plan information, specifically about the features and funding of the plan through a summary plan description at no cost.
  3. Provide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no more than $7 per participant, per month.
  4. Provide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no cost.

Answer(s): B

Explanation:

The plan administrator is required to provide participants, at no cost, with plan information about the features and funding of the plan.
Answer option A is incorrect. The information must be provided to the participants from the plan administrator at no cost.
Answer option D is incorrect. Monthly information is not mandated so this choice isn't the best answer.
Answer option C is incorrect. Monthly information is not mandated, and the information must be provided at no cost to the plan participants.



Fran is a HR Professional for her organization and she is interviewing applicants for a warehouse position. One of the candidates has written on his application that he speaks Spanish. Fran interviews this candidate in Spanish and interviews all other candidates in English. This is an example of what?

  1. Disparate treatment
  2. Disparate impact
  3. Accommodation
  4. Perpetuating past discrimination

Answer(s): A

Explanation:

Technically this is an example of disparate treatment. Fran has treated this applicant differently than the other applicants because the person says he speaks Spanish. Answer option D is incorrect. There is no evidence of past discrimination in this example to make this choice correct.
Answer option B is incorrect. The disparate impact happens when a seemingly neutral policy has a disproportionately negative effect on the protected class. Answer option C is incorrect. Accommodation is not a valid term for this scenario.



As a Senior HR Professional, you should be familiar with non-monetary rewards that your company provides for its employees. Which of the following is an example of non-monetary reward?

  1. Satisfaction from challenging and exciting assignments
  2. Esteem from working with other talented people
  3. Cash compensation
  4. On-site cafeteria

Answer(s): D

Explanation:

An on-site cafeteria is an example of a non-monetary reward. Answer option B is incorrect. Esteem from working with other talented people is an extrinsic reward. Answer option A is incorrect. An intrinsic reward is an outcome that gives satisfaction to an individual from challenging and exciting assignments. An intrinsic reward encourages employee's self esteem.
Answer option C is incorrect. Cash compensation is a monetary reward for employment.



Your organization will be using the point factor technique in their evaluations of job performance. You need to communicate what the point factor technique accomplishes as you're the HR Professional for your organization. Which one of the following best describes the point factor technique?

  1. Specific compensable factors are identified and then performance levels within the factors are documented.
  2. Specific compensable factors are identified and then performance levels within the factors are weighted on importance to the employee.
  3. Performance factors are identified by the employee and then performance levels within the factors are weighted based on importance to the organization.
  4. Specific compensable factors are identified and then performance levels within the factors are documented. The different factors and levels are weighted based on importance to the organization.

Answer(s): D

Explanation:

The point factor technique identifies point of performance based on importance to the organization. Within each point, levels of performance are created. Both levels and points are then weighted based on most important to least important, to determine overall performance of each employee. Answer options C, A, and B are incorrect. These are not valid definitions of the point factor technique.



What is the FairPay amount that defines, what a person makes, to be considered highly compensated?

  1. $110, 000 or more
  2. $150, 000 or more
  3. $100, 000 or more
  4. $125, 000 or more

Answer(s): C

Explanation:

FairPay determines that a person earning $100, 000 or more is considered to be highly compensated. Answer options A, D, and B are incorrect. The amount is $100, 000 or more, not specifically $110, 000, $125, 000, or $150, 000.






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