Overview
Employee and Labor Relations is 20% of the PHR exam, the single largest area, covering the relationship between the organization and its workforce under U.S. law. It has several responsibility areas. U.S. federal law and outreach covers the laws and programs for outreach and inclusivity, including employee resource groups, community outreach and corporate social responsibility. Health, safety, security and privacy covers OSHA, workers' compensation, emergency response, workplace violence and substance abuse. Policy and investigations covers legal postings, documentation and workplace investigations. Complaints and conflict covers investigating, documenting, recommending and escalating, grievance and alternative dispute resolution procedures, and union and non-union workplaces under U.S. federal law, including anti-discrimination and harassment policies.
Because the PHR is U.S.-focused and application-based, this area rewards applying employment and safety law, conducting fair investigations, enforcing policy, and handling complaints, grievances and labor relations correctly. Its law resurfaces across the exam.
How it's tested
PHR questions in this area describe a law, safety, investigation or relations situation and ask which compliant action or statute applies. PHR questions are operational and application-based under U.S. employment law, with scenario sets and some fill-in-the-blank items, so read for the practitioner-level action that correctly applies law and policy, not the strategic one.
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Apply the law
A legal or safety situation is described, and you apply the correct statute or requirement.
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Investigate and document
A complaint or policy situation is described, and you choose the fair, documented process.
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Handle relations
A grievance, ADR or union situation is described, and you choose the correct approach.
An employee reports a serious safety hazard, and HR must respond appropriately. Ignoring it risks harm and legal exposure, and retaliating against the reporter is unlawful. Under OSHA, employers must provide a safe workplace, address recognized hazards, and may not retaliate against employees who report safety concerns, so investigating and correcting the hazard while protecting the reporter from retaliation is the response the exam expects, grounded in OSHA requirements.
Functional areas 4
Official functional areas from the HRCI outline, in outline order.
6.1 U.S. federal law, outreach, and inclusivityEmployment law, ERGs, outreach, and CSR.
- What it means
- This covers U.S. federal law and programs for outreach and inclusivity, including employee resource groups, community outreach and corporate social responsibility, as part of managing the employment relationship lawfully and inclusively.
- What to understand
- A range of U.S. federal laws govern the workplace (anti-discrimination, labor, safety), and HR fosters inclusivity through employee resource groups, community outreach and corporate social responsibility. Applying the relevant law and supporting inclusive programs is part of sound employee relations. Knowing the applicable laws and these programs is tested.
- How it shows up
- A law or inclusivity situation is described, and you must apply the statute or program.
- Common confusion
- Confusing the applicable employment laws, or treating inclusivity as unrelated to employee relations.
6.2 Health, safety, security, and privacyOSHA, workers' comp, and workplace safety.
- What it means
- This covers health, safety, security and privacy: the Occupational Safety and Health Act (OSHA), workers' compensation, emergency response, workplace violence prevention and substance abuse programs, and protecting employee privacy.
- What to understand
- OSHA requires employers to provide a safe workplace and prohibits retaliation against employees who report hazards. Workers' compensation covers work-related injuries. Emergency response, workplace violence prevention and substance abuse programs protect safety and security, and privacy must be respected in handling employee information. Knowing OSHA and these safety and security requirements is heavily tested.
- How it shows up
- A safety, security or privacy situation is described, and you must apply the correct law or practice.
- Common confusion
- Confusing OSHA (safety requirements) with workers' compensation (injury coverage), or overlooking anti-retaliation protections.
6.3 Policy, documentation, and workplace investigationsPostings, policy enforcement, and investigations.
- What it means
- This covers legal postings, documentation and workplace investigations, and interpreting and enforcing policy through the employee handbook, standard operating procedures, and time-and-attendance and expense rules.
- What to understand
- Employers must display required legal postings and maintain documentation. Policies in the handbook and procedures must be interpreted and enforced consistently. Workplace investigations must be prompt, fair, thorough, impartial and documented, protecting confidentiality and against retaliation. Knowing how to enforce policy consistently and conduct sound investigations is heavily tested.
- How it shows up
- A policy or investigation situation is described, and you must choose the fair, documented process.
- Common confusion
- Conducting investigations inconsistently or without documentation, or enforcing policy unevenly.
6.4 Complaints, conflict, grievances, ADR, and labor relationsComplaints, grievances, ADR, and unions.
- What it means
- This covers handling complaints and conflict (investigate, document, recommend, escalate), grievance and alternative dispute resolution procedures, union and non-union workplaces under U.S. federal law (such as the NLRA), and anti-discrimination and harassment policies.
- What to understand
- HR handles complaints by investigating, documenting, recommending action and escalating as needed. Grievance procedures and alternative dispute resolution (mediation, arbitration) resolve conflicts, especially in unionized settings. The NLRA governs union and protected concerted activity in both union and non-union workplaces. Anti-discrimination and harassment policies must be enforced. Knowing these processes and labor law is central to the area.
- How it shows up
- A complaint, grievance, ADR or union situation is described, and you must choose the correct approach.
- Common confusion
- Mishandling a complaint or grievance process, or misunderstanding NLRA-protected activity in non-union workplaces.
High-yield concepts
The terms, rules and formulas this domain turns into questions most often.
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U.S. employment law
Anti-discrimination, labor, safety statutes.
- Remember
- Underlies employee relations.
- Tested as
- Law questions.
- Trap
- Confusing the statutes.
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OSHA
Requires a safe workplace.
- Remember
- Prohibits retaliation for reporting.
- Tested as
- Safety questions.
- Trap
- Confusing with workers' comp.
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Workers' compensation
Covers work-related injuries.
- Remember
- No-fault injury coverage.
- Tested as
- Safety questions.
- Trap
- Confusing with OSHA.
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Workplace investigations
Prompt, fair, documented inquiries.
- Remember
- Protect confidentiality and against retaliation.
- Tested as
- Investigation questions.
- Trap
- Inconsistent or undocumented.
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Legal postings
Required workplace notices.
- Remember
- Compliance obligation.
- Tested as
- Policy questions.
- Trap
- Overlooking postings.
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Consistent policy enforcement
Apply the handbook evenly.
- Remember
- Avoid discrimination claims.
- Tested as
- Policy questions.
- Trap
- Enforcing unevenly.
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Grievance procedures
Formal complaint resolution.
- Remember
- Common in unions.
- Tested as
- Relations questions.
- Trap
- Mishandling grievances.
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Alternative dispute resolution
Mediation and arbitration.
- Remember
- Resolve disputes outside court.
- Tested as
- Relations questions.
- Trap
- Confusing the methods.
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NLRA and protected activity
Governs union and concerted activity.
- Remember
- Applies to non-union too.
- Tested as
- Labor questions.
- Trap
- Ignoring non-union protections.
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Anti-discrimination and harassment
Prohibited and policy-enforced.
- Remember
- Investigate and act.
- Tested as
- Relations questions.
- Trap
- Failing to act on complaints.
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Retaliation prevention
Protecting those who report.
- Remember
- Required by many laws.
- Tested as
- Relations questions.
- Trap
- Allowing retaliation.
Side by side
Concepts candidates mix up, compared on the point that decides the answer.
OSHA vs. workers' compensation
| Concept | Meaning | Key difference | Common trap |
|---|---|---|---|
| OSHA | Requires a safe workplace | Prevention and standards | Confusing with workers' comp |
| Workers' compensation | Covers work injuries | No-fault coverage | Confusing with OSHA |
Grievance vs. ADR
| Concept | Meaning | Key difference | Common trap |
|---|---|---|---|
| Grievance procedure | Formal internal complaint process | Often union-based | Confusing with ADR |
| ADR | Mediation or arbitration | Resolve outside court | Confusing with a grievance |
Union vs. non-union under the NLRA
| Concept | Meaning | Key difference | Common trap |
|---|---|---|---|
| Union workplace | Collective bargaining | NLRA governs | Ignoring NLRA |
| Non-union workplace | Still protected concerted activity | NLRA still applies | Thinking NLRA is union-only |
Exam traps
Each trap is an answer that looks right. Learn the clue that should change your mind.
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Retaliate against a reporter
- What candidates pick
- Discipline an employee who reported a safety hazard.
- Why it looks right
- They raised a complaint.
- Why it's wrong
- OSHA and other laws prohibit retaliation against employees who report hazards or complaints; the hazard must be addressed and the reporter protected.
Clue to watch for An employee reported a safety or legal concern.
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OSHA covers injury payments
- What candidates pick
- Cite OSHA for compensating an employee's work injury.
- Why it looks right
- Both relate to safety.
- Why it's wrong
- OSHA sets safety requirements and prevention; workers' compensation provides the no-fault coverage for work-related injuries.
Clue to watch for The need is injury compensation versus safety standards.
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NLRA is union-only
- What candidates pick
- Assume the NLRA does not apply because the workplace is non-union.
- Why it looks right
- The NLRA concerns unions.
- Why it's wrong
- The NLRA protects concerted activity in both union and non-union workplaces, so protections apply even without a union.
Clue to watch for Employees act together on working conditions in a non-union setting.
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Undocumented investigation
- What candidates pick
- Handle a harassment complaint informally without documentation.
- Why it looks right
- It seems discreet.
- Why it's wrong
- Investigations must be prompt, fair, thorough, impartial and documented, protecting confidentiality and against retaliation.
Clue to watch for A complaint requires a sound, defensible investigation.
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Uneven policy enforcement
- What candidates pick
- Enforce a handbook policy for some employees but not others.
- Why it looks right
- It is situational.
- Why it's wrong
- Policies must be enforced consistently; uneven enforcement invites discrimination claims.
Clue to watch for A policy is applied inconsistently across employees.
Answer framework
For any Employee and Labor Relations scenario, use these steps to find the answer the PHR expects.
- Apply the relevant U.S. employment, safety and labor law, and support inclusivity through ERGs, outreach and CSR.
- For safety, apply OSHA (a safe workplace, no retaliation) and workers' compensation for injuries, with emergency, violence and substance-abuse programs.
- Enforce policy consistently, display required postings, and conduct prompt, fair, impartial and documented investigations.
- Handle complaints by investigating, documenting, recommending and escalating, and use grievance procedures and ADR to resolve disputes.
- Apply the NLRA to union and non-union protected activity, enforce anti-discrimination and harassment policies, and prevent retaliation. Where two options seem to fit, choose the operationally correct action that applies U.S. law and policy precisely, rather than the strategic or convenient one.
Practice question
Want more like this? The PHR practice test has questions for every domain.
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Study strategy
Invest the most in this largest area, since at 20% it carries the most questions and its U.S. law resurfaces across the exam. Start with the safety and labor law, applying OSHA (safe workplace, anti-retaliation) and distinguishing it from workers' compensation, and understanding the NLRA's protection of concerted activity in both union and non-union workplaces.
Master workplace investigations, the hallmark of this area: prompt, fair, thorough, impartial, confidential and documented, with no retaliation. Learn consistent policy enforcement and required postings, and the complaint, grievance and alternative dispute resolution processes. Keep retaliation prevention and anti-discrimination enforcement front of mind.
Because the PHR is application-based and this area is law-heavy, memorize the relevant statutes and practice scenario questions on investigations, safety and labor relations. This is the largest area, so study it first and review it often. This is the final functional area, so finish with full practice exams across all seven and practice the 120-minute pacing.
FAQ
How much of the PHR is Employee and Labor Relations?
Employee and Labor Relations is 20% of the exam, the single largest functional area, and its U.S. law underlies much of the exam's legal content.
What is the difference between OSHA and workers' compensation?
OSHA (the Occupational Safety and Health Act) requires employers to provide a safe workplace, set safety standards and prohibits retaliation for reporting hazards. Workers' compensation is a no-fault system that provides coverage for employees injured on the job. One is prevention and standards, the other is injury coverage.
Does the NLRA apply to non-union workplaces?
Yes. The National Labor Relations Act protects employees' right to engage in protected concerted activity about working conditions in both union and non-union workplaces, so its protections apply even where there is no union.
How should a workplace investigation be conducted?
Promptly, fairly, thoroughly and impartially, with documentation at each step, protection of confidentiality to the extent possible, and no retaliation against the complainant or witnesses. A sound, documented investigation is defensible and central to this area.
Why must policies be enforced consistently?
Because uneven enforcement, applying a policy to some employees but not others, can create discrimination claims and undermine fairness. Consistent, documented enforcement of the handbook and procedures protects the organization.
What is the difference between a grievance procedure and ADR?
A grievance procedure is a formal internal process for resolving complaints, common in unionized workplaces. Alternative dispute resolution (ADR) uses methods like mediation and arbitration to resolve disputes outside of court. They are different resolution mechanisms.
How does this area connect to the rest of the exam?
Its U.S. employment, safety and labor law resurfaces in hiring (anti-discrimination), total rewards (pay law), and separations (WARN, documentation), making it the legal backbone that ties the functional areas together.
Other Human Resources certifications
Where the same subject shows up in other exams. Cards marked "Same subject" open the matching domain.
Test your Domain 6 knowledge
You have covered U.S. law, safety, investigations, grievances, ADR and labor relations. Test whether you can apply Employee and Labor Relations under exam conditions.