Human resources and people networking concept

Human Resources – it’s essential. Everyone needs it, utilizes it, and depends on it, but the specifics of what goes on can seem like a mystery. Acronyms and terms that have such an air of importance, you’re almost afraid to admit you don’t know what they mean! Today we’re going to dispel some of that mystery by going through some common HR terms.

Independent Contractor

Workers who operate as an independent business and may perform work for multiple clients. A contractor supplies their own tools and equipment, does not receive benefits from the employer, and is responsible for their own taxes. Click here to learn more about understanding the difference between an employee and an independent contractor.

Nonexempt employees

An individual who qualifies to earn at least minimum wage and receive overtime under the federal Fair Labor Standards Act (FLSA).

Strategic Human Resource Management (Strategic HRM)

The idea that HR contributes not only operationally but also on a tactical and strategic level, aligning activities with the objectives of the organization. When done right, Strategic HRM will help the organization reach its goals.

Workers’ Compensation

Insurance that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job.

Intellectual Property

Products of human intelligence that are intangible, owned, and legally protected by a company or individual, and cannot be used or implemented without the owner’s consent. It’s HR’s job to impose policies regarding the use of company computers, company email, company-provided internet, etc. Any communication system that could contain the company’s intellectual property should be protected by HR policies.


The Americans with Disabilities Act. ADA ensures equal opportunities for people with disabilities in areas of public accommodations, employment, transportation, and government services.


The Equal Employment Opportunity Commission. The organization responsible for enforcing federal laws that make it illegal to discriminate against a job applicant for a variety of reasons including a person’s race, color, religion, sex, national origin, age (40 or older), disability, or genetic information.

There are so many more areas of Human Resources to investigate, but hopefully, this will give you a start! If your business could use HR assistance, our amazing team is standing by to make sure you and your business are protected.