Laws
A retail associate at the Guam Won Won Wonki Store slips on a wet floor, injures their knee, and misses several shifts. The associate reports the injury to the store manager 20 days later, completing the required claim paperwork. The employer rejects the claim, arguing that it is invalid because the worker failed to report the injury within 7 days of the accident. The employee appeals.
What is the most accurate legal outcome under Guam’s Workers’ Compensation Law?
A. Employer is correct — claims must be reported within 7 days to be valid.
B. Employer is wrong — Guam law allows employees up to 90 days to notify their employer of a workplace injury.
C. Employer is correct — Guam law requires reporting within 14 days.
D. Employer is wrong — there is no deadline for reporting workplace injuries.
B is correct.
Why this is correct:
Under 22 GCA § 9110 (Guam Workers’ Compensation Law), an injured employee has up to 90 days to notify the employer of a workplace injury. The law specifies:
7 days = Employer’s duty to file a report of injury after being notified by the employee.
90 days = Employee’s deadline to provide notice of the injury to the employer.
Since the retail associate reported the injury 20 days later, the claim is still timely and legally valid.
Why the others are wrong:
A. Misapplies the rule — the 7-day rule applies to the employer’s duty to report, not the employee’s notice.
C. No 14-day standard exists under Guam law.
D. Guam law clearly sets 90 days as the limit for employee reporting.
An employee engagement strategy should specify how engagement efforts will be sustained over time.
Which of the following choices is a recommended best practice designed to accomplish this objective?
A. Implement a flextime program tied to engagement
B. Conduct regular employee feedback surveys on how engaged they are
C. Link employee engagement to business results
D. Conduct extensive background checks designed to best identify qualified job applicants who are the most engaged in their previous workplaces
C. Link employee engagement to business results
Why this is correct:
Sustaining engagement requires making it strategic and measurable, not just a one-time initiative. By linking engagement to business outcomes (e.g., productivity, customer satisfaction, retention, profitability), the organization can: Demonstrate the ROI of engagement efforts, Gain ongoing leadership buy-in, and Integrate engagement into core business strategy rather than treating it as a standalone HR activity. This ensures engagement efforts are continually resourced, prioritized, and evaluated over time.
Why the others are wrong:
A. Flextime may boost engagement temporarily, but it is a single tactic, not a long-term strategy.
B. Surveys provide useful data, but by themselves, they don’t ensure sustainability unless connected to business strategy and outcomes.
D. This confuses engagement (a workplace culture outcome) with hiring practices. Engagement is developed internally, not selected at hiring.
Cherry picking is a term that:
A. Defines the practice of hiring needed skills from a competitor without requiring higher- performance results
B. Is unique to farmers who grow and pick cherries
C. Refers to an employer who pays bonuses to selected employees based on their performance results
D. Offers benefits to selected workers based on their monthly performance results
A is the correct answer
Why this is correct:
In HR and labor relations, “cherry picking” typically refers to an employer selectively hiring certain employees from a competitor (often those with key skills or union support) to weaken the competitor’s workforce or gain an advantage. It is not about performance-based pay or farming—it’s about selective recruitment for strategic purposes.
Why the others are wrong:
B. Too literal. Not an HR/labor relations meaning.
C. This describes selective incentive pay, not cherry picking.
D. Again, this is about reward systems, not the labor relations concept of cherry picking.
During open enrollment, the HR department of the Happy, Satisfied, & Healthy Flowershop proposes including a question about employees’ family history of heart disease on the company’s voluntary wellness screening forms. The benefits manager suggests this information could help the company identify high-risk employees and adjust health insurance premiums accordingly. A staff member raises concerns about potential compliance issues.
What is the most accurate legal risk?
A. There are none, voluntary wellness programs are exempt from GINA’s restrictions.
B. High risk of violating GINA, which prohibits employers from requesting, requiring, or purchasing genetic information such as family medical history.
C. None — employers may request family history if employees provide written consent.
D. Risk applies only if these questions are asked during the hiring process, health insurance administration are exempt under GINA
B is correct.
Why this is correct:
The Genetic Information Nondiscrimination Act (GINA) explicitly prohibits employers and health plans from requesting, requiring, or purchasing genetic information, which includes family medical history. Even if a wellness program is voluntary, employers cannot lawfully collect family history data to influence health insurance premiums or employment decisions. Asking about family history on wellness forms is a direct violation risk under GINA.
Why the others are wrong:
A. There is no exemption for voluntary wellness programs when it comes to collecting genetic information.
C. Even with consent, employers cannot use genetic information for employment or insurance decisions. Consent does not override GINA protections.
D. GINA applies broadly to all employment contexts, including benefits and wellness programs, not just hiring.
The human resource department hired a new HR analyst whose duties included payroll reporting. The HR analyst noticed inconsistencies in the pay records for the unionized employees in the accounting department. Their biometric timestamp did not match the overtime hours claimed and approved by the accounting manager. An accountant was hired at the same time as the analyst and called the HR manager in confidence about the same employees bragging about the amount of their overtime pay.
How should the HR manager first evaluate the actions and ethical implications of the accounting manager?
A) The HR assure should use the utilitarian approach.
B) The HR assure should use the virtue approach.
C) The HR assure should refer to trusted colleagues.
D) The HR assure should refer to all relevant company policies, code of ethics, and conduct.
D is correct
Why this is correct:
When faced with possible fraud, timecard manipulation, and managerial misconduct, the HR manager’s first responsibility is to ground their evaluation in the organization’s established policies, ethics codes, and standards of conduct. This ensures the evaluation is: Objective and consistent, Aligned with legal and compliance requirements, & Clear for documentation in case of further investigation or disciplinary action
Why the others are wrong:
A. Utilitarian approach
While useful in ethics theory, a cost–benefit analysis of outcomes is too abstract and not the correct first step in an HR compliance matter. Policies take priority.
B. Virtue approach
This focuses on character traits (e.g., honesty, integrity), but again, it is not the first professional step. HR must rely on policy, not subjective moral judgment.
C. Refer to trusted colleagues
Confidentiality is critical. Discussing suspicions with colleagues risks breach of confidentiality and possible retaliation claims.
The executive board of The Dudus Neni Gurl Beauty Parlor wants to diversify the business. During the strategic planning process, the executive board identifies their core competencies as logistics and supply chain management.
Which of the following would you consider a good direction to take the business that will allow them to capitalize on these core competencies?
A. Open a beauty school that offers salon services to the public and focus heavily on retailing beauty products through the salon
B. Open additional stores with diversified product lines and heavily promote the new product offerings
C. Open a beauty school that offers salon services to the public and focus on offering high-quality educational opportunities for students
D. Expand existing stores by stocking diverse product lines and heavily promote the new product offerings
B is correct
Why this is correct:
The board identified their core competencies as logistics and supply chain management. To leverage these strengths, the company should pursue a strategy that maximizes distribution, inventory management, and product movement. Opening additional stores and diversifying product lines directly uses their supply chain and logistics expertise to deliver competitive advantage. This aligns with the HR principle of strategic organizational fit: grow in directions that exploit what the organization already does best.
❌ Why the others are wrong:
A. This shifts the company into education and services, which do not capitalize on logistics/supply chain strengths.
C. Again, education/training is far outside their identified competencies. It requires new expertise rather than leveraging current strengths.
D. This is somewhat closer, but simply expanding existing stores doesn’t capitalize as strongly on logistics efficiency as opening new distribution outlets. Option B offers broader reach and scalability.
A “Maolek Marketing Coordinator” at SaveMore Supermarkets, earns $52,000 annually and mainly enters data and schedules social media posts. The employer classifies them as exempt. What is correct?
A. Exempt — earns above the salary threshold
B. Not exempt — duties test is not satisfied
C. Exempt — any salaried professional is exempt
D. Not exempt — threshold is $60,000, not $52,000
Correct Answer: B
Why right?
Duties don’t meet administrative/professional exemption. In this case, the employee mainly enters data and schedules social media posts, which is routine, non-discretionary work. This does not involve independent judgment, policy-level decisions, or professional expertise. Therefore, the duties test is not satisfied, so the role is non-exempt.
Why wrong?
A. Salary test alone is not enough. The duties test must also be satisfied.
C. Simply being salaried does not automatically make someone exempt. Many salaried workers are still entitled to overtime if they do not meet the duties test.
D. Wrong number. The correct federal (and Guam) threshold is $35,568 annually ($684 per week), not $60,000.
An employee at the DM Superstore attended a focused training session on project management. She was prompted to do so after her last performance evaluation where she was rated as “needs improvement” in the area of project management. She is now in her performance review meeting almost a year later, and her manager rates her as “needs improvement” again in the same area and suggests further training. The employee is unwilling to attend more training.
Why do you think she is resistant to the idea of attending another training session?
A. Change tolerance
B. Peer pressure
C. Nonsupportive manager
D. Lack of trust
D is the correct answer.
Why this is correct:
The employee already attended training in the targeted skill area (project management), yet her performance rating remained unchanged. From her perspective, the training did not improve her evaluation, so she may feel that: The training is ineffective, The manager did not fairly evaluate her progress, or The company is not supporting her growth in a meaningful way. This creates a lack of trust in the process, the training, and possibly in her manager’s intentions.
Why the others are wrong:
A. Resistance to change usually refers to reluctance to adopt new methods or processes. Here, she already demonstrated willingness by attending training before.
B. There is no evidence that coworkers are influencing her decision.
C. While the manager may not have coached effectively, the main issue is not lack of support but the employee’s distrust of the process and outcomes.
Dococo Atlantic has 25 plants around the United States and other countries. More than 90 percent of their plants are unionized facilities. The company has enjoyed a long positive relationship with the various unions that represent their employees worldwide. A new facility is opening within the year near other unionized company locations. The GM of the new facility is concerned about the adversarial nature of the new union organizers. They are not from any union the company successfully deals with today. There are some concerns about managers committing Unfair Labor Practices outside the United States.
Which Unfair Labor Practice (ULP) should Dococo be focused on first?
A. Management domination of a union
B. Interrogating employees or union officials
C. Violence during the organizing effort
D. Spying on internal union activities
A is Correct.
Why this is correct:
Under the National Labor Relations Act (NLRA) in the U.S. (and mirrored in many labor systems abroad), the most serious unfair labor practice (ULP) that a company must avoid is management domination or interference in the formation or administration of a union. It’s considered a “foundational” ULP because if management controls or dominates the union, then employees lose their fundamental right to freely organize and bargain collectively.
Why the others are wrong:
B. Yes, questioning employees about union involvement is a ULP, but it is not as serious as domination, which directly destroys the union’s independence.
C. Violence is illegal and dangerous, but it is not the first ULP the company should focus on. It is a broader criminal law/public safety issue, not strictly a labor law compliance priority.
D. Surveillance of employees’ union activities is also a ULP, but again, it is secondary to domination, which undermines the union at its core.
After serving four consecutive years on active military duty, Elena, a call center worker at Tasi360 Credit Union, notifies the company of her intent to return to work within the legally required time frame. The supervisor responds that Elena may reapply for the position but will not receive credit for the four years of seniority lost during service, stating, “That’s too long to be protected.” The HR manager is consulted.
What is the HR manager’s best response?
A. Support the supervisor’s position since military service beyond two years breaks reinstatement protection.
B. Require Elena to complete a new application but grant credit for seniority earned before deployment.
C. Reinstate Elena promptly under the escalator principle, with full seniority as if continuously employed.
D. Deny reinstatement since USERRA does not apply to extended active-duty military service.
C is the correct answer.
Why this is correct: The Uniformed Services Employment and Reemployment Rights Act (USERRA) protects employees who leave for military service for up to five cumulative years (with some exceptions extending even beyond that). Elena’s four years of active duty fall within this protected period. Under the escalator principle, she must be reinstated to the job she would have attained if continuously employed, with full seniority, rights, and benefits. The law requires prompt reinstatement and prohibits employers from penalizing employees for military service.
Why the others are wrong:
A. USERRA allows up to five years, not two.
B. Elena does not need to reapply. She has the right to automatic reemployment with continuous seniority, not just pre-deployment credit.
D. USERRA explicitly covers extended service up to at least five years.
The performance of employees at the Micronesia Regional Medical Center seems to plateau after the first 3 months of employment. It is reported that many new hires are already looking for a new job after only 2 months. As the HR director, you decide to survey this group. The survey reveals that these employees don’t feel as though they have the tools to do their jobs well.
What strategy would you implement to address the quick decline in employee engagement?
A. Form a committee to determine ways to improve employee engagement
B. Make sure new hires have a formal individual development plan including buddy systems and formal mentors to ensure they are continuing to learn and develop
C. Establish a robust onboarding program that extends through the first 180 days
D. Make sure new employees are included in all team-building events
C is correct.
Why this is correct:
The issue is that new hires feel they don’t have the tools to do their jobs well and disengage quickly (within the first 2–3 months). This points to a gap in onboarding and training, not necessarily culture or social events. Research shows that extended onboarding improves retention and prevents the “early exit” problem.
Why the others are wrong:
A. Too indirect and time-consuming. The problem is already clear from the survey results, so immediate action is better than more committees.
B. Helpful for long-term growth, but the problem here is basic job readiness and support in the first few months, not career development planning.
D Inclusion is good for morale, but this doesn’t solve the lack of tools and job training. Engagement drops because they feel unprepared, not excluded socially.
The Marianas Medical Center states in its mission that it will support and enhance the quality of care in the communities it serves. A struggling hospital, Karabao Memorial Hospital, is 1 mile away from its headquarters. What advice would you provide to the CEO in regard to leveraging this situation?
A. Establish a partnership with the hospital to offer the patients experimental medications for free
B. Provide discounted or free products to the hospital
C. Offer to involve hospital employees in research projects, as appropriate
D. Open a pharmacy adjacent to the hospital
B is correct
Why this is correct:
The company’s mission is to enhance quality of care in the community. Offering discounted or free products directly supports patient care in a way that is ethical, consistent with the mission, and immediately beneficial to the hospital’s patients. This aligns with Corporate Social Responsibility (CSR) and builds goodwill without creating compliance risks.
Why the others are wrong:
A. Risky — experimental drugs must go through strict FDA and clinical trial protocols. Offering them directly could be unsafe and unethical.
C. While collaboration is possible, it is not the most direct or immediate way to enhance patient care in the community. It benefits research more than patients.
D. This is more of a business expansion strategy than a community-care initiative. It could appear self-serving, not mission-driven.
A small accounting firm, Bunny House Accounting, has 12 full-time employees. Maria Concepcion, age 62, is terminated and told by the firm owner that they want “fresh blood” to bring energy to the team.
Maria files a claim under the Age Discrimination in Employment Act (ADEA) and also under Guam’s local employment discrimination law.
The firm's owner having taken a HR Class once before and attended the latest SHRM Guam Breakfast Briefing argues that the federal ADEA doesn’t apply because it has fewer than 20 employees. Which of the following is the most legally accurate outcome?
A. The firm is not covered under ADEA because the federal law requires at least 20 employees thus Maria has no federal ADEA claim.
B. Maria may not use the federal ADEA, but Guam’s Fair Employment Practices Act likely covers her because it imposes no 20-employee threshold.
C. The firm is not covered under either federal or Guam law, so Maria’s claims is not applicable either way
D.Guam law is irrelevant, Federal Law Supersedes Guam Law
B is correct
Why this is correct:
ADEA coverage: The Age Discrimination in Employment Act (ADEA) only applies to employers with 20 or more employees (29 U.S.C. § 630(b)). Bunny House Accounting has only 12 employees, so ADEA does not apply. BUT Guam’s Fair Employment Practices Act (22 GCA Chapter 21) prohibits discrimination in employment, including based on age, and does not impose the 20-employee threshold. Therefore, Maria can pursue her claim under local Guam law. Federal law does not cancel out local anti-discrimination protections in fact, Guam law exists precisely to cover smaller employers that federal law does not reach.
Why the others are wrong:
A. Half-true, but misleading, while she cannot use ADEA, she can use Guam law.
C. Guam’s Fair Employment Practices Act applies even to small employers.
D. Federal law sets a minimum floor, but states/territories like Guam may extend greater protections. Guam’s law is valid and enforceable alongside federal law.
During the budget review process at the Bank of Karabao, it is determined that there are ten information technology (IT) budgeted positions that are unfilled but only enough money in the budget to fill six of those positions. A deeper analysis of the budget reveals that new hires for this fiscal year are being paid at a rate higher than originally budgeted for because management claims that it has been difficult to find IT professionals with the skill set needed at the original budgeted salaries.
How should HR advise senior management if the goal is to fill the remaining ten positions this fiscal year?
A. Hire an outside recruiting agency because they have access to more qualified candidates
B. Hire less skilled IT staff and invest in training
C. Postpone the start of projects because of the lack of staff
D. Approach new hires with this dilemma and get them to agree to a temporary pay reduction
B. Hire less skilled IT staff and invest in training
Why this is correct:
The organization faces a budget constraint: only enough funds remain to hire 6 at current market rates, but 10 positions need to be filled. Hiring slightly less experienced candidates at salaries within budget and then investing in training and development provides a sustainable solution: Stays within the financial limits, Builds internal talent pipelines, Reduces dependency on high-cost external hires. This aligns with strategic HR practices, balancing cost management with workforce capability development.
Why the others are wrong:
A. This increases costs further. Agencies typically charge fees of 20–30% of salary, making the budget problem worse.
C. While sometimes necessary, this option does not meet the goal (fill 10 positions this fiscal year). It delays organizational objectives instead of solving the staffing gap.
D. Impractical and unethical. Once offers are made and accepted, renegotiating downward damages trust, morale, and the employer brand.
A multinational, regional insurance company, Cruz's Premium Care Insurance, has HR representatives in each of the outer island locations, which has worked well to support collaboration among local business functions. However, many HR administrative tasks are duplicated throughout the organization.
As the CHRO, what structural changes would you make to the HR function that could create economies of scale while continuing to encourage collaboration between local business units?
A. Implement a functional HR structure
B. Implement a Center of Excellence (COE) structure
C. Implement a dedicated HR structure
D. Implement a decentralized HR structure
B. Implement a Center of Excellence (COE) structure
Why this is correct:
A COE structure centralizes specialized HR expertise and administrative tasks (such as payroll, benefits, compliance, or talent acquisition) to eliminate duplication and gain economies of scale. At the same time, COEs partner with local HR representatives (HRBPs) to ensure business units still receive tailored support and maintain collaboration with local management. This model is widely used in multinational firms because it balances efficiency (cost savings, standardization) with responsiveness (support for local needs).
Why the others are wrong:
A. This centralizes HR by function (e.g., recruiting, training, compensation), but it is more siloed and may reduce collaboration with local business units compared to the COE model.
C. A “dedicated” model assigns HR staff fully to specific business units. This encourages collaboration but does not solve the duplication of administrative tasks, so economies of scale are not achieved.
D. This is the current state, HR is dispersed locally. While it encourages collaboration, it creates redundancy and inefficiency.