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IREM ACoM study materials
IREM ACoM study resources

IREM ACoM: Human Resources: Staffing, Compliance, and Contractor Classification

IREM ACoM · Work through your exam, one topic at a time.

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Human Resources: Staffing, Compliance, and Contractor Classification

Human resources on the ACoM exam tests the people decisions that affect property performance and legal exposure: hiring, classification, performance management, safety, and retention. The exam expects you to apply employment law and documented supervision rather than informal management.

Core rules and concepts

  • Classify workers correctly: employee versus independent contractor depends on control, integration, and economic reality. Misclassification creates tax, wage, and workers' compensation liability.
  • Recruit and onboard with written job descriptions, pay ranges, required licenses, and safety training.
  • Performance management: set expectations, document, coach, use progressive discipline, and treat similar cases consistently.
  • Wage-hour compliance: overtime, breaks, timekeeping, and exempt versus non-exempt duties tests.
  • Prevent discrimination, harassment, and retaliation; handle leave and accommodation requests properly.
  • Safety: OSHA obligations, emergency action plans, incident reporting, and vendor safety qualifications.
  • Retention: training, career paths, and engagement reduce turnover costs that affect property performance.

Worked example

A manager wants to hire a maintenance technician as a 1099 contractor to avoid payroll taxes, but sets his hours, provides tools, and requires daily check-ins. Under the control test, this looks like employment. Misclassification can trigger back taxes, penalties, workers' compensation gaps, and wage claims. The correct approach is to classify the technician as an employee unless the role is genuinely independent: own tools, other clients, control over methods, and opportunity for profit or loss. Document the analysis. Reasoning: the label does not control; the working relationship does.

Traps that cost marks

  • Using a 1099 label without substance.
  • Inconsistent discipline across similar employees.
  • Ignoring overtime for non-exempt staff.
  • Retaliating after a complaint.
  • Failing to document performance issues.