Glossary of HR and Recruiting Terms for Restaurant & Hospitality Professionals

Glossary of Recruiting & Hiring Terms

Active Candidate – An individual who is actively seeking new job opportunities (e.g. regularly reviewing job boards, networking, and applying to positions). Active candidates are typically motivated to change jobs, unlike passive candidates.
Applicant Tracking System (ATS) – Software that manages the recruiting and hiring process by collecting applicant information, filtering candidates, and tracking their progress through the hiring workflow. An ATS helps save time and streamline hiring by automating job postings, resume screening, and interview scheduling.
Background Check – A pre-employment screening process where an employer verifies a candidate’s history (such as criminal record, employment and education verification, and reference checks) before finalizing a hire. Background checks help ensure workplace safety and verify candidate qualifications.
Candidate Pipeline – A pool or talent pipeline of potential candidates that recruiters have identified, engaged, and kept in touch with for current or future openings. Maintaining a strong candidate pipeline (including passive candidates) helps fill positions faster by having qualified people “lined up” for when jobs arise.
Clopening – A scheduling practice where an employee works a closing shift at night and then returns to open the business just a few hours later. Clopening shifts are common in hospitality but can lead to fatigue (and are restricted by some local laws to ensure adequate rest periods).
Headhunter – An individual or agency that provides specialized recruitment services by seeking out and “headhunting” top candidates for employers. Headhunters are typically hired to source ideal candidates (often for high-level or hard-to-fill positions) and may proactively approach people who are not actively job-hunting.
Job Description – A written summary of a job’s duties, responsibilities, required qualifications, and reporting relationships. Clear job descriptions help set expectations and are used in recruiting to advertise roles and in performance management as a basis for evaluations.
No Call, No Show – A term for when an employee fails to report for a scheduled work shift and does not notify the employer in advance. A “no call no show” absence violates attendance policy and can be considered job abandonment if repeated.
Onboarding – The process of integrating a new hire into the organization, including orientation, training, and socialization into the company culture. Effective onboarding helps new employees in hospitality get up to speed quickly in areas like service standards, menu knowledge, and POS systems.
Passive Candidate – Someone who is not actively job-hunting but has valuable skills or experience that make them attractive to recruiters. These individuals haven’t applied for a job but may be open to the right opportunity; recruiters often source passive candidates via networking or social media outreach.
Recruitment – The overall process of attracting, screening, and selecting qualified people for a job. Recruitment in hospitality often involves posting jobs, attending job fairs, and using employee referrals to find candidates who can handle service-oriented roles. (See also Talent Acquisition.)
Sourcing – The proactive effort to find and identify potential candidates (often before they apply). In recruiting, sourcing means searching resume databases, social networks (like LinkedIn), or industry events to locate qualified people – including those not actively applying – and engaging them about job opportunities.
Talent Acquisition – A strategic approach to recruiting that focuses on long-term workforce planning. Talent acquisition involves continuously identifying, attracting, and hiring skilled employees to meet organizational needs. It is a broader concept than immediate recruiting, encompassing employer branding, talent pipelining, and creating a positive candidate experience for the hospitality labor market.

Glossary of Compliance & Legal Terms

Affordable Care Act (ACA) – The comprehensive federal health care reform law (2010) which, among other things, requires large employers (50+ full-time employees) to offer health insurance to full-time staff or face penalties. In hospitality, compliance with the ACA means scheduling and tracking hours to know which employees must be offered coverage.
Americans with Disabilities Act (ADA) – A federal civil rights law that prohibits discrimination against individuals with disabilities in employment (among other areas) and requires employers to provide reasonable accommodations to qualified employees with disabilities. For example, a restaurant must not reject a qualified server applicant due to a disability and should adjust workplace practices (within reason) to enable their work.
At-Will Employment – An employment doctrine (in effect in all U.S. states except Montana) stating that either the employer or the employee can end the employment relationship at any time, for any reason (except an illegal reason), or for no reason at all. In practical terms, at-will means an employer can terminate an employee without needing to prove cause (and likewise an employee can quit freely), provided no laws (e.g. anti-discrimination statutes) are violated.
Bona Fide Occupational Qualification (BFOQ) – A legally permitted exception to equal employment laws, allowing an employer to hire employees based on characteristics like sex or religion only if it is reasonably necessary to the normal operation of the business. BFOQs are very narrow – for instance, hiring only female attendants for a women’s locker room could be a BFOQ due to privacy concerns. Race can never be a BFOQ.
Collective Bargaining – The process of negotiation between an employer and a group of employees (usually represented by a labor union) to determine the terms of employment. The result of collective bargaining is a Collective Bargaining Agreement (CBA) – a labor contract covering wages, hours, benefits, and working conditions for unionized employees (some hotels or restaurants with union staff operate under CBAs).
Consolidated Omnibus Budget Reconciliation Act (COBRA) – A federal law that allows employees (and their families) to continue their employer-sponsored health insurance coverage for a limited time after leaving a job (or other qualifying events), usually at their own expense. For example, a hotel employee who quits can elect COBRA to stay on the company health plan for up to 18 months by paying the full premium.
Equal Employment Opportunity Commission (EEOC) – The U.S. federal agency that enforces laws against workplace discrimination, covering protected characteristics such as race, color, religion, sex (including pregnancy, sexual orientation, gender identity), national origin, age (40 and over), disability, and genetic information. The EEOC investigates discrimination complaints and can sue employers for violations of Title VII, ADA, etc.
Exempt Employee – An employee excluded from the overtime and minimum wage provisions of the Fair Labor Standards Act (FLSA) because they meet specific criteria (generally paid a salary above a set threshold and working in a bona fide executive, administrative, or professional capacity). For example, a salaried head chef might be an exempt employee if they have managerial duties and earn above the FLSA salary cutoff. (See also Non-Exempt Employee.)
Fair Labor Standards Act (FLSA) – The key federal law governing wages and hours. The FLSA establishes the federal minimum wage, overtime pay (time-and-a-half for hours worked over 40 in a week for non-exempt workers), recordkeeping requirements, and child labor standards. In restaurants, the FLSA also covers rules for tipped employees (tip credit provisions) and defines which employees are exempt vs. non-exempt from overtime.
Family and Medical Leave Act (FMLA) – A federal law requiring covered employers (generally 50+ employees) to provide eligible employees up to 12 weeks of unpaid, job-protected leave per 12-month period for certain family or medical reasons. FMLA covers events like an employee’s serious health condition, the birth of a child, or care for an immediate family member with a serious health issue. In hospitality, employers must track FMLA leave and continue health benefits during the leave.
Form I-9 – The U.S. Employment Eligibility Verification form that employers must complete for every new hire to verify the person’s identity and authorization to work in the United States. The new hire provides documents (e.g. passport or driver’s license and Social Security card) and the employer certifies on Form I-9 that the documents were examined. (Employers in some states or under federal contracts also use E-Verify – an online system that checks I-9 information against government databases – to confirm work eligibility.)
Immigration Compliance – The set of employer responsibilities related to hiring only individuals authorized to work in the U.S. (e.g. properly completing Form I-9 for each employee and using E-Verify where required). In restaurants and hospitality, immigration compliance is crucial since these industries employ many immigrants; failure to comply can result in audits and penalties.
Non-Exempt Employee – An employee who is covered by FLSA overtime and minimum wage protections. Non-exempt employees must be paid at least the minimum wage and are eligible for overtime pay (1.5× their regular rate) for hours worked over 40 in a workweek. Most hourly workers (e.g. servers, cooks, housekeepers) in hospitality are non-exempt, meaning they track hours and receive overtime pay when applicable.
Occupational Safety and Health Administration (OSHA) – The U.S. Department of Labor agency responsible for setting and enforcing workplace safety and health standards. OSHA’s mission is “to ensure safe and healthful working conditions for workers by setting and enforcing standards and by providing training, outreach, education, and assistance.”. Restaurants and hotels must follow OSHA regulations (for example, on kitchen equipment safety, chemical handling, and hazard communication) and may be inspected for compliance.
Overtime – Premium pay for hours worked beyond a certain threshold. Under federal law, overtime pay is required at not less than one and one-half times the employee’s regular pay rate for hours worked over 40 in a workweek (for non-exempt employees). State laws can add additional overtime rules (e.g., daily overtime in some states). Properly managing overtime in hospitality (with fluctuating staff hours) is important to comply with wage laws and manage labor costs.
Protected Class – A group of people protected from employment discrimination by law. Federal protected classes include race, color, religion, sex, national origin, age (over 40), disability, genetic information, and veteran status. Some states add others (e.g. sexual orientation is now covered under “sex” federally, and many states explicitly protect it). Employers cannot make adverse job decisions (hiring, firing, promotions, etc.) based on someone’s protected characteristic.
Tip Credit – A provision in the FLSA that allows employers to pay tipped employees (those who regularly receive tips, like waitstaff and bartenders) less than the standard minimum wage, by counting a portion of their tips toward the wage obligation. For example, federal law permits a tipped minimum cash wage of $2.13/hr if tips make up the difference to reach $7.25/hr (the federal minimum). Each state can have its own tip credit rules or higher cash wage requirements.
Workers’ Compensation – Insurance that provides wage replacement and medical benefits to employees who are injured on the job or who develop a work-related illness. Workers’ comp is mandated by state law and is a no-fault system (employees generally receive benefits but cannot sue the employer for negligence). In hospitality, common injuries (cuts, burns, slips) are covered by workers’ comp insurance, which also protects employers from most injury lawsuits.

Glossary of Compensation & Benefits Terms

401(k) Plan – A retirement savings plan offered by employers that allows employees to contribute a portion of their wages (often pre-tax) to individual investment accounts. Many hospitality employers provide a 401(k) and may offer a company match (contributing an additional amount, e.g. 50% of employee contributions up to 4% of pay) to encourage employees to save for retirement.
Benefits (Employee Benefits) – Forms of non-wage compensation provided to employees in addition to their regular pay. Benefits commonly include health insurance, dental/vision insurance, life insurance, retirement plans, paid time off, and other perks (meals, tuition assistance, etc.). In the service industry, benefits packages help attract and retain employees beyond what hourly wages alone can do.
Bonus – Extra compensation given to an employee, typically as a reward for performance or as profit-sharing. For example, a restaurant manager might receive an annual bonus for meeting revenue or cost targets. Bonuses can be discretionary or specified by contract and may be used as incentives to motivate staff.
Compensation – The total pay and benefits an employee receives for their work. It includes base wages or salary, and may also encompass bonuses, commissions, overtime, tips (in restaurants), and the value of benefits such as insurance and paid leave. Compensation strategy in hospitality has to account for tips and service charges, especially for roles like servers.
Fringe Benefits – Miscellaneous extra benefits provided to employees, beyond basic wages and major insurance/retirement plans. Fringe benefits can include things like employee meals, transportation assistance, gym memberships, or discounts at the business. For example, a hotel might offer free uniforms and meals (a fringe benefit) to staff.
Gross Pay – An employee’s total earnings before any taxes or deductions are taken out. Gross pay includes the sum of hourly wages or salary plus any overtime, tips, bonuses, or other earnings in a pay period. (By contrast, see Net Pay.)
Net Pay – The amount of take-home pay an employee receives after all withholdings and deductions. This is the actual paycheck amount after subtracting taxes (income tax, Social Security, Medicare) and any other deductions (401k contributions, health insurance premiums, etc.) from gross pay.
Paid Time Off (PTO) – A policy that provides employees with a bank of paid hours that can be used for vacation, sick leave, or personal time at the employee’s discretion. Rather than separate vacation and sick days, PTO lump sum allows hospitality workers flexibility in using paid leave (though some states require tracking sick time separately).
Payroll – The process of calculating and distributing employee paychecks, and the system or department responsible for it. Payroll management includes tracking hours worked, calculating gross pay, withholding taxes and other deductions, and issuing net pay to employees. Accurate payroll is critical for compliance with wage laws (like overtime, minimum wage, and tip credits in restaurants).
Payroll Tax – Mandatory contributions related to employment, usually referring to Social Security and Medicare taxes (FICA) and federal/state unemployment taxes (FUTA/SUTA) that employers must withhold from employees’ wages and/or pay themselves. For instance, FICA tax (7.65% each for employer and employee) is calculated during payroll processing.
Tip Pooling – A practice in restaurants where tipped employees combine all or a portion of their tips to be redistributed among a certain group of staff (according to a tip pool agreement). Tip pooling, when used, must follow DOL guidelines (e.g., only including eligible employees like servers, bartenders, bussers – not managers). It’s designed to spread tips to back-of-house or support staff in some cases.
Wage Garnishment – A court-ordered or government-required withholding of an employee’s earnings by the employer to pay a debt. Common examples include garnishments for child support, tax levies, or creditor judgments. Employers in all industries must process garnishments as legally directed (up to certain limits to protect a portion of the employee’s pay).
W-2 Employee – A common term for a regular employee (as opposed to an independent contractor) – named after Form W-2, the Wage and Tax Statement that employers provide to each employee annually detailing earnings and taxes withheld. Businesses must issue Form W-2 to all employees by January 31 each year, reporting the prior year’s wages, tips, and taxes for the IRS and Social Security Administration.
1099 Contractor – Refers to an independent contractor or self-employed worker who is not on payroll as an employee. Instead of a W-2, they receive Form 1099-NEC for their services. A 1099 contractor is responsible for their own taxes (no income tax or FICA is withheld by the company) and is typically not entitled to employee benefits. For example, a hotel might hire a 1099 contractor for a one-time renovation project or a band for entertainment, but its regular staff are W-2 employees.

Glossary of Training & Development Terms

Learning Management System (LMS) – A software platform for administering and tracking employee training. An LMS allows managers to upload training materials, enroll employees in courses, track their progress, and even test their knowledge. In hospitality, an LMS might host food safety courses, customer service training modules, and other development programs.
Mentoring – A development practice in which a seasoned employee (mentor) provides guidance, knowledge, and support to a less experienced employee (mentee). For example, a head chef mentoring a line cook helps develop the cook’s skills and prepares them for greater responsibility.
On-the-Job Training – Training provided to employees at the workplace while they perform their actual job. Much of hospitality industry training is on-the-job (e.g., a new server shadowing an experienced server during shifts, or housekeeping staff being trained on cleaning procedures in real time).
Performance Improvement Plan (PIP) – A formal plan outlining specific improvements needed in an employee’s performance, along with goals, timelines, and resources to help the employee meet the required standard. PIPs are often used when an employee (like a hotel front-desk agent with repeated customer service issues) is not meeting expectations, giving them a structured opportunity to succeed before further action is taken.
Succession Planning – The process of identifying and developing employees to fill key roles in the future. In hospitality, succession planning might involve grooming a restaurant’s assistant manager to take over the general manager role, ensuring business continuity.

Glossary of Performance Management Terms

360-Degree Feedback – A performance feedback method in which an employee receives confidential and anonymous feedback from multiple sources all around them – e.g., supervisors, peers, subordinates, and sometimes customers (hence “360-degree”). For instance, a hotel manager might get evaluated by their boss, their peers in other departments, and the team they supervise. This well-rounded feedback can highlight strengths and blind spots for development (as implied by improved collaboration and communication benefits).
Key Performance Indicator (KPI) – A quantifiable metric used to measure how well an employee, team, or organization is achieving key business objectives. In HR, common KPIs might be turnover rate or training completion rate; in a restaurant, a server’s KPIs might include guest satisfaction scores or sales per shift. KPIs provide targets to aim for (e.g., 90% guest satisfaction) and a way to evaluate performance objectively.
Performance Evaluation (Performance Review) – A formal assessment of an employee’s work performance, usually conducted by their manager on a regular schedule (such as annually or semi-annually). A performance review typically involves discussing the employee’s accomplishments, areas for improvement, and setting goals. In hospitality, performance evaluations for staff (like banquet servers or front desk clerks) might include reviewing customer feedback, punctuality, and adherence to service standards.
Performance Management – The continuous process of setting expectations, observing and measuring performance, providing feedback, and coaching employees to improve. Performance management includes more than the annual review – it’s the day-to-day and week-to-week guidance managers provide (e.g., a bar manager regularly checking a bartender’s drink quality and speed and giving tips to improve).
Productivity – A measure of output or efficiency, often calculated as output per labor hour. In the service context, productivity might be measured by how many tables a server can handle effectively or how many rooms a housekeeper can clean to standard per shift. HR monitors productivity to ensure staffing levels are sufficient but not wasteful.

Glossary of Employee Relations & Engagement Terms

Absenteeism – Frequent or habitual absence from work (usually unplanned or unscheduled absences). High absenteeism can disrupt operations – for example, if servers or kitchen staff often call in sick last-minute, it puts strain on the rest of the team. Employers track absenteeism and may implement attendance policies or wellness programs to reduce it.
Employee Engagement – The emotional commitment and level of involvement an employee has toward their organization and its goals. Highly engaged employees are enthusiastic about their work, go above and beyond in their roles, and feel a strong connection to the company’s mission. In hospitality, engaged employees often create better guest experiences, as they genuinely care about their service.
Employee Relations – The HR function that focuses on maintaining positive relationships between an employer and its employees. This includes addressing workplace conflicts, handling grievances and complaints, and ensuring fair treatment. Good employee relations in restaurants and hotels can lead to lower turnover and a more positive work environment (for example, resolving scheduling conflicts fairly or mediating disagreements between kitchen and waitstaff).
Employee Retention – The ability of an organization to keep its employees and reduce turnover. High retention often indicates good morale and competitive pay/conditions, whereas high turnover can signal issues. Retention strategies in hospitality include career development opportunities, recognition programs, and improving work-life balance (since excessive clopenings or unpredictable schedules can drive people away).
Grievance – A formal complaint raised by an employee regarding a workplace issue such as harassment, unsafe conditions, or policy violations. Grievance procedures (especially where a union is present) provide a structured way for employees to voice concerns and seek resolution. Even in non-union settings, employers should have a process to handle serious complaints (e.g., an open-door policy or HR complaint line).
Harassment – Unwanted conduct or behavior toward an individual based on a protected characteristic (such as sex, race, religion, etc.) that creates a hostile or offensive work environment. Sexual harassment, for example, is a major concern in restaurants (e.g. inappropriate remarks or touching). Employers must train employees and managers on anti-harassment and take prompt action on complaints (per EEOC guidelines).
Honesty Bonding – A type of fidelity bond (insurance) some employers obtain to protect against losses caused by employee theft or dishonesty. In hospitality, where cash handling is common, employers might bond employees in certain positions (like cashiers) as a precaution.
Union – A labor union is an organization of workers formed to protect their rights and interests. In some hotels or large food service operations, employees may be unionized (e.g., UNITE HERE represents many hotel workers). Unions engage in collective bargaining with the employer to negotiate wages, hours, and other conditions (see Collective Bargaining).
Workplace Culture – The shared values, norms, attitudes, and practices that shape how work gets done in an organization. For example, a restaurant’s culture might be very team-oriented and fast-paced, or a luxury hotel’s culture might emphasize meticulous attention to detail and customer satisfaction. HR and leadership play a big role in fostering a positive culture (through hiring, training, and leading by example).
Workplace Diversity & Inclusion – Diversity refers to the representation of different demographic groups (e.g., differences in race, gender, age, etc.) in the workforce, and Inclusion means creating an environment where all those different people feel valued, respected, and able to contribute. Companies implement D&I initiatives to ensure fairness and leverage a variety of perspectives. For instance, a hospitality company may train managers on inclusive leadership and celebrate cultural diversity in its staff – aiming for a workplace where everyone feels they belong.

Glossary of Hospitality & Workforce Management Terms

Back of House (BOH) – The “behind-the-scenes” areas of an establishment that guests typically do not see. In a restaurant or hotel, BOH includes the kitchen, dishwashing area, storerooms, and other operational spaces. Back-of-house staff are those like chefs, cooks, stewards, and cleaners who support operations without direct customer interaction (except perhaps to deliver room service or dishes).
Front of House (FOH) – The areas of a restaurant or hotel that are open to customers, and the staff who directly interact with guests. In a restaurant, FOH includes the dining room, bar, and entry/lounge – where hosts/hostesses, servers, bussers, and bartenders work. In a hotel, FOH would be the lobby, reception desk, concierge, and guest areas. These employees are the public face of the business and need strong customer service skills.
Clopening (Shift) – (See Clopening under Recruiting & Hiring terms.) This practice of scheduling the same employee to close late and open early is common enough in retail and food service to have its own nickname. Managers should avoid overusing clopening to prevent burnout and now must also comply with any local “right to rest” laws designed to curb clopenings.
Hazard Analysis Critical Control Point (HACCP) – A systematic preventive approach to food safety commonly used in kitchens. HACCP isn’t an HR term per se, but managers in hospitality should know it to train staff on food handling safety. (It involves identifying points in food prep where hazards could occur and putting controls in place, which intersects with workplace safety training.)
Seasonal Employment – Hiring employees on a temporary or seasonal basis to meet peak business demand. Restaurants and hotels often ramp up staffing during summer, holidays, or tourist seasons, then reduce hours or lay off seasonal staff in the off-season. Seasonal employees may be ineligible for certain benefits if their tenure is short, but they are still subject to wage and hour laws like any employee.
Shift Work – Work that is organized in shifts (set blocks of hours), as opposed to a standard 9–5 schedule. Hospitality is a classic shift-work industry: hotels have day, evening, night (overnight) shifts; restaurants have lunch and dinner shifts, etc. Managing shifts involves scheduling staff to ensure coverage for all operating hours, and often includes shift differentials (extra pay for less desirable shifts, like night shifts) or split shifts (where an employee’s workday is split into two parts).
Turnover Rate – The percentage of employees leaving the company over a period, often calculated annually. (Turnover was defined earlier under Employee Relations.) In hospitality, turnover rates tend to be high relative to other industries. Monitoring turnover rate helps a business understand its staffing stability and the effectiveness of its retention strategies.

Sources

The definitions above were compiled and adapted from numerous HR resources, including the Society for Human Resource Management (SHRM), BambooHR’s HR Glossary, legal and government publications (DOL, OSHA, EEOC), and industry-specific guides.

All efforts were made to provide plain-language explanations relevant to U.S. hospitality employers. For further reading on specific terms, please refer to the cited sources and the EEOC, DOL, and OSHA official websites for compliance-related definitions and updates.