Final answer:
Red-circled employees are those who are paid above the maximum of their pay range, not to be mistaken for new hires on probation, employees at risk of leaving, or those on the layoff list.
Step-by-step explanation:
The term red-circled employees refers to b) Employees who are paid above the maximum of their pay range. This situation can occur due to a variety of reasons, such as pay structure changes, retention of highly skilled employees, or a reward for exceptional performance that surpasses the normal pay scale criteria.
These employees are not to be confused with newly hired employees on probation, who are often paid less during their trial period, or employees at risk of leaving the organization. Nor are they employees who are on the layoff priority list due to low seniority, as those individuals are under quite different circumstances associated with job security, rather than compensation levels.