The HR Audit: A Periodic Review of Your HR Prac6ces. Nancy Edwards
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1 The HR Audit: A Periodic Review of Your HR Prac6ces Nancy Edwards
2 Before we get started I am not an aaorney This material is not legal advice This presenta6on is not a subs6tute for experienced legal counsel
3 Why An HR Audit
4 Why Do a Compliance HR Audit Proac6ve - Catch errors before a governmental agency does (i.e. DOL, EEOC) Poten6ally reduce the risk of lawsuits
5 What is an HR Audit? A means of assessing the level of compliance with federal and state laws. A means of measuring the effec6veness of your HR policies and prac6ces. The key to an audit is to remember it is a learning or discovery tool, not a test. There will always be room for improvement in every organiza6on.
6 Poll Ques6on Does your company currently conduct yearly HR Audits?
7 What does an HR Audit include? Compliance and Recordkeeping Compensa6on/Salary Administra6on Employment/Recrui6ng Termina6ons Files/Record Maintenance/Technology Employee Rela6ons Training and Development Communica6ons Policies and Procedures (including employee handbook)
8 The HR Audit Process Includes: Management Interviews (informal) Issues that require immediate aaen6on Management skill levels Resistance level Employee Interviews (informal) Cross sec6on of all employees Employee issues (i.e. morale, reten6on) Company has no obliga6on to adopt all sugges6ons
9 The HR Audit Process Includes: Document Review Legal compliance Recordkeeping requirements Efficiency and effec6veness Consistency Employee Handbook Review Legally compliant Clear communica6on Nondiscriminatory and appropriate Viola6ons properly documented
10 The HR Audit Process Includes: Review Current and Poten6al Legal Ac6ons Mee6ng legal requirements Improved management training Revision of policies and prac6ces
11 Problems Iden6fied and Correc6ve Ac6on Findings Applicable laws and prac6ces Penal6es and risks Recommenda6ons
12 Ac6on Plan Must be realis6c and achievable Desired results must be iden6fied Assign accountability Target dates
13 Wage & Hour
14 Exempt Employees Execu6ve Administra6ve Professional Outside sales Some computer professionals Salary of $455 per week
15 Exempt Employees cont d Fewer rights under FLSA Receive full amount of base salary in work period (less any permissible deduc6ons) May be required to punch a clock May be required to make up missed 6me May work unlimited number of hours
16 Non- Exempt Employees Must be paid at least $7.25 for the first 40 hours worked in a week (check specific state laws for higher minimum wage) Must receive over6me rate of at least 6me and one- half their regular rate of pay for all hours worked over 40 in a workweek (check specific state laws for more stringent requirements) Cannot waive their rights to over6me
17 Non- Exempt Employees May be paid on an hourly basis, a salary basis or piece rate basis as long as they receive at least minimum wage for all hours worked and the appropriate over6me Must have a 6mekeeping mechanism Private sector NO COMP TIME!
18 Independent Contractors Self- employed Not just one customer/has customer base Responsible for own taxes and expenses No employer direct control No benefits
19 FLSA - Liability WHD review prior 2 years 3 years if willful Possible criminal prosecu6on Li6ga6on
20 Recordkeeping/Non- Exempt Name Address Social Security Number DOB Gender Job 6tle Time and day of week when employee s workweek begins Hours worked each day Total hours for each workweek
21 Recordkeeping/ Non- Exempt Basis on which employee s wages are paid (e.g. $10 per hour ) Total daily or weekly straight- 6me earnings Over6me worked and paid Deduc6ons Wages for each pay period Date of payment and pay period covered by payment
22 Recordkeeping / Exempt Name Address Social Security Number Date of Birth Gender Occupa6on Time and day of week on which the employee s workweek begins Total wages paid for each pay period Date of payment and the pay period by each payment PTO
23 Personnel Files Personnel Files
24 Personnel Files What should be in a personnel file? Employment Employment Applica6on / Employment Offer Handbook Acknowledgment Resume Performance Reviews Training and Development Documents Termina6on Form Job Descrip6on Exit Interview
25 Personnel Files What should be in a personnel file? Benefits Vaca6on Request Request for Non- Medical Leave of Absence Tui6on Reimbursement Documents
26 Personnel Files What should be in a personnel file? Payroll W- 4 form Timesheets AAendance Records Garnishment Orders Authoriza6on for Payroll Deduc6ons Compensa6on History Records Status Change Documents
27 Personnel Files What should be in a personnel file? Employee Rela6ons Report of Coaching/Counseling Sessions Commenda6ons, Awards Disciplinary Documents
28 Personnel Files What should NOT be in a personnel file? Medical Records Physical Examina6on Diagnos6c Records Lab Results Drug Tes6ng Results Any other medical records with personally iden6fiable informa6on about the employee
29 Personnel Files What should NOT be in a personnel file? Inves6ga6on Records Accusa6ons of legal and/or policy viola6ons Discrimina6on complaints and inves6ga6on Clearance Inves6ga6on Records Background check informa6on (including criminal history, credit history) Opinions Notes on documents indica6ng management bias or discrimina6on. For example, He is too old for the job.
30 Reten6on and Storage Varies depending on document Follow Federal Record Reten6on Guidelines Hardcopy Storage Paperless Storage Destroying Documents
31 Job Descrip6ons
32 Job Descrip6ons What should a job descrip6on include? Job Title Department FLSA Status (exempt, nonexempt) Job Type (regular, seasonal, temporary, etc) Job Status (full 6me, part 6me) Travel Required What posi6on this posi6on reports to Work Schedule
33 Job Descrip6ons What should a job descrip6on include? Posi6on Summary Essen6al Func6ons Posi6on Qualifica6ons Skills, Abili6es (educa6on, computer skills, experience, etc.) Physical Requirements (standing, sinng, lioing, speaking, bending, etc.) Work Environment Signature Lines
34 Job Descrip6ons Job descrip6ons Determine the essen6al func6ons of the job Useful when dealing with unemployment claims Helpful when measuring performance Should accurately describe the job
35 Job Descrip6ons Recommenda6ons Review your job descrip6ons on a periodic basis Update your job descrip6ons when essen6al func6ons for a posi6on changes Contact your G&A Partners HR Advisor for assistance
36 Conclusion Learning and discovery tool, not a test There will always be room for improvement in every organiza6on Contact your G&A Partners HR Advisor for more informa6on Sources
37 QUESTIONS? HRCI Certification Credits: G&A Partners (800) *This webinar has been recorded and will be posted on the G&A website by Friday "This webinar has been pre-certified for 1 hour of general recertification credit toward PHR, SPHR and GPHR recertification through the HR Certification Institute. We will send out a confirmation with the Program ID code to note on your HRCI recertification application form to everyone who is confirmed as attended and watched the live version of this webinar. The use of this seal is not an endorsement by the HR Certification Institute of the quality of the program. It means that this program has met the HR Certification Institute's criteria to be pre-approved for recertification credit."
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