Human Resources Compliance Audit

Worth The Cost or Risk?,[object Object],Jeanine Maloney, SPHR,[object Object],Avoid Becoming A StatisticHuman Resources Compliance Audit,[object Object]

What Will We Learn?,[object Object],Frightening facts.,[object Object],Why so many violations?,[object Object],Why do a compliance audit?,[object Object],What should be included?,[object Object],Opportune times to do a compliance audit.,[object Object],What should it touch on?,[object Object],What happens after?,[object Object],Additional thoughts.,[object Object],Certified Human Resources - 2009,[object Object]

Consider These Frightening Facts:,[object Object],Certified Human Resources - 2009,[object Object]

Frightening Facts / Startling Statistics,[object Object],In 2007, there were over 82,000 charges filed with the EEOC, approximately 7,000 more that the previous year.,[object Object],In fiscal year 2008, Wage and Hour collected over $185 million in back wages for over 228,000 employees.,[object Object],For fiscal year 2008 there were over 4700 minors employed in violation of the child labor laws.,[object Object],There were over 1800 complaint cases on FMLA enforcement.,[object Object],The monetary benefits awarded in 2007 from EEOC litigated suits were $54.8 million.,[object Object],(Date from the EEOC website),[object Object],Certified Human Resources - 2009,[object Object]

Why So Many Violations?,[object Object],High risk associated with non-compliance is overlooked.,[object Object],Employment decisions are often made “in the heat of the moment”.,[object Object],Employers may be scrambling to get staff on board or when terminating employees.,[object Object],Certified Human Resources - 2009,[object Object]

Why Do A Compliance Audit?,[object Object],Monetary costs could be exorbitant if issues are ignored or not addressed.,[object Object],Ensure legal compliance for benefit of company, even if considering retirement/sale of business, for liability purposes.,[object Object],Liability has two-fold effect: It may not only remain with the company but can follow the owner because he ‘should have known the rules’.,[object Object],Helps company avoid costs as well as time away from business to address any issues.,[object Object],Certified Human Resources - 2009,[object Object]

Opportune Times For Compliance Audits,[object Object],If there is a contemplated sale of the business.,[object Object],If there is an upcoming merger or acquisition.,[object Object],When there are changes in Senior Management.,[object Object],When there have been changes in Labor Laws or regulations.,[object Object],If you have experienced significant growth in your business.,[object Object],If you have added a significant amount of staff.,[object Object],Certified Human Resources - 2009,[object Object]

What Should A Compliance Audit Touch On?,[object Object],Payroll compliance,[object Object],Record documentation and retention,[object Object],Employee handbook or manual,[object Object],Policies and Procedures,[object Object],Position Descriptions,[object Object],List is NOT all inclusive but a good place to start,[object Object],Certified Human Resources - 2009,[object Object]

Payroll Compliance,[object Object],Make sure that timesheets compare with actual hours worked. ,[object Object],Make sure that time clock rounding is done properly if you use one.,[object Object],Check to make sure overtime pay calculations are done accurately.,[object Object],Ensure that classification of employees is done correctly to avoid liability for overtime costs.,[object Object],Understand that Wage and Hour violations can go back several years.,[object Object],Certified Human Resources - 2009,[object Object]

Record Documentation and Retention,[object Object],Check for issues such as missing or incomplete information on Form I-9’s.,[object Object],Check for incomplete personnel files information.,[object Object],Check for inadequate discipline documentation.,[object Object],Ensure that personnel evaluation information is not inadequate or inaccurate.,[object Object],Make sure you have accurate and complete data to support any employment decisions.,[object Object],Certified Human Resources - 2009,[object Object]

Employee Handbook or Manual,[object Object],Make sure it has been updated to reflect the current employment laws that are ever changing.,[object Object],Make sure employees have a copy of the handbook. It is a communication tool to inform employees of company rules (Federal, state, local, company policies).,[object Object],The handbook should be reviewed on a regular basis and communicated and reviewed with all employees and managers.,[object Object],Having an accurate, updated, and communicated handbook may help avoid possible claims and litigation from non-compliance to many of the labor laws.,[object Object],Certified Human Resources - 2009,[object Object]

Policies and Procedures,[object Object],Check to ensure that policies and procedures are written, up-to-date, communicated, and are followed as stated rather than ad-hoc.,[object Object],Make sure your policies and procedures include disciplinary, performance and termination guidelines.,[object Object],Make sure all managers are trained on your policies and procedures and use them consistently to avoid claims such as wrongful termination.,[object Object],Certified Human Resources - 2009,[object Object]

Position Descriptions,[object Object],Ensure they are updated as responsibilities change and as business grows or changes in a significant way.,[object Object],Make sure position descriptions verify specific job responsibilities for proper exempt / non-exempt classification purposes (Wage and Hour claims).,[object Object],Make sure position descriptions include the essential functions of each position to help with decisions about ADA (Americans with Disability Act).,[object Object],Position descriptions also outline the workflow of a position.,[object Object],Certified Human Resources - 2009,[object Object]

What Happens Next?,[object Object],Generally a report is compiled with concerns listed in order of importance.,[object Object],Report should be reviewed with senior management and decisions on how to handle each issue should be discussed.,[object Object],If changes are to be made, any of which affect the employees, they should be communicated along with reasons for the changes.,[object Object],Good practice is to let employees know that company takes people issues seriously and will always correct any problem issues and concerns.,[object Object],Certified Human Resources - 2009,[object Object]

Compliance Audit Thoughts,[object Object],As a business owner you perform audits on your financial records on a regular basis, HR compliance should be taken just as seriously.,[object Object],Take the initiative to prevent litigation or legal challenges in the long run.,[object Object],Don’t let your company become a victim to one of the many statistics mentioned above.,[object Object],Certified Human Resources - 2009,[object Object]

Jeanine Maloney, SPHR, is an Independent Human Resources professional (Certified Human Resources) working in association with Certified Acquisition Associates LLC and may be reached at Jeanine@certifiedacquisitions.com,[object Object],Certified Human Resources - 2009,[object Object]

Human Resources Compliance Audit

Human Resources Compliance Audit

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Human Resources Compliance Audit