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CENTRAL MINNESOTA SHRM

CENTRAL MINNESOTA SHRM. Why An HR Audit Is Necessary October 20, 2011. By Beth Papacek and Jonathon Naples. Why Audit?. Compliance – laws and regulations Proactive protections Identify and correct Limit liability Establish best practices

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CENTRAL MINNESOTA SHRM

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  1. CENTRAL MINNESOTA SHRM Why An HR Audit Is Necessary October 20, 2011 ByBeth PapacekandJonathon Naples

  2. Why Audit? Compliance – laws and regulations • Proactive protections • Identify and correct • Limit liability • Establish best practices • Identify opportunities for improvement/development • Strategic – do the processes align with goals, strategic plan

  3. Concerns • Expense • Lack of personnel • Disruption to HR function and others • What will come of it? • Create roadmap for litigation

  4. Basic Steps • Determine scope and type • Develop audit checklist/Questionnaire/Key Documents • Collect Data • Analyze/benchmark • Create action plans • Ongoing monitoring and improvement

  5. What to Audit • Wage and Hour Practices • Recruiting Practices • Pre-employment testing • Employee forms • Orientation Training • Restrictive Covenants • Policies/Handbooks

  6. What to Audit • Affirmative Action Plans and Practices • Discrimination/Harassment policies and complaint process • Accommodation Requests • Medical Requests/Exams (GINA) • I-9

  7. What to Audit • Personnel Files/Recordkeeping • Security/Privacy • Performance Management Systems • Pay Plans/Pay Equity – (Ledbetter) • Independent Contractors and Other Non-Employees

  8. What to Audit • LitigationPreparedness • Federal/StatePostings • LeaveManagement • Benefits/Insurance • Payrolltaxaudit • OSH/Safety • Privacy • Union Vulnerability

  9. Wage and Hour PracticesAudit Areas • Exempt/Nonexempt Status • Timekeeping Systems/Recording of Hours • Defining the Workweek/Workday • Wage Deductions • Overtime/Comp Time • Bonus Calculations

  10. Wage and Hour PracticesAudit Areas • Management Practices/Communications • Child Labor • Travel • Training • On-Call • Joint Employer

  11. Wage and Hour Practices Key Documents • Job description • Time records • Written policies re: • Timekeeping • Overtime • Pay Periods • Attendance

  12. Wage and Hour Practices Key Documents Written policies re (cont.): • Meal/Rest breaks • Deductions • Safe harbor • Classification • Travel • Training • Pay at Termination

  13. Wage and Hour Practices Key Documents • Compensation plans • Offer letters • CBA’s

  14. Wage and Hour Practices Other “Keys” • May be unwritten • Informal communication • Manager behavior

  15. Wage and Hour Practices Correcting Issues Found – Retro or Forward Only • Determine scope of issue • Who is impacted? • Dollars involved? • Timeframe for liability • Consult legal counsel

  16. Wage and Hour Practices Correcting Issues Found – Retro or Forward Only • Plan • Timing • Communication • Execution • Documentation • Ongoing monitoring

  17. Policies and Handbooks • Confidentiality Policies • Social Media Policies • Blogging and Internet Usage • Anti-Discrimination & EEO Policies • NLRA Issues • Applicable to both union and non-union employers.

  18. Medical Requests/Exams Audit Areas • Permissible purpose • Scope of inquiry • GINA disclaimer • Confidentiality

  19. Medical Requests/Exams Key Documents • Job descriptions • Pre-employment exam • Drug/alcohol testing policy, consent • FMLA forms • Fitness for Duty • Accommodation requests • Attendance/Absence forms

  20. Non-Employees • Independent Contractors • Interns/Trainees • Volunteers

  21. Non-Employees Key Documents • Contracts • Offer letters • Applicable policies • Important information will be “unwritten”

  22. Who Should Audit • HR professionals • Outside consultant • Inside Counsel • Outside Counsel

  23. Using Attorneys • May utilize some privileges • Fact-gathering for purpose of legal advice • Fact of the audit and actions taken likely discoverable • Reliance on recommendation – minimize damages • Purposeful documentation

  24. Q&A THANK YOU FOR YOUR ATTENTION AND PARTICIPATION!

  25. DISCLAIMER This presentation is not legal advice.

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