Self Audit Prevents Pitfalls
As a human resources consultant, my job is to help clients deal properly with (and preferably to prevent) human resources problems. Recently, for example, I was introduced at a supervisory training workshop conducted at a client's premises as ". . . the gentlemen whose job is to help keep our company out of court."
Over the years, it seems that various problems tend to recur more frequently than others. This article is intended to help identify and prevent some common problems. Use this self audit to check your firm's practices in the following areas:
1. Does your firm's employment application have a certification which asserts employment - at - will, authorizes reference checks and states that falsified information is grounds for dismissal?
2. Are all newly hired employees required to complete the Employment Eligibility Form I-9 and to provide documents showing identity and work authorization?
3. Are employees performing similar work provided comparable pay or paid within the same pay range regardless of sex?
4. Are time records kept for employees performing "non-exempt" work such as office clerical, technical, service production or most inside sales jobs?
5. Are "non-exempt" employees as described above provided with overtime pay for time worked over 40 hours in a week?
6. Has your firm communicated to employees a written sexual harassment policy with a complaint procedure
7. Does your firm avoid making "deals" by administering pay, benefits and employment policies in a consistent manner for all employees?
8. Has your firm defined employment policies in an employee handbook or policy manual to aid consistent administration of policies?
9. Does your firm use some sort of performance appraisal process to recognize employee achievements and to correct performance problems?
10. Are workplace accidents promptly and thoroughly investigated with results recorded in the "OSHA Log"?
11. If employees work with chemical substances, does your firm maintain a written hazard communication plan with chemical safety data sheets and employee training on safe practices?
12. Have disciplinary rules been defined to advise employees of inappropriate or prohibited conduct in the job?
13. Are corrective or disciplinary actions administered in a consistent manner for all employees with warnings documented on a warning form?
14. Does your firm's employee handbook define the employment-at-will relationship and avoid complex procedures on employment separation?
15. Are employees using company computers, E-Mail or internet advised that communications are not private, and may be subject to monitoring by management?
16. Are employees advised if management determines the need to conduct workplace searches, or surveillance on monitoring of communications?
Answer Key: The desired answer to each question should be a Yes. Any No response may create a human resources problem or a potential legal liability as defined below:
1. An application without a proper certification may limit management's prerogative to get references or to dismiss an individual for providing false information on an application.
2. Failure to properly document employment eligibility could result in costly fines and deportation of undocumented workers.
3. Failure to provide comparable pay for comparable work regardless of sex violates the Equal Pay Act. Pay differences may be permissible for bona fide differences in seniority, responsibility, performance or productivity.
4. Failure to keep time records for "non-exempt" hourly paid workers could result in time consuming wage-hour audits and costly fines.
5. Failure to provide overtime pay for time worked over 40 hours in a week could result in wage-hour audits, fines and pack pay orders. going back two years, or back three years for intentional violations.
6. Recent Supreme Court decisions now intensify employer liability for sexual harassment incidents. A written policy and training for employees and supervisors is now essential to prevent incidents and to reduce potential liability.
7. Personal deals are often seen by employees as favoritism. Deals could be deemed to be a discriminatory practice in violation of equal employment opportunity laws. Violations of equal employment opportunity laws can now result in reinstatement or other "make whole " orders, back pay, punitive damages, fines, and attorneys fees.
8. When employment policies are defined in a manner which complies with the various employment laws, the firm has a guideline to follow promoting employment decisions which comply with the law.
9. Written performance appraisals are an effevtive way to recognize good performers, justify pay adjustments, and to correct problem performers. This helps to demonstrate fair administration of policy and supports management action in unemployment insurance hearings in discrimination claims.
10. Prompt and thorough investigation of accidents helps to prevent their re-occurance and helps to minimize the likelihood of workers compenstion fraud. Record accidents in the OSHA log and post the log in February of each year.
11. Firms which use chemical substances are required by federal regulations to maintain a written hazard communication plan. Failure to have a written "haz-com" plan will result in fines, penalties, and safety inspections.
12. A publised list of disciplinary rules helps to prevent misconduct and supports a supervisors decision if corrective action is needed to correct misconduct.
13. Human resources experts recommend that disciplinary warnings be documented on a warning form. This helps to demonstrate fair administration of policy and supports management action in unemployment insurance hearings in discrimination claims.
14. A properly prepared employee handbook with a prominant disclaimer helps to protect management's employment -at-will prerogitive, and minimizes the likelihood of six figure law suit settlements for wrongful discharge.
15. One of the growing concerns is preventing sexual harassment and privacy invasion claims because an E-Mail and computer use policy was not defined.
16. Invasion of employee privacy on the job has emerged as an area of growing legal claims. Just as we submit to a serch when boarding commercial aircraft, carefully defined polices communicated to employees helps to justify the security or loss control reason for such actions and to minimize a privacy expectation.
Develop or revise your firms policies so that you can answer "Yes" to these questions.
William S. Hubbartt is president of Hubbartt & Associates, a St. Charles, IL consulting firm specializing in employee compensation, employee handbooks, personnel policies and supervisory training. (www.Hubbartt.com) Mr. Hubbartt is author of The New Battle Over Workplace Privacy, published by AMACOM Books.
