An HR audit is a means of assessing a company's level of compliance with federal and state laws that measures the effectiveness of your HR policies and practices. In this webinar we will discuss employee relations, employee classification, job descriptions, and the interview process.

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
• www.dol.gov
• www.prospera.com
• www.twc.state.tx.us

37. HRCI Certification Credits:
"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 e-mail 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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G&A
Partners
info@gnapartners.com
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*This webinar has been recorded and will be posted on the G&A website by Friday