HR Audit Checklist for Compliance
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The document discusses the importance of conducting periodic HR audits to assess compliance with employment laws and identify areas for improvement. It notes that audits help catch errors before government agencies and potentially reduce liability risks. The summary describes the key components of an audit, including interviews with management and employees, document reviews, and developing an action plan to address any issues identified. The audit process is presented as a learning tool to maintain legal compliance and HR best practices.
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HR Audit Checklist for Compliance
- 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. What does 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)
- 7. 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
- 8. 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
- 9. The HR Audit Process Includes: • Review Current and Poten6al Legal Ac6ons • Mee6ng legal requirements • Improved management training • Revision of policies and prac6ces
- 10. Problems Iden6fied and Correc6ve Ac6on • Findings • Applicable laws and prac6ces • Penal6es and risks • Recommenda6ons
- 11. Ac6on Plan • Must be realis6c and achievable • Desired results must be iden6fied • Assign accountability • Target dates
- 12. Wage & Hour
- 13. Exempt Employees • Execu6ve • Administra6ve • Professional • Outside sales • Some computer professionals • Salary of $455 per week
- 14. 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
- 15. Non-‐Exempt Employees • Must be paid at least $7.25 for the first 40 hours worked in a week (check specific state law 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 law for more stringent requirements) • Cannot waive their rights to over6me
- 16. 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!
- 17. Independent Contractors • Self-‐employed • Not just one customer/has customer base • Responsible for own taxes and expenses • No employer direct control • No benefits
- 18. FLSA -‐Liability • WHD review prior 2 years • 3 years if willful • Possible criminal prosecu6on • Li6ga6on
- 19. 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
- 20. 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
- 21. Recordkeeping / Exempt • Name • Address • Social Security Number • Date of Birth • Gender • Occupa6on • Time of day and day of week on which the employees workweek begins • Total wages paid for each pay period • Date of payment and the pay period by each payment • PTO
- 22. Personnel Files
- 23. 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
- 24. Personnel Files • What should be in a personnel file • Benefits • Vaca6on Request • Request for Non-‐Medical Leave of Absence • Tui6on Reimbursement Documents
- 25. 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
- 26. Personnel Files • What should be in a personnel file • Employee Rela6ons • Report of Coaching/Counseling Sessions • Commenda6ons and Awards • Disciplinary Documents
- 27. 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
- 28. Personnel Files • What should NOT be in a personnel file cont’d • 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.”
- 29. Reten6on and Storage • Varies depending on document • Follow Federal Record Reten6on Guidelines • Hardcopy storage • Paperless storage • Destroying documents
- 31. Pos6ng Requirements • Federal Requirements • • • • • • Fair Labor Standards Act (FLSA) Occupa6onal Safety and Health Administra6on (OSHA) Polygraph Protec6on Act Equal Employment Opportunity (EEO) Family and Medical Leave Act (FMLA) Uniform Services Employment and Reemployment Rights Act (USERRA)
- 32. Pos6ng Requirements • State of Texas Requirements • Texas Workers Compensa6on No6ce • Texas Payday Law • Employer No6ce of Ombudsman Program • Texas Child Labor Laws • Texas Equal Employment Opportunity
- 33. Pos6ng Requirements • Compare federal and state laws to your company policies. • Use as guide when crea6ng company policies. • Place posters in a conspicuous loca6on. • Remember your non-‐English speaking employees.
- 34. Conclusion • Learning and discovery tool, not a test. • There will always be room for improvement in every organiza6on. • Contact G&A Partners if you’d like more informa6on on an HR audit.
- 35. Contact info Nancy Edwards, SPHR G&A Partners 713-‐784-‐1181 info@gnapartners.com * Today’s recording and slides will be posted on the G&A website by Friday.