This article discusses 10 questions employers should consider to help ensure compliance with employment laws and reduce risks of litigation. It notes that while avoidance may seem like a natural response to legal complexity, employers are better served becoming familiar with fundamental compliance issues and identifying tools and resources. Specifically, the questions address issues like understanding applicable laws; training on frequent sources of litigation like wage/hour laws; keeping up with new regulations; providing required employee information and training; conducting compliance audits; maintaining updated policies and procedures; properly documenting job descriptions, interviews, performance and disciplinary actions. Addressing these areas can help organizations meet legal obligations and decrease liabilities.

1. Memphis Business Journal - April 13, 2009
/memphis/stories/2009/04/13/smallb2.html
Friday, April 10, 2009
Ways to counter the risks associated with
employment-related actions
Memphis Business Journal - by Barbara Richman
Employers are confronted with article after article featuring the “top” mistakes that
organizations make and various legal ramifications of employment-related actions. They are
also bombarded with headlines about costly outcomes associated with litigation and the
need to comply with numerous employment laws and regulations. These perceived threats,
coupled with financial concerns and the day-to-day operations of their organizations, leave
many employers frustrated and, at times, overwhelmed. This combination of factors also
may produce head-in-the-sand reactions. Although avoidance may be a natural response, it
will not be effective either in the short or long run.
A more productive approach would be to recognize the complexity of the legal landscape,
take steps to become familiar with fundamental compliance issues, and identify resources
and tools for use.
The following are questions to consider in determining whether your organization has taken
steps to deal with fundamental compliance issues:
1. Is the employer aware of the federal, state and local employment laws that apply to the
organization? When determining applicability, attention should be paid to the number of
employees, the organization’s status as public or private sector, criteria for classification as a
federal contractor, and any other relevant requirements for coverage. Also, employers
should recognize that laws frequently vary from one state to another and that further
research will be needed if organizations have multiple locations.
2. Is management knowledgeable about laws that are frequent sources of charges and
litigation? News releases, articles and advertisements of plaintiffs’ attorneys provide
insights into current sources of contention. The Fair Labor Standards Act is an example of a
complex law that is regularly cited in wage and hour violations. Employers should be aware
that FLSA litigation has been steadily increasing and take steps to avoid common and costly
violations, such as mis-classifying non-exempt employees as exempt or failing to
compensate non-exempt employees for overtime worked.

2. 3. Are processes in place for staff to stay abreast of new laws and revised regulations? Once
laws and regulations are implemented, employers often have a limited timeframe for
organizational compliance. The Americans with Disabilities Act (ADA), ADA Amendments
Act, Lilly Ledbetter Fair Pay Act and Family and Medical Leave Act (FMLA) are examples of
recent legislation and revisions that require employers’ prompt attention.
4. Is management aware of legal requirements and benefits associated with providing
information and training for supervisors and employees? Employers should understand
what training and information is needed to meet compliance expectations. For example, the
Equal Employment Opportunity Commission’s Web site, www.eeoc.gov, explains that
prevention is the best tool to eliminate harassment in the workplace and suggests that
employers provide harassment-free training for managers and employees.
5. Has management conducted a human resource compliance audit? Such an audit will
provide direction to better enable the organization to meet its compliance requirements and
provide protections to decrease its liabilities. Areas that can be covered include employment
records, disciplinary procedures and hiring processes.
6. Does the employee handbook contain up-to-date policies that communicate expectations
for employees and the organization’s intent to comply with employment laws? Policies
should provide a framework for employees in determining appropriate actions and for
management in making consistent employment-related decisions. They also should address
specific compliance issues relevant to the organization, such as harassment, immigration
and overtime.
7. Do job descriptions include the essential duties that employees perform? Job descriptions
should cover the essential functions of positions in order to comply with the employer’s
legal obligations, such as FMLA certifications and ADA accommodations.
8. Are selection interviews job-related and conducted in accordance with legal
requirements? Representatives of management who are conducting interviews of this nature
should be trained on the interviewing process, structuring questions to determine whether
candidates meet job specifications, and avoiding questions with potentially discriminatory
outcomes.
9. Do supervisors at all levels understand their responsibilities for documenting employees’
performance and other job-related behaviors as well as decisions made and actions taken?
Documentation serves as a basis for pinpointing strengths and areas for improvement,
providing employee feedback and reaching more accurate decisions. It also enables the
organization to defend its actions in the event of subsequent litigation or other challenges.
10. Is discipline, including terminations, administered in accordance with legal
expectations? Management should review disciplinary policies and procedures to determine
whether they meet legal objectives. Individual discipline should be applied in an objective,

3. timely, non-discriminatory and consistent manner. Prior to administering discipline,
attention should be given to the employee’s legally protected status and involvement in
protected activities. These protections should not have a negative influence on employment
decisions or subject the employee to retaliation.
BARBARA RICHMAN is a senior consultant with HR Mpact, a Memphis human resource
consulting firm. She can be reached at (901) 685-9084, (901) 496-0462 or barbara@hr-
mpact.com
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