1. TheHRAudit:APeriodicReview ofYourHRPrac6ces NancyEdwards

2. Beforewegetstarted IamnotanaAorney Thismaterialisnotlegaladvice Thispresenta6onisnotasubs6tutefor experiencedlegalcounsel 3. WhyAnHRAudit 4. WhyDoaComplianceHRAudit Proac6ve-Catcherrorsbeforea governmentalagencydoes(i.e.DOL,EEOC) Poten6allyreducetheriskoflawsuits 5. WhatisanHRAudit? Ameansofassessingthelevelofcompliancewith federalandstatelaws. A means of measuring the eec6veness of your HR policiesandprac6ces. Thekeytoanauditistorememberitisalearning ordiscoverytool,notatest. There will always be room for improvement in everyorganiza6on. 6. WhatdoesHRAuditInclude ComplianceandRecordkeeping Compensa6on/SalaryAdministra6on Employment/Recrui6ng Termina6ons Files/RecordMaintenance/Technology EmployeeRela6ons TrainingandDevelopment Communica6ons Policiesandprocedures(includingemployeehandbook) 7. TheHRAuditProcessIncludes: ManagementInterviews(informal) IssuesthatrequireimmediateaAen6on Managementskilllevels Resistancelevel EmployeeInterviews(informal) Crosssec6onofallemployees Employeeissues(i.e.morale,reten6on) Companyhasnoobliga6ontoadoptallsugges6ons 8. TheHRAuditProcessIncludes: DocumentReview Legalcompliance Recordkeepingrequirements Eciencyandeec6veness Consistency EmployeeHandbookReview Legallycompliant Clearcommunica6on Nondiscriminatoryandappropriate Viola6onsproperlydocumented 9. TheHRAuditProcessIncludes: ReviewCurrentandPoten6alLegalAc6ons Mee6nglegalrequirements Improvedmanagementtraining Revisionofpoliciesandprac6ces 10. ProblemsIden6edandCorrec6veAc6on Findings Applicablelawsandprac6ces Penal6esandrisks Recommenda6ons 11. Ac6onPlan Mustberealis6candachievable Desiredresultsmustbeiden6ed Assignaccountability Targetdates 12. Wage&Hour 13. ExemptEmployees Execu6ve Administra6ve Professional Outsidesales Somecomputerprofessionals Salaryof$455perweek 14. ExemptEmployeescontd FewerrightsunderFLSA Receivefullamountofbasesalaryinwork period(lessanypermissiblededuc6ons) Mayberequiredtopunchaclock Mayberequiredtomakeupmissed6me Mayworkunlimitednumberofhours 15. Non-ExemptEmployees Mustbepaidatleast$7.25fortherst40 hoursworkedinaweek(checkspecicstate lawforhigherminimumwage) Mustreceiveover6merateofatleast6me andone-halftheirregularrateofpayforall hoursworkedover40inaworkweek(check specicstatelawformorestringent requirements) Cannotwaivetheirrightstoover6me 16. Non-ExemptEmployees May be paid on an hourly basis, a salary basis, or piece rate basis as long as they receiveatleastminimumwageforallhours workedandtheappropriateover6me Musthavea6mekeepingmechanism PrivatesectorNOCOMPTIME! 17. IndependentContractors Self-employed Notjustonecustomer/hascustomerbase Responsibleforowntaxesandexpenses Noemployerdirectcontrol Nobenets 18. FLSA-Liability WHDreviewprior2years 3yearsifwillful Possiblecriminalprosecu6on Li6ga6on 19. Recordkeeping/Non-Exempt Name Address SocialSecurityNumber DOB Gender Job6tle Timeanddayofweekwhenemployeesworkweekbegins Hoursworkedeachday Totalhoursforeachworkweek 20. Recordkeeping/Non-Exempt Basisonwhichemployeeswagesarepaid (e.g.$10perhour) Totaldailyorweeklystraight-6meearnings Over6meworkedandpaid Deduc6ons Wagesforeachpayperiod Dateofpaymentandpayperiodcoveredby payment 21. Recordkeeping/Exempt Name Address SocialSecurityNumber DateofBirth Gender Occupa6on Timeofdayanddayofweekonwhichtheemployees workweekbegins Totalwagespaidforeachpayperiod Dateofpaymentandthepayperiodbyeachpayment PTO 22. PersonnelFiles 23. PersonnelFiles Whatshouldbeinapersonnelle Employment EmploymentApplica6on/EmploymentOer HandbookAcknowledgment Resume PerformanceReviews TrainingandDevelopmentDocuments Termina6onForm JobDescrip6on ExitInterview 24. PersonnelFiles Whatshouldbeinapersonnelle Benets Vaca6onRequest RequestforNon-MedicalLeaveofAbsence Tui6onReimbursementDocuments 25. PersonnelFiles Whatshouldbeinapersonnelle Payroll W-4Form Timesheets AAendanceRecords GarnishmentOrders Authoriza6onforPayrollDeduc6ons Compensa6onHistoryRecords StatusChangeDocuments 26. PersonnelFiles Whatshouldbeinapersonnelle EmployeeRela6ons ReportofCoaching/CounselingSessions Commenda6onsandAwards DisciplinaryDocuments 27. PersonnelFiles WhatshouldNOTbeinapersonnelle MedicalRecords PhysicalExamina6on Diagnos6cRecords LabResults DrugTes6ngResults Anyothermedicalrecordswithpersonallyiden6able informa6onabouttheemployee 28. PersonnelFiles WhatshouldNOTbeinapersonnelle contd Inves6ga6onRecords Accusa6onsoflegaland/orpolicyviola6ons Discrimina6oncomplaintsandinves6ga6on ClearanceInves6ga6onRecords Backgroundcheckinforma6on(includingcriminal history,credithistory) Opinions Notesondocumentsindica6ngmanagementbiasor discrimina6on.Forexample,Heistoooldforthejob. 29. Reten6onandStorage Variesdependingondocument FollowFederalRecordReten6onGuidelines Hardcopystorage Paperlessstorage Destroyingdocuments 30. Pos6ngRequirements 31. Pos6ngRequirements FederalRequirements FairLaborStandardsAct(FLSA) Occupa6onalSafetyandHealthAdministra6on(OSHA) PolygraphProtec6onAct EqualEmploymentOpportunity(EEO) FamilyandMedicalLeaveAct(FMLA) UniformServicesEmploymentandReemployment RightsAct(USERRA) 32. Pos6ngRequirements StateofTexasRequirements TexasWorkersCompensa6onNo6ce TexasPaydayLaw EmployerNo6ceofOmbudsmanProgram TexasChildLaborLaws TexasEqualEmploymentOpportunity 33. Pos6ngRequirements Comparefederalandstatelawstoyour companypolicies. Useasguidewhencrea6ngcompany policies. Placepostersinaconspicuousloca6on. Rememberyournon-Englishspeaking employees. 34. Conclusion Learninganddiscoverytool,notatest. Therewillalwaysberoomforimprovement ineveryorganiza6on. Contact G&A Partners if youd like more informa6ononanHRaudit. 35. Contactinfo NancyEdwards,SPHR G&APartners 713-784-1181 info@gnapartners.com *Todaysrecordingandslideswillbepostedonthe G&AwebsitebyFriday.