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 month's column is intended to help other firms to 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?	YES	NO
2.	Are all newly hired employees required to complete the Employment Eligibility Form I-9 and to provide documents showing identity and work authorization?	YES	NO
3.	Are employees performing similar work provided comparable pay or paid within the same pay range regardless of sex?	YES	NO
4.	Are time records kept for employees performing "non-exempt" work such as office clerical , technical, service production or most inside sales jobs?	YES	NO
5.	Are "non-exempt" employees as described above provided with overtime pay for time worked over 40 hours in a week?	YES	NO
6.	Has your firm communicated to employees a written sexual harassment policy with a complaint procedure?	YES	NO
7.	Does your firm avoid making "deals" by administering pay, benefits and employment policies in a consistent manner for all employees?	YES	NO
8.	Has your firm defined employment policies in an employee handbook or policy manual to aid consistent administration of policies?	YES	NO

	ANSWER KEY
The desired answer to each question should be a Yes. Any NO response may create a human resources problem or potential legal liability as noted 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.