Basic Audit

You got 14 of 24 correct.

Your score was: 58%

That's Going To Leave a Mark
The results of the survey indicate that it would be a good idea for you to review the HR responsibilities at your company to ensure you have minimized corporate risk and properly complied with federal employment law.

The most common compliance issues are employee classification (i.e. exempt vs non-exempt, contractor vs employee, etc), medical leave administration, and COBRA compliance.

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Question Result(s)

Reflecting upon the last time you recruited for a position, did your search began with a carefully created job description?

Answers	User Answer
Yes
No

You created an advertisement that accurately advertised the skills and experience necessary for a person to be successful in the role?

Answers	User Answer
Yes
No

You identified the most cost effective method of advertising in order to reach the target audience specific to that position?

Answers	User Answer
Yes
No		There are many different ways and places to post a job ad. It is important to consider where your audience will be most likely to see the ad and respond to it.

Do you have written policies governing wage adjustments?

Answers	User Answer
Yes
No		If your company has a sound compensation philosophy that has been documented, it is extremely difficult for an employee to claim inequity in their overall compensation.

Do you have written policies governing paid-time off?

Answers	User Answer
Yes
No

Do you have written policies governing electric monitoring?

Answers	User Answer
Yes
No

Do you have a written non-solicitation agreement?

Answers	User Answer
Yes
No		Non-solicitation agreements have their places in certain industries but must be applied fairly by employee level and used only in the reasonable interests of the company.

Do you have a written intellectual property (IP) agreement?

Answers	User Answer
Yes
No		Property created by an employee while using company equipment is considered the property of the company. An intellectual property agreement solidifies this arrangement.

Do you have written policies governing occupational health and safety?

Answers	User Answer
Yes
No

Do you have written policies governing anti-harassment?

Answers	User Answer
Yes
No

Do you know whether or not a company your size must comply with COBRA?

Answers	User Answer
Yes
No

Do you know whether or not a company your size must comply with HIPAA?

Answers	User Answer
Yes
No

Do you know whether or not a company your size must comply with EEO-1?

Answers	User Answer
Yes
No

Do you know whether or not a company your size must comply with VETS-100?

Answers	User Answer
Yes
No		Employers with more than $100,000 contracted with the Federal government must provide a VETS-100 report annually during September to report on the number of veterans of the armed forces they employ.

Do you know whether or not a company your size must comply with FMLA?

Answers	User Answer
Yes
No

Do you have a documented, unbiased method for consistently managing under performance and awarding pay for performance?

Answers	User Answer
Yes
No

The Fair Labor Standards Act requires the division of job types into two main categories: exempt (salaried) and non-exempt (hourly). Are you certain that your classifications would pass a Department of Labor audit?

Answers	User Answer
Yes
No		Department of Labor audits can be extremely devastating to any business, large or small. If an employee complains about their classification to the DOL and the DOL investigates, they will conduct a 3-year look-back and will penalize an organization for 3 years of back wages for the employee as well as a fine for the misclassification. Additionally, they will scrutinize the people in similar positions and conduct the same look-back.

Do you have difficulties attracting, retaining, and engaging high-quality employees?

Answers	User Answer
Yes
No

Are independent consultants used by your organization to supplement its workforce? If so, is the 21 point test for Independent Consultants used to justify the classification?

Answers	User Answer
Yes
No		Penalties are significant for employers who misclassify employees as independent contractors. Be sure that you have considered the 20 Factor IRS test before making that determination.

Do you employ the use of a salary matrix?

Answers	User Answer
Yes
No

Are positions benchmarked against industry and regional standards?

Answers	User Answer
Yes
No		In order to ensure your organization is paying within the marketplace for positions, it is important to periodically conduct a salary survey exercise.

Are employee salaries compared against a matrix and identified as green and red-circle positions?

Answers	User Answer
Yes
No		Green circled employees are paid beneath the minimum of a salary range within a job grade and should have their pay accelerated to move them to the midpoint. Red circled employees are paid above their job grade range and should not be given an increase until they change jobs.

Do you use a legally-compliant employment application with all appropriate disclaimers?

Answers	User Answer
Yes
No

Do you have a written procedure for disciplinary actions up to and including termination? If so, are all instances applied consistently?

Answers	User Answer
Yes
No		Written procedures can be both good and bad for an organization. When in place, they can limit the actions that an organization must take before it can terminate an employee. On the other hand, they can also be useful in ensuring all employees are treated equitably in disciplinary matters.