Basic Audit

You got 8 of 24 correct.

Your score was: 33%

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		In order to be compliant with the Fair Labor Standards Act (FLSA), all positions should begin with the creation of a job description outlining the duties, responsibilities, and requirements necessary for the role.

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		It is critical to write a job ad that reflects the true spirit of the position you are recruiting for including areas of emphasis, preferred skillset, and reporting hierarchy.

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		It is critical to develop written paid time off policies if you do not already have them. Time off is another area where, if written policies do not exist, perceptions of inequality will pervade.

Do you have written policies governing electric monitoring?

Answers	User Answer
Yes
No		Employers must reserve every right to review information exchanged by employees on company property like computers and cell phones. It is important to disclose this policy up-front with employees to ensure there are no issues when referring to the data at a later date.

Do you have a written non-solicitation agreement?

Answers	User Answer
Yes
No

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

Answers	User Answer
Yes
No

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		Companies larger than 20 employees must offer to extend health benefits to terminating employees and their family members through a standardized process that complies with COBRA law.

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

Answers	User Answer
Yes
No		All companies must comply with the Health Information Privacy Protection Act (HIPAA). This prohibits the unauthorized access of personal medical information.

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

Answers	User Answer
Yes
No		All employers with more than 15 employees must comply with all Equal Employment Opportunity (EEO) regulations. Employers with more than 100 employees must file an EEO-1 Report annually during September.

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		An organization must have more than 50 employees in a 75 mile radius in order to be bound by the regulations of the Family Medical Leave Act (FMLA).

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

Answers	User Answer
Yes
No		One of the most difficult areas to assure complete objectivity and internal equity is in performance reviews that are tied to compensation adjustments. Having a written document outlining the way the program works will reduce the likelihood that your intentions will be questioned.

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		A successful recruiting process is critical to ensure the long-term success of an employee. Be sure that the organization understands exactly what it needs in the role and in the individual and think about where and how you will attract that individual.

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

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

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

Answers	User Answer
Yes
No

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

Answers	User Answer
Yes
No		It is important to have an informed individual review your job application form to ensure it in no way exposes your company to liability in the hiring process.

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.