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5 Steps to Fair & Competitive Compensation

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Uncertain that your employment policies comply with the law?

How does a company protect itself against the myriad of possible exposures that can impact its public image, brand, employee relations, and bottom line? More and more, the business tool of choice is the HR Program Audit. A human resources program audit assesses your level of compliance with federal and state laws and evaluates the effectiveness of your human resources function.

Why Audit HR?

The HR function plays an integral role in achieving financial success through cost containment, reducing expenses, effective staffing and recruitment programs, reducing turnover, and loss prevention through legal compliance. Failure to comply with legal requirements can lead to assessment of significant fines and penalties. Additionally, failure to meet legal obligations may result in lawsuits, which are costly to defend and even more costly if lost. One lawsuit could cost you 100s of THOUSANDS of dollars!

Here are just a few of the laws that govern employment; can you be certain your organization is in full compliance?

These laws impact all employers with at least 1 employee:

  • Immigration Reform & Control Act (IRCA)
  • Fair Labor Standards Act (FLSA)
  • Workers’ Compensation Insurance
  • Unemployment Insurance
  • Federal Insurance Contribution Act (FICA)
  • Occupational Safety & Health Act (OSHA)
  • Fair Credit Reporting Act
  • Consumer Credit Protection Act, Title III
  • Employment Retirement Income Security Act (ERISA)
  • Uniformed Services Employment & Reemployment Rights Act (USERRA)
  • Jury System Improvement Act
  • Employee Polygraph Protection Act
  • Equal Pay Act

These laws impact all employers with at least 5 employees:

  • Vietnam Era Veteran’s Readjustment Act
  • Executive Order 11246

These laws impact all employers with at least 15 employees:

  • Title VII of the Civil Rights Act of 1964
  • Civil Rights Act of 1991
  • Americans with Disabilities Act (ADA)
  • Drug-Free Workplace Act

These laws impact all employers with at least 20 employees:

  • Age Discrimination in Employment Act (ADEA)
  • Consolidated Omnibus Budget Reconciliation Act (COBRA)

These laws impact all employers with at least 50 employees:

  • Family & Medical Leave Act (FMLA)

These laws impact all employers with at least 100 employees:

  • Workers’ Adjustment & Retraining Notification Act (WARN)
  • EEO-1 Reporting

These laws impact all employers who contract with the federal government:

  • Walsh-Healey Public Contracts Act
  • Davis-Bacon Act
  • Executive Order 11246
  • Rehabilitation Act of 1973, Section 503
  • Vietnam Era Veteran’s Readjustment Act (VEVRA)
  • Drug-Free Workplace Act
  • EEO-1 Reporting

The laws impact employers who maintain union contracts:

  • National Labor Relations Act (NLRA)
  • Taft-Hartley Act
  • Labor Reform Act

In many cases these laws carry with them posting requirements, requiring employers to notify employees of their rights. Such notices must be conspicuously posted at all hiring and worksite locations. The posters must be in official form and unaltered. Consequences for failure to post may include fines or incurring investigations. The time allowed for an applicant or employee to file a claim may be extended when notices are not posted as required. State and local ordinance may also require posting additional notices. Contact us for specific information about posting requirements in your area, or to schedule a review of your HR function.

Why Use TurboExecs?

To obtain an objective assessment, allow us to conduct the review. We will work to understand your organization’s culture, goals and objectives, what you want to achieve, and how well you are performing. We will also help you determine the role HR is currently playing in supporting the achievement of those goals and how HR would manage or facilitate change initiatives.

In addition, the makeup, structure and size of the workforce, the number of locations and states involved, whether the company does business with government agencies or sub-contractors, and similar matters, will affect the scope of our HR Program Audit and the specific requirements to comply with federal, state and local labor laws.

Our HR Program Audits will:

  • Identify which laws apply to your organization and areas where the organization is not meeting minimal legal standards
  • Identify corrective actions that the organization should consider
  • Confirm that established policies and procedures are current and consistently implemented to ensure compliance
  • Evaluate the use of staffing for human resources administration
  • Help the organization establish future priorities in the area of human resources

Our HR Program Audit process includes:

  • Interviews with key managers. This helps us assess the knowledge and skill level of the management team regarding employment law and general management of employee issues. Additionally, we can uncover the issues that management perceives as requiring immediate attention, as well as the level of support for, or resistance to, corrective actions that may be needed to ensure legal compliance.
  • Interviews with employees, as appropriate, to evaluate employee relations issues. This helps us assess the current state of employee morale. To provide valid information, a cross-section of employees is interviewed in a group setting.
  • Interviews with employees currently responsible for the human resources function. This helps us gain an understanding of the organization’s administrative procedures. We specifically target information about functions that are not in compliance or are difficult to effectively administer.
  • A detailed review of human resources records. This careful review is critical to conducting an effective Human Resources Program Audit. Documents are reviewed for legal compliance, accuracy, and thoroughness. This step determines the consistency of the organization’s recordkeeping.
  • A review of current employment policies and practices. This careful evaluation helps us determine whether the current policies and procedures have been clearly communicated, appropriately documented, and are legally compliant and nondiscriminatory.
  • A review of outstanding and potential legal claims. This final step can help identify areas that need immediate attention and must be corrected. Additional consultation with legal counsel may be recommended based on these findings.
  • The end result of our HR Program Audit is a detailed report outlining the organization’s current compliance posture, including an action plan for addressing deficiencies, as well as an outline of our recommendations for the implementation of best practices to improve the efficiency of the HR function. Finally, we can help you establish a post-audit action plan. This is critical to ensuring that all findings are effectively addressed.

To be sure you are in compliance, contact us today at 717.925.3270 or ed@turboexecs.com!