The Hr Audit December2009 Anna R Smith (2)

The Human Resources AuditThe Human Resources AuditDecember 2009

Anna R. Smith

Copyright © 2009. Anna R. Smith. All Rights Reserved 1

Welcome and IntroductionWelcome and Introduction

About MeWhat is a Human Resources (HR) AuditWhy should you Do an HR AuditKey areas you can audit with a checklistHow & when to consider a third party


What is an HR AuditWhat is an HR Audit

The HR Function has many responsibilitiesSome are subjective:

◦Your internal objective 3rd party◦Culture, morale, etc.

Many HR responsibilities involve compliance – laws and regulations from feds/state/IRS etc. that apply to your workplace



All EmployersFair Labor Standards Act (FLSA) Social Security Federal Insurance Contributions Act (FICA) Medicare Equal Pay Act (EPA) Immigration Reform and Control Act (IRCA) Federal Unemployment Tax Act (FUTA)

10+ EmployeesOccupational Safety & Health Administration Act (OSHA)

14+ EmployeesTitle VII Civil Rights Act Americans with Disabilities Act (ADA) Pregnancy Discrimination Act

19+ EmployeesAge Discrimination in Employment Act (ADEA) Older Worker Benefit Protection Act (OWBPA) Consolidated Omnibus Budget Reconciliation Act (COBRA)

49+ EmployeesFamily Medical Leave Act (FMLA)

99+ EmployeesWorker Adjustment and Retraining Notification Act (WARN) Employee Retirement Income Security Act (ERISA)



The HR Audit determines if HR is doing what the department needs to be doing◦To look for potentially serious problems (land

mines) – i.e., compliance◦To address practices that need improvement◦Implement the big ideas

For You: a Top Ten List of things to audit yourself


Why You need an HR AuditWhy You need an HR Audit

Non-Compliance is risky and potentially expensive

Proactive in Accounting/Financial Audits

Your HR function has as much potential liability for non-compliance◦Example: IRS

Hope Method


Self HR Audit Top 10Self HR Audit Top 10

Email me at [email protected] for my full audit questionnaire

Because of time restraints, here is my top 10 for your own quick audit:

1. FLSA Compliance:a. Labor law posters up to dateb. Exempt vs. Non-Exempt test

2. Employee Files:a. I-9 Separateb. Medical File separate from Personnel File (HIPAA)c. Job Application on file for every employee (resume also

alright, not great)



3. Employee Handbook or Reference Manual:a. Employment at Will statement, New FMLA regs

(January 2009,) ADA, Discrimination, Sexual Harassment Policy, Drug Testing Policy, COBRA

b. All of your organization’s rules/best practices

4. Documentation:1. Employee Handbook – Policies2. Signed Receipt of Handbook3. Signed policies: Training (Sexual Harassment,

Discrimination, Diversity – either training or acknowledgement of policy; IT Security Policy.) All the policies that are so important, it’s immediate termination if violated.



5. Job Descriptions:1. Up to date for EVERY position2. Exempt vs. Non-Exempt test applied3. Job’s skill and education requirements and a good

summary of responsibilities and routine activities4. Org Chart defining reporting structures

6. Standard Interview Process: (EEOC)1. App’s on every candidate2. All interviewers ask standard questions of all

candidates3. Do your interviewers know what are legal

questions?



7. Evaluation of salaries/local market annually?

8. There is no such thing as comp time!!!9. Contractor vs. Employee test10. Do you document performance problems

consistently?



Special Email for HM-B clients:◦[email protected]

Email me for the:◦Laws that apply per # of employees◦A Self Audit Checklist


33rdrd Party HR Audit? Party HR Audit?

3rd Party HR Audits are generally much more thorough because an outsider:◦Is objective◦Has more time◦Is a seasoned HR professional◦Also asks big picture questions w/creative

solutionsLess expensive than litigation!I do my audits via online survey, email me

for the link


33rdrd Party HR Audit? Party HR Audit?

Contact Anna Smith:[email protected]

504.312.2941

Or contact Tom Daly

Thank you for your time!


The Hr Audit December2009 Anna R Smith (2)

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Transcript of The Hr Audit December2009 Anna R Smith (2)