Keeping up with all aspects of a business can be challenging, particularly when the organization rapidly grows. Leaders often focus on the daily operations and financial performance of the organization, potentially overlooking areas with high exposure to the organization. Employers may be subject to significant penalties, or they may even be found to have violated local, state, or federal laws. An employment practices audit can be a helpful tool in avoiding these consequences, as well as in showcasing an employer’s commitment to legal and ethical standards.
What is an Employment Practices Audit?
An employment practices audit (“audit”) is like a “health checkup” for an organization, involving a comprehensive assessment of legal procedures, management, and workplace policies to identify potential risks or areas of non-compliance. The audit covers topics from hiring to separation of employment, wage and hour practices, and performance reviews. This thorough overview is essential for maintaining operational integrity, reducing liability, and protecting the organization’s reputation.
Employers are subject to various laws and regulations, such as tax law, employment law, and health and safety regulations. Staying up to date on these developments can be challenging. Our Firm provides expertise and an extensive knowledge of existing laws and regulations, as well as the ability to identify potential weaknesses or gaps in legal compliance. We will not only examine the organization’s internal policies and procedures during an audit, but we will also offer the necessary recommendations on how to rectify an issue or potential risk.
Conducting an audit proactively allows employers to address concerns early, ensuring compliance with local, state, and federal laws and verifying necessary licenses and permits. This helps prevent legal disputes and regulatory penalties, fostering a positive reputation and maintaining trust with employees and clients.
Are Your Essential Forms Up to Date?
It is imperative for employers to have various employment forms filled out by either potential applicants or existing employees because they offer a standardized method of collecting important information in a consistent manner, allow for accurate recordkeeping, streamline onboarding, and ensure compliance with various legal requirements.
At Halpern and Scrom, we will go over hundreds of questions that detail various requirements and “best practices” pertaining to coaching and counseling forms, employment applications, offer letters, job descriptions, performance reviews, OSHA forms, and more. Not only will we take the time to understand how an employer operates their organization, but we will also offer a thorough legal analysis that highlights areas of concern.
Does Your Handbook Need Updating?
With the field of law being an ever-changing landscape, it is critical for employers to have updated handbooks that incorporate and adapt to new laws. Handbooks should adhere to federal, state, and local employment laws, such as anti-discrimination laws, wage and hour regulations, family leave and other new policies.
Do You Have Protective Agreements in Place?
Ensuring employees who are privy to valuable trade secrets is essential to maintain an organization’s uniqueness and legacy. A strong protective agreement will safeguard sensitive information and proprietary data from being disclosed to competitors, allowing employers to maintain a competitive edge in their field of business.
Are You Following the Wage and Hour Rules?
Maintaining a record of all time worked, especially for non-exempt employees, is critical to avoid wage and hour claims. At Halpern and Scrom, we will inquire about how employee status is determined, the pay rate of all non-exempt employees, employee break times and lengths, meal periods, whether non-employees perform tasks prior to their scheduled shift start time, and more. By inspecting and reviewing an employer’s wage and hour policies and timekeeping policies, employers can avoid being fined or penalized by federal and state agencies.
Training
State-of-the-art employee training is crucial to develop employment skills, improve productivity, and to deter fines, penalties and costly litigation. Our Employment Compliance Bootcamp Webinar Series offers a full review of federal and state laws that cover areas such as disability accommodations, worker classifications, and termination and compensation practices. Practical guidance that offers insight into coaching and counseling, proper documentation practices, and leadership communication strategies are also illustrated through engaging scenarios and lively discussions.
Takeaway
Conducting an employment practices audit is not just a safeguard against legal pitfalls; it is a proactive strategy that empowers organizations to thrive in a complex regulatory environment. By systematically evaluating policies, procedures, and compliance across various facets of employment, employers can identify vulnerabilities and make necessary adjustments before they lead to significant issues. This comprehensive approach not only mitigates risks but also enhances operational efficiency and fosters a positive workplace culture. With the guidance of experienced attorneys, employers can ensure their practices align with current laws, maintain a competitive edge, and build trust with employees and clients alike.