Employment Practices Audit

Employment practices are steps an organization takes to ensure that employee records, written policies, employer-employee-relations, disciplinary measures, leaves of absence, and management practices are handled consistently, equitably, and in compliance with state and federal employment law.  Sound employment practices enable an employer to convey its expectations, objectives, and values clearly and consistently to all employees.   The goal of having effective employment practices is to have a more loyal, balanced, and productive workplace while, simultaneously, reducing the chance that your organization will be a victim of expensive employment litigation.

Employment practices commonly involve:

• An updated employee handbook of policies and procedures
• Complete and consistent employee personnel files
• Appropriate forms and documentation
• Non-competition, confidentiality and non-disclosure forms
• Proper disciplinary documentation
• Current and accurate job descriptions
• Federal and state notices posted in appropriate locations
• Sound hiring and firing processes
• Regular performance evaluations
• Appropriate employee classifications as exempt and non-exempt
• A knowledgeable and trained workforce

So why does your organization need sound employment practices?

A leading cause of successful employment litigation stems from faulty or incomplete employment practices.  Without a review of your policies and practices, you are allowing unnecessary gaps that may result in expensive plaintiff verdicts.  If your employment practices are not consistent, sound, and in accordance with the law, your organization is at risk.
Just ask Sears Roebuck, who recently was hit with a $1 million jury verdict in favor of a female employee who was laid off in New Hampshire. When the employee made an unsuccessful attempt to be re-hired, Sears rejected her application based on “poor prior performance.”  She sued Sears and won, primarily because the contents of her personnel file did not support Sears’ defense.
Too often, employers inherit another organization’s handbook, employment forms, and other practices and adopt them as their own, without reflecting on the way the policies and procedures fit into the particular workplace or making sure that the policies are legally sound.  Organizations also need to periodically review and revise their policies and procedures to make sure that they reflect the company’s own current practices, are being implemented as conceived, and comport with any changes in the applicable law.

Assessment objectives:

EPG will meet with your Human Resources department or management personnel to conduct an Employment Practices Audit or otherwise assess your organization’s particular needs.  In some cases, the assessment will be focused on your organization’s concern regarding a specific employment issue that has arisen.  In either case, EPG will work collaboratively with your organization to define the issue or issues that need to be addressed and begin to implement the solution.  Often the objectives of this employment practices assessment include:   

• Review of the standards for a comprehensive personnel file.
• Review of your employee handbook to ensure that it reflects the organization’s current practices, contains all the required elements, and reflects the most current laws for your state.
• Evaluation and recommendations regarding federal and state postings, job descriptions, and appraisal procedures.
• Developing procedures for hiring and terminating employees, and training the managers on the process.
• Discussing how to handle employee complaints and when to conduct internal investigations.  EPG can conduct these internal investigations for you, minimizing your litigation risk.