HR audits monitor compliance with laws

• Multiple laws pertain to the three major illegal employment-related behaviors: discrimination, harassment and retaliation. To safeguard the protected classes, banks must comply with the various statutes for employment practices. These practices include job advertising, recruitment, testing, interviewing, selection, transfers, promotions, compensation, downsizing, terminations, fringe benefits, disability leave, retirement plans, job assignments, job classifications, training programs, usage of bank facilities for nonbanking purposes and any other terms and conditions of employment.

• Properly prepared and maintained job descriptions will assist with monitoring pay practices that justify pay rates, differences in pay between genders and the accurate determination of the exempt or non-exempt status of each position. Job descriptions provide the foundation for coaching, discipline, demotions, terminations, military leave policies, the use of child labor, hiring and promotion requirements, and the lawful treatment of pregnant women.

• Personnel files must be complete and accurate. The information must be sorted into separate files for compliance with several laws concerning the confidentiality and maintenance of staff information. The documents themselves and the proper storage and retention help with legalities regarding hiring, training, promotions, discipline, demotions, discharges, performance reviews, medical data, workers’ compensation, wrongful discharge, at-will status, new-hire paperwork and salary and raise justifications.

• Payroll practices must be in compliance with several laws. Proper payroll administration reduces liability concerning comp time, merit systems, incentive systems, overtime payments, paid time off, military leave pay, jury duty pay, starting pay for new hires, pay practices for CEOs and chief financial officers and payments to non-exempt staff for travel and training time.

• Employee handbooks must be complete in order to prevent lawsuits or greatly increase the chances of winning a lawsuit. A few of the traditional and/or required topics are anti-harassment, paid time off, short-term disability, the at-will status of associates and the Family and Medical Leave Act. Current hot topics include workplace searches, drug-free workplaces, a zero right to privacy and an in-house ethics complaint process for potential whistle-blowers.

• Numerous forms should be created, updated and consistently utilized due to the ever-changing human resource laws. Forms should address several issues, including progressive discipline, performance evaluations, permission to obtain credit information, release of liability for providing reference information, medical certification forms on employee return-to-work status, and behaviors supporting reasonable suspicion prior to requiring a team member to submit to a drug test.

• Usage of performance appraisals and progressive discipline procedures will

minimize lawsuits from workplace practices such as demotions, terminations, workers’ compensation, pay increases or decreases, the treatment of pregnant employees and furnishing reference checks for previous staff members. The ability to win unemployment claims will increase, resulting in a decrease in taxes. In addition, a bank is more likely to avoid whistle-blowing and violations of military leave laws.

Ensuring compliance with banking industry regulations is routine for banking facilities. As part of the entire compliance effort, emphasis also should be placed on compliance with human resource laws.

Lynne Haggerman is president/owner of Haggerman & Associates, a firm specializing in management training, retained search, outplacement and human resource consulting.