HR Solutions: Documentation helps to reduce company liability

One of the major roles of human resources is to decrease the liability exposure of the company and increase the ability of the organization to win lawsuits.

The first key to success is developing and implementing policies and procedures to ensure compliance with myriad human resource laws. The second key is conducting regular audits to confirm adherence by managers. The third key is providing ongoing management training.

Selection

Confirm that all job applicants fully complete and sign applications even if resumes will be submitted. This practice assists in smoother terminations for falsification of information, a regular occurrence in the United States because roughly 45 percent of job seekers misrepresent their background.

Several statutes require the retention of all documents submitted by candidates. Maintain employer-generated notes and documents, too. Although not specifically required, the remarks should include why candidates will not be hired to prove the utilization of nondiscriminatory reasons.

Job descriptions reflecting job duties, job knowledge, skills and abilities necessary to be successful in the position provide sound supporting evidence. Usage of a five-point rating scale to rate each criteria is highly recommended.

Prepare the Employment Eligibility Verification form (I-9) required by the Immigration and Naturalization Service within three days of the start date of the new associate. The document specifically states which fields must be filled out by the business and which by the employee. Retain all forms in a separate file from the personnel files.

Performance appraisals

Several statutes prohibit discrimination due to pay. Performance evaluations provide written proof regarding the nondiscriminatory rationale behind salary increases. Accordingly, the job description provides valid information to assess performance. The ability to achieve established goals will also reflect measures of performance.

Discipline, termination

A manager should prepare brief documentation regarding informal counseling conducted. This information may be kept in supervisory files at the desk of the supervisor. Document the entire investigation if a team member commits a serious infraction warranting formal counseling. Be sure each individual involved prepares his own paperwork.

Although Missouri is an at-will state, meaning an employer is able to fire anyone at anytime, progressive discipline should be followed due to the extensive exceptions of the at-will status. Progressive discipline allows the team member three chances to turn his behavior around prior to termination. Written forms should be used and the counseling sessions documented. Keep in mind that some offenses may be so severe that immediate discharge is the prudent course of action.

Further areas requiring compliance consist of posters, safety, insurance, pension plans, employee handbooks, workers' compensation, and payroll and tax records.

A few additional laws include the Family and Medical Leave Act, the Uniformed Services Employment and Reemployment Rights Act and various statutes pertinent to federal contractors.

The functions of human resources are proactive. Time and effort are required on the front end, but significant litigation problems and revenue loss will be avoided later.

(Lynne Haggerman is president/ owner of Haggerman & Associates, an employment, management training, human resources consulting, and outplacement firm.)