Years ago, many employers performed audits of their HR policies and procedures to make sure they were in compliance with the law. However, what you did 10 years ago may not be sufficient in 2016. As employment laws and regulations change, you need to update your policies and procedures. 
How deep should you probe?
Being proactive about reviewing your company’s practices is important to avoid expensive litigation and penalties for noncompliance. Employees and job applicants are much more sophisticated in their knowledge of employment law today than they were just a few years ago. You don’t want to have to respond to “gotcha” litigation or threats of claims.
If you’re going to do an employment audit, you must first determine its scope. It may be unnecessary to perform a “bow-to-stern” review. Perhaps a series of small audits, rather than an in-depth assessment, would best fit your circumstances. Obviously, a small audit of one issue (e.g., determining which employees are exempt from being paid overtime) will take less time than performing a full-fledged review of all your policies and procedures. Being organized in planning the audit, or series of audits, is going to be important. Whether you do a series of audits or one large audit, you should prioritize your focus areas.
Audit areas to consider, in addition to wage and hour issues, include the hiring process, orientation of new employees, training programs, the internal complaint process, leave issues, the performance evaluation process, how employees may advance within the organization, internal complaint avenues, arbitration of disputes, equal employment opportunity (EEO) concerns, workers’ compensation, discipline and termination practices, record keeping and documentation, independent contractor considerations, compensation practices, benefits, safety, intellectual property protections, technology usage, and any other areas that may be unique to your business.
Bottom line
Doing an audit also provides you an opportunity to review how your practices affect employee relations and business operations. Most audits include discussions of various practices and policies with employees as well as supervisors. You may learn that some of your practices and policies are creating unnecessary angst or morale problems among your employees.
Further, some practices and policies may have an adverse impact on the efficiency of your business operations. Examining your practices and policies to determine if they are consistent with your mission and business objectives can be an extremely important step in ultimately reaching your business goals.
C. David Morrison is an attorney with Steptoe & Johnson PLLC, practicing in the firm’s Bridgeport, West Virginia, office. You may contact him at david.morrison@steptoe- johnson.com.