Compliance Reviews/Audits include a review of employment practices and policies, organizational design and administration of employment-related activities of your company. From data gathering to analysis, with recommendations and implementation of changes, the goal is to work with your staff to address and remedy problem areas within your business environment.

After reviewing your policies, memoranda, implementation forms and procedures, and other documents and then gathering information from those who implement these policies to determine your company’s actual practices, Goldman, Magdalin & Krikes, LLP can provide you with a legally-privileged, CONFIDENTIAL evaluation of your current processes and recommendations for change.

[*These audits are specifically designed to review compliance with federal and California laws. If your company operates in other states, appropriate modifications will be made to review compliance in those states.]

[Can include following additional information on the audit process and reasons for an audit.]

The best way to avoid a lawsuit is to never have it filed. Although nothing can absolutely prevent an employee or former employee from filing a lawsuit against the employer, good sound employment practices that comply with state and federal law can significantly reduce this possibility. Furthermore, legal compliance usually results in no or minimal liability for the employer in the event there is any legal action on the part of an employee or government agency.

The most important aspect of a review is to be thoroughly familiar with current legal requirements. There are a number of sources for these requirements: government posters and websites; various HR publications; and employment attorneys. These should then be compared to both written policies and the day-to-day practices of the company (which may not be the same). If certain individuals are responsible for various aspects of HR policies and practices these people should be identified and properly trained. Employees must be knowledgeable of the requirements and obligations of various employment policies. Proper notice to employees and implementation of all policies should be documented so that it can be proven if necessary. In many cases standardized forms will result in consistent application of the policies.

Handbooks Develop / Review

All employers need a written Employee Handbook, to protect their company from legal risks; set forth policies and procedures to guide employees and supervisors; and provide information on company benefits.  Additionally, almost all handbooks that are more than a year or two old need revisions to be in compliance with current federal or state laws or court decisions.

Contact Goldman, Magdalin & Krikes, LLP with assistance in creating or updating your Employee Handbook.  We work with you to ensure that your handbook is in compliance with legal requirements, but also that it reflects your operations and the type of company you are!

The following is a list of typical provisions in Employee Handbooks (those that are required by law or strongly recommended are marked with an asterisk (*) :

  • INTRODUCTION

  • EQUAL EMPLOYMENT OPPORTUNITY* (including ADA language)

  • POLICY AGAINST HARASSMENT/SEXUAL HARASSMENT*

  • EMPLOYEE DATING/PERSONAL RELATIONSHIPS

  • EMPLOYMENT AT WILL*
    CLASSIFICATIONS

  • MANDATED BENEFITS

  • HOLIDAYS

  • VACATION

  • HEALTH INSURANCE

  • COMMUNICATIONS*PAY PERIODS/PAYMENT OF WAGES*

  • NORMAL WORKING HOURS*

  • MEAL PERIODS/BREAKS*

  • OVERTIME

  • PAYROLL DEDUCTIONS

  • GARNISHMENTS, ATTACHMENTS, AND JUDGMENTS

  • EXPENSE REIMBURSEMENTBULLETIN BOARDS

  • SOLICITATION/DISTRIBUTION OF LITERATURE*

  • DRESS AND GROOMING POLICY

  • EMPLOYEE RECORDS

  • I-9 REQUIREMENTS

  • PROPER USE OF THE TELEPHONE

  • VISITORS IN THE WORKPLACE

  • ABSENCES AND TARDINESS

  • LEAVES OF ABSENCE*

  • STANDARDS OF CONDUCT

  • ETHICS POLICY

  • DISCIPLINARY PROCEDURES

  • USE OF COMPANY VEHICLE/DRIVING ON COMPANY BUSINESS*TRANSPORTATION

  • SAFETY

  • OFFICE EQUIPMENT/ELECTRONIC

  • COMMUNICATIONS POLICY

  • SECURITY INSPECTIONS OF PROPERTY/SURVEILLANCE

  • CONFIDENTIALITYLAYOFF AND RECALL

  • TERMINATION OF YOUR EMPLOYMENT

  • EMPLOYEE RECEIPT AND ACKNOWLEDGMENT*

  • DRUG POLICY (may be separate from the handbook)

  • ARBITRATION (separate from handbook)

Wage and Hour Practices

In this audit we review the employer’s payroll practices; how employees are classified and paid; wages, hours and working conditions; and whether the employer is in compliance with the Fair Labor Standards Act and numerous provisions of the California Labor Code and the California Industrial Wage Order(s) applicable for that employer.

The following are various documents, practices and processes reviewed during this audit.

Employee Classifications
Employee/Independent Contractor
Exempt/Non-exempt
Minors (Work Permits, etc.)

Wages Paid
Overtime/Regular Rate of Pay
Bonuses and Commissions
Tips
Payroll Period
Payday
Payments at Termination
Paycheck Stub
Payroll Deductions
Garnishments

Hours Worked
Workday
Work Week
Reporting Hours Worked
Makeup Time
72-hour Restrictions
Mandatory Day Off
Meal/Rest Periods
Split Shifts
On-Call/Standby Time
Travel Time
Preliminary/Postliminary Activities

Time Off
Vacation
Sick Leave
PTO
Holidays
Alcohol Rehabilitation
Adult Literacy
School Activities
Crime Victims
Victims of Domestic Violence
Voting Time
Other Leaves of Absence (see LOA Audit)

Other Payments
Expense Reimbursement

Uniforms/Equipment

Inspection of Employer’s Records
Personnel Files
Wage Records

Record-keeping and Posting Requirements

Penalties

Leaves of Absence

The purpose of this audit is to determine whether the employer provides leaves of absences in conformance with statutory requirements – particularly with regard to disability and discrimination issues. We review whether the employer has supplied the employee with required information regarding leaves of absences and whether employers have granted or denied time-off requests in compliance with state and federal regulations. The following are various documents, practices, and processes reviewed during this audit.

Employer Compliance
Postings
Written Policies/Employee Handbook

Federal Leaves of Absence Laws
Family Medical Leave Act [FMLA leave]
National Defense Authorization Act [Servicemember leave]
Americans with Disabilities Act [ADA- Reasonable Accommodation]

California Leave of Absence Laws
California Family Rights Act [CFRA leave]
Pregnancy Disability Leave
Fair Employment and Housing Act [FEHA – Reasonable Accommodation]

Other Leaves (statutorily mandated)
Military
Spousal Military
Jury/Witness Duty
Voting Time
Victim of Domestic Violence/Sexual Assault
Crime Victims
Volunteer Firefighters, Emergency Rescue
Personnel, Reserve Peace Officers
Occupational Disability [Workers’ Comp]
School Visits
Kin Care
Organ/Bone Marrow Donor

Discretionary Leaves
Funeral/Bereavement
Personal

Mandated Benefits
State Disability Insurance
Paid Family Leave
Unemployment Insurance
Workers’ Compensation

Notification
Employee Request Form
Health Care Provider Certification
Other Certifications
Notice of Rights/Responsibilities
Designation Notice
Notice “A” or “B:

Eligibility
Number of Employees
Qualifying Event
Length of Leave
Reinstatement Rights

Recordkeeping
Company Policies
Employee Request Forms
Notice of Rights/Responsibilities
Designation Notice
Health Provider Certification
Other Certifications
Payroll Information
Dates/Hours of Leave
Premium Payments
Records of Disputes

Termination

Employment with the company can terminate for a variety of reasons – and can be the result of action taken by the employer or the employee.  Particularly in those cases in which the employer discharges the employee there are a number of issues that should be reviewed.  In this audit we review your recent terminations and your termination process – how the decision to terminate is made and by whom; “red flag” issues; notifying the employee of the decision; and possible aftermath.  We look for potential problems and determine whether the termination process meets federal and state legal requirements.

The following are various documents, practices and processes reviewed during this audit.

Layoff/RIF
WARN Act
California WARN Act
Exit Incentives
RIF Benefits
Releases
Discrimination Issues
Outplacement
ERISA Issues
Tax Considerations

Voluntary Quit
Notice
Constructive Discharge

Discharge – Basic Legal Issues
Employment-at-Will
Express/Implied Contract
Statutory Prohibitions
Public Policy
Tort Theories

Investigation
Designating Investigator
(third party considerations)
Witnesses
Interview procedures
Confidentiality
No retaliation
Documents
Company policies
Job descriptions
Memoranda
Guidelines
Performance Reviews

Decision Making
Review factual conclusions
Determine credibility
Determine action
Review employee file
Legal review (as necessary)

Notification to Employee
Setting
Due Process
State Reasons/Answer Questions
Employee Reaction Issues
Escort Policy

Severance Agreement (if utilized)

Termination Obligations
Payment of Wages Due
Final salary/wages
Accrued vacation
Bonuses/commissions
Other accrued benefits
Return of Company Equipment/Uniforms
401k Forms
Verify Current Address
Information to Employee
EDD booklet (UI)
COBRA notice
HIIPP notice
Other benefit information
Change of status notice

Exit Interview

I-9 Audit

A complete and appropriate Form I-9 must be completed for each employee (hired after November 6, 1986).  To conduct this audit we review your I-9 forms for current and former employees to determine whether your process for completing the forms meets federal requirements; if the employees and the Company representatives completing the I-9s are doing so accurately and completely; if corrections have been properly made; and whether your record-keeping is legally compliant.

The following are various documents, practices and processes reviewed during this audit.

Designation of employer representative
Title and function?
Properly trained?

Timeliness of completion
When are the forms completed?
Employee section
Employer section

Place of Completion

Process for Completion
Correct form being used?
Instructions to employee?
Copy given?
List of documents?
Translator used?
Preparer used?
Ink used?
Electronic process used?

Review of Documents
Specific documents requested?
Original documents?
Personal review?
Standard of review?
Copies made?

Updating/Recertification
Expired documents?
Returning employees?

Possible Errors
Incomplete?
Employee section
Employer section
Over-documenting?
Inappropriate assumptions?
Accepting invalid documents?
Improper corrections?
Cross-outs
White-outs
Initialed changes
Extraneous markings

Hiring / Orientation Process

The purpose of this audit is to determine whether the employer hires employees in conformance with statutory requirements – particularly with regard to discrimination issues, privacy issues, and drug testing.  Once the employee is hired, we review whether the employer has properly completed I-9s and other required forms; whether the employer has provided the new employee with required information and has had the employee complete and sign appropriate documents; and generally if the employer has engaged in other activities to ensure that the new employee will become familiar with the surroundings, the culture of the workplace, and requirements of the new job.

The following are various documents, practices and processes reviewed during this audit.

Job bidding process
Postings Requirements

Advertising or other recruitment methods
Language in ads
Walk-ins
Referrals

Applications
How are these completed
Discriminatory questions
Information regarding applicable testing
Appropriate disclaimers

Job descriptions
Classification and status
Essential job functions
Physical/mental requirements
Job environment

Interviews
Discriminatory questions
Job-related testing
Rating sheets

Background Checks
Applicable requirements

Pre-placement physicals
When performed
Non-discriminatory basis
Drug testing

I-9 process
Properly completed
Appropriate documentation reviewed

New-hire forms
Tax forms
Required pamphlets
Other forms required by the employer
Other forms to be completed by the employer (e.g., DE 34)

Safety
General safety training
Specific job training

Introduction to the workplace
Meeting with supervisor
Tour of the facility
Other information specific to the particular industry, facility or job

New Employee Files
Appropriate signed documents