Employment Documents and Records

      A critical element of the preventive audit is the identification of policies or practices that, on their face or as administered, may violate federal, state or local employment statutes or regulations. This requires a full review of employment-related documents, records and recordkeeping practices, including policies addressing recruitment, hiring, compensation, assigning overtime, leaves of absence, staff reduction, promotions, discipline, transfer and similar personnel decisions.

1. Employee handbook -- The employee handbook is the company’s official source of information about polices and procedures, and, if well drafted, can foster positive employee relations and minimize litigation. Periodically, the handbook should be reviewed for compliance with applicable federal, state and local labor, employment and wage-hour laws. A careful audit should result in better policies, clearer communications, and enhanced ability to avoid and resolve disputes.
   
2. Other employment documents -- In addition to the handbook, all other employment documents, including personnel forms and employee communications, should be reviewed. These include:
   
   
   • employment application
   • applicant reference request form
   • applicant interview notes
   • employee reference release forms
   • employee evaluation forms
   • disciplinary warning forms
   • leave of absence request forms
   • I-9 forms
   • EEO-1 reports
   • FMLA policies and administration
   • personnel activity data