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One high-risk area would include the misclassification of exempt (salaried) and non-exempt (hourly) positions. Almost every organization has job positions that are misclassified as exempt from overtime eligibility. In order for a position to be exempt, it must meet certain job criteria including a minimum salary threshold.
The complexity of wage and hour laws makes it easy to misclassify positions thus exposing the employer to liability for past overtime wages. Failure to adhere to both the Federal and State wage and hour rules could result in financial penalties and back-pay to a misclassified employee.
Another high-risk area for employers is failure to appropriately communicate ADA requirements for each position in the company Job Descriptions. THe ADA requirements should include both physical and non-physical requirements for each position. While this activity isn’t always referred to as an audit, it serves the same function. The key here is to review job descriptions and update them both for duties accuracy and proper ADA communications.
Some Common HR Audits
Here are a few examples of the most common types of HR audits:
There are several HR compliance audits that can be done to decrease financial penalties that the HR Services team at EBC can provide. Reach out and get connected with a member of the HR Services team at 716.674.7900 or by visiting https://ebchcm.com/