Use Recession to Reset HR Policies and Avoid Getting Sued

Just because you’ve always done it, doesn’t mean it’s a good idea, Hunter Lott, director of PleaseSueMe.com told SHRM annual conference attendees. When it comes to compliance and policy, I’m a big fan of less is more. Use the once-in-a-business-lifetime opportunity you have right now to implement a policy reset.

This isn’t just a recession, Lott continued. It’s a reset for HR. It’s your chance to ponder if you had to start all over again, would you do things the same way. Here is a look at the policies Lott encouraged HR to review as being problematic, as well as practical steps for avoiding liability:

1.          Genetic Information Nondiscrimination Act: Avoid in-depth conversations about employees’ family medical history.

2.          Americans with Disabilities Act Amendment Act: Review any rejected accommodations over the last several years and take necessary action.

3.          Employee Free Choice Act: Get closer to your employees; Drop the practice of saying We do not discuss salaries at this place of work; and strengthen your non-solicitation policy.

When it comes to the Employee Free Choice Act, don’t be afraid of your employees approaching you, said Lott. Remember that equal opportunity is not the same as equal treatment.

What about Lilly? According to Lott, employers are more likely to get hit with a Lilly Ledbetter Fair Pay Act claim in the next 12-18 months than any other form of liability. Ledbetter requires that men and women doing the same job must be paid the same wage, so Lott encouraged HR attendees to compare the average woman’s pay to the average man’s pay, by job description, and then see if they can justify the gaps based on anything other than gender.

Liability is also likely to result from an inaccurate distinction between exempt and nonexempt workers. Lott said HR should ask themselves the following:

1.          Are you sure that your exempt salaried employees qualify for the exemption?

2.          Are you paying nonexempt employees overtime wages equal to one and one-half times their regular hourly wage? This is an FLSA requirement, but your state may require even more, said Lott.

3.          Are all your nonexempt employees recording all hours actually worked?

4.          Are employees taking lunches at their desk or in their work area?

5.          Are exempt employees docked for hours not worked within a workday?

6.          Are you granting comp time in lieu of overtime? In the private sector, ‘comp time’ can be problematic, said Lott. HR should check with local legal counsel to remain safe.

Lott also told attendees that although they probably won’t get sued for not being nice to their employees, it’s still just as important to think about and review. How we treat people for the next two years will determine where we’re at in 10 years, Lott said. There is a real premium on the genuine. So before taking action, ask yourself whether or not you’d want to appear on the local news to defend your organization’s policy.

Source:Please Sue Me 2009, presented by Hunter Lott, director of PleaseSueMe.com, at the Society for Human Resource Management 61st Annual Conference and Exposition, on June 29, 2009, in New Orleans, Louisiana.

Reprinted with permission. © CCH
(Submitted July 31, 2009)

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