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Why perform an Audit? Why Now?

by George Phares, Strategic Direction Resources

Anyone paying attention to the legal arena in human resources is aware that our jobs are getting harder, not easier. The legal arena is getting very complicated, very quickly.

Over the past year we have seen five significant Supreme court decisions covering fair employment practices: two harassment rulings in 1998, and three more in 1999 covering disability. The rulings on harassment stem from Title VII of the Civil Rights Act of 1964, and the Disabilities Act of 1990. These are not new laws, but the courts are still being asked to interpret them.

Why is this happening? State and federal laws are intersecting, and coverage often overlaps different regulations such as FMLA, ADA, Title VII of the Civil Rights Act, The Rehabilitation Act, and ADEA, just to name a few. Now, throw in the emergence of statutes that are designed to address emerging issues, and leave it the judges to fill in the blanks left by legislation. Wait, it doesn't stop there -- add some vague, but commonly used terms in HR law such as "significant," "severe and pervasive," and "reasonable" - just to keep things interesting.

Increased Enforcement Powers

If your company is a federal contractor, you should be aware that on april 7, 1999, the Equal Employment Opportunity Commission (EEOC) and the Office of Federal Contract Compliance Programs (OFCCP) signed two memoranda of understanding. The first allows the OFCCP to act as the EEOC's "agent" in processing charges filed under Executive Order 11246 if those charges include violations Title VII of the Civil Rights Act of 1964. The second memorandum is intended to increase enforcement of compensation discrimination cases.

Litigation of Employment Law Issues Is Rising

Even as we enjoy general economic prosperity, litigation of employment law issues is on the rise. Years of "at will" employment have resulted in a loss of loyalty up and down the chain of command. People are working, but are not economically solvent - they need cash. We are also reaping the harvest of "cost of defense" settlements. Companies look at the cost of defending even a winning position, and plaintiffs see settlement as an option to get something.

Good Management Practices

In this age of knowledge workers, fierce competition and scare resources, organizations can no longer afford "fly by the seat of your pants" management. Even the best intentioned of HR programs sometimes fail to deliver. HR managers need a systematic approach to evaluate their current HR policies and programs, and the effect on finding, motivating and retaining people.

About the author

Mr. Phares has a B.S. in Economics from West Virginia University and graduate work in HR Management from Webster University in Colorado. His company specializes in affirmative action program development for federal contractors.

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