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Top Ten Non-Profit Employment Pitfalls — Does Your Organization Need an Employment Law Audit?

Wednesday, 11 December 2013 / Published in Labor & Employment, Non-Profit

Top Ten Non-Profit Employment Pitfalls — Does Your Organization Need an Employment Law Audit?

  1. Employee vs. Independent Contractor:  If your organization is paying individuals as 1099 independent contractors, you should conduct an audit to ensure that they are properly classified.
  2. Payment of Interns or Volunteers:  If your organization utilizes unpaid interns or volunteers, you should conduct an audit to ensure you’re your organization is in compliance with the Fair Labor Standards Act (and relevant state laws).
  3. Background Checks/Fraud Prevention:  Unfortunately, non-profit organizations are often subject to employee fraud/theft.  If you have not utilized background checks, or if you are not familiar with the requirements of the Fair Credit Reporting Act, you should review and update your policies as appropriate.
  4. Federal Employment Laws:  Are supervisors aware of federal (and state) employment laws?  Have you conducted harassment training?  Is your organization’s handbook updated and does it contain harassment reporting policies?
  5. Exempt vs. Non-Exempt Employees:  Does your organization have numerous salaried/exempt employees that do not receive any overtime when they work over 40 hours in any given week?  Are you sure that they are actually exempt from the Fair Labor Standards Act overtime requirements?  And, for exempt employees, are you sure that you are complying with proper payroll deductions?
  6. Employee Handbook:  When is the last time your employee handbook has been updated?  If it has been a year (or more), then it likely needs to be updated to reflect changes in state/federal law or changes impacting your organization.  An employee handbook is a vital tool for the proper functioning of an organization and liability prevention/protection.
  7. Employment Documents:  Does your organization have Confidentiality Agreements?  Non-Disparagement Agreements?  Does it have up to date offer letters, applications, and other relevant documentation.  Does it need non-competition agreements for certain employees?
  8. Social Media Policy:  Does your organization have a social media policy?
  9. EPLI:  Does your organization have EPLI (Employment Practices Liability Insurance)?  Not sure . . . . ask your insurance broker.
  10. Employment Counselor:   Does your organization have experienced employment law counselor on speed dial (or at least readily accessible) to answer employment law-related questions?  If not, it should.

If your organization has any questions on these (or other) employment-related matters, please do not hesitate to contact Merritt Green, Managing Partner and Chair of General Counsel, P.C.’s Labor and Employment Practice Group at mgreen@gcpc.com or 703-556-0411.

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