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Pa auto dealers seminar bullet-proof you employment practices
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www.kpaonline.com(866) 356-1735
John P. Boggs, Esq.Fine, Boggs & Perkins LLP
93% of all employers use screening for job applicants.
79% of all employers use background checks for job applicants.
56% of employers use skills testing for job applicants.
54% of employers use behavioral interviewing for job applicants.
Employers interview an average of 8 applicants for an open position.
INTERESTING STATISTICSINTERESTING STATISTICS
WHEN WE ARE HIRING SOMEONE,
WHAT WE SEE ISN’T ALWAYS WHAT WE GET.
Common Problems Dealers FaceCommon Problems Dealers FaceCommon Problems Dealers FaceCommon Problems Dealers Face
• The Limited FishpondThe Limited Fishpond
• The Great Pretender-Low Integrity CandidatesThe Great Pretender-Low Integrity Candidates
• Those Who Accept Substance AbuseThose Who Accept Substance Abuse
• The Worker Who Won’t Be ThereThe Worker Who Won’t Be There
• Slackers Who Won’t Accept Supervision—Just Leave Me Slackers Who Won’t Accept Supervision—Just Leave Me AloneAlone
• The Futile and Hated InterviewThe Futile and Hated Interview
• The Walking Lawsuit-Employee from HellThe Walking Lawsuit-Employee from Hell
• Legal Compliance Becomes ImpossibleLegal Compliance Becomes Impossible
• Operational InefficienciesOperational Inefficiencies
• My Managers Won’t Do It or Don’t Have Time to Do It.My Managers Won’t Do It or Don’t Have Time to Do It.
• Murphy’s Law – If Something Can Go Wrong, It Will. Murphy Murphy’s Law – If Something Can Go Wrong, It Will. Murphy Was Born In An Auto Dealership.Was Born In An Auto Dealership.
REMOVING THE BULLSEYE!
Through Forced Function
The only way to WIN THE BATTLE is to follow a standardized step-by-step process
Application InterviewConditional
Offer
Drugand/or Background
Screening
New Hire Packet
Company Policies & Training
FIND QUALITY EMPLOYEESELIMINATE THE “WALKING LAWSUIT”
Bullet-Proof Your Employment Practices
APPLICATIONAPPLICATION
Application
THE APPLICATIONTHE APPLICATION
• Application with Legal Protections
• Review The Application--Look For The Key Indicators of the Walking Lawsuit
– Blanks
– Scratch-Outs
– Multiple Employers and/or Short-term Employment
– Reasons for Leaving Employment
– Gaps in Employment
Web-Based Employment Application
Employment Application
AT-WILL EMPLOYMENTAT-WILL EMPLOYMENT
• If hired, I agree as follows: My employment and compensation is terminable at-will, is for no definite period, and my employment and compensation may be terminated by the Company (employer) at any time and for any reason whatsoever, with or without good cause at the option of either the Company or myself. Consequently, all terms and conditions of my employment may be changed or withdrawn at Company’s unrestricted option at any time, with or without good cause. No implied, oral, or written agreements contrary to the express language of this agreement are valid unless they are in writing and signed by the President of the Company (or majority owner or owners if Company is not a corporation). No supervisor or representative of the Company, other than the President of the Company (or majority owner or owners if Company is not a corporation), has any authority to make any agreements contrary to the foregoing. This agreement is the entire agreement between the Company and the employee regarding the rights of the Company or employee to terminate employment with or without good cause, and this agreement takes the place of all prior and contemporaneous agreements, representations, and understandings of the employee and the Company.
SCREENING AND TESTINGSCREENING AND TESTING
• APPLICANT'S STATEMENT & AGREEMENT• I understand that the Company reserves the right to require me to submit to a test for
the presence of drugs in my system prior to employment and at any time during my employment, to the extent permitted by law.
• I also understand that any offer of employment may be contingent upon the passing of a physical examination, performed by a doctor selected by the Company.
• I also understand that I may be required to take other tests such as personality and honesty tests, prior to employment and during my employment.
• I understand that (in connection with this application and at any time during my employment) the company may investigate my driving record.
• I understand that (in connection with this application and at any time during my employment) the company may investigate my criminal record and that an investigative consumer report may be prepared whereby information is obtained through personal interviews with my neighbors, friends, personal references, and others with whom I am acquainted. This inquiry includes information as to my character, general reputation, personal characteristics and mode of living.
• I understand that should I decline to sign this consent or decline to take any of the above tests, my application for employment may be rejected or my employment may be terminated.
INTERVIEWINTERVIEW
Interview
• Studies show that interviewing a candidate for a job position is only 14 percent effective in determining “job fit.” On a nice day, it would be just as effective and more enjoyable to sit on a park bench and hire every seventh person who walks by!
Interview
HIRING IS LIKE COURTING FOR MARRIAGEHIRING IS LIKE COURTING FOR MARRIAGE
• The interviewer concludes, “Well, he/she is not perfect, but I’ll train him after I hire him.”
HOW DO YOU IMPROVE THE INTERVIEW PROCESS?
HOW DO YOU IMPROVE THE INTERVIEW PROCESS?
• Sound familiar? Have you ever regretted hiring someone on the very first day? It hurts, doesn’t it? Or someone asks, “What idiot hired that person?”
• But you don’t give up. You pay for training, trying to mold the person to do a job he will never do well. Eventually you begin the sad process of firing the employee. This, too, is a traumatic and often costly process.
• In our litigious society, it can be very costly.
VELVET HAMMER INTERVIEWVELVET HAMMER INTERVIEW
• LISTEN!• STOP TALKING• ASK OPEN ENDED
QUESTIONS• DON’T ASK ILLEGAL
QUESTIONS
Questions to Ask:Work Ethic and Attitude
Questions to Ask:Work Ethic and Attitude
• What skills are required to get along with and work cooperatively with others?
• Describe the qualities of a good boss? Employee?
• What do you believe is characteristic of bad management? Good management?
• What does being motivated mean to you?
Specific InquiriesAbout Past Employers
What would your supervisor have to say about you? Co-workers? Subordinates?
How were problems resolved at your last job?
How many weeks did you work without interruption over the past 12 months?
Remember: Open Ended Questions!
Interview
Age or birth date
Marriage status or child care
Nationality or background
Disability
Club memberships
Pregnancy
Can you work weekends?
It is UNLAWFUL to ask for information pertaining to:
CHECK REFERENCESCHECK REFERENCES
• CALL FORMER EMPLOYERS• SPEAK WITH SUPERVISORS• CALL PERSONAL REFERENCES• BE A HYPOCRITE ON REFERENCES
CONDITIONAL OFFERCONDITIONAL OFFER
Conditional Offer
Conditional Offer
Is it UNLAWFUL to obtain a drug screen BEFORE extending an offer to hire?
False Hiring Promises Eliminated
DRUG AND BACKGROUND SCREENINGDRUG AND BACKGROUND SCREENING
Drugand/or Background
Screening
Background ScreeningBackground Screening
Background checks include• Credit hits • Character Checks • Criminal background information • DMV records, etc.• Worker’s Compensation Claims History• Civil Claims History• Sex Offender Registry
Background ScreeningBackground Screening
Background checks require:
1. Initial written authorization
2. Proper legal disclosures and info
3. Opportunity to get a copy of report
4. Intent not to hire and copy of report and federal and state disclosures
5. Final rejection letter
NEW HIRE PACKETNEW HIRE PACKET
New Hire Packet
New Hire Packet
Federal Documents
I-9 Employment Eligibility Verification
W-4 Federal Withholding
State Documents
New Hire Reporting
EEO Notices
Unemployment Notices
Workers’ Compensation Notices
Pay Day Notice
State and Federal laws require numerous documents to be completed at the time of hire including:
COMPANY POLICIES AND TRAININGCOMPANY POLICIES AND TRAINING
Company Policies & Training
Company Policies and Training
An employee must have access to the employee handbook to be held accountable to the policies
New signatures should be obtained when any significant change is made
Anti-Harassment Training
PoliciesPosters
Training
The law requires that dealerships take reasonable steps to prevent harassment
Reasonable steps means:
MANDATORY TRAININGMANDATORY TRAINING
SEX HARASSMENT TRAINING
ANTI-HARASSMENT TRAINING
LEGALLY PROTECTED BASESLEGALLY PROTECTED BASES
• Race• Religion• Color • Sex• National Origin• Ancestry• Citizenship Status
• Uniform Service Member Status
• Marital Status• Pregnancy• Age • Medical Condition• Handicap/Disability
MANDATORY TRAININGMANDATORY TRAINING
SEX HARASSMENT TRAINING
ANTI-HARASSMENT TRAINING
IRS 8300 CASH REPORTING TRAINING
GRAMM-LEACH-BLILEY (SAFEGUARDS RULE)
RED FLAGS (IDENTITY THEFT PREVENTION)
VARIOUS OPTIONAL TRAININGS
INFORMATION SECURITY
Customer Information SecurityCustomer Information Security
The dealership CIS Program must include five elements:
• Dealership must designate an employee as the CIS Program Coordinator
• A Risk Assessment must be made to identify foreseeable threats
• Safeguards must be developed to protect customer information
• Service Provider Guidelines must be established and enforced
• The CIS Program must be adjusted in response to the audits and changes in technology
THE PROCESS SOLUTION TO
RED FLAGS
ITPP COMPLIANCE PROCESSESITPP COMPLIANCE PROCESSES
The dealership ITPP Compliance Program must include the following:
• Dealership should have a written ITPP Program Coordinator Job Description Signed By ITPP Program Coordinator
• Dealership should have a written ITPP Compliance Officer Job Description Signed By ITPP Compliance Officer
• A Written Risk Assessment should be implemented as a set process to identify and document the process of identifying covered accounts
• Employee Handbook or Stand-Alone Policies and Agreements should be developed to educate new and existing employees and obtain a written acknowledgment of having received such policies
• Service Provider Guidelines and Agreements should be provided with Written Acknowledgments
• Program and Policies should be updated and acknowledged at least annually in response to the audits and changes in technology
• Must train all personnel to protect against identity theft and prove that personnel understood and agreed to follow the rules
• Must maintain an experience log of events relating to potential and actual identify theft
HotlinkHR is made available to auto dealerships through KPA and provides an easy to use step-by-step forced
process that fortifies your legal protection!
Compliance Through Forced Process
FREE ATTORNEY TIME!!!QUESTIONS?
QUESTIONS?