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The OCEG Employment Domain
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  1. The OCEG Employment Domain Carole Stern Switzer, Esq. OCEG EVP and General Counsel

  2. Agenda • Intro: The Challenge of Employment and Labor Law Compliance • OCEG: It’s Framework, Classifications, and Business Justification • The OCEG Employment and Labor Domain • The Wage & Hour Example—Value of the Domain • The OCEG Six: Practical Applications of the Domain • Demonstration of OCEG Technology © OCEG 2007

  3. The Corporate World Has Changed • Corporate scandals and prosecutions have been creating headlines for over 5 years © OCEG 2007

  4. The Corporate World Has Changed Earthquakes in Corporate America • SOX, state regulations, and litigation now reported daily © OCEG 2007

  5. The Corporate World Has Changed Legal Compliance: THE Top Corporate Priority © OCEG 2007

  6. The Corporate World Is Changing • 60 To 80 Percent of Hot Line Complaints are HR Related • Virtually Every Major US Employer Has At Least One Employment Related Class Action. © OCEG 2007

  7. The Corporate World Is Changing • New Cases Filed Daily • Eight Figure Settlements Common • Wage and Hour Claims Most Common © OCEG 2007

  8. The Corporate World Is Changing • Glass Ceiling, Race, Sex, Age, and Religious Discrimination Claims Common • New Claims Coming: Micro-Inequities (Bonuses, Cashing Paychecks, Application Forms, 4000 laws and regulations in California alone.) © OCEG 2007

  9. The Corporate World Is Changing • Why Are Good Companies Still Being Sued? • Failure To Answer This Question: • WHEN HAS THE EMPLOYER DONE ENOUGH TO REASONABLY COMPLY? © OCEG 2007

  10. What Is Needed • Common Compliance Language and Structure  a Framework. • Compliance Metrics  Bullet Sized Measurements of Compliance Practices. • Web Access to the Directory  Search Capability  Reporting  a Linkage to Subject Matter Knowledge. • Reduced Cost Through Technology and KM. © OCEG 2007

  11. OCEG, Its Framework, and Guidelines

  12. The OCEG Framework consists of two parts: • The OCEG Foundation – a common process model for management of governance, risk management, compliance and ethics • Domains – additional guidance that supplements the Foundation with regard to key compliance risk areas (employment, environmental, finance, etc.) or issues critical to specific industries or sectors (pharmaceutical sales & marketing, retail supply chain fraud, higher education laboratory waste, etc.) © OCEG 2007

  13. Note • Where standards already exist, we organize them into a consistent structure and “cut to the chase” • Makes it easy to understand existing requirements • Makes it easy to understand new requirements • Where standards do not exist, we define them • Identify the legal requirements that represent “minimum” practices and standards that organizations often follow • identify core practices that “9 out of 10” organizations already do to address legal standards • Identify additional practices that help to drive additional business value © OCEG 2007

  14. Who Developed the Domain? • Littler Mendelson • Orrick Harrington • Ernst & Young • Corporate Counsel on Advisory Board • Public Exposure © OCEG 2007

  15. Fifteen Supplements • Compensation (Wage and Hour) • Executive Compensation • Benefits • Employee Information Privacy • Labor Relations and Unionization • Workplace Violence and Crisis Response • Discrimination Prevention • Contingent Workforce Harassment Prevention • Leave • Employment Law Torts • Retaliation and Whistleblowers • Employee Hiring and Retention • Lawful Terminations and RIF • Global Migration © OCEG 2007

  16. The Practical Value of OCEG’s Employment and Labor Law Domain © OCEG 2007

  17. Core Advantages • Must Be Practical • Must Be Substantive • Must Be Uncomplicated • Must Leverage Technology • Must Have Measurable ROI • Meet the OCEG Six © OCEG 2007

  18. The OCEG Six 1. One: Self-Directed or External Auditing of HR Practices • Established Metrics of Compliance • Compliance Comparisons • Navigating the Privilege Question (the role of counsel) • Intended Use of Audit: Comparative; Defensive; Diagnostic © OCEG 2007

  19. The OCEG Six 2. Two: Building an HR Compliance System • Structure for an Entire System • Update of Compliance System and Keeping Current • Explore the world of Advance Practices © OCEG 2007

  20. The OCEG Six 3. Three: Reducing Risk Associated With Corporate Transactions • Mergers/Acquisitions—Setting OCEG Core as a Minimum Level of Compliance • Divestitures—Putting a Value on OCEG Core and Above Compliance • Financing—Meeting Required OCEG Compliance Levels • EPLI and Other Insurance—Qualifying For Insurance and Reducing Premiums © OCEG 2007

  21. The OCEG Six 4. Four: Reducing Compliance Costs and Increasing Compliance Quality • Electronic Leveraging of Information • Access to OCEG Guidance On-Line • Initial Research and connection to Sources • Breaking Down 50 State Barriers © OCEG 2007

  22. The OCEG Six 5. Five: Foundation Building For Corporate HR Initiatives, Educational Program, Business Initiatives, and Web-Based Products • Employment Law Q and A (Internal or External) • Employment Law Training (Internal or External) • Commercial HR Products/Procurement • Staffing and Leasing Arrangements © OCEG 2007

  23. The OCEG Six 6. • SIX: Reduce Litigation Exposure and Build in Defenses • The Class Action Epidemic and the Star Wars Defense • Some Litigation is Inevitable • Answering the “What Is Enough” Question © OCEG 2007

  24. The OCEG Employment Domain Carole Stern Switzer, Esq. OCEG EVP and General Counsel