Assignment 1

Introduction

The working hours of an employee in an organisation are crucial factors that determine the productivity of the employees working in the office. Any kind of situation resulting in employee overwork is bound to reduce the overall quality of work and the services the employee provides through the clients (Riyanto et al., 2021). Notification of the working situation based on employee complaints and the development of a risk memo become necessary to reduce workplace risk. This process helps boost the overall productivity of the organisation and employees benefit by receiving an effective workplace and culture in the office. This report deals with the risk audit and management process of ABC organisation. This report focuses on the payment-related issues of employees in the ABC Company and the lack of provision in the employee handbook for rising complaints.

1. Complaint investigation

Required task

Evaluating employees working in the organisation regarding whether they are exempt or non-exempt on their payment process is necessary (BOEVE, 2024). An assessment of this factor becomes possible after analysing the payment process of employees depending on the working hours in the organisation. Evaluating the HRM 225 Timesheet Records of ABC Company has helped in learn about the payment process of employees working for this organisation.

Based on the evaluation of the labour law and FLSA Designation Worksheet, the employees working for the ABC Company are non-exempt. However, the organisation is paying each of the employees less for the overtime of working hours. Employees working in the organisation are receiving a payment of $15 for normal working hours and overtime in the business. The development of workplace stress and safety issues for employees working in the organisation is a common factor in this kind of situation.

Relevant action

There are a few effective actions that can be taken for mitigation of the current issue that employees of ABC company are facing.

• Based on the current requirement introduction of the current situation development of a work time sheet in the company was necessary. Development of this record has suddenly helped in analysing the situation of employees and the level of overwork they do for fertility payment in the ABC company.

• Development of the FLSA Designation Worksheet was also necessary for the task of analysing the situation of each employee working in the ABC Company. Earning about each terms and condition in the USA labour law has helped in gaining an idea about the label of exploitation that is being made with employees working in the ABC Company (Van Doorn et al., 2023). The Discretion and Independent Judgment of employees in the overall work process was easier after the assessment of the employees working for ABC Company as nonexempt workers.

2. Risk Memo

Task A

Each of the employees working for this organisation is non-exempt, according to the regulations of the FLSA Designation Worksheet payment of each of the employees is below $23,660. According to York & Thor (2020), based on the law of FLSA providing an effective and stagnant payment to the employees is necessary in case of maintaining exempt employees. This system is not present in the ABC Company. Based on the information of employees in the organisation and the level of payment they receive from the company, none of the payment regulations of FLSA is followed by ABC Company.

Possible Actions:

Action that can be taken in this situation is the Introduction of employees working in the ABC Company with the FLSA is necessary. This will suddenly help each of the employees in learning about their rights and the payment they should get for overtime work in the organisation. this process will suddenly be held full for mitigation of the financial issues in life that each of the employees working in the ABC Company faces. Receiving payment in the organisation according to market demand will be possible in the ABC Company after correcting the payment structure and developing employee awareness in the organisation.

Task B

Employees working in the ABC organisation are not being paid correctly. This becomes clear through the FLSA in the USA, as it provides information regarding 1.5-time payments for employees working overtime in an organisation in case of non-exempt employees (Stansbury, 2021). Evaluating the HRM 225 Timesheet Records of ABC Company provides information regarding the $15 hourly payment method for all employees in cases of normal or overtime work in the organisation.

Possible Actions:

Based on information from the time sheet created for the payment process analysis of each employee working in the ABC Company the process of making payments to employees on regular and overtime work is not correct. The payment process in the ABC Company is not made according to the requirements and necessary based on the FLSA in the USA (Stansbury, 2021). Evaluation of the Excel sheet provides information about the payment process of $15 hourly for each of the employees in both cases of normal war process and overtime work. Based on this information the payment process in the organisation and the remuneration that each of the employees is receiving in this organisation is not justified. Better payment opportunities should be provided to each of the employees in the business process.

Task C

The main potential reach in this kind of issue is that the work pressure and payment level of the employees in the ABC Company are not adjusted. Therefore, a rise in the work pressure for the employees working in the organisation can be a major issue. Employees working in this organisation should communicate with Arya Stark, HR Director for mitigation of the payment-related issues in the organisation. Leaving this issue without finding a proper solution can cause a reduction in the service process for employees as they will not feel motivated to deliver quality work for the organisation. Deduction in the quality of telephonic customer service by the employees is also a situation that can be prominent after rising unfair payment-related issues in the organisation. Due to such issues, the payment-related concerns in the organisation should be managed.

Possible Actions:

Based on the present scenario the ABC organisation is a failure in properly maintaining the regulation of the FLSA in the USA (Stansbury, 2021). In this kind of situation, the introduction of a lawsuit against the company demanding justice in the payment process of employees can be taken to make the overall payment in the company justified according to the Labour Regulation of the USA. This is one of the major lawsuit-related risks for the company from the side of employees. Other possible actions by the employees by filing the law so against the company can result in creating a financial loss for the organisation this is another major risk that ABC organisation can interior from the false payment method that the company is using. The introduction of an effective payment process according to the regulation of FLSA is necessary for ABC Company to avoid these risks.

3. Handbook Analysis

Task A: Gap in the employee complaints

The Handbook of Employees at ABC Company provides an option for the employees to raise complaints against any type of unfair behavioural issues in the organisation. However, the payment-related issues that each of the employees is facing in the overall business cannot be reported with the help of the employee Handbook. The handbook also provides information regarding 23 hours of weekly working time for temporary employees. However, each of the employees based on the information from the time record sheet, are working for more than 40 hours in the week. The employee handbook in this case lacks in the case of providing the opportunity to raise complaints against any kind of salary-related issues. A lack of compliance development in the organisation can result in related issues in the business (Dang et al., 2023). This type of major issue in the handbook can create compliance management issues for the organisation in long-term business.

Actions

The rules and regulations introduced in the handbook for the employees should be made more friendly with the working process of employees in the organisation. Regulation and communication management process in the ABC Company should be made more user-friendly for the employees. This will also help in sustaining the workforce in the company for a long-term business process.

Task B: Conflicts with company policies and Labour Law

The main conflict comes from the law of exempt and nonexempt employees and their payment princess according to FLSA at ABC Company. The payment that ABC Company is providing to the employees is much less than the determined payment rate by FLSA in the USA (BOEVE, 2024). The organisation is not paying employees 1.5 times the regular hourly payment in case of overtime work every week.

Actions

The introduction of an effective modification in the process of overall payment in the company is necessary. Following the Department of Labor (DOL) regulations at times of making payment and introducing a change in the payment policies of the organisation may become necessary in this case (Jackowski, 2023).

4. Handbook Recommendations

• The employee handbook's new rules and regulations ought to be more accommodating to the way that workers in the company go about their daily business. An efficient change must be implemented to the company's general payment procedure.

• In this situation, it might be required to implement a modification in the organization's payment policy and adhere to the "Department of Labour (DOL)" requirements when processing payments (Jackowski, 2023). Employees at ABC Company should find it easier to navigate the company's regulations and communication management procedures. Additionally, this will support the company's staff during its long-term business operations.

• Making the overall handbook mode user-friendly to the employees is also necessary for this company. Evaluation of the Fair Policy Act and the regulation of the Department of Labour in the USA is necessary for the management of the ABC Company for the development of proper policy regarding payment of employees in the organisation.

• Reduction of financial and reputation-related risk in the company can become possible after the introduction of modification in the overall work process.

5. Risk Mitigation

There are multiple risks that ABC Company can face from the issues regarding payment-related Complications that took place in the organisation. Based on the evaluation that has been made through the risk audit document, there are three types of risk that can create issues in the progress of the organisation and reduce the level of communication with the employee base of the ABC Company. These issues are, reputation risk, financial risk and risk regarding regal and compliance management issues. Identification of the risk has also helped the mitigation process of all these issues.

Figure 1: Risk Audit Document
(Source: Self-developed)

Reputation Risk

If the employees working in the organisation receive less payment than expected or market value then a reduction of the goodwill of the company in the comparative market is a common factor. Conducting long-term business in the comparative market and sustaining skilled employees in the organisation can be an issue for ABC Company from reputation risk in the market. The organisation can face issues regarding the "Department of Labour (DOL)" law for the reduction of employee facilities in the market (Jackowski, 2023). The introduction of new skilled employees in the organisation based on the demand of business can also be an issue for the organisation as none of the potential candidates in the job market will be willing to for the ABC Company.

Financial Risk

Based on the evaluated information ABC Company has failed to provide the employees with payment according to the regulations of The Fair Labor Standards Act (FLSA) in the competitive market (Stansbury, 2021). Failure in management of this regulation can result in penalties for the organisation in the market according to the law of the US government. Therefore a chance of financial risk remains for the organisation in the current market. Better compliance development by providing the employees with effective sales in the market becomes necessary for the company to manage the business in a better way.

Legal and Compliance-related Risks

Based on the information this organisation has failed in the management of FLSA and DOL regulations regarding paying adequate salaries to the employees of the organisation (Stansbury, 2021; Jackowski, 2023). Based on this issue financial penalties, loss of employees and reduction of the reputation of the organisation in the market can be major issues. Reduction of employee-related CSR in the organisation can result in a reduction of the customer base for ABC organisation. Based on that factor management of compliance with the regulation of employee facilities in the nation is necessary for ABC organisation. This process can help the company to manage a profitable long-term business in the market.

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