1. www.kpaonline.com (866) 356-1735 How to Bulletproof Your Employment Practices We will being at 10am Mountain Time

2. KPA CONFIDENTIAL Speakers Moderator Presenter Becky Ross Marketing Manager 303-228-8753 bross@kpaonline.com John P. Boggs, Esq. Fine, Boggs & Perkins LLP 650-712-8908 jboggs@employerlawyers.com 3. KPA CONFIDENTIAL Questions If you have questions during the presentation, please submit them using the Questions feature Questions will be answered at the end of the webinar 4. 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 Statistics 5. WHEN WE ARE HIRING SOMEONE, WHAT WE SEE ISNT ALWAYS WHAT WE GET. 6. 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 Wont Be ThereThe Worker Who Wont Be There Slackers Who Wont Accept SupervisionJust Leave MeSlackers Who Wont Accept SupervisionJust 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 Wont Do It or Dont Have Time to Do It.My Managers Wont Do It or Dont Have Time to Do It. Murphys Law If Something Can Go Wrong, It Will. MurphyMurphys Law If Something Can Go Wrong, It Will. Murphy Was Born In A Dealership.Was Born In A Dealership. Common Problems Dealers Face 7. REMOVING THE BULLSEYE! 8. The only way to WIN THE BATTLE is to follow a standardized step-by-step process Application Interview Conditional Offer Drugand/or Background Screening New Hire Packet Company Policies & Training FIND QUALITY EMPLOYEES ELIMINATE THE WALKING LAWSUIT Bullet-Proof Your Employment Practices Through Forced Function 9. APPLICATION New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 10. The 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 11. Employment Application 12. 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 Companys 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. At-Will Employment 13. Screening 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. 14. INTERVIEW New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 15. 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 16. Velvet Hammer Interview LISTEN! STOP TALKING ASK OPEN ENDED QUESTIONS DONT ASK ILLEGAL QUESTIONS 17. 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? 18. 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! Questions to Ask: Specific Inquiries about Past Employers 19. 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: Interview 20. Check References CALL FORMER EMPLOYERS SPEAK WITH SUPERVISORS CALL PERSONAL REFERENCES BE A HYPOCRITE ON REFERENCES 21. CONDITIONAL OFFER New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 22. Is it UNLAWFUL to obtain a drug screen BEFORE extending an offer to hire? False Hiring Promises Eliminated Conditional Offer 23. DRUG AND BACKGROUND SCREENING New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 24. Background Screening Background checks include Credit hits Character Checks Criminal background information DMV records, etc. Workers Compensation Claims History Civil Claims History Sex Offender Registry 25. Background 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 26. New Hire Packet New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 27. 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: New Hire Packet 28. COMPANY POLICIES AND TRAINING New Hire Packet Company Policies & Training Conditional Offer Drugand/or Background Screening Application Interview 29. 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 Company Policies and Training 30. Policies Posters Training The law requires that dealerships take reasonable steps to prevent harassment Reasonable steps means: Anti-Harassment Training 31. Mandatory Training SEX HARASSMENT TRAINING ANTI-HARASSMENT TRAINING 32. Legally Protected Bases Race Religion Color Sex National Origin Ancestry Citizenship Status Uniform Service Member Status Marital Status Pregnancy Age Medical Condition Handicap/Disability 33. Mandatory 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 34. PERFORMANCE MANAGEMENT 35. ASK THE TEN DEADLY QUESTIONS? Avoiding Liability 36. 1. Do you feel comfortable after your investigation that you will be able to prove, with evidence, that the employee violated the rule, or the standard of performance was not met, and that you have treated other similar situations with the same level of discipline in similar circumstances? Legal Liability Checklist 37. 2. Are there any prior commitments (written agreements or promises) in employee's personnel file regarding a specific term of employment, continued employment or a requirement of just cause for termination of employment? Legal Liability Checklist 38. 3. Are there any complaints or claims (formal or informal) that the employee has made against the company, any co- worker, customer or vendor? (e.g., harassment, discrimination, retaliation, unpaid wages, workers compensation claims, safety issues, labor regulation violations, dishonesty, customer fraud or other claims that the company violated the law in any way, etc.) Legal Liability Checklist 39. 4. If the employee falls into a "protected category" (e.g., minority, race, religion, color, sex, sexual orientation, national origin, ancestry, citizenship status, uniform service member status, marital status, pregnancy, age/over 40, medical conditioncancer related or HIV/AIDS related, disability, or transgender status), does the employee's "protected category" represent a relatively small portion of your workforce or the employee's work group. Legal Liability Checklist 40. 5. Has the employee taken any leaves of absence within the last year? (Medical leave, Family Care leave, Pregnancy leave, Drug/Alcohol Rehabilitation leave, Workers Compensation leave, etc.) Legal Liability Checklist 41. 6. Have you disciplined others for this same general rule violation or performance deficiency? Legal Liability Checklist 42. 7. Has the level of discipline imposed been substantially the same for the same violation or performance deficiency for other employees? Legal Liability Checklist 43. 8. Have you failed to discipline anyone for the same general rule violation or performance deficiency, even though some other employees may have been disciplined for it? Legal Liability Checklist 44. 9. Have you given different levels of discipline to different employees for the same general rule violation or performance deficiency? Legal Liability Checklist 45. 10. Do you plan to terminate the employee? Legal Liability Checklist 46. Determine if you can distinguish leniency in similar situations. Document why current discipline scenario is different than other non-discipline scenarios. Start Fresh and hold back on more severe discipline Avoid Discriminatory Decisions 47. Performance Deficiencies N.E.A.T. Notice of Expected Standard Explain 1. Performance Deficiency 2. What Must Be Done Assistance to Improve TIME TO IMPROVE Discipline/Termination 48. Rule Violations F.I.N.E. Find Published Rule (Employee Handbook) Identify Specifics of How Rule was Broken Notice as to What is Expected Explain Outcome if Continues or Decision Now Discipline/Termination 49. INFORMATION SECURITY 50. Customer 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 51. THE PROCESS SOLUTION TO RED FLAGS 52. ITPP 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 53. FREE ATTORNEY TIME!!! QUESTIONS? QUESTIONS? 54. Contact Us www.kpaonline.com bross@kpaonline.com 866-356-1735 5454 A copy of the recorded webinar and presentation will be emailed to you today.