About Jennifer Peacock President Innovative Consulting Services LLC

About Jennifer Peacock President, Innovative Consulting Services, LLC (ICS) www. icshumancapital. com v 25 years of experience in Human Resources v 15 years in a government contracting environment v 10 years in a consulting capacity – Compensation, Benefits, Recruitment v 6 major compensation plan redesigns & implementations v 5 large-scale, significant benefit change implementations hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

Job Descriptions – How They Saved Us From A Costly FMLA Lawsuit presented by

The Client • Large government contractor dedicated to solving complex problems of great significance for government clients in defense, intelligence/homeland security/special operations, health, and civil agencies. – – Systems engineering Development and implementation Strategic consulting Business solutions • 1. 2 billion in earnings • More than 6, 300 employees located in more than 50 locations around the world hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Project • Compensation plan re-design • Standard job descriptions not available for any positions • Leveling tool used – Education – Experience – Summary of duties • Limited access to the leveling tool among managers hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Process HRTMS Project Planning Job Evaluation Grade Assignments Job Documentation Salary Structures Implementation

The Project Timeline Task 2012 - 2013 June July Aug Sept Oct Nov Dec Jan Feb Mar April May Online Job Description database tool development Manager review of job description content FLSA exemptions and EEO-1 category classifications validation Job Evaluations & Position Benchmarking / Market Pricing Pay structure creation/ position mapping/ cost modeling Group/Leverage Teams feedback on modelling & position mapping New structure loaded into HR system Manager Training Employee data changes effective FY 13 merit process begins hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Goal • 754 compliant job descriptions written from scratch in 8 weeks using 2 interns with no Human Resources or job description experience • How? – Information from Leveling tool – Job descriptions from other companies – HRTMS database – Internet (Monster, SHRM, World at Work, etc. ) hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Before: Old “Job Description” Job Code Job Description Level Description ACCT 1 Analyzes reports, statements, and other accounting information. Oversees the maintenance of accounts and records, and reviews and verifies the accuracy of journal entries and accounting Scope: Requires knowledge of detailed procedures and work routines to perform varied tasks. classifications. Prepares corrections where necessary based on analyses and makes process improvement suggestions. May develop, modify, or monitor major segments of an accounting system, Problem Complexity: Assignments can be moderately complex in nature and require limited judgment. Direction Received: Direct supervision; work regularly checked. methods, procedures, and controls. Impact Of Errors: Errors do not typically have a major effect on the organization. Contact With Others: Contacts are primarily with immediate supervisor and other personnel in the group. Education/ Experience: High school education or the equivalent training and experience are typically required. Proficiency typically requires several months of on-the-job training and experience. Analyzes reports, statements, and other accounting information. Oversees the maintenance of accounts and records, and reviews and verifies the accuracy of journal entries and accounting classifications. Prepares corrections where necessary based on analyses and makes process improvement suggestions. May develop, modify, or monitor major segments of an accounting system, methods, procedures, and controls. ACCT 2 Analyzes reports, statements, and other accounting information. Oversees the maintenance of accounts and records, and reviews and verifies the accuracy of journal entries and accounting classifications. Prepares corrections where necessary based on analyses and makes process improvement suggestions. May develop, modify, or monitor major segments of an accounting system, methods, procedures, and controls. ACCT 3 Exemption N Scope: Work at this level requires a familiarity with the concepts and methodologies needed to perform assignments of limited scope. Problem Complexity: Requires knowledge of complex procedures and advanced work routines. Assignments require experience to choose the appropriate approach. Direction Received: Direct supervision; work regularly checked. Impact Of Errors: Errors do not typically have a major effect on the organization. Contact With Others: Contacts are primarily with immediate supervisor and other personnel in the group. Education/ Experience: A two-year degree or the equivalent training and experience is typically required. Proficiency N typically requires four years of experience Scope: Professional work at this level requires a familiarity with the concepts and methodologies needed to perform assignments of limited scope. Duties involve the analysis of business support practices or data from which answers can be readily obtained. Problem Complexity: Solves problems requiring knowledge of non-complex principles of professional discipline. Direction Received: Direct supervision; work regularly checked. Impact Of Errors: Errors do not typically have a major effect on the organization. Contact With Others: Contacts are primarily with immediate supervisor and other personnel in the group. Education/ Experience: A four-year degree in the relevant discipline is typically required. Proficiency typically requires a N year or more of experience following formal education. hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The End Product • Almost 800 compliant job descriptions • Compensation program with job families and job tracks providing managers and employees career ladders • Market-based program transparent to employees • Ongoing job description review/approval process established hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The JDXpert FLSA Questionnaire hrtms. com | 919. 351. JOBS |© HRTMS Inc. All

The Honeymoon Period • New compensation program implemented, communicated, and being used with enthusiasm • Defense Contract Audit Agency (DCAA) visit • Annual performance review process • Annual merit process • And then… • CLASS ACTION LAWSUIT hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Lawsuit • Employee located at location with under 100 employees files class action lawsuit • Claim of FLSA misclassification • Gathered a couple other employees in similar roles to join suit • Class action suit opened to all other employees worldwide in same (or similar) title hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Corporate Reaction • • Corporate Counsel concerned External counsel specializing in FLSA claims retained Countless meetings occurred Compensation Consultant questioned – Job descriptions reviewed – FLSA classification process reviewed – Compensation processes reviewed hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Attorneys • Meetings plentiful • Processes discussed in detail • Compensation Consultant’s knowledge of FLSA questioned • Job descriptions for positions in question examined – – Who wrote the job descriptions? Who edited the job descriptions? Who approved the job descriptions? How was FLSA classification determined? hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

HRTMS To The Rescue • • Who wrote the job descriptions? JDXpert knew Who edited the job descriptions? JDXpert knew Who approved the job descriptions? JDXpert knew How was FLSA classification determined? JDXpert’s series of questions helped Compensation arrive at their conclusion hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Deposition • • • 5 -6 very difficult hours JDXpert scrutinized Compensation department scrutinized Compensation Consultant scrutinized Managers scrutinized FLSA knowledge questioned hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved

The Result • Class Action Lawsuit dropped! • JDXpert’s thoroughness combined with the company’s diligence in following their processes prevailed • Attorneys impressed hrtms. com | 919. 351. JOBS |© HRTMS Inc. All Rights Reserved