Recruitment and Hiring
- Job descriptions, postings and interviews are compliant with federal and state laws, including the Americans with Disabilities Act (ADA).
- Interview questions are not discriminatory.
- Background checks, reference checks and drug-testing policies adhere to federal and state laws.
- Job offer letters clearly state that employment is at will.
- Employees are properly classified as exempt or nonexempt.
- Independent contractors are classified as such and not as employees.
- I-9 forms are appropriately completed.
- New-hire reporting requirements are met.
- Completed tax forms for each new hire are on file.
- Orientation and onboarding practices are in line with company policy.
- Pay practices, including minimum wage and overtime, comply with the Fair Labor Standards Act (FLSA) and state requirements.
- Only permissible deductions are made from exempt employees’ pay.
- Nonexempt employees are paid according to their timekeeping records.
- Incentive pay and promotion programs are developed in an equitable manner.
- Employees are paid no less frequently than required by state law.
- The company has a formal compensation plan that aligns with business objectives.
- Voluntary benefits such as health, wellness and retirement plans are administered according to laws such as the ACA, ERISA, COBRA, EEO, ADA and IRC.
- Benefit plan options and changes are effectively communicated to employees.
- Disclosure and filing requirements are met.
- Paid time-off policies are based on standardized procedures.
- Mandatory benefits, such as workers’ compensation and FMLA leave, are provided as required by law.
Core Policies and Procedures
- Company policies meet federal and state criteria, including those relating to equal employment opportunity, sexual harassment, and health and safety.
- Each employee receives a handbook detailing the company’s policies and procedures, code of conduct, and terms of employment.
- Labor law posters are displayed in conspicuous areas of the worksite.
- Personnel files and other employment records are retained as mandated by law.
- The company has a formal training plan, which describes training and development procedures for leaders and rank-and-file employees.
- HR policies are applied consistently and fairly across the organization.
- Evaluations are conducted on each employee at least annually.
- Evaluations are done according to established guidelines.
- Performance issues, corrective actions and disciplinary measures are carefully documented.
- Terminations are based on company policy and the law.
- Procedures are in place for collecting company property from departing employees.
- Supporting documents, such as written warnings and resignation letters, are appropriately filed.
- Separated employees receive a written notice explaining their post-termination benefits.
- Final paychecks are delivered by the next regular payday or the state-mandated deadline.
An HR consultant can help you identify additional areas to cover during the audit.