HR Audit Checklist

The Hiring Process

– Accurate job description developed for all positions – Job application submitted with required forms (background check, reference check, credit check release, sometimes an employment verification is required) – Is your job application compliant with the law? – Completed reference checks – I-9 forms completed with proper identification – Important medical information and emergency contacts gathered and filed – Proper identification of independent contractors – W-4 forms completed and submitted to the IRS – Personnel files kept (and kept current)

New Employees

– Employee Manual – specific to your workplace – Workplace policies (enforceable) Workplace culture – Employee orientation – Employee training

Wages & Hours

– Employees correctly categorizes as exempt or nonexempt (FLSA – Fair Labor Standards Act) – Pay structure outlined & compensation plan communicated – Overtime pay for non-exempt employees (1.5 x hourly wage) – Method of recording time – Paid time off (vacations and holidays) structure – Payroll withholding performed accurately

Benefits

– Benefits administrator – Summary plan descriptions provided to plan participants – Health care plan information kept private and secure – COBRA (Consolidated Omnibus Budget Reconciliation Act) notices provided – FMLA (Family & Medical leave Act) – up to 12 weeks leave – ERISA (Employee Retirement Income Security Act) compliance – Supervisors and managers trained to report more than three days absence to HR for FMLA purposes – Form 5500s completed and reported

Employee Relations

– Performance evaluation structure and schedule – Quality and quantity of work evaluated – Is performance related to compensation? – Flexible workplace policies? – Disciplinary action for violating policies and procedures – Process for employee complaints – Whistleblower policy in effect?

Safety & Security

– Procedure for reporting safety hazards Prompt reporting – Employee suggestions to reduce/ eliminate risk – Measures to keep unauthorized people from entering a specified area – Appropriate lighting indoors and outdoors – Measures to prevent intruders from entering – OSHA compliance

Employee Separation

– Exit interview process – Separation and COBRA notices provided on time Final paychecks provided on time