Full-Service HR

Human Resources Compliance Checklist

Ella Baker
Human Resources Compliance Checklist
Reading time 8 Mins
Published on Jun 4
Share

Let your PEO help keep you HR compliant

Maintaining human resources compliance can be a difficult task, often fraught with unseen pitfalls and potential litigation. Understanding the regulations and laws that govern HR in your state can be challenging for many small and mid-size business owners. Though not exhaustive, this checklist can help give you some insight into the steps needed to keep your company compliant.

Recruiting and Hiring

  • Evaluate all recruitment and hiring strategies, policies, and procedures to ensure compliance with federal and state nondiscrimination laws.
  • Ensure that all job descriptions, advertisements, and interviews are ADA compliant and meet state requirements.
  • Review employment applications for compliance with any applicable state laws regarding prohibited questions or statements that should be included.
  • All interview questions are appropriate and relate directly to the position and the applicant’s ability to perform the job’s essential functions. Questions must not discriminate based on race, sex, religion, age, ethnic group, national origin, marital status, military service, disability or other protected status.
  • Written authorization is obtained for background checks and Fair Credit Reporting Act requirements are satisfied, along with any state requirements for conducting background checks.
  • Policies and procedures related to drug testing, use of arrest and conviction records, and other candidate-information requests comply with applicable federal and state law.
  • Job offer letters are reviewed by an HR specialist or employment law attorney and include a statement regarding employment at-will.
  • Form I-9 is completed for all new employees within 3 business days from the first day of work for pay.
  • New hire reporting requirements are satisfied and necessary tax forms (Form W-4 and any required state forms) are collected from new employees.
  • Review your orientation/onboarding program for welcoming new employees and familiarizing them with the company’s basic management practices.

Wage and Working Hours

  • Employees must be paid a minimum wage, which in Ohio is currently $8.30 per hour, except for the following:
    • Tipped employees
    • Employees under age 16, who must be paid no less than the current federal minimum wage rate
    • Employees who work for employers that have gross income under $299,000 may pay their employees the current federal minimum wage rate.
  • Employers must pay employees for overtime at a wage rate of one-and-one-half times the employee’s wage rate for hours in excess of 40 hours in one workweek. Those overtime requirements apply to:
    • The state;
    • The state’s political subdivisions and instrumentalities;
    • Partnerships, associations, businesses, business trusts; and
    • Individuals.
  • Some exemptions apply to overtime requirements based on the employer’s sector and gross annual volume of sales.
  • Child labor laws in Ohio restrict the occupations in which minors may be employed and the number of hours and times during which they may work.
  • All minors are prohibited from working in occupations deemed to be hazardous or detrimental to the health or well-being of minors. Door-to-door sales activity has a separate set of requirements for minor employees.
  • With some exceptions, minors who are 14 or 15 years of age may not work:
    • More than three hours in any school day;
    • More than eight hours in a day that is not a school day;
    • More than 18 hours in any week while school is in session; and
    • More than 40 hours in any week while school is not in session.
    • Before 7:00 a.m.
  • Minors who are 16 or 17 years old and who are required to attend school under Ohio law may not be employed:
    • Before 7:00 a.m., or, if the minor was not employed after 8:00 p.m. the night before, before 6:00 a.m.; and
    • After 11:00 p.m. on any night preceding a school day.
    • Additionally, minors must be provided with a 30-minute break when working more than five consecutive hours. Employers need not compensate minors for this time but must keep records of this time.
  • Be aware that where there is overlap between federal, state and/or local law, complying with the law that offers the greatest rights or benefits to the employee will generally apply.

Pay and Benefits

  • Employees are properly classified as exempt or non-exempt based on their specific job duties and compensation.
  • Review all pay practices, including minimum wage and overtime compensation, for compliance with the Fair Labor Standards Act and any state laws that are more favorable to employees.
  • Employee pay periods (weekly, bi-weekly, semi-monthly) are scheduled in accordance with state wage payment timing requirements.
  • Pay and incentive programs treat employees equitably, and decisions regarding promotions and merit raises are based on clear, objective criteria.
  • Independent contractor relationships are carefully reviewed to prevent misclassification.
  • Employee benefit plans, including medical and retirement, comply with all requirements under federal and state law, including new Health Care Reform notices and other requirements for group health plans.
  • Review all plan documents, including enrollment forms and employee communications, to ensure they are accurate, consistent, and in compliance with applicable law.
  • Summary plan descriptions and other benefit plan notices are distributed to employees as required under federal and state law.
  • All reporting and filing requirements related to medical and retirement benefits are satisfied.
  • Employees are provided required notices regarding continuation of health coverage under COBRA, and all obligations with respect to continuation coverage are fulfilled.
  • Review policies and procedures relating to paid vacation, holiday and sick leave, including compliance with FMLA or similar state laws that may apply to your company, on a regular basis, along with other benefits offered such as flex-time and telecommuting.
  • Information regarding benefits is clearly communicated to employees, and policies and procedures related to benefits are applied fairly and consistently.
  • Withhold appropriate payroll taxes and submit tax filings as required.
  • W-2s are provided to employees in a timely manner following the end of each calendar year.
  • Employee Policies and Procedures
  • All company policies and procedures comply with federal and state labor laws related to employee leave, equal employment opportunity, sexual harassment, worker safety and other requirements.
  • Every employee is provided with a handbook explaining the company’s policies and procedures related to standards of conduct, nondiscrimination, benefits and other terms and conditions of employment. Employees should also sign an acknowledgement of receipt and review of the handbook.
  • Labor law posters required to be displayed under federal and state law are posted where employees can easily see them.
  • Procedures are in place for maintaining employee personnel records and files as required by law.
  • Medical records and other confidential documents are kept in a separate file from the employee’s personnel file.
  • Employees receive necessary skills and regulatory training, including safety and sexual harassment.
  • Human resources policies and procedures apply equally to all employees and are applied fairly and consistently throughout the company.

Performance Reviews

  • Performance reviews are conducted for all employees on a regular basis.
  • Job expectations and responsibilities are clearly communicated to employees, including the conduct and results required and the performance standards by which they will be measured.
  • Systems for measuring performance are in place, based on specific job-related functions and criteria set forth in the employee’s job description.
  • Employee job descriptions are reviewed and updated at least annually.
  • Accurate documentation regarding performance is kept for each employee. Documentation must be direct, factual, and detail-oriented to support disciplinary or other personnel decisions.
  • Employee performance reviews are based upon specific, job-related criteria and feedback provided is honest, factual and complete.
  • Performance is compared against job descriptions and goals to offer ongoing feedback.
  • The review process and systems for measuring performance treat employees equitably.

Employee Discipline and Termination

  • All policies and procedures for handling employee disciplinary actions and investigations are clearly defined, written, and communicated to employees as appropriate.
  • All matters involving employee discipline warnings, investigations, and terminations are carefully and accurately documented, and related notices are reviewed on a regular basis.
  • Termination meetings are conducted to inform the employee of the termination, discuss the return of company property, deliver the final paycheck, and facilitate the employee’s departure. A summary of the meeting and any related information is prepared and placed in the employee’s personnel file.
  • Departing employees are provided with a written summary of accrued benefits and notices regarding post-termination benefits, including compensation for vacation and sick time, continuation of health coverage, severance pay and 401(k) plan information. Be sure to comply with any applicable federal or state requirements.
  • Policies are in place for collecting keys and other company property from the terminated employee and confirming that access to computer systems, email, and voicemail are deactivated.
  • Final paychecks are delivered at the time of termination or as otherwise required by state law.
  • Neutral references confirming a former employee’s position held and dates of employment are available upon request in accordance with company policy.
  • Review all discipline, investigation, and termination procedures for compliance with applicable federal and state laws and enforce them fairly and consistently.

PEOs and Compliance

You need to focus on what you know best – running your business. Staying on top of legislative changes and updates to employment law that might affect your business can be a full-time job all by itself. Let Sheakley’s Professional Employer Organization (PEO) professionals ensure that your company stays compliant.

With in-depth knowledge of compliance issues, Sheakley’s PEO team can guide you through the complicated world of ACA, OSHA, FMLA, ADA and other federal, state, and local laws and regulations. Unlike a human resources advisor or consultant, the co-employment relationship between Sheakley and client companies gives Sheakley skin in the game when it comes to keeping you compliant.

Explore the many other benefits of working with Sheakley

Learn more about Sheakley’s PEO team and contact us for your free consultation today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.


You may want to read

See all articles
X
X
X
X