HR Audit

Every business faces challenges in complying with various rules, laws, and regulations, in addition to general business and personnel challenges. The purpose of this questionnaire is to highlight the key areas of human resources activities that could pose risks to the business if not done or if improperly managed. Your responses will provide you with more information about what, why, and how a topic is important in your risk mitigation program.

Are you a federal or state government contractor?

Do you know the employment laws and regulations impacting an organization of your size (by number of employees)?

Do you intend to either hire more people or shrink your workforce this year?

Do you have unions subject to a collective-bargaining agreement?

Do you have a regular system for monitoring and auditing your human resources to ensure compliance with applicable state and federal regulations?

Have you had any employment practice claims in the last three years (including, but not limited to, NLRB, DOL, EEOC, FLSA, state agencies, mediations, arbitrations, administrative hearings, internal grievances, and attorney demands)?

Do you have employment practices liability insurance coverage?

Is your management personnel trained in human resources practices and compliance with company policies and the law?

Do you have a recruitment process that includes defining the job prior to advertising openings and training hiring managers on the process?

Are your job advertisements compliant with nondiscrimination, equal employment opportunity, and disability regulations?

Do your job descriptions help you comply with the Americans with Disabilities Act (ADA) by setting forth essential job functions and duties?

Do you use a structured interview checklist with legally-compliant interview questions?

Do you have candidates complete an employment application? If so, does it specify your state requirements for background checks, employment and educational verification, criminal records, driving records, credit checks, and job-related testing?

Do you conduct background checks or drug testing prior to making an offer of employment?

Are the tests and assessments you conduct job-related and validated based on actual job performance?

Do you have a procedure to inform applicants of their acceptance or rejection?

Do you use independent contractors/contingent workers? If so, do you have them sign a contract confirming that their independent business is compliant with all labor, immigration, and tax laws and that the business has liability insurance?

Do you make sure that you are fully prepared for onboarding new employees by preparing paperwork, people, policies and procedures, performance expectations, getting the workstation ready, assigning a work

Do you have an updated employee handbook compliant with federal and state rules for the areas where your company operates?

Does your employee handbook contain provisions for

Do you have an arbitration or mediation agreement for resolving employee claims signed by employees and maintained separately from your employee handbook?

Do you have a standard process for measuring and reviewing performance with employees?

Does your employee handbook contain language that states that the company will not tolerate any form of harassment, discrimination, or other illegal and unethical conduct?

Does your employee handbook contain an Equal Employment Opportunity policy statement, and is that also included in your employment application and posted in prominent employee areas of your company?

Do you have a company ethics policy that includes the process for reporting illegal or unethical activity?

Do you have a standard process for employees to communicate issues of concern (open door policy)?

Do you have a documented process, designated investigators, and management training for conducting an investigation of sexual harassment, discrimination, or other complaints?

Does your employee handbook outline standards of conduct and progressive disciplinary measures?

Do you have an established process and managers trained to ensure that company standards are being followed prior to disciplining or terminating an employee?

Does your process include a second level of review prior to taking significant disciplinary action?

In the case of employment terminations, do you have a process in place to manage compliance with final paycheck regulations, required notifications for termination reasons, unemployment and benefits continuation rights, or any other notification, collection of company equipment, and exit interview process?

Do you have clearly defined employee classifications (i.e., full-time, part-time, temporary, short-term, exempt, nonexempt, regular employee, independent contractor)?

Have you ensured that you are paying your exempt and nonexempt employees in compliance with federal and state wage and hour laws?

Do you have systems and communications in place to accurately track time worked, including meal and rest periods, as required under federal and state laws, for purposes of overtime and regulatory compliance?

Do you have a process in place to approve time worked or to make scheduled work time changes (such as requests for time off, make-up time requests or schedule changes)?

Do you have a written policy for absenteeism and punctuality?

Do you have clearly defined paid time off policies (vacation, sick, holiday, other)?

Does your sales compensation program clearly define when a commission is

Do you comply with regulatory rules for the employment of minors (work permits, hours of work)?

If you offer group health benefits programs to your employees, do you have Summary Plan Descriptions for the required plans?

Are your benefit plans clearly communicated to eligible employees?

Do your plans that are subject to IRS Section 125 (Cafeteria Plans) or Employee Retirement Income Security Act (ERISA) meet the design, notification, nondiscrimination, and record keeping requirements of those plans?

Do your benefit and wellness plans comply with the portability and privacy requirements of the Health Insurance Portability and Accountability Act (HIPAA)?

Is your process and communications for participants eligible for health care continuation through the Consolidated Omnibus Budget Reconciliation Act (COBRA) defined?

Are you working with your broker to ensure that your plans comply with the plan design, notification, and recordkeeping requirements under the Affordable Care Act?

Do your retirement plans (pension, 401(k), 403(b)) comply with all ERISA requirements?

Are all of your discretionary bonus and benefits plans defined and communicated?

If you have a severance pay plan, does it comply with ERISA requirements?

Does your severance pay plan require employees to sign a Release of Claims Agreement as a condition to receiving any severance package?

Do you have a policy about managing various leaves of absence, pregnancy disability, military leaves or other types of special time off needs?

Do you know what types of personnel records to maintain in your files?

Do you know how long to maintain your personnel records?

Are your personnel files (cloud or paper) secure, with limited access to those on a

Do you separate any of your personnel records?

Do you know which postings you need to have on display in common areas for employees and if the posters need to be in another language besides English?

Do you know what required notices you need to provide to your employees and in what languages?

Do you know what notifications you need to file with the appropriate regulatory authorities?

Have you complied with all OSHA and notification requirements related to your industry?

Do you have an injury prevention program (IIP) that is compliant with the safety regulations in your company locations?

Do you have a designated safety officer that manages periodic safety inspections/audits and corrections?

Do you have a safety training program?

Do you have an emergency response and communications plan?

Do you have your process and communications in place for employees and managers to immediately report all occupational injuries to your human resources contact and/or workers' compensation carrier?

Do you maintain your annual OSHA log to record all employee work-related illnesses and injuries and comply with all OSHA record keeping and posting requirements?

Do you have a hazardous substance communication and disclosure policy that is communicated within your organization?

Do you have a process for managing the employee communications and administration of workers' compensation leaves of absence, including your return-to-work protocols?

Do you have a process for reviewing your losses and experience ratings with your workers' compensation agent or carrier?

Have you evaluated your workplace for safety issues, including proper ergonomics, office equipment, VDT exposure, or other potential repetitive motion issues?

Do you have a policy, procedures, and communications plan for managing potential violence in the workplace issues?

Do you have employee wellness programs in place that are compliant with all applicable health care and privacy regulations and designed to improve health outcomes?