HR Compliance Checklist: Are You Legally Protected?

Employment law violations are among the most expensive surprises a business can face — EEOC complaints, wage audits, and wrongful termination suits can cost hundreds of thousands of dollars. Use this checklist to assess your exposure.

Hiring & Onboarding

✅ Form I-9 Compliance

• Complete Section 1 on or before the first day of work
• Complete Section 2 within 3 business days of hire date
• Accept only documents on the List of Acceptable Documents
• Store I-9s separately from personnel files
• Retain for 3 years from hire date OR 1 year after termination (whichever is later)
• Remote employees: use authorized representative or E-Verify

✅ Job Applications

• Remove questions about age, national origin, disability, religion, marital status
• "Ban the Box" laws prohibit criminal history questions on applications in many states
• Equal Employment Opportunity (EEO) statement required

✅ Offer Letters

• State that employment is at-will (where applicable)
• Do NOT guarantee employment duration unless you intend a contract
• Include start date, position, compensation, and supervisor

Wage & Hour Compliance (FLSA)

✅ Employee Classification

Misclassification is the #1 DOL audit target.

• Exempt vs. Non-Exempt: Exempt employees must meet both the salary test ($684/week minimum in 2024) AND a duties test (executive, administrative, professional, etc.)
• Independent Contractors: Multi-factor test — not just a signed agreement. Control over work, economic dependence, and permanency all matter.

✅ Overtime

• Non-exempt employees must be paid 1.5× regular rate for all hours over 40 in a workweek
• Cannot average hours across multiple weeks
• Must count all compensable time (pre/post shift work, mandatory meetings, on-call)

✅ Minimum Wage

• Federal minimum: $7.25/hour (many states and cities are higher)
• Always pay the higher of federal, state, or local minimum wage
• Tipped employees: minimum $2.13 federal, but must reach $7.25 with tips or employer makes up difference

✅ Pay Stub Requirements

• Most states require itemized pay stubs showing gross pay, deductions, and net pay
• Some states require electronic access or paper copy

Required Policies & Postings

✅ Federal Workplace Posters (Must Be Displayed)

• FLSA (Minimum Wage)
• FMLA
• EEO
• OSHA
• USERRA
• Employee Polygraph Protection Act
• NLRA (for most private employers)

Many states require additional postings. Failure to post can eliminate employer defenses in litigation.

✅ Employee Handbook Essentials

• At-will employment disclaimer
• Anti-harassment and anti-discrimination policy
• Complaint/reporting procedure
• FMLA policy (if 50+ employees)
• Social media policy
• Technology use policy
• Drug and alcohol policy
• Leave policies (PTO, sick, bereavement)
• Acknowledgment signature page

Leave Laws

✅ FMLA (50+ Employees)

• 12 weeks unpaid, job-protected leave for qualifying reasons
• Notice required within 5 business days of qualifying leave request
• Maintain health benefits during leave
• Reinstate to same or equivalent position

✅ State Leave Laws

Many states have MORE generous leave requirements:

• Paid family leave (CA, NY, NJ, WA, MA, CT, OR, CO, DE, MD, RI)
• Mandatory paid sick leave (most states now)
• Pregnancy disability leave
• Domestic violence leave

✅ ADA Accommodation

• Interactive process required when employee requests accommodation
• Engage in good-faith discussion about possible accommodations
• Document all accommodation discussions

Termination Best Practices

✅ Final Paycheck Laws

State laws vary dramatically:

• California: Same day for involuntary termination
• Texas: Within 6 calendar days
• New York: Next regular payday
• Always pay out accrued PTO if state law or policy requires

✅ COBRA Notification

• Send COBRA election notice within 44 days of qualifying event
• Applies to employers with 20+ employees on group health plan

✅ Documentation

• Keep performance reviews, written warnings, and disciplinary records
• Ensure documentation is consistent (same standards applied to all employees)
• Never document in a way that could suggest protected class motivation

Annual Compliance Reminders

• [ ] Update minimum wage for your state/city (often January 1)
• [ ] Distribute updated COBRA rights notices
• [ ] File EEO-1 Component 1 data (100+ employees)
• [ ] Renew workers' comp and EPL insurance
• [ ] Review and update employee handbook
• [ ] Conduct harassment prevention training (mandatory in CA, NY, CT, IL, ME, NY, DE)
• [ ] Audit I-9 forms for expired documents

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This checklist is a starting point, not legal advice. Employment law changes frequently and varies by jurisdiction. For a full audit of your HR compliance posture, contact our team.