HR Compliance Audit

Introduction to HR Compliance Audit
This document aims to define the scope and elements of an HR compliance using all relevant records and HR systems, when available, we will identify areas wherein specific action needs to be taken in order to elevate the current HR compliance status to an acceptable level.

Definition of HR Auditing
The Human Resources Audit is a process of examining current policies, documentation, systems, and practices with respect to an organization’s HR function. The purpose of the audit is to reveal the strength and weaknesses in the HR system, and all issues, which need resolution. The audit is focused on analyzing and improving HR processes and recordkeeping in the organization, as well as to ensure compliance with ever-changing rules and regulations.

HR Audit Checklist

  • Employee File Audit:
    • Resume or job application
    • I9 verifications (including ID documents)
    • Offer Letter
    • Compliant FLSA status (wages, exemption, and other applicable regulations)
    • WTPA form, if applicable
    • Harassment training, if applicable
    • Overtime reporting
    • Worker’s Compensation classifications
    • Non-compete and NDA, if applicable
  • Process Audit:
    • Hiring process
      • Job descriptions
      • Interview process and script
      • On-boarding process
    • Termination process
      • Termination call/meeting
      • Separation info email/doc
      • Off-boarding process
      • Separation agreements and payments
      • Unemployment reports for the DOL
    • Performance Review
      • Documentation of write-ups and disciplinary actions
      • Commissions and bonuses allocation
    • PTO reporting process
  • Policies and Forms Audit:
    • Employee handbook
    • Travel and Expense policy