Essential HR Compliance Checklist for Small Businesses
Ensuring HR compliance is vital for small businesses. It protects your company from legal risks, promotes a positive workplace, and supports growth. Here’s a quick HR compliance checklist that covers key areas every small business should review. Use this as a guide to evaluate your current HR practices and identify any improvements.
1. Employee Classification
- Confirm employees are correctly classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA).
- Check that independent contractors are accurately classified to avoid penalties.
2. Wage and Hour Compliance
- Adhere to federal and state minimum wage laws.
- Ensure overtime pay is correctly calculated for eligible employees.
- Maintain accurate records of hours worked and wages paid.
3. Hiring Practices
- Ensure job applications and interview processes are compliant with Equal Employment Opportunity (EEO) laws.
- Conduct lawful pre-employment background checks and drug tests.
4. Workplace Safety
- Provide a workplace safety manual in accordance with OSHA regulations.
- Conduct required safety training and maintain records of all sessions.
5. Employee Handbooks
- Keep your employee handbook up-to-date with current laws and company policies.
- Include anti-discrimination, harassment, and company benefit policies.
6. Personnel Files
- Store confidential employee information in secure files.
- Maintain separate files for medical records and I-9 forms, as legally required.
7. Anti-Harassment Policies
- Communicate a zero-tolerance harassment policy.
- Ensure employees receive harassment prevention training.
8. Termination Procedures
- Review termination procedures for compliance with federal and state laws.
- Provide final paychecks and benefits information in a timely manner.
9. Benefits Administration
- Administer employee benefits, including health and retirement plans, correctly.
- Ensure compliance with COBRA for terminated employees.
10. Payroll and Tax Compliance
- Withhold the correct amounts for federal, state, and local taxes.
- File employment tax forms and make payments on time.
Does Your Business Meet All the Requirements?
If you’re unsure about your compliance status, Aurora HR is here to help! With our support, you can ensure your HR practices are up-to-date and legally compliant, minimizing risks and helping you focus on what you do best—growing your business.
Get Your FREE 30-Minute HR Consultation Today!
Take the next step in HR compliance with our no-cost, no-obligation consultation. Let us show you how Aurora HR can streamline your HR processes.
