Whether your company has five or 500 employees, it’s important to conduct a regular review of your HR and benefits-related notices, records and procedures to ensure compliance with the law and prevent potential liabilities and employee lawsuits. The checklist below features key steps for evaluating your management practices to help keep your company HR compliant.
Part I – Employee Pay and Benefits
Employee Pay
- Employees are properly classified as exempt or non-exempt based on their specific job duties and compensation. (Note: Job titles alone do not determine an employee’s exempt or non-exempt status.)
- 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.
Benefits
- Employee benefit plans (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 (SPDs) 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 or state “mini-COBRA” laws (if your company is subject to those requirements), 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 flextime and telecommuting.
- Information regarding benefits is clearly communicated to employees, and policies and procedures related to benefits are applied fairly and consistently.
Please note that the above list is not all-inclusive. If an HR assessment reveals violations that are not subsequently corrected, your company could be at risk for costly fines or lawsuits. If you have any questions regarding your obligations under the law or about best practices when it comes to HR compliance, please consult with a knowledgeable employment law attorney for individualized guidance.
Source: HR 360, Inc.
