Employment Audit Scope

1. Employment Eligibility – Onboarding
      1.1. Ensure job application and interview processes comply with non-discrimination laws and do not include illegal or inappropriate questions
      1.2. Review background and credit check protocols for compliance with federal and state regulations
      1.3. Ensure compliance with equal employment opportunity laws
      1.4. Obtain and verify proper work authorization documentation (e.g., US: I-9)
      1.5. Ensure proper classification of workers as Employees or Independent Contractors

2. Required Labor Law and Employment Law Postings and Notices
      2.1. Ensure proper physical labor law postings
      2.2. Ensure proper onboarding documents and disclosures are provided
      2.3. Ensure the Employee Handbook is up to date and includes all necessary state supplements

3. Health & Safety
      3.1. Ensure compliance with OSHA standards
      3.2. Maintain a written Injury & Illness Prevention Program (IIPP)
      3.3. Provide all appropriate safety training and equipment
      3.4. Ensure proper reporting of workplace injuries and workers' compensation notices

4. Wage & Hour Compliance
      4.1. Review classification of Independent Contractors vs. Employees and Exempt vs. Non-exempt statuses to avoid misclassification risks
          4.1.1. Review job descriptions to ensure they align with the actual scope of duties performed
      4.2. Review timekeeping systems to ensure compliance with wage and hour laws
          4.2.1. Ensure compliance with meal and rest break requirements
          4.2.2. Ensure proper recording of overtime and double time
          4.2.3. Review other wage adjustments and considerations, including bonuses, shift differentials, and incentives
      4.3. Review wage payment processes for compliance with applicable laws
          4.3.1. Ensure wage statements meet legal requirements regarding format, information, and disclosures
          4.3.2. Ensure proper payroll deductions (FICA and state equivalents)
          4.3.3. Review bonus and incentive calculations
          4.3.4. Ensure accurate calculations of overtime and double time
          4.3.5. Ensure the timing of wage payments complies with state-specific requirements
          4.3.6. Review commission structures, earnings, and payment obligations
              4.3.6.1. Review post-termination commission considerations
      4.4. Review and administer employee benefits in accordance with legal requirements
          4.4.1. Ensure compliance with the Affordable Care Act (ACA) and healthcare coverage mandates
          4.4.2. Ensure proper COBRA notification and administration post-termination
          4.4.3. Review administration of PTO benefits (Bereavement, Sick, Vacation, and hybrid)

5. Workplace Environment
      5.1. Harassment Prevention
          5.1.1. Ensure anti-harassment policies are in place
          5.1.2. Ensure necessary training compliance for both regular employees and management
      5.2. Discrimination Risk Assessment
          5.2.1. Conduct disparate impact analysis to assess potential risks of indirect discrimination
          5.2.2. Review former employee records for discrimination risk exposure
      5.3. Disability Accommodations
          5.3.1. Ensure clear policies for receiving and responding to accommodation requests
          5.3.2. Ensure a proper interactive process for addressing accommodation needs
      5.4. Leave Policies
          5.4.1. Ensure compliance with FMLA and state equivalents
          5.4.2. Ensure compliance with organ donation leave policies
          5.4.3. Review military leave and military exigency policies for compliance
      5.5. Ensure compliance with age discrimination laws under the Age Discrimination in Employment Act (ADEA) and state equivalents
6. Offboarding
      6.1. Review termination decisions for risk of legal exposure
      6.2. Ensure severance agreements and settlements are compliant and provide adequate protection for the company