Question 1

What is HR compliance?

Accepted Answer

HR compliance means adhering to all employment laws, regulations, and internal policies that govern the employer-employee relationship. It covers areas including hiring practices, wage and hour rules, workplace safety, benefits administration, and data privacy.

Question 2

What are the most common HR compliance mistakes?

Accepted Answer

The most frequent mistakes include misclassifying employees as contractors, failing to update employee handbooks, missing required workplace postings, inadequate I-9 documentation, and non-compliant overtime calculations. This checklist covers all these areas.

Question 3

How often should you review your HR compliance checklist?

Accepted Answer

Review your compliance checklist at least annually and immediately following any change in employment law, company policy, or business structure. Appoint a compliance owner (HR Manager or legal counsel) to monitor regulatory updates.

Question 4

What is the difference between exempt and non-exempt employees?

Accepted Answer

Non-exempt employees are entitled to overtime pay (typically 1.5x) for hours worked beyond 40 per week under the Fair Labor Standards Act. Exempt employees meet specific salary and duties tests and are not entitled to overtime. Misclassification is one of the most costly HR compliance errors.

Question 5

Are small businesses required to comply with HR laws?

Accepted Answer

Yes — most employment laws apply from the first hire. Some laws, like the Family and Medical Leave Act (FMLA), apply at 50+ employees, but anti-discrimination, minimum wage, and I-9 requirements apply universally. Ignorance of the law is not a defence.

Question 6

What records must employers keep and for how long?

Accepted Answer

I-9 forms: 3 years from hire or 1 year after termination. Payroll records: 3 years. OSHA injury logs: 5 years. Application and hiring records: 1 year. Benefits records: 6 years. When in doubt, retain longer.

Question 7

What workplace postings are legally required?

Accepted Answer

Federal law requires postings on minimum wage, FMLA, OSHA safety, EEO, and employee polygraph protection. Many states have additional requirements. Postings must be displayed where all employees can see them, including remote-accessible digital versions.

Question 8

How do you prepare for an HR compliance audit?

Accepted Answer

Start with this checklist, gather and organise all employment records, verify all required postings are current, review your employee handbook against current law, and document all HR processes. Consider an annual self-audit or engage an employment attorney for a formal review.

HR Compliance Checklist

Watch: How to Use This Template

Hiring & Onboarding Compliance

Workplace Safety & Health

Wage & Hour Compliance

Benefits & Leave Management

Additional Notes & Action Items

Frequently Asked Questions