Compliance isn’t just about avoiding fines—it’s about creating a workplace that operates smoothly, transparently, and legally. Starting the year with a compliance review helps you address any gaps before they become costly mistakes.

Key Policies to Review:

• Employee Classification and Wage Practices:

  • Misclassifying employees or incorrectly calculating overtime can result in hefty penalties. Review your payroll processes to ensure they comply with the Fair Labor Standards Act (FLSA).

• Anti-Discrimination Policies:

  • Ensure your policies clearly outline protections against discrimination and harassment in line with EEOC guidelines.

  • Offer manager training to handle complaints effectively and ensure employees know how to report issues.

• Employment Verification Policies:

  • Ensure you’re following compliant I-9 processes, including the new hire completing Section 1 on the first day of paid employment and presenting acceptable documents proving identity and employment authorization no later than the third business day following the start of employment.

  • Check your state’s requirements on E-verify use. While it’s optional most places, there are some states and industries which require new hires are ran through E-verify.

• Leave Policies:

  • Review your leave policies to ensure compliance with federal laws like the Family and Medical Leave Act (FMLA). State and local regulations may have additional requirements to consider.

• Workplace Safety:

  • If your business is required to maintain OSHA logs, start preparing Form 300A to post in February.

  • Conduct a safety audit to ensure you’re meeting all workplace safety standards.

Steps for a Smoother Year:

• Conduct an HR audit to identify potential compliance risks.

• Update your employee handbook to reflect any policy changes.

• Stay informed about changes to state and federal employment laws.

Starting the year with a compliance check can save you headaches later on. If compliance feels overwhelming, AZ HR Hub can guide you through the process. Schedule a free consultation today to protect your business and ensure your workforce has the support they need.