business of Medicine


Employment Practices Toolkit

August 30, 2019

Checklist for Audits

What should you be auditing?

Hiring Issues

  • Review employment application form
  • Review personnel files, medical files and I-9 forms (all maintained separately) and process
  • Audit work visas and immigration issues
  • Interviewing and hiring process
  • Background check process and forms
  • Offer letter form
  • Review independent contractor agreement, if applicable


Executive Contracts and Compensation Issues

  • Employment contracts
  • Bonuses/incentive pay policies/plans
  • Restrictive covenant and confidentiality agreements


Other Forms/Policies and Procedures

  • Employee handbook
  • Arbitration agreement
  • Telecommuting/teleworking policy and agreement
  • Job descriptions
  • Personnel change notice forms
  • FMLA policy and forms (when the Company reaches 50 employees)
  • Substance abuse testing (if desired)


Other Items To Audit

  • Ensure proper posters are on bulletin boards
  • Compliance with applicable record keeping requirements
  • Wage-hour/wage-payment issues (Exempt vs. non-exempt status)
  • Working conditions — OSHA issues (ventilation, temperature, air quality)
  • Workers’ compensation cost containment issues (ergonomic keyboards, computer screens, carpel tunnel issues)
  • Threatened/pending litigation and administrative agency complaints



  • EEO/sexual harassment training, legally required in some states


Employee Counseling and Discipline

  • Performance evaluation form
  • Employee counseling form (verbal and written warnings, discharge)


Termination Issues 

  • Severance/separation pay and the use of separation agreements with general releases
  • Review exit interview form
  • Letter notifying employee of termination and COBRA forms
  • Neutral reference policy and procedures

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Article created by Jackson Lewis and republished here with permission.


The information provided in this resource does not constitute legal, medical or any other professional advice, nor does it establish a standard of care. This resource has been created as an aid to you in your practice. The ultimate decision on how to use the information provided rests solely with you, the PolicyOwner.