Checklist for Audits

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

Training

• 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.