HR Audits

While it is every business’s imperative to treat employees fairly and consistently, putting this into practice can be complicated. Because there is a mixture of federal, state and local laws as well as government agency oversight, meeting all HR requirements becomes difficult. 

Gerlach Employment Law provides employers with internal HR audits designed for small businesses as well as large companies. Hiring outside legal council to assist with human resources is a common practice. Depending on your size and goals, we can custom tailor an audit that is right for your business. Gregg has helped companies needing handbook updates, evaluation of compensation, hiring and firing processes, and many other complex HR policies.

How is an HR audit conducted?

A typical audit may involve phone conversations and the collection of information for review followed by an on-site visit to your facility.


Types of Audits


Incentives and Fringe Benefits

Wage and Hour Requirements

Record Keeping

Vulnerability to Union Organizing 

Pay Practices and Compensation

Employee Benefit Programs

Complaint procedures

Arbitration Policies and Procedures

Employee Handbooks

Personnel Policy Manuals

The Hiring Process

Termination and Appeals

Unemployment Compensation

Workers’ Compensation

Employee Morale

Communication Systems


HR Audit Recommendations

1. Mini audits every 6 months to a year to account for legislative changes.

2. Handbook audits at least once every 5 years.

3. Growth audit once employee count exceeds 50.

Which Laws Factor into HR Audits?

Not only do employment and labor laws change regularly, but how long-established laws are enforced can change as well. When it comes to evaluating complex HR issues, Attorney Gregg Gerlach brings expertise on Florida laws, government agency actions, and federal laws to each client case he receives.  

State & Local Laws:
  • Similar to EEOC Laws
Government Agency Action:
  • National Labor Relations Board (NLRB)
  • Equal Employment Opportunity Commission (EEOC)
    • Harassment Taskforce

    • Pregnancy Discrimination

    • Increased Scrutiny of Wellness Programs

  • Department of Labor (DOL)
    • New Overtime Regulations

    • Revised definition of spouse under the FMLA

    • Increased Fair Labor Standards Act (FLSA) litigation

    • Increased DOL attention to misclassification (employee/contractor).

    • Increased Family Medical Leave Act (FMLA) investigations and focus on systemic FMLA compliance issues.

    • Internal Revenue Service (IRS)

    • Office of Federal Contract Compliance Programs (OFCCP)



Federal Laws:
  • Fair Labor Standards Act (FLSA)
  • Family and Medical Leave Act (FMLA)
  • Title VII
  • Americans with Disabilities Act (ADA)
  • Age Discrimination in Employment Act (ADEA)
  • Pregnancy Discrimination Act (PDA)
  • Genetic Information Nondiscrimination Act (GINA)
  • Affordable Care Act (ACA)
  • Uniformed Services Employment and Reemployment Rights Act (USERRA)
  • Occupational Safety and Health Act (OSHA)
  • National Labor Relations Act (NLRA)
  • Health Insurance Portability and Accountability Act (HIPAA)
  • Immigration Reform and Control Act (IRCA)
  • Employee Retirement Income Security Act (ERISA
  • Consolidated Omnibus Budget Reconciliation Act (COBRA)
  • Employee Polygraph Protection Act (EPPA)
  • Consumer Credit Protection Act (CCPA)
  • Fair Credit Reporting Act (FCRA) 


Benefits of Having an Employment Lawyer on Retainer

  • Preserve productivity or profitability
  • Avoid lawsuits related to oversights
  • Avoid regulatory violations
  • Find areas where HR standard practices need to be created
  • Ensure compliance accounted for in processes and procedures
  • Reduce risk of fines, business interruptions or permanent shutdowns
  • Assess records and payroll
  • Expertise regarding employment practice liability coverage  insurance can and can’t cover
  • Evaluate recruiting, operational policies, retention, compensation, benefits, and performance management
  • Assess employee satisfaction
  • Analyze internal grievances filed, legal complaints, absenteeism
  • Manage HR liability risk

Common HR Issues

Some businesses encounter issues related to record keeping errors, such as missing personnel information, inaccurate time records, and I-9 mistakes. Other companies face legal issues related to policies and procedures, such as not accounting for state and federal protections, not providing adequate disability accommodations, inhibiting pregnancy leave,  or not properly enforcing attendance policies. One common problem addressed in employment law is classifying employees incorrectly.  Keeping up with legislation is an important part of protecting your interests. You are responsible for everything from leave policies to posting up-to-date federal and state labor and employment law posters.  

Frequently Asked Questions

Who benefits from an HR audit?

HR audits protect employees and management as well as overarching business goals.

What are the risks of not completing periodic HR audits?

From paying fines for EEOC violations, accusation of discrimination, and lawsuits to temporary or permanent close of business, and other liabilities.  

Do HR audits follow a standard procedure?

Often HR audits are tailored to the size and type of business. An employment attorney will also address any areas they immediately recognize as needing attention, or situations where the company has already identified problems. 

What are the most common types of HR audits?

Often audits fall under the categories such as compliance, best practices, operations, organizational needs. Employment lawyers often focus on legal compliance audits. 

What are common business mistakes that HR audits address?

Missing policies or procedure, not accounting for legislative changes, poor record-keeping, and poor hiring and firing processes.

Skip to content