June 29, 2025
Whether you’ve already established a dedicated HR team or not, compliance matters. Overlooked steps can cost a company thousands in fines or a lawsuit that drags your leadership team into a vortex of paperwork and depositions. Luckily, with the right team that sort of trouble is easy to avoid.
Whether you’re running a startup, managing a multi-state enterprise, or just trying to keep your ducks in a row, we’ve put together a practical, sanity-saving HR compliance checklist to help you keep your business on the right side of the law. Plus, we’ll show you how a trusted third-party BPO can shoulder the burden for you, so you never need to wonder if company regulations are up-to-date.
HR compliance isn’t just one thing. You’ll find it in hiring, onboarding, payroll, benefits, and workplace policies. It can be overwhelming when you consider regular changes to state, federal, and local laws. It takes an acute attention to detail, and a trained eye to manage and maintain everything for a team of employees.
1. Employee Classification
Do your team members qualify as employees, independent contractors, exempt, or non-exempt? It might be the sort of question that wakes you up at 2am during tax season, but it matters all year round.
Checklist Questions:
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Have you conducted a classification audit in the last 12 months?
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Are your exempt employees truly exempt with proper criteria?
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Are contractors documented with signed agreements?
BPO Bonus: Our third-party HR team can perform classification audits and keep you aligned with ever-changing regulations. You’ll never be left to trust Google with the question “what counts as an independent contractor”.
2. Wage & Hour Compliance
It’s not just about signing a paycheck. Wage and hour disputes are one of the top sources of HR-related litigation.
Checklist Questions:
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Are you paying attention to changes in wage laws?
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Are overtime hours calculated and compensated properly?
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Is your payroll system up to date with current tax rates?
BPO Bonus: Your GLC dedicated HR team can handle payroll to assure that there is never a misstep. Our teams ensure that employees are paid fairly, on time, and within legal guidelines.
3. I-9 & Hiring Compliance
Every new hire comes with a stack of documentation. Missed signatures and forgotten deadlines matter.
Checklist Questions:
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Are all I-9 forms completed within 3 business days of hire?
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Do you securely store I-9s separately from other personnel files?
BPO Bonus: Our experts have streamlined document collection, storage, and management. So, even if your business is audited, all the documents are already in place.
4. Leave Management
Navigating employee leave can be a puzzle even for tenured HR teams. Is it protected? Is it paid? What about intermittent leave? It’s a full-time job in itself.
Checklist Questions:
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Are you in compliance with all legal entities?
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Do you have a consistent, documented PTO policy?
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Are managers trained to handle leave requests?
BPO Bonus: Policies should be clear, consistent, and legally sound. When it becomes more complicated than it sounds, an expert can help.
5. Benefits Administration
Health insurance, 401(k)s, open enrollment… Administering benefits requires precision and coordination.
Checklist Questions:
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Are benefit offerings and notices communicated clearly?
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Do you have systems in place for compliance?
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Are you meeting reporting requirements?
BPO Bonus: All GLC teams are managed under our own HR umbrella. So, you are never left wondering who is covered and for what benefits. There is never a discrepancy between your in-house employees’ benefits and that of your GLC team.
6. Policy Updates & Employee Handbook
Your handbook is a living document that must reflect current laws, company practices, and company culture.
Checklist Questions:
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Has your handbook been updated in the past year?
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Are policies reviewed for local and state-specific regulations?
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Are employees required to acknowledge updates?
BPO Bonus: We make an effort to align our on-site personnel with your business goals and company culture. While we manage our own policies, our partners’ specific practices matter to us.
7. Recordkeeping & Documentation
Good documentation is the unsung hero of HR compliance. Think of it as the breadcrumbs that lead you out of trouble when disputes arise.
Checklist Questions:
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Are personnel files stored securely?
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Is disciplinary action documented consistently?
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Do you have a record retention schedule?
BPO Bonus: Records management and document production are two advantageous services we provide. Our HR team not only collaborates on these services, but by using them in tandem you ensure your business is well protected, organized, and consistently operating with precision.
If this checklist feels overwhelming, you’re not alone. Compliance is complex and it doesn’t take a major oversight to cause a major headache.
Working in partnership with our experts can bring relief to all areas of your business. Our services are designed to bring structure to the chaos. Our HR leaders are trained to catch the things you didn’t know to look for, and let your team focus on their core responsibilities without overseeing all the complexities of managing people.
Ultimately, compliance should provide peace of mind. It allows you to know that the people in your office are treated fairly, operating safely, and that their wellbeing is coming first.
Our HR leaders don’t just care about laws and regulations. They care about the people they serve, and want to make sure our business is supporting them as surely as they support our GLC partners.
So, do you want to know if your HR practices are compliant? Are you ready to find the right team with its own dedicated HR practices? Let's talk. Our comprehensive audits leave businesses with the chance to choose their next steps with precision and confidence.