Compliance Audit
Definition
A review process that checks whether a company meets all legal and regulatory HR requirements.
What is a Compliance Audit?
A compliance audit involves a systematic review of an organization’s HR policies, procedures, and practices to confirm alignment with federal, state, and local employment laws. Audits can cover areas such as payroll, benefits, hiring, leave, documentation, and workplace safety.
Why is a Compliance Audit Important for Employers?
Staying on top of HR compliance helps protect your business and supports a stronger workplace culture. Regular audits can:
- Identify and address potential regulatory gaps
- Minimize the risk of government audits or claims
- Reinforce employee trust through transparent practices
- Support future organizational growth or restructuring
FAQs
How often should I conduct a compliance audit?
Ideally once per year or when new employment laws are enacted.
What happens if we fail a compliance audit?
ExtensisHR can help create a remediation plan and support implementation to bring you into compliance.
Are audits confidential?
Yes. All audits conducted by ExtensisHR are confidential and for internal improvement only.
How ExtensisHR Can Help
We conduct thorough HR compliance audits and ongoing support for clients. Our services include:
- Reviewing I-9s, personnel files, and pay practices
- Assessing leave policies (FMLA, state-specific laws)
- Updating required postings and employee handbooks
- Developing corrective action plans with compliance timelines