Question 1

What is an employment law audit?

Accepted Answer

An employment law audit is a systematic review of an employer's HR practices, policies, and documentation to identify compliance gaps and legal risks. A comprehensive audit covers wage and hour practices, worker classification, leave policies, hiring and termination procedures, employment agreements, I-9 compliance, and HR documentation. The audit results in a written report identifying issues and a prioritized remediation plan.

Question 2

How often should employers conduct an HR compliance audit?

Accepted Answer

Employers should conduct a comprehensive employment law audit at least every two to three years, and more frequently when there are significant changes — a major hiring surge, a new state or federal law, a merger or acquisition, or a significant change in workforce composition. An audit is also advisable after an EEOC charge, a wage claim, or a workplace investigation that reveals systemic issues.

Question 3

What are the most common employment law compliance failures?

Accepted Answer

The most common compliance failures we find in audits include: misclassification of employees as exempt from overtime; misclassification of workers as independent contractors; failure to provide required meal and rest breaks; improper deductions from exempt employee salaries; inadequate I-9 documentation; failure to provide required leave notices; and inadequate documentation of termination decisions. Many of these failures are easily corrected once identified.

Question 4

What is the difference between an exempt and non-exempt employee?

Accepted Answer

Under the FLSA, non-exempt employees must be paid overtime at 1.5 times their regular rate for hours worked over 40 in a workweek. Exempt employees — those who meet the salary basis test and qualify for an executive, administrative, professional, or other exemption — are not entitled to overtime. Misclassifying non-exempt employees as exempt is one of the most common and costly wage and hour violations.

Question 5

What are the risks of misclassifying workers as independent contractors?

Accepted Answer

Misclassifying employees as independent contractors can result in liability for unpaid wages and overtime, back taxes and penalties, workers' compensation and unemployment insurance liability, and class action lawsuits. The IRS, Department of Labor, and Utah Labor Commission all have their own tests for worker classification, and the standards are not identical. We advise employers on proper classification under all applicable standards.

Question 6

What leave laws apply to Utah employers?

Accepted Answer

Utah employers are subject to multiple overlapping leave laws. The FMLA requires employers with 50 or more employees to provide up to 12 weeks of unpaid, job-protected leave for qualifying family and medical reasons. The ADA requires reasonable accommodation for employees with disabilities, which may include leave. The Utah Antidiscrimination Act provides additional protections. Employers must also comply with pregnancy accommodation requirements under the Pregnant Workers Fairness Act.

Question 7

What I-9 violations can result in penalties?

Accepted Answer

I-9 violations include failure to complete I-9 forms for all new hires, failure to verify documents within the required timeframe, accepting documents that do not appear genuine, failure to re-verify work authorization for employees with temporary authorization, and failure to retain I-9 forms for the required period. Civil penalties for I-9 violations range from hundreds to thousands of dollars per violation, and can be substantial for employers with large workforces.

Question 8

How does an employment law audit protect against litigation?

Accepted Answer

An employment law audit identifies compliance gaps before they result in EEOC charges, wage claims, or lawsuits. By correcting violations proactively, employers reduce their litigation exposure and demonstrate good faith compliance efforts. In the event of litigation, documented compliance efforts and a history of proactive auditing can support the employer's defense and reduce potential damages.

HR Compliance & Audit Lawyer Utah

Utah HR Compliance Attorneys

HR Compliance Services

Employment Law Audits

Wage & Hour Compliance

Worker Classification

Leave Law Compliance

Hiring & Termination Practices

I-9 & Immigration Compliance

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