Los Angeles • Orange • Riverside
San Diego and San Francisco Counties

HR Assesment - Compliance & Audit Process

Today's small and midsize California businesses are burdened with understanding and implementing the never ending number of new HR Regulations and Wage & Hour laws. According to the US Small Business Administration (SBA), “with tighter budgets and reduced staff, businesses may overlook one of their most potentially serious and costly issues – human recourse compliance.”

For many businesses, the HR “department” is one or perhaps two HR generalist that wear many hats and are responsible everyday for compensation and benefits, HR management, recruiting, terminations, legal issues, employee investigations, HRIS, payroll, training and much more. Their time for the independent research of new HR regulations often falls to a distant second in their priorities.

The purpose of an HR Assessment / Audit is to assist a business evaluate whether their internal HR practices and processes are adequate, legal and comply with all federal and California employment regulations. By identifying shortfalls within your HR practices, immediate corrective action will minimize potential lawsuits or regulatory violations.

eqHR Solutions skilled senior level HR staff collaborates with your staff to identify and implement an HR action plan, ensuring your business is complying with California and federal HR regulations. Our HR Generalists have a minimum of 10 years of senior level HR and payroll experience.

According to two recognized leaders, ADP and SHRM, the need for an HR Audit has never been greater. Statistics compiled by Jury Verdict Research show that employment lawsuits have risen 400% in the last 20 years, with the average compensatory award in federal employment cases now exceeding $490,000 (not including punitive damages or attorneys' fees).

In an ADP survey, “one of the survey's most notable findings was that the overall levels of discomfort for companies is HR and employment laws and regulations. 57% of small companies and 44% of mid-size companies are not extremely or very confident that they can keep up with these HR regulations.

Another indicator of concern was the fact that virtually all surveyed companies feel the need to consult with advisors regarding HR compliance issues. The survey found that more than 90% of companies rely on professional human resources advisors.

The eqHR Solutions HR Audit - Assessment Process

Depending on the size of your business, the time to complete an HR compliance assessment / audit is 4 to 6 hours. We review all pertinent documentation at your business with your representatives.

The foundation of our HR audit is to review multiple human resources categories by answering more than 100 HR compliance questions. We review our written HR compliance audit findings and recommendations with your management.

Employee Benefits

  • Company benefits - Participation / Costs
  • Executives Benefits?
  • Benefit Change Processing
  • ACA Tracking and Reporting

Employee Compensation

  • Structure – Exempt / nonexempt
  • DOL - Minimum Exempt Salaries
  • Cash / noncash Incentives
  • Bonus or Commission Plans
  • Performance / Merit Review Increases / Tracking
  • Special City Minimum Wage Requirements

HR Compliance

  • ADA Compliance
  • CA & Federal Required Posters
  • CA Family Leave
  • CA Gender Identity & Expression Policy
  • CA Paid Sick Leave
  • DFEH Anti-discrimination & Harassment Policy
  • Drug Testing
  • EEOC & State Discrimination Compliance
  • Employee Files
  • I-9 Verification
  • If Subject to Affirmative Action Regulations (EE0-1 reporting)

Employee Relations

  • Progressive Discipline Process
  • Employee Grievances - Complaints

FLSA (Fair Labor Standards Act)

  • Compliance - Wage & Hour Regulations

Employee Leaves of Absences

  • HR Compliance - Federal & CA Leave Regulations
  • Leave of Absence Tracking


  • Internal Controls - Updates and Changes
  • Local and Remote Employees
  • Management Reporting
  • Review process and auditing
  • Termination – Final Check Process
  • Time sheets or Time Clock
  • Vacation & Sick Balance Verification

HR Policies

  • Is Employee Handbook in Compliance
  • Review Policies not included in Handbook

Employee Recruiting

  • Background Investigations
  • Clearance / License Verification
  • Drug Testing
  • Evaluate New Hire Process for Discrimination
  • New Hire Required Forms
  • Posting - Compliant
  • Pre-employment Procedure

Employee Safety

  • OSHA Inspections
  • Workers' Compensation Claims Review
  • Written Safety Policy & Procedures

Employee Terminations

  • Authority to Terminate
  • Company Property
  • Exit Interviews
  • Management Termination Reports
  • Progressive Disciplinary Procedure
  • Termination Checklist / Policy

Employee Training

  • Formal or Informal Training Programs
  • Sexual Harassment Training
  • Types of Training – Job Specific - Improvement

Call us today to schedule your HR compliance / audit