The United States Department of Labor has entered 2010 with a renewed focus on auditing your HR practices.  The Obama Administration has asked the DOL to search out misclassification of employees as independent contractors.  With over 100 new investigators on board, the agency anticipates recovering at least $7 billion in new tax revenue by 2020.

Because federal agencies like the Department of Labor are increasing their audits and investigations, it is a good idea to conduct an HR self-audit to insure you are prepared to meet the regulators' compliance requirements.

While we touched on the independent contractor issue in the last issue, DOL auditors will also look more broadly at an employer's HR practices.  Here are a few of the more common areas of inquiry:

• Is there open communication with the HR department on wage-related matters?
• Are personnel files current?
• Do job descriptions exist and are they up to date?
• Do job applications comply with rules protecting private personal information?
• Does the company have to comply with E-Verify?
• Are workplace policies in place and communicated to all employees?
• Is there an employee handbook in place and is it specific to your workplace?
• Are employees correctly designated as exempt or nonexempt?
• Is there a process for employees to file complaints?
• Are required labor posters displayed in a conspicuous place?

This list covers bedrock areas of HR management, not the latest trend or the most recent legal twist.  Often, these are the overlooked tasks because they appear to lack urgency.

Proactive management is like an ounce of prevention.  Working through a self-audit on a regular basis may not be exciting, but it will promote the type of compliance that the DOL, should it come knocking, will expect you to have in place.