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5 Key Compliance Items HR Can’t Afford to Ignore

5 Key Compliance Items HR Can’t Afford to Ignore

Staying ahead of compliance changes can feel like a race against time for anyone in HR. Policies change and reporting requirements expand, making your inbox full of “urgent” updates from regulators. The good news? Being proactive can save you from “putting out fires” and potential fines. 

Let’s jump right into the specifics. Here are five compliance priorities that HR teams need to focus on today. 

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Here's What You'll Learn

  • Key regulatory changes that HR teams need to track heading into the new year.
  • Steps and strategies to reduce risk and stay ahead of audits.
  • How compliance partners can help support and simplify your company’s compliance management.

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1. Increased I-9 Audits & Work Authorization Changes

There is no slowdown on immigration enforcement making compliance all the more important. With increased I-9 audits, there is no time like the present to conduct a self-audit and make sure that all your I-9 records are accurate. 

Key steps to take include: 

  • Run E-Verify Status Change Reports regularly. This helps highlight any employees whose work authorization status may have changed. Learn more in our E-Verify guidance blog. 
  • Review I-9 forms for accuracy. Even minor errors, like missing signatures or incorrect dates, can be considered compliance issues and also can trigger an audit. 
  • Document your review process. Keeping thorough records of your audits shows auditors that you’re proactive and making good faith efforts towards compliance.  
  • Provide training. Make sure anyone involved in your I-9 and E-Verify processes is fully trained. Provide refresher training on a regular basis.  

As an example, if you discovered during a self-audit that a handful of employees’ work authorization documents were expiring soon, that allows you to act promptly. By addressing the issue proactively, you help avoid audit penalties, not to mention last minute scrambling and stress. 

HR Pro Tip: Set up recurring quarterly reminders for I-9 reviews as part of your compliance plan. That simple action will help you stay on top of your I-9 process and overall compliance. This also will help highlight issues in advance so you can take corrective action and implement other initiatives such as I-9 refresher training for key players, etc.  

OutSolve’s I-9 management solutions help onboarding teams maintain compliance with minimal administrative burden. 

2. New Pay Transparency & Pay Data Reporting

Pay transparency is quickly expanding across the U.S. Delaware is the latest state that will implement a new pay transparency law beginning in 2027, and New Jersey is proposing updates to its current law. California continues to strengthen pay data reporting requirements and has implemented updates to take effect over the next two years.  

What does this mean for HR? Here are some steps to take now: 

  • Review job postings and internal pay bands. Make sure salary ranges are clearly communicated where required, and follow any pay transparency law requirements the states that you conduct business. 
  • Update reporting processes. If you operate in multiple states, ensure you’re capturing and reporting on the data required for any state pay reporting requirements. 
  • Check for consistency across departments. Differences in pay data can trigger regulatory scrutiny. 

Here’s a possible scenario. Let’s say that a mid-sized tech company in California conducts a voluntary pay data review and discovers minor discrepancies between advertised pay ranges and internal pay bands. Correcting these proactively can help avoid potential legal exposure and increase employee trust. 

OutSolve’s compensation solutions create defensible processes and reporting templates that save HR teams time. 

3. Candidate Dispositioning Audits

You’ve probably seen this scenario before…..dozens of candidates, hundreds of applications, and a growing list in your Applicant Tracking System. The question is simple: are you maintaining accurate records of why candidates were or were not hired? 

Here are some helpful action steps: 

  • Track hiring decisions consistently. Notes in your ATS should clearly explain why a candidate was rejected. Ambiguity invites scrutiny, not to mention frustration from candidates.  
  • Keep documentation for  a minimum of 1 to 3 years. This is critical if questions arise about potential discrimination claims. Record retention rules vary depending upon your industry, state you do business, or federal contractor status. 
  • Implement a checklist for recruiters. A simple checklist and workflow help keep everyone on the same page as far as documenting decisions correctly. 

As an example, a company received an inquiry from a former candidate questioning their hiring decision. Because HR had maintained consistent and detailed records, the team provided a clear explanation and avoided escalation.

4. Labor Law Posters

The importance of labor law posters is often overlooked, but don’t forget that they’re still a compliance requirement. Outdated labor law posters may seem minor, but they can carry compliance risk. Many states implement new laws in the beginning of the year which correlate to the need for an updated poster.  

Checklist for HR teams: 

  • Check federal and state requirements separately. Some states update posters mid-year. 
  • Confirm visibility and accessibility. Posters should be in employee accessible locations, including digital versions for remote teams. 
  • Document your review process. Record dates and versions to show proof of compliance. 

One example is that a retail chain found that one location had missed a state posting update. Updating posters and documenting the process prevented fines and demonstrated compliance readiness. 

OutSolve’s labor law poster subscription service can automatically track updates and ship you new posters when a mandatory change occurs to ensure you’re always current.

5. Salary Benchmarking

Regular reviews of pay structures through salary benchmarking help with pay equity, mitigate complaints, and support pay transparency laws. 

Here’s a simple action plan: 

  • Conduct annual salary reviews. Compare internal equity and external market rates. 
  • Document methodology. Note sources, criteria, and adjustments made. 
  • Address discrepancies proactively. Fixing pay gaps before they escalate helps protect your company and improves morale. 

For example, let’s say that during a benchmarking review, a company noticed certain roles in one department that were paid below market rate. Adjusting salaries proactively avoided scrutiny, pay equity complaints, and even improved retention. 

OutSolve’s salary benchmarking services help streamline this process, saving HR teams time and providing defensible data for audits or reporting. 

Recommended HR Action Plan 

To sum it all up, here’s how to tackle these priorities without getting overwhelmed: 

  1. Conduct a compliance gap audit. Review I-9s, salary bands, candidate dispositioning, and poster updates. 
  2. Use OutSolve’s HR compliance checklist. Keep tasks organized and deadlines visible across your team. 
  3. Assign internal owners. Clarify who tracks what, set deadlines, and report updates. 
  4. Consider outsourcing “high-risk” areas. Expert support in I-9 management, pay transparency, and benchmarking saves time, reduces errors, and minimizes risk. 
  5. Train and retrain your teams. Ensure HR, recruitment, payroll, leadership, and any other key players understand the rules and processes. 

HR Pro Tip: It may sound simple, but break down the steps of each task. Tracking smaller, achievable milestones keeps compliance manageable and less stressful. 

What these Items Mean for Your Organization 

Regulatory requirements continue to change, so it’s easy to fall behind. The cost of being reactive can be significant. By combining proactive planning, effective data management, and building strategic partnerships with HR consultants like OutSolve, HR teams can reduce risk while maintaining business efficiency and a positive employee experience.  

Your best defense is a proactive approach to HR compliance.  

OutSolve

Founded in 1998, OutSolve has evolved into a premier compliance-driven HR advisory firm, leveraging deep expertise to simplify complex regulatory landscapes for businesses of all sizes. With a comprehensive suite of solutions encompassing HR compliance, workforce analytics, and risk mitigation consulting, OutSolve empowers organizations to navigate the intricate world of employment regulations with confidence.

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