1) Exempt vs. non-exempt: Are your salary thresholds current?
Why it matters: A 2024 DOL rule to raise thresholds was vacated by a federal court, so the federal floor is $684/week ($35,568/yr) again. But several states require more (e.g., CA, CO, WA, NY in 2025).
5-minute test: Pull a report of all “exempt” employees under $75k. Flag anyone below your state threshold.
Quick fix: Reclassify or adjust pay; document duties + salary basis. (If multi-state, default to the highest applicable standard where the work is performed.)
2) Duties tests: titles don’t carry the exemption
Why it matters: Executive/Administrative/Professional (EAP) exemptions require salary basis + duties, not just a fancy title.
5-minute test: Pick three “managers.” Do they supervise 2+ FTEs (exec)? Make independent decisions on significant matters (admin)? Hold advanced-knowledge roles (professional)?
Quick fix: If not, reclassify to non-exempt or redesign the job and update the description.
3) Timekeeping & rounding: neutral or non-compliant?
Why it matters: Rounding to the nearest 15 minutes is allowed only if it nets out fairly and you count all hours worked.
5-minute test: Spot-check a week of punches. If your system consistently rounds down, that’s a problem.
Quick fix: Flip to exact minutes or audit rounding monthly; train supervisors not to allow off-the-clock work.
4) Meals & breaks: are short breaks paid?
Why it matters: FLSA doesn’t require breaks, but 5–20 minute breaks are paid; bona fide 30-minute meals are unpaid only if the employee is fully relieved of
5-minute test: Pull a timecard with multiple 10-minute breaks. Were they paid? Did you auto-deduct a 30-minute lunch while someone answered phones?
Quick fix: Turn off auto-deducts without attestation; add a “missed/short meal” code and pay it.
5) Independent contractors: six-factor reality check
Why it matters: The 2024 DOL final rule (effective Mar 11, 2024) restored a totality-of-the-circumstances approach (opportunity for profit/loss, investments, permanence, control, integral work, skill/initiative).
5-minute test: Pick two “ICs.” Who sets schedule, rates, methods? Do they market their services to others and bear entrepreneurial risk?
Quick fix: If they look like employees, convert now or change the engagement (SOWs, multiple clients, their equipment, right to subcontract).
6) Joint-employer risk (staffing, franchising, vendors)
Why it matters: The NLRB’s 2023 joint-employer rule was vacated by a federal court; the 2020 standard remains for now—but your contracts and on-site control can still create risk.
5-minute test: Review one staffing MSA. Do your managers direct contractor workers’ day-to-day?
Quick fix: Clarify supervision lines; require vendors to manage schedule, discipline, and wages; train managers to route direction through the vendor.
7) Job postings: pay transparency compliance (check Illinois + beyond)
Why it matters: As of Jan 1, 2025, Illinois requires pay scale and benefits in job postings for most employers (15+). Other states/cities have similar rules.
5-minute test: Search your careers site. Do all IL roles show a range + benefits?
Quick fix: Add standardized ranges, benefits bullets, posting disclaimers, and an internal pay-equity check before publishing.
8) Required posters: Are you current and visible to remote staff?
Why it matters: Federal posters (FLSA, FMLA if applicable, EPPA, OSHA) and the EEOC “Know Your Rights” poster (updated to reflect PWFA) must be current and accessible (physical and digital for remote folks).
5-minute test: Check your breakroom wall and intranet. Do you see “Know Your Rights” (Revised 6/27/2023) and current DOL posters?
Quick fix: Use the DOL Poster Advisor to download the latest PDFs; add a “Labor Law Notices” page to your intranet.
9) Pregnant Workers Fairness Act (PWFA): accommodations in practice
Why it matters: The EEOC’s final PWFA rule is effective June 18, 2024 and spells out examples (e.g., more breaks, water, seating, light duty) and limits on documentation requests.
5-minute test: Grab your RA (reasonable accommodation) SOP. Does it cover pregnancy-related limitations, simple interim accommodations, and interactive process steps?
Quick fix: Update your forms and manager scripts; train HR not to over-ask for medical notes for obvious needs (e.g., water, restroom).
10) AI in hiring & promotions: bias audits and notices (NYC AEDT) + what’s next in CO
Why it matters: In NYC, employers using Automated Employment Decision Tools must complete a bias audit, post a summary, and give notices. Colorado’s AI Act will require risk programs and impact assessments for high-risk AI—now delayed to June 30, 2026.
5-minute test: List tools that rank/screen candidates or employees. Are any used for NYC roles? Do you have a publicly posted audit summary?
Quick fix: Ask vendors for current bias audits and NYC-compliant notices; for Colorado, draft a lightweight AI risk policy + inventory this quarter so you’re not sprinting later.
11) Form I-9: correct edition + remote exam rules
Why it matters: Employers must use the Form I-9 dated January 2025. E-Verify employers in good standing may use DHS’s remote examination alternative with specific steps and recordkeeping.
5-minute test: Open your onboarding packet—does it include the right form and your chosen verification method (in-person vs. remote with E-Verify)?
Quick fix: Standardize site-by-site (be consistent), train verifiers, and retain live video session documentation per DHS instructions.
12) Safety & inspections: OSHA’s “walkaround” rule (and CA violence plans)
Why it matters: OSHA’s walkaround final rule (effective May 31, 2024) lets employees choose a third-party representative during inspections. In California, SB 553 requires a written Workplace Violence Prevention Plan, training, and a violent-incident log.
5-minute test: Does your inspection protocol cover third-party reps? If you operate in CA, do you have a WVPP and log?
Quick fix: Update your inspection playbook (site escort, confidentiality, safety gear). If in CA, publish the WVPP, train annually, and maintain the log.
Be Audit-Secure™!
Lisa Smith, SPHR, SCP
Note: This blog post is for informational purposes only and should not be construed as legal advice. Always consult with a legal professional for advice specific to your situation.
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Lisa Smith, SPHR, SHRM – SCP
Certified EEO Investigator (EEOC)
Lead Support and Content Chief – HelpDeskforHR.com
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