Compliance Checklist for Employers

Given the enormous breaches in 2024, HHS is stepping up their game; shifting many best practices to requirements. Here are 22 takeaways. 1. Make all specifications mandatory, with limited exceptions. 2. Require written policies, procedures, plans, and analyses for Security Rule compliance. 3. Modernize definitions and specifications to align with current technology and terminology. 4. Compliance Timelines: Introduce specific deadlines for meeting requirements. 5. Maintain a technology asset inventory and network map of ePHI movement, updated annually or with environmental changes. 6. Require detailed, written assessments including inventory reviews, threat identification, and risk level evaluation. 7. Notify entities within 24 hours of changes to ePHI access. 8. Written restoration procedures for critical systems within 72 hours. 9. Analysis of system criticality for restoration prioritization. 10. Incident response plans, reporting protocols, and regular testing. 11. Conduct annual audits to ensure Security Rule compliance. 12. Business Associate Verification - Annual verification of technical safeguards by a subject matter expert with written certification. 13. Mandate encryption of ePHI at rest and in transit, with exceptions. 14. Anti-malware, software minimization, and port disabling based on risk analysis. 15. Multi-factor authentication required. 16. Perform vulnerability scans every six months and penetration tests annually. 17. Enforce segmentation to isolate sensitive systems. 18. Require dedicated technical controls for backup and recovery. 20. Test and review security measures annually. 21. Notify covered entities of contingency plan activations within 24 hours. 22. Require plan sponsors to comply with safeguards, ensure agents follow requirements, and notify plans within 24 hours of contingency plan activation. Public comments due in 60 days.

One of the biggest issues I see when completing People Operations Organizational Diagnostics for early-stage startups? A lack of foundational legal documents to ensure compliant employment and mutual employer/employee protections in each employee’s country and/or state. Here’s a bare-bones checklist 🦴 of what you must have in place: 📜 Employment & Legal Essentials Team Handbook + location-specific addendums CIAA/PIAA agreement tailored to local laws Compliant I-9, 1099, and W-8 BEN documentation process 💰 Contracts & Compensation Standard consulting/contractor agreement Stock option agreement (if issuing options) Separation agreements (customized by location, supervisor status, RIF/non-RIF, etc.) 🌍 Payroll & Compliance A reputable payroll provider or PEO that handles multi-state compliance Employer of Record (EOR) or a global payroll process if hiring internationally If you don’t have—or don’t know what—some of these are, call an employment attorney. You need one. This isn’t legal advice—just the musings of an HR consultant who’s seen some scary stuff. 🫣 What’s been the hardest compliance challenge for your company? ___ 👋 I'm Melissa Theiss, 4x Head of People and Business Operations and advisor for bootstrapped and VC-backed SaaS companies. 🗞️ In my newsletter, “The Business of People,” I share tips and tricks that help founders, COOs, and Heads of People take their tech companies from startup to scale-up.

Did you know even well-meaning companies often make costly compliance errors? In my consulting work, it never ceased to amaze me just how common wage and hour compliance mistakes were. Let me help you avoid a similar fate. Let’s explore 14 of the most common wage & hour compliance mistakes handled by HR: 1. Misclassifying Employees ↳ Incorrectly labeling employees as exempt vs. non-exempt or contractors vs. employees. 2. Failing to Pay Overtime Correctly ↳ Not paying 1.5x the regular rate or excluding bonuses/commissions in calculations. 3. Inaccurate Time Tracking ↳ Failing to properly track hours worked, leading to wage discrepancies. 4. Unpaid Work ↳ Including missed breaks, or unpaid mandatory training. 5. Meal and Rest Break Violations ↳ Not providing legally required breaks or deducting for breaks employees never took. 6. Improper Deductions ↳ Making illegal deductions for uniforms, damages, or other expenses. 7. Minimum Wage Violations ↳ Paying below federal, state, or local minimum wage rates. 8. Incomplete Payroll Records ↳ Failing to maintain or retain accurate payroll records as required by law. 9. Ignoring Local Laws ↳ Overlooking stricter state or local wage and hour requirements that differ from federal law. 10. Late Final Paychecks ↳ Delaying or underpaying final wages for departing employees. 11. Outdated Policies ↳ Failing to update wage and hour policies as laws and regulations change. 12. Off the clock work ↳ Allowing employees to work off the clock 13. Ignoring Complaints ↳ Failing to address employee wage and hour concerns, which could lead to costly disputes. 14. Paystub issues ↳ Incomplete or uncompliant pay stubs missing key details such as sick leave or PTO balances. 💸 What’s the cost of ignoring compliance? Compliance issues don’t just cost money—they damage trust and morale. Spot these mistakes before they hurt your business. 📩Want Help? Is your HR department compliant, scalable, mistake-free, and optimized? If not, book a call with me and let’s discuss how I can help you. ✅ Bonus: Want a free Federal employment law compliance checklist? Follow my link in the comments and get it delivered right to your inbox. ♻️ Repost to help your network. ➕ Follow Ricardo Cuellar for more content like this.

📍ONE HIRE IN CALIFORNIA??? Know the Rules Before You Hire. California isn’t just another state—it’s one of the most highly regulated employment environments in the country. If you have even one employee in CA, here’s what you need to stay on top of: 🔸 Meal & Rest Breaks – Strictly enforced. Missed breaks? That’s an extra hour of pay per day. 🔸 Minimum Wage – Higher than federal and increases annually based on employer size and location. 🔸 Pay Transparency – Must include pay ranges in job postings and submit Pay Data Reports annually (due May 8, 2025). 🔸 Independent Contractor Rules – AB 5 uses a strict “ABC Test.” Most workers must be W-2s. 🔸 Leave Laws – Includes state-mandated Paid Sick Leave, CFRA, and more—even for small employers. 🔸 Harassment Training – Mandatory for all employers with 5+ employees (1 hour for staff, 2 hours for supervisors, every 2 years). 🔸 Final Pay Rules – Employees must receive final pay immediately upon termination—no exceptions. 🔸 Non-Compete Ban – Broad non-competes are unenforceable, and CA is cracking down on illegal clauses. 📌 Bottom line: One employee in California means full compliance with California law. No exceptions. I help companies navigate CA employment regulations and reduce risk while maintaining growth. I have experience with employees in California and the employment laws. If you need help aligning your practices with state law, let’s connect. 📩 DM me for a compliance check or onboarding toolkit tailored to California. #CaliforniaCompliance #EmploymentLaw #HRStrategy #FractionalCHRO #PeopleOperations #Stage3Leadership #WorkforceRisk