The end of the year is one of the best times to take a clear-eyed look at your HR operations. Not because December is a natural deadline for anything in particular, but because the calendar turn gives you a logical moment to reset before problems surface at the worst possible time.
Review your contractor roster and confirm that everyone classified as independent still meets the applicable federal and state tests. If a working relationship has changed over the past year, the classification may need to change too.
Employment laws changed in 2025 — minimum wage rates, paid leave requirements, pay transparency rules, and more. Check whether your handbook reflects current law for every state where you have employees.
Pull a sample of your I-9 forms and confirm they are complete and properly documented. I-9 audits are common, and errors — even technical ones — carry fines.
Confirm your pay rates meet 2026 federal and state minimum wage requirements. Several states have increases that take effect January 1. Also review overtime practices for non-exempt employees.
If you have employees in states with mandated paid leave, confirm your policies match current requirements. Several states expanded programs in 2025 and more changes take effect in 2026.
Out-of-date job descriptions make it harder to manage performance fairly and can undermine your classification of a role as overtime-exempt if the description no longer reflects what the employee actually does.
Review any terminations or resignations from the past year. Confirm that each has appropriate documentation — especially those involving performance issues or conflict.
Confirm that open enrollment changes were processed correctly and each employee is enrolled in what they selected. Benefits errors surface at the worst times — usually when someone tries to use coverage they thought they had.
You don't need to solve every HR problem before January 1. You just need to know what they are — so you can address them with intention in the new year instead of urgency when they surface.
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