HR Insights • ValuedHR Blog

End-of-Year HR Checklist: What to Audit Before January 1

By Michelle Mendez  •  December 29, 2025  •  5 min read
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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.

1. Employee Classifications

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.

2. Handbook Currency

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.

3. I-9 Compliance

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.

4. Payroll and Pay Practices

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.

5. Leave Policy Accuracy

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.

6. Job Descriptions

Out-of-date job descriptions make it harder to manage performance fairly and can undermine your classification of a role as overtime-exempt if the description no longer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.

7. Separation Documentation

Review any terminations or resignations from the past year. Confirm that each has appropriate documentation — especially those involving performance issues or conflict.

8. Benefits Enrollment Accuracy

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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