June 2026 Newsletter
Mid-Year HR Checkup: Key Compliance Issues Employers Should Address This Summer
As employers move into the second half of 2026, June is an ideal time to conduct a mid-year compliance review. Employment laws, benefit obligations, wage requirements, and workplace policies continue to evolve, and employers who proactively audit their practices are better positioned to reduce liability and improve workforce stability.
Below are several important human resources compliance topics employers should review during June.
1. Review Employee Classification Practices
Misclassification of workers remains one of the most common and expensive employment law violations. Employers should review whether workers are properly classified as:
- Exempt or non-exempt under the Fair Labor Standards Act (FLSA)
- Employees or independent contractors
- Full-time or part-time for benefits eligibility purposes
Common areas of concern include:
- Salaried employees who do not meet exemption duties tests
- Contractors performing core business functions
- Employees working remote or hybrid schedules without accurate time tracking
Employers should ensure:
- Job descriptions accurately reflect actual duties
- Timekeeping procedures are consistently enforced
- Overtime calculations include all required compensation
2. Update Employee Handbooks
Many employers have not updated their handbooks in several years. Policies should be reviewed annually to ensure compliance with changing federal and state laws.
Key handbook areas to review include:
- Paid leave policies
- Remote work expectations
- Attendance and scheduling rules
- Anti-harassment procedures
- Social media and electronic communications policies
- Drug and alcohol testing policies
- Complaint reporting procedures
Tennessee employers should also ensure policies do not unintentionally conflict with state law protections regarding lawful firearm storage, jury duty leave, voting leave, or military leave obligations.
3. Review Workplace Harassment Prevention Procedures
Employers should evaluate whether supervisors are properly trained to identify and respond to workplace harassment complaints.
Important reminders:
- Harassment can occur outside the workplace, including through text messages, social media, and work-related events
- Employers may still have liability when off-duty conduct affects the workplace
- Managers should promptly document and report complaints
- Retaliation claims often create greater liability than the underlying complaint itself
Employers should confirm:
Reporting channels are clearly communicated
Investigations are conducted consistently
Corrective action procedures are documented
4. Evaluate Benefit Plan Compliance
Mid-year is an excellent time to review employee benefit plans and required notices.
Areas employers should examine include:
- COBRA administration procedures
- ACA measurement and reporting practices
- Eligibility tracking for variable-hour employees
- HIPAA privacy procedures
- Timely distribution of required notices
Employers sponsoring retirement plans should confirm:
- Form 5500 preparation is underway
- Fee disclosures are properly documented
- Payroll deductions are transmitted timely
5. Prepare for Summer Wage and Hour Risks
Summer months often create additional wage and hour compliance concerns, particularly for employers utilizing:
- Seasonal workers
- Minors
- Temporary employees
- Outdoor labor crews
Employers should verify:
- Minor work restrictions are followed
- Meal and break practices comply with company policy
- Travel time and training time are properly compensated
- Heat-related safety procedures are implemented where appropriate
6. Review Record Retention Practices
Personnel documentation remains critical in defending employment claims.
Employers should maintain organized records for:
- Payroll
- Time records
- Disciplinary actions
- Performance evaluations
- Hiring records
- Leave requests
- Accommodation discussions
Electronic recordkeeping systems should also be reviewed for security and access control compliance.
7. Conduct Supervisor Training
Frontline supervisors create significant compliance exposure when they are not adequately trained.
Supervisors should receive periodic training regarding:
- Leave requests
- Disability accommodations
- Wage and hour rules
- Documentation practices
- Anti-retaliation obligations
- Hiring and termination procedures
Managers should understand when HR involvement is required before disciplinary action or termination decisions are finalized.
Final Thoughts
Human resources compliance is not a one-time project. Regular policy reviews, documentation audits, and supervisor training can significantly reduce legal risk while improving workplace consistency and employee relations.
June provides employers with an excellent opportunity to perform a mid-year HR compliance checkup before entering the busy second half of the year.
Employers with questions regarding specific compliance obligations should consult qualified employment counsel or HR professionals familiar with applicable federal and Tennessee employment laws.