Compliance with 2025 federal and state laws can be complex, so it’s great that you’re considering ways to audit your dental, optometry, or other healthcare practice. That way, you can ensure you fully adhere to the latest regulations.
While HR compliance audits might not be the most exciting part of your job, they are crucial for putting your practice in a position for success in 2025 and beyond. What do you need to know to stay compliant in 2025? Learn more below. Then, contact HR for Health to ensure that you’re ready for the new year.
The Importance of Annual HR Compliance Audits
Annual HR compliance audits help identify potential legal issues before they escalate, safeguarding your practice from costly fines. By routinely reviewing policies and procedures, you can catch errors and enforce corrective actions promptly. This proactive approach builds a solid defense against lawsuits and regulatory penalties.
Employees feel safer and more valued when they see their organization adhering to labor laws and HR best practices. Compliance audits also give you insights into areas that may affect morale, such as fair pay practices and equitable policies. As a result, employees are more likely to remain engaged and loyal to your practice over time.
Employment regulations change frequently, and staying current can prevent unexpected penalties. Conducting annual audits ensures your practice is continuously updated on new rules that may impact workplace policies or employee classification. This forward-looking strategy helps avoid compliance gaps caused by overlooked legislative changes.
Managing Compliance in Healthcare
Healthcare practices must address multiple layers of regulations, including HIPAA, OSHA, and FMLA, which can intersect in complex ways. Each regulatory body imposes unique requirements, making it easy for practices to miss important details. Overlapping deadlines and documentation standards demand meticulous record-keeping to prevent errors. A thorough annual HR audit streamlines compliance management by centralizing efforts and clarifying roles and responsibilities.
Now, here are six specific areas you should audit. Think of it as your “HR Checklist” for 2025:
1. Update Your Handbook To Include New Laws
Updating your employee handbook for 2025 is an important step to ensure that your practice meets the latest legal requirements and provides a safe, equitable, and productive environment for your employees.
Having an up-to-date employee handbook can help reduce liability risks, ensure compliance with applicable laws and regulations, and ensure that all relevant policies and procedures are communicated to your staff. It can also help you maintain a consistent and unified approach to employee management and ensure everyone is on the same page, no matter where they are in the organization. Reviewing and updating your employee handbook every few years is an essential part of creating an effective and compliant workplace.
Examples of Recent Laws to Incorporate
- Changes to Family Leave Policies: If your state has revised family and medical leave laws — such as extending leave durations or expanding eligible family relationships — update these sections to avoid confusion and legal exposure.
- State-Specific Minimum Wage Laws: Minimum wage rates can shift each year or vary across cities and counties. Confirm the correct rate for your area and revise any language or compensation tables in your handbook accordingly.
- Anti-Discrimination Policies: New regulations may broaden the list of protected classes or detail new guidelines for handling complaints. Ensure your handbook clearly states zero tolerance for discrimination and includes the latest reporting procedures.
Handbook Sections to Prioritize
- Remote Work Policies: As flexible and hybrid work continue to gain popularity, define eligibility, expected hours, communication protocols, and equipment responsibilities.
- Harassment Reporting: Clarify how employees can confidentially report harassment or bullying. Provide clear steps on how the practice investigates complaints to protect staff and maintain a respectful environment.
- Updated Safety Procedures: Incorporate new OSHA or state health guidelines, particularly if your practice has learned lessons from recent health emergencies or updated state regulations.
2. Ensure Your Minimum Wage Is Still Compliant
Checking your minimum wage requirements is important to ensure you comply with all applicable laws and regulations.
In addition, by understanding your minimum wage requirements, you can ensure that your employees are being fairly compensated for their work and that you are not putting your practice at risk of being fined or sued. Furthermore, staying up to date on minimum wage requirements can help you budget appropriately and keep your practice running smoothly.
3. Ensure You Are Using Updated Federal, State, and Practice Documents
Having the most current version of new hire paperwork is important because it ensures that all the information you provide is up-to-date and compliant with current local and federal laws. Furthermore, having the most recent version of the paperwork helps you ensure that your employees receive the most accurate and up-to-date information regarding their rights and responsibilities. Keeping your paperwork up-to-date also helps ensure that your company complies with all applicable laws and regulations.
4. Verify All Employee Certifications Are Still Valid
Verifying that employee certifications are up to date and not expired is important for ensuring that the company complies with relevant industry regulations and standards. It also ensures that employees have the necessary knowledge and skills to perform their job duties safely and effectively. Additionally, staying up to date on certifications shows a commitment by the employee to their profession and demonstrates a dedication to continued professional growth.
5. Ensure Employees Are Classified Appropriately
Classifying employees correctly and paying overtime appropriately is essential for any business to ensure compliance with labor laws and regulations. It is also important to maintain employee morale and satisfaction, as well as to avoid potential legal issues.
Properly classifying employees and paying overtime helps to protect employees from potential exploitation and unfair treatment. It also ensures that employees are paid a fair rate for their work and are compensated fairly for any extra hours they may work beyond their regular schedule. By properly classifying employees and paying overtime, practice owners can avoid costly fines, penalties, and legal proceedings that may arise from improper classification or overtime payment.
Common Misclassifications in Healthcare
- Misclassifying Dental Hygienists or Front-Desk Workers as Independent Contractors: These roles often require adherence to strict schedules, protocols, and patient interactions, which typically align more with employee status than independent contractor status.
- Overtime Oversights for Non-Exempt Staff: Front desk assistants, medical assistants, and other hourly employees may occasionally stay late to manage patient flow or administrative backlogs. Failing to track and compensate these extra hours at overtime rates can lead to wage claims and penalties.
Case Study: Financial Impact of Misclassification
Dr. Green, a dentist who runs a mid-sized practice, decided to classify two new dental hygienists as independent contractors to save on payroll taxes. Over time, these hygienists worked on a fixed schedule, used the practice’s tools, and followed strict protocols set by Dr. Green. When one hygienist left and filed for unemployment benefits, a state audit revealed both hygienists had been misclassified. Dr. Green was ordered to pay back taxes, unpaid overtime, and penalties totaling over $30,000. The incident not only strained the practice’s finances but also harmed Dr. Green’s relationship with the remaining staff, who questioned the fairness of their own roles and compensation.
This example highlights how quickly misclassification issues can escalate into expensive compliance violations. Reviewing job duties, comparing them against legal standards, and consulting with HR or legal professionals are essential steps to ensure all employees are correctly classified and fairly compensated.
6. HIPAA and OSHA Compliance
Ensuring HIPAA and OSHA standards are met in 2025 is crucial for protecting patient data and maintaining a safe work environment. Healthcare practices that overlook these updates risk hefty fines, legal complications, and diminished patient trust.
Regularly reviewing your HIPAA training logs ensures each employee is up-to-date on privacy best practices. To keep patient information confidential, you should also evaluate and strengthen data protection measures, such as encryption and secure access controls. Staying current with HIPAA requirements helps you avoid breaches and maintain patient trust.
Comprehensive safety audits help identify potential hazards and procedural weaknesses that could lead to accidents or injuries. By routinely inspecting the workplace, you can address issues promptly and maintain a safety culture. Effective OSHA compliance protects employees and reduces liability and workers’ compensation costs.
5 Steps for Healthcare Practices to Stay Compliant
- Perform a Comprehensive Gap Analysis: Review all existing HIPAA and OSHA policies to pinpoint areas of non-compliance and set clear priorities to address identified gaps. Document your findings and track progress to ensure consistent follow-through.
- Implement an Ongoing Training Program: Offer regular seminars or e-courses to keep staff informed about new or revised HIPAA/OSHA mandates. Reinforcing these standards with up-to-date education promotes a proactive, compliance-focused culture.
- Schedule Annual HIPAA Training Sessions: Make it mandatory for all employees handling patient data to attend in-depth HIPAA training once a year. This ensures staff members are aware of evolving privacy regulations and can properly protect sensitive information.
- Conduct Internal Audits of Workplace Safety Measures: Perform quarterly or semi-annual walkthroughs to evaluate physical conditions, equipment, and emergency protocols. Correcting and documenting issues on the spot helps demonstrate a consistent commitment to meeting OSHA requirements.
- Establish Clear Reporting and Response Procedures: Encourage employees to report safety or privacy concerns immediately through a formalized process. Providing a transparent framework for issue resolution fosters accountability and streamlines corrective actions.
Key HR Trends for 2025
- Increased Focus on Employee Mental Health and Wellness Benefits: Healthcare practices recognize that burnout and stress can undermine patient care and workforce stability. By offering structured wellness programs, mental health resources, and flexible scheduling, practices can bolster resilience and job satisfaction.
- Adoption of Automation in HR Compliance Processes: Automated tools reduce manual errors and allow administrative staff to focus on higher-level tasks like staff development and patient engagement. Streamlining processes such as timekeeping, payroll, and recordkeeping also helps ensure timely compliance with federal and state regulations.
- Expansion of Remote/Hybrid Work Options: As telemedicine and virtual administrative tasks grow, healthcare practices are rethinking traditional work models. Offering flexible or partially remote roles can help attract top talent while accommodating evolving patient needs.
- Data-Driven HR Analytics and Decision-Making: Collecting and analyzing HR data helps identify trends in employee performance, turnover, and compliance gaps. Practices that leverage these insights can make evidence-based decisions, reducing costs while enhancing overall workforce effectiveness.
How To Stay Ahead of These Trends
- Develop Wellness Policies and Resources: Offer ongoing mental health workshops, subsidize therapy apps, and cultivate a supportive work culture that destigmatizes seeking help. Regularly collect employee feedback to fine-tune programs and demonstrate your commitment to workforce well-being.
- Implement Compliance Automation: Integrate HR software that handles routine tasks like time tracking, policy distribution, and automated alerts for regulatory changes. This approach ensures accurate recordkeeping and frees administrators to address strategic concerns.
- Create Remote Work Protocols Where Feasible: Draft clear guidelines on availability, communication expectations, and data security for remote staff. Evaluate each role’s suitability for offsite work to balance efficiency with patient care demands.
- Utilize Data for Continuous HR Improvements: Track metrics like retention rates, overtime hours, and compliance infractions to reveal problem areas. Share findings with relevant stakeholders and adapt policies proactively, ensuring ongoing compliance and a healthier bottom line.
How HR for Health Can Help
Starting the year with a thorough compliance audit ensures that your healthcare practice can identify and remedy any regulatory gaps before they escalate into costly penalties. It also sends a clear message to employees that their rights and well-being are a top priority. By proactively reviewing and updating policies, you equip your practice to adapt smoothly to new laws and industry changes throughout the year.
HR for Health can help with your 2025 compliance audit by providing the necessary resources and guidance to ensure that your organization meets the relevant compliance standards. Our all-in-one software solution helps you craft an up-to-date employee handbook customized to your state and industry, an automated timekeeping system, securely stored employee documents, and more.
HR for Health’s experienced on-demand HR advisors also assist you with best practices for managing and documenting your compliance efforts and ensuring that your organization stays compliant. With our help, you can be confident that your organization is meeting the requirements of the law and is well-prepared for the upcoming compliance audit.If you have questions, please schedule a consultation with us here or by calling us at (888) 316-9284.
