January is when HR gets pulled in a dozen directions at once. Budgets, hiring plans, performance reviews, and a long list of “we should probably deal with this soon” items. Compliance often ends up on that list, even though it is one of the easiest things to clean up early in the year.
The reality is this: January is the best time to fix small compliance issues before they turn into something bigger. A few intentional check-ins now can save a lot of frustration later. Here are five areas I always recommend reviewing as the year begins.
I-9s and record retention
If you have not looked at your I-9 files in a while, January is the time. This is not just about having forms completed. It is also about keeping them for the correct amount of time and purging them when you should. Holding onto I-9s longer than required increases risk, especially if you are ever audited.
This is where an I-9 retention tracker is incredibly helpful. It removes the guesswork and gives you clear dates for what stays and what goes.
Employee classification
Job duties change. Titles change. Pay changes. What often does not change is the employee’s classification, even when it probably should. Misclassification is still one of the most common compliance issues we see, and it usually is not intentional.
A January review of exempt and non-exempt roles gives HR the chance to confirm that duties and pay still line up with the law. Having clear job descriptions and a classification checklist makes these conversations much easier.
Handbook updates and acknowledgments
Policies get updated all the time. The problem is not usually the policy itself. The problem is proving that employees received it.
January is a good time to confirm that handbook updates from last year were properly rolled out and that acknowledgments are on file. If you cannot show employees received the policy, it is much harder to enforce it later. Simple acknowledgment templates and update checklists can close that gap quickly.
Wage and salary compliance
Between minimum wage changes, salary thresholds, and pay transparency laws, compensation compliance continues to evolve. Even if nothing changed for your organization on January 1, it is still smart to double-check that your pay practices are compliant where you operate.
A quick wage and salary review at the beginning of the year can help catch issues early. Pay review worksheets and benchmarking tools make this process far less overwhelming.
Timekeeping and documentation
Timekeeping issues tend to build slowly. Missed punches, late edits, and inconsistent enforcement often become habits if they are not addressed. January is a natural reset point.
Clear missed punch policies, documentation templates, and tracking tools help managers apply expectations consistently and give HR better support when issues arise.
A strong start matters
Compliance does not have to be complicated. It just needs to be intentional. Taking time in January to review these areas helps HR start the year feeling prepared instead of reactive. The People Playbook has many of the templates and tools needed for this January compliance check already! If you are not using them yet, this is exactly the type of practical support our subscription was designed to provide.