A Guide for Compliance and Workforce Success in Construction
Step 1: Review Workplace Safety & OSHA Compliance Policies
Why It Matters
Construction consistently ranks among the most hazardous industries, with OSHA reporting that 1 in 5 worker fatalities occurs on construction sites. Many of these incidents result from poorly enforced safety policies or outdated protocols.
An HR policy audit focused on safety ensures that your company meets OSHA standards, reinforces safe work behavior, and maintains documentation required for inspections or investigations.
Audit Checklist:
✔ Are OSHA’s 10- and 30-hour training requirements clearly outlined in policy, and are records current for all workers and supervisors?
✔ Is your PPE policy up to date and enforced? Are expectations around hard hats, safety goggles, hearing protection, and hi-vis gear documented?
✔ Does your fall protection policy meet OSHA standards, including rules for harnesses, guardrails, and anchor points?
✔ Are OSHA 300, 300A, and incident logs maintained and posted as required for each calendar year?
✔ Do you have site-specific emergency action plans for evacuation, first aid, and fire hazards—and are they tested periodically?
✔ Are subcontractor safety expectations documented in onboarding and contractual agreements?
✔ Do you require and retain documentation for weekly jobsite safety meetings or toolbox talks?
✔ Are hazard-specific prevention plans (e.g., trenching, confined spaces, hot work) written, trained on, and enforced by supervisors?
Step 2: Assess Employee Classification & Wage Compliance
Why It Matters
Wage violations and worker misclassification are among construction’s most common HR compliance issues. Mislabeling crew members as independent contractors rather than full-time employees, especially when working under direct supervision, is a major red flag for the IRS and the Department of Labor (DOL).
In 2023, the DOL recovered over $42 million in back wages due to construction-related misclassification claims. Improper payroll practices, overtime violations, and prevailing wage errors can all result in fines, audits, and disqualification from future public contracts.
Regularly auditing your HR and payroll policies ensures that your firm is in compliance with the FLSA, Davis-Bacon Act, and state-level construction labor laws.
Audit Checklist:
✔ Are all workers classified using IRS and DOL tests that account for behavioral control, financial relationship, and permanency of role?
✔ Are overtime rules clearly written in policy, and are non-exempt employees paid 1.5x their regular rate for time over 40 hours/week?
✔ Are your payroll systems capable of handling certified payroll for public jobs and prevailing wage calculations?
✔ Are time-tracking tools accurate, enforced, and mobile-friendly for field workers and supervisors?
✔ Are subcontractor contracts reviewed to confirm they handle payroll, taxes, and compliance correctly, or is your firm at joint risk?
✔ Have you documented a process for regular payroll audits and tax submissions (quarterly or annually)?
✔ Are Equal Pay Act standards addressed in your wage policies, with pay equity across similar roles?
✔ Are all wage practices compliant with your state’s specific rules around travel pay, pre-shift prep, and break times?
Step 3: Evaluate Hiring, Onboarding & Training Policies
Why It Matters
With ongoing labor shortages across the construction industry, finding and keeping qualified workers is already challenging. But outdated or inconsistent hiring practices increase risk even further, leading to discrimination claims, documentation gaps, and poor employee retention.
A compliant, inclusive, and well-documented hiring process reduces legal exposure and improves workforce productivity. According to the 2024 Construction Workforce Report, companies implementing structured onboarding and training programs see a 25% reduction in turnover and a faster ramp-up to full productivity.
Audit Checklist:
✔ Do your job postings and interview processes comply with Equal Employment Opportunity (EEO) laws, avoiding discriminatory or exclusionary language?
✔ Is there a consistent onboarding process across projects or divisions, including I-9 collection, safety training, and policy review?
✔ Are site-specific safety briefings and project orientations documented and required for every new worker or contractor?
✔ Do your policies outline and enforce background checks and pre-employment drug screenings in accordance with state law?
✔ Are apprentice programs, mentorships, or skill-building tracks available for new hires or junior tradespeople?
✔ Are new hire materials (policies, safety docs, handbooks) available in multiple languages, if needed, to accommodate your workforce?
✔ Do you evaluate DEI goals in your hiring policy, ensuring outreach to underrepresented groups, or removing unconscious bias from screening?
✔ Is workforce development part of your HR strategy, with clear performance review timelines and promotion pathways?
Step 4: Audit Record-Keeping & Document Storage Policies
Why It Matters
Proper recordkeeping is the backbone of construction HR compliance. Without it, you risk failing OSHA inspections, missing I-9 audits, or being unprepared for legal claims. Given construction work’s transient and project-based nature, employers must maintain clear, consistent systems for storing sensitive employee and jobsite records.
Inaccurate or incomplete documentation can also impact workers’ comp claims, certified payroll reporting, or dispute resolution with subcontractors and clients. A solid recordkeeping policy reduces liability and improves responsiveness when issues arise.
Audit Checklist:
✔ Are I-9 forms stored separately from personnel files and accessible in case of an ICE or DOL audit?
✔ Is your employee handbook reviewed annually and version-controlled for compliance with evolving state and federal laws?
✔ Are safety training records, certifications (e.g., forklift, fall protection), and incident reports archived by jobsite or employee?
✔ Do you store contracts, confidentiality agreements, and non-compete clauses in secure, easily accessible files?
✔ Are OSHA 300/300A logs maintained and posted annually for worksites with 11+ employees?
✔ Are cloud-based or digital HR systems in place for file sharing, onboarding, and policy distribution?
✔ Have you implemented role-based access control to restrict sensitive HR data to authorized staff only?
✔ Do you maintain a retention schedule that meets FLSA, OSHA, and EEOC standards for documents like timecards, wage records, and evaluations?
Conclusion
A proactive HR policy audit gives construction businesses the insight and structure needed to reduce legal risk, improve workforce safety, and operate more efficiently. In an industry where margins are tight and projects are fast-moving, having clear, compliant, and up-to-date HR policies is essential for regulatory purposes and attracting and retaining top talent.
From OSHA safety standards and wage compliance to hiring, onboarding, and documentation protocols, each area covered in this guide can help prevent costly fines, legal disputes, or reputational harm. Most importantly, regular audits help align field operations with organizational goals, ensuring that sound HR infrastructure supports every crew member, foreperson, and project manager.
Construction companies should aim to conduct a full HR policy audit at least once a year or anytime there is a major regulatory change, company expansion, or labor law update.
Need help conducting your HR policy audit or building construction-specific compliance systems? Contact Targeted-HR for expert workforce solutions tailored to the jobsite.