Avoid Penalties: Maintain a Legal Hiring Process

Last Updated on August 2, 2026 / Recordkeeping

HR Question:

Managers occasionally hire employees without involving HR until after the individual has already started working. What risks does this create, and why is it important for HR to be involved throughout the hiring process?

HR Answer:

It is important to make sure HR is included in the hiring process to assure all items are completed and proper documentation on the process is maintained. If steps are skipped or documents missed, it can come back to haunt the employer in the future.

Every hiring decision creates a legal record. From applicant screening and interviewing through onboarding and benefit enrollment, employers must be able to demonstrate that decisions were made fairly, consistently, and in compliance with applicable employment laws. These documents and processes will help maintaining that consistency in your organization.

Follow a Consistent Hiring Process

One of the most common risks is when an organization is not consistent. For example, you run a risk that Manager A is not following the same procedure as Manager B for the similar role, which could be seen as discriminatory even if it isn’t intentional. Be consistent in your interview process, background checking process, and references. Use standardized interview questions and follow the same screening process for similar positions. In addition, document hiring decisions and don’t forget to train managers on proper interviewing techniques.

Critical New Hire Requirements

Federal and state laws require a variety of documents to be completed upon hire.

I-9 Forms. Legally, the I-9 form must be completed within 3 days of date of hire. Not completing the form timely can result in hefty penalties for employers (https://www.uscis.gov/i-9-central/penalties)
New Hire Reporting. Many states, including Ohio, require that new hires be reported to the state within 20 days of hire. Check with your state for these requirements.

Timely Benefit Enrollment

If new employees do not receive benefit enrollment paperwork in a timely manner, they may miss the window to enroll. For example, a client company offers Long Term Disability to their employees. If the form is not completed and employee enrolled in 30 days, they have to do a full physical and could be turned down for coverage.

Verify Compensation Before the Offer

Inconsistent compensation can lead to potential discrimination claims or just create internal equity issues. If a manager does not review the offer with HR before an offer is made, it could cause inequities in the compensation structure. Other concerns can arise including budget considerations, market competitiveness, and maintenance with applicable pay transparency laws.

Proper Onboarding

Remember, hiring goes well beyond the paperwork. Assure you have a complete process that properly onboards new hires. See this article on Key Components of an Onboarding Plan. Consider a process that includes technology, policy, and overall welcome-ness to the team.

A compliant hiring process is not simply an HR responsibility. It is an organizational responsibility that helps protect the company, support equitable employment practices, and create a strong foundation for employee success. By involving HR throughout the recruiting and onboarding process, employers can reduce risk, improve consistency, and ensure that every new hire begins their employment with the tools, information, and support necessary for long-term success.

Employment recordkeeping does not rank high on the list of favorite human resources functions, but it is vitally important. Take the I-9 Form for example. Failure to complete this form on a new employee could result in a series of fines. Avoid the fines and minimize your stress level by having Clark Schaefer Strategic HR assist with your recordkeeping compliance. Visit our Recordkeeping page to learn more about our services.