What does a People Audit cover?

Quick answer

A People Audit is a fixed-price review of your HR basics: offer letters, handbook, worker classification, personnel records, final pay and leave practices, and state notices. Ours costs $2,500, is delivered in 10 business days, and ends with a written report that ranks every gap by risk, gives the fix for each, and comes with a fixed-price plan for what to tackle first.

What do we review?

Six areas, each checked against what the law requires and against what your managers actually do.

Area	What we check	Why it matters
Offer letters	Template plus 3 recent offers: pay, title, exempt status, at-will language, promises you did not mean to make	Offers set the terms you will be held to
Handbook	Required policies, state rules, whether it matches practice, signed acknowledgments	A stale handbook can contradict what you do
Classification	Contractor vs employee, and exempt vs non-exempt for each role	Misclassification brings back taxes, overtime and penalties
Personnel records	3 sample files, plus a sample of up to 10 I-9s	I-9s must be producible within 3 business days of an inspection request
Final pay and leave	Your last 2 exits, PTO and leave policy, leave records	Utah final pay deadlines are short
State notices	Required posters and notices, physical or digital	Every FLSA-covered employer must post the federal notice

We also scan one payroll register for wage and hour red flags and flag benefits items to check. We do not review plan documents.

Which gaps carry the most risk?

These are the ones we look at first, because the rules are strict and the cost of getting them wrong compounds.

Contractors who are really employees. The IRS weighs behavioral control, financial control and the type of relationship. If you treat an employee as a contractor with no reasonable basis, you can owe the employment taxes (IRS).
Salaried does not mean exempt. To skip overtime, a role must pass a duties test and pay at least $684 a week on a salary basis. Job titles do not decide it (DOL).
Final pay in Utah. When you let someone go, unpaid wages are due within 24 hours. When someone resigns, they are due on the next regular payday. If you miss the deadline after a written demand, wages keep accruing for up to 60 days (Utah Code 34-28-5).
I-9 retention. Keep each I-9 for 3 years after the hire date or 1 year after employment ends, whichever is later (USCIS).
New hire reporting. Utah employers must report every new hire or rehire within 20 days of the first day of work. The penalty is $25 per miss, or $500 if intentional (Utah DWS).

How does the process work?

Kickoff (60 minutes). We meet with the founder or ops lead, learn your headcount, states and pain points, and share a document request list.
Document review. You drop files into a shared folder. We review them against federal rules and the rules of each state you hire in.
Written report. Every gap is ranked high, medium or low risk, with the fix for each. You get a PDF and an editable doc, and you keep both.
Walkthrough (45 minutes). We go through the report together and end with a fixed-price plan for what to fix first.

The clock is 10 business days from the later of the kickoff or the day we receive your documents.

What should you gather before the kickoff?

Handbook and any standalone policies
Offer letter template and 3 recent signed offers
Contractor list and contractor agreements
Org chart with headcount by state and each role’s classification
One recent payroll register
PTO and leave policy, plus a sample of leave records
Documents from your last 2 exits
Photos of posters, or links to digital notices
3 sample personnel files and up to 10 I-9s

If gathering these is hard, that is your first finding.

Let’s talk

Stuck on this at your company?

Twenty minutes. We’ll tell you what to fix first, and whether we’re the ones to fix it.

Book a free 20-minute HR check

What does a People Audit not cover?

It is a review, not legal advice. We do not represent you in disputes or run formal investigations; the report marks items that need an employment attorney. Employee and manager interviews are an optional add-on, and putting the fixes in place is quoted separately. The standard audit covers teams of up to 50 people in up to 2 states or countries. Larger teams and extra jurisdictions are scoped on the free call.

What does it cost, and is there a credit?

$2,500, fixed. If you sign a DMD engagement of $3,500 or more, or month one of a monthly plan, within 30 days of the readout, the full $2,500 is credited. One credit per client.

Who should get one?

Companies of 15 to 50 people that have never had HR
Teams that just hired in a new state
Founders preparing for a raise, a sale or a lender review
Anyone whose handbook is more than 2 years old, or who is unsure a contractor is really a contractor

Our founder has built HR from zero four times, including across a 13-brand portfolio, and each build started with a review like this one.

FAQ

How long does a People Audit take?

10 business days from the later of the kickoff call or the day we receive your documents, then a 45-minute walkthrough.

What do we get at the end?

A written report that ranks every gap high, medium or low risk with the fix for each, as a PDF and an editable doc you keep, plus a fixed-price plan for what to fix first.

Is a People Audit legal advice?

No. It is an HR review. The report marks any item that needs an employment attorney.

Does the $2,500 count toward other work?

Yes. It is credited toward any DMD engagement of $3,500 or more, or month one of a monthly plan, signed within 30 days of the readout. One credit per client.

Do you audit companies outside Utah?

Yes. We work with companies in any US state, and the audit checks the rules for each state you hire in. For other countries, we confirm coverage on the free call.