The Exposure Report
Your HR infrastructure assessed. Every gap named. Every risk sequenced.
Most founders find out what their HR exposure looks like the hard way. A termination dispute that was not documented. An EEOC charge arriving before anyone knew the classification was wrong. A complaint against a manager who had no investigation protocol. By the time those moments arrive, the record is already written. The Exposure Report shows you that record before something forces you to find out what it says. It is a full forensic assessment of your HR infrastructure, delivered in writing within 5 business days of the diagnostic session, by the person who spent 30 years building the systems it is measured against.
This is what it is not
Not this: you already had a vendor review your handbook last year. It passed. That review was done by someone who has never been in the room where your handbook gets used to build a case against you.
Not this: you already use a fractional HR platform. They run the day-to-day. They handle the onboarding checklist. They have never read your termination records through the lens of someone building the employer position statement.
Not this: you already spoke to an employment attorney. They told you you were probably fine. They reviewed the documentation that exists. They cannot review the documentation that is missing: and missing documentation is what loses cases.
Risk Categories
Every finding in the Exposure Report is assigned a risk level and a priority sequence.
The number of findings is determined by what the company's situation actually shows. There is no ceiling and no template. Noël documents everything the assessment surfaces.
Critical
Address before the next personnel decision
A gap that produces direct, near-term legal exposure. A classification relationship that fails the IRS common-law test. An arbitration clause that is unenforceable in two active states. A termination record with no documentation. A complaint pattern in a manager's file with no response protocol. These findings require action before the next people decision is made.
Timeline: Before next personnel decision
Elevated
Address within the next cycle
A gap that builds exposure over time. A handbook that covers three of four active states. A documentation standard that is inconsistent across managers. A compliance calendar that does not include new-state trigger dates. These findings are not immediate crises. They become crises when the trigger event arrives.
Timeline: Within the next cycle
Monitor
Track and address on retainer timeline
A gap that exists but does not require immediate action. A policy that is technically compliant but will need updating when a specific law takes effect. A documentation process that works but has inconsistencies that could matter at scale. These findings do not create near-term exposure, but they require monitoring.
Timeline: Ongoing monitoring
Sample Finding
What an Exposure Report finding looks like in practice.
This is a representative example from a worker classification finding. The format, depth, and specificity are consistent across all findings in every Exposure Report.
What Was Found
The company has 11 contractors who have been working exclusively for the company for 18 months or more. Several have company email addresses, attend internal meetings, and use company equipment. Six have no written contractor agreement. All 11 relationships were reviewed against the IRS common-law test and the ABC test in applicable state jurisdictions. Eight of the 11 fail the IRS common-law test. Three of those eight also fail the ABC test in their state of residence.
Why This Is a Critical Finding
Worker misclassification triggers IRS penalties of 20% of all wages paid and 100% of FICA taxes on both employer and employee shares for the full period of misclassification, plus penalties of $1,000 per misclassified worker per year. The IRS audit window reaches back six years. The Voluntary Classification Settlement Program is currently available: it reduces this liability to approximately 10% of one year's employment taxes for the most recent year. That option exists only before an inquiry opens. The moment an inquiry opens, the settlement window closes permanently.
Retroactive reclassification by the IRS would trigger liability for 100% of FICA taxes on both employer and employee shares for the full period of misclassification, plus 20% of all wages paid, plus penalties of $1,000 per misclassified worker per year. The IRS audit window reaches back six years. Estimated retroactive exposure based on contractor compensation reviewed: $340,000 to $480,000 before penalties and interest: and before the IRS penalty ceiling of $1,329,000 per year for small businesses under $5M revenue applies to any year within that six-year window. The Voluntary Classification Settlement Program is currently available. It reduces this liability to approximately 10% of one year employment taxes for the most recent year. That option exists only before an inquiry opens. The moment an inquiry opens, the settlement window closes permanently. This company had 18 months of exposure already built. The IRS audit window would have reached back further than the working relationships themselves.
Source: IRS Common-Law Test · DOL Final Rule March 2024 · IRS Penalty Schedule · ABLEMKR IRS Penalty Analysis 2026 · IRS Criminal Penalty Schedule (up to $1,000 per worker per year, up to 1 year imprisonment per violation)
Recommended Action Sequence
1. Apply IRS common-law test to all 11 relationships with documented rationale. 2. Identify which contractors should be reclassified as employees. 3. Build structured transition plan for reclassification with appropriate effective dates. 4. For remaining contractors, execute updated agreements with scope-of-work limitations designed to support legitimate contractor status. 5. File under the Voluntary Classification Settlement Program before any inquiry opens. 6. Establish ongoing classification review process for all new contractor engagements.
After the Report
The Exposure Report stands on its own. What follows depends on what it shows.
The report is delivered. The debrief call walks through every finding. Noël states the priority order directly. If the findings do not justify a paid engagement, she says so. The report stands regardless of what follows. No obligation to continue. No sales follow-up unless you initiate it.
If critical findings exist
HR Infrastructure Build
Hands-on remediation of the gaps the report identified. Policies, documentation frameworks, classification architecture, investigation protocols. Built for the company's specific size, industry, and jurisdictions.
See Investment Options →If an active situation exists
Investigation File Review
For companies with a live complaint, active internal investigation, or received EEOC charge. Strategic assessment of what the documentation record shows and what needs to happen before a response is built.
See Active Situation Options →If the report shows clean position
No Engagement Required
If the Exposure Report shows a company in a clean position with no material gaps, Noël says so directly in the debrief call. That outcome happens. It is not the common one, but it happens. The report stands on its own regardless of what follows.
See Case Studies →Start Here
The diagnostic costs nothing to request. What it finds costs more to ignore.
The Exposure Report is delivered within 5 business days. No obligation to continue. No follow-up unless you initiate it. If the findings do not justify a paid engagement, Noël says so directly in the debrief call.
This is not a law firm. Nothing constitutes legal advice. All engagements in strict confidence.