The Importance of Understanding Employer Compliance
While larger companies typically have internal HR departments and a team of attorneys to ensure they avoid violations, smaller companies often lack the same resources, which puts them at risk for violating the law.
Regardless of the size of your company, you must always keep up with HR responsibilities to prevent receiving costly fines, penalties, and possibly harming your organization’s reputation.
What You Can Do to Stay Compliant
HR compliance should be looked at as a process of distinguishing both individual and group behaviors to ensure proper laws and policies are followed. This is done by integrating HR compliance with your company’s overall business strategy. While this is not a complete list, follow these steps to remain compliant with HR laws and required procedures.
Be aware of state and federal labor laws. Being aware of necessary laws will help ensure your business practices don’t violate your employee’s rights. Some federal laws include:
- The Family and Medical Leave Act (FMLA) allows eligible employees to take unpaid leave for family or medical reasons, such as the birth of a child or a severe illness or injury.
- National Labor Relations Act (NLRA) grants covered employees, whether in a union or not, specific rights to join together to better their wages and working conditions.
- The Affordable Care Act (ACA) enforces different requirements on employers concerning health care
Administer the recruitment process lawfully. Federal, state, and local laws protect employees from being asked questions regarding their race, religion, marital status, disability, age, gender, or ethnicity. Planning interviewing questions carefully when reviewing application forms can help minimize the risk of accidentally asking prohibited information.
Verify the employment status of all potential employees. Use an I-9 or Employee Eligibility Verification Form to ensure all potential hires are legally residing in the United States. Employers may only request documentation specified on the I-9 to avoid being liable for discrimination.
Post required workplace notices. Specific notices detailing labor laws must be posted in your business in a place easily visible to employees.
Comply with laws governing employee pay. Effective January 1, 2018, Florida minimum wage is $8.25 per hour. However, the federal minimum wage varies by city, state, and county, so it’s necessary to verify rates under local laws.
Guide managers on how to avoid and handle situations. Training managers on how to handle sensitive situations such as harassment and discrimination will help to reduce the risk of lawsuits, which potentially saves your business time and money. A great way to provide proper training is by including management consulting into your workplace.
Provide employee handbooks. Should a dispute occur, employees can reference a clear set of rules, expectations, and guidelines within the handbook.
Correctly report new hires. Under federal law, all employers have to indicate they’ve hired a new employee to their designated state agency within twenty days of the date of hire.
To help protect your business, it’s vital that you understand what your HR responsibilities are and how they relate to your organization’s compliance structure. The HR compliance is a process, which involves several rules, laws, and acts to consider. To help ensure your company is meeting all federal and state requirements regarding areas such as FMLA, FLSA, sexual harassment, ADA, OWBPA, etc., consider hiring an outside source.
Professional Employer Resources, Inc. (PER) can assist in all areas of federal and state compliance. PER understands that operating a business presents both administrative and compliance challenges. In today’s ever-changing world of regulations and federal compliance, you want a partnership with that can offer you a large variety of resources and tools. For more information on the services we provide to help better your business, contact us online or by calling 1-888-599-4991.