The hot topic within the world of HR is ‘HR compliance’. Unfortunately, few business owners know exactly what it means. Small businesses are more likely to be unaware of the concept if they do not have dedicated HR departments.
HR compliance means that businesses must commit to following the provisions set out in employment law. Failure to be HR compliant can invite severe punishments, including heavy fines and, in the most extreme cases, criminal charges.
HR compliance is essential for businesses of all sizes, and you must educate yourself on what it means to be HR compliant and how to implement it within a business setting.
What To Know About HR Compliance
Every business is advised to have an HR compliance checklist to ensure they remain on top of the duties and obligations to their employees. Employment law is always changing, and it can be difficult to maintain a comprehensive HR checklist, which is why someone should be appointed to manage this.
What Exactly Is HR Compliance?
HR compliance is the process business owners carry out to ensure legal employment and work practices are maintained throughout the company.
Companies of all sizes are facing an increasingly complex legal minefield when it comes to HR. The number of regulations is increasing every year. Employers need to be aware of federal regulations as well as state and local regulations.
Take note: ignorance of the regulations is not considered an acceptable legal defense if breaches of the regulations are found within your company.
Why Is It Important?
Federal, state and local government agencies are acquiring increasing powers and scope for investigating alleged breaches of HR guidelines. Audits are also increasing in frequency.
Severe penalties for companies found to be in breach of the law can compromise a business’s ability to function. It is not unheard of for HR related lawsuits to send a company into bankruptcy.
Who Is Held Responsible For Ensuring Compliance?
The person in charge of ensuring HR compliance is the designated HR compliance officer. It is their responsibility to stay on top of the changing regulations and to implement strategies that guarantee full HR compliance by the organization.
HR compliance officers will work with everyone within the company to ensure policies and procedures are followed. For example, they may implement fire safety training and diversity training programs.
Ultimately, however, if any charges are brought, they will be brought against the company itself, so it is in the owner’s interest to invest in this area of their business.
What Are The Main Components Of HR Compliance?
There is no doubt that this matter is an extremely confusing one. HR compliance is mandatory, and employees, union officials and government agencies may well take legal action if a business is found to have breached their responsibilities on HR compliance.
To get started, employers must familiarize themselves with the main components of full HR compliance.
Compliance For Employee Benefits Packages
Offering employee benefits is an excellent way of attracting better talent. Skilled workers are increasingly choosy about the benefits their employers offer. However, a downside of employee benefits packages is they come with additional responsibilities.
Whether it is retirement plans or health insurance perks, the more benefits offered, the more complex HR compliance becomes.
These added duties should not deter employers from rewarding their workers with benefits as the pros far outweigh the cons.
Recruiting Strategy Compliance
The public spotlight has highlighted discriminatory hiring practices and a push for more diversity in the workplace. This has led to the tightening of federal anti-discrimination laws.
Businesses should make themselves aware of the Equal Employment Opportunity Commission (EEOC), the Genetic Information Nondiscrimination Act (GINA), Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA). Finally, all HR compliance officers should know Title VII of the Civil Rights Act of 1964.
Employers are required to ensure they are not actively or accidentally discriminating against a subsection of society when it comes to their recruitment practices.
Hiring managers should be trained to understand what constitutes discrimination and what they can do to avoid it.
Compliance is difficult, and one survey indicated as many as 40% of businesses still do not have the infrastructure in place to comply with the ADA.
Employment And Labor Law Compliance
The federal government has become increasingly active in the last few years with regard to employment and labor law compliance.
Employers need to ensure they are complying with laws like the Fair Labor Standards Act (FLSA) and Child Labor Regulations (CLR).
This matter can become more complex when individual states are taken into account. Individual states may have stronger laws than the federal government, for example.
For businesses located in multiple states, this can add a whole new layer of HR compliance complexity.
Speak With A Remote HR Consultant Today
The reality is HR compliance is a particularly troublesome area of HR. Millions of businesses are not in full HR compliance, and this means they are vulnerable to lawsuits.
You need to speak to a remote HR consultant to ensure your company will pass any audit of its HR policies.
Contact HR Search & Rescue to find out more about what you need to do to become HR compliant.