Stay on top of the Laws Regarding HR Compliance
Updated: Jun 20
Some companies have HR departments and teams of attorneys ensuring that they are HR compliance and avoid infractions, however small businesses often lack these resources and therefore run the risk of unintentionally violating the law.
The cost of failing to comply with HR laws is substantial for businesses of all sizes: employers may face state and federal penalties and leave themselves vulnerable to litigation.
While this list is not exhaustive, here are some examples of HR compliance that we can help you with for your business in order to remain compliant with HR laws and required procedures:
We help you with state and federal labor laws to ensure that your business practices do not violate employees’ rights. Examples of federal laws include the Family and Medical Leave Act (FMLA), and the National Labor Relations Act (NLRA), which protects workers’ rights to collective bargaining and governs other aspects of labor relations. Also the Affordable Care Act (ACA) imposes various requirements on employers regarding healthcare coverage. Businesses that fail to comply with the ACA face substantial financial penalties, so an understanding of the requirements is critical for your business.
Conduct the recruitment process lawfully. Human resources laws begin regulating the employer-employee relationship before a new worker is even hired. Federal, state, and local laws prohibit employers from asking for information that would reveal certain protected characteristics of an applicant, such as his or her race, religion, marital status, disabilities, age, gender, or ethnicity. By reviewing application forms and carefully planning interview questions in advance, businesses may minimize the risk of erroneously asking for prohibited information.
Verify the employment status of all potential hires to ensure that they are legally residing in the United States. This may be done via an I-9, or the Employee Eligibility Verification Form. When confirming eligibility, employers may only request forms of documentation that are specified on the I-9; asking for other documents may subject the employer to liability for discrimination. Businesses must keep the I-9 on file and other proper paperwork.
Post the requisite workplace notices. State and federal laws require several notices detailing labor laws to be posted at businesses. These may be obtained at no cost from the U.S. Department of Labor or state agencies.
Properly report new hires. Under federal law, all employers must report that they have hired a new worker to their designated state agencies within twenty days of the date of hire.
Ensure that your business is complying with laws governing employee pay. it is important to verify rates under local laws as many cities, counties, and states have established their own minimum hourly amounts. Also research state laws regarding overtime pay to make sure that you understand which employees must receive it and at what point.
Publish an employee handbook that is circulated to all employees. A handbook provides a clear set of rules, expectations, and guidelines for employees and serves as a point of reference should a dispute occur.
Creative Business Resources can help your business avoid costly violations of HR laws. Contact us today to learn more.