HR compliance is an important part of any business. Your human resources staff must deal with a wide range of issues on a daily basis. This could include scheduling requests from employees, the verification of paid time off, approving shift swaps, and dealing with payroll. While these tasks are all crucial to normal business operations, HR compliance is a larger responsibility.
Enforcing HR compliance can prevent payroll issues, penalties, and litigation. An HR department that does not follow specific guidelines and regulations is a liability to your business. Keep your employees and your HR staff happy by making sure that the following compliance issues are properly addressed.
The Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) is designed to protect employees and ensure they are properly rewarded with overtime pay. This act also enforces the minimum wage in the state where your business operates. The requirements will vary from state to state. Class action suits are commonly brought against companies that abuse these requirements.
Making sure that all employees are fairly compensated is a requirement of any business. This also includes entitlements and overtime pay. Businesses that still rely on manual entry of payroll information are likely to experience payroll errors.
While the majority of these errors are minor and eventually fixed, it is possible for oversight to result in costly mistakes. Using software solutions for the accurate tracking of employee hours could prevent this issue.
The Family and Medical Leave Act
The Family and Medical Leave Act (FMLA) is another provision that needs to be followed by your HR staff. The FMLA allows employees that meet certain criteria to take up to 12 weeks off from work due to family or medical reasons. The act is designed to protect employees from the loss of a job due to their extended time off. This time off is generally unpaid.
Qualified employees that require up to 12 weeks of time off should be allowed to return to work without penalty. That is the purpose of the FMLA. As a business owner or manager, it is up to you to ensure your employees are treated fairly. Human resources compliance with the FMLA is a common issue that should not be overlooked.
The Uniform Services Employment and Reemployment Rights Act
The Uniform Services Employment and Reemployment Rights Act gives employees protection from losing their job when they are called to active duty with the military. This ensures that members of the armed forces do not lose their positions after returning to work.
This is similar to the FMLA in the sense that it protects employees from loss of work after they return to their position.
Federal Civil Rights
Federal civil rights protect the civil liberties of individuals seeking employment. These rights also prevent businesses from firing individuals when the decision relates to civil liberties.
Essentially, federal civil rights protect employees from discrimination when being hired or fired. Businesses cannot consider race, gender, or age when hiring or an employee. HR compliance with civil rights should not be an issue. Civil cases against businesses that infringe on employee’s civil rights can be incredibly costly.
In addition to federal civil rights, there are a number of states and local provisions that could offer protection for employees. When expanding your company into new territories, it is essential that your HR team is aware of the regulations and requirements in your new location.
Employee Retirement Plans and Other Entitlements
Compensation for overtime, employee benefits programs, retirement plans, and other entitlements are another area where proper compliance is a must. Additional laws and requirements are involved, including the Employee Retirement Security Act, the Patient Protection and Affordable Care Act, and other new requirements.
Those are the top areas of compliance that any human resources team should pay attention to. They are directly related to the treatment of employees.
By keeping your employees satisfied, you can maintain a productive workforce. In addition to the compliance issues discussed, there are a few other areas where an HR team may be used to enforce compliance.
Your HR department may also be involved in education and training for your employees, the development of employee procedures, internal auditing, and disciplinary procedures. While these are important functions, your HR team still needs to follow their own policies – which means staying up to date with new regulations and employee protection acts.
Being able to comply with all laws and regulations is one of the most important tasks of an HR department. Though, errors and oversight can occur.
To protect your business and improve the efficiency of your HR team, you may want to consider using workforce management software.
