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Workplace Compliance – The Challenges

Published: December 22, 2016

Workplace compliance is an essential functional aspect for all organizations that often stays neglected. Especially in the business sphere, organizations in the rat race of competition and making profits tend to miss out on keeping up with rules of compliance pertaining to various functions and operations of the business.

Few organizations pay due heed to comply with the rules and legal procedures while others keep it postponed until a lawsuit or a major compliance issue arises. Here’s an overview of the compliance issues and challenges that will be faced by organizations in 2017.

Redefined Workplace

Remote workstations are on the rise and many organizations are offering a certain extent of flexibility in the job roles and work designs, making them more employee-oriented. While telecommuting and remote working has brought about immense benefits for the organizations, it has also complicated the matter of being compliant. Considering the local rules and labor laws that vary from state-to-state, it will be quite a feat for organizations to manage a workforce that is legally bound by different state rules.

Marriage Equality

The Supreme Court’s ruling in the Obergefell v. Hodges case has legalized homosexual marriages in all states. As an implication of this law, it is now imperative upon the organization to revise their policies, especially those pertaining to equal employment and perks and benefits related to spouses and families.

Biases against LGBT

Due to the revised minimum wage standards and redefined requisites for overtime qualifications, the organizations will have to review and revise the exempt and non-exempt classification of employees. In addition to this, the revised set of policies has made it extremely difficult for the employees to clearly differentiate between employees and independent contractors. They will still have to swallow the frog as the improper classification and poor categorization would directly affect the compensation plans, tax nets, and medical and family leave acts and might impose a penalty or lawsuit upon the organization.

Wage and Hour Evaluations

The redefined requisites for overtime qualifications, especially at the white-collar tier of the organization, will make it a matter of a huge concern for the organizations to keep an accurate record of the working hours and break periods and to redefine their definition of ‘functional’ hours.

The revised policies and the diverse workforce which are situated in different states and bound by different rules will make it a real test of strengths for the management to maintain an accurate and law-compliant record of wage and hours against each individual employee. Therefore, a smart approach to an accurate wage and hour recording and evaluation is to automate these key functions through tech-based applications, such as a Time and Attendance System.

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