Employment Laws Are Complicated and Present Numerous Challenges for Companies
HR Compliance is complicated, with stiff penalties and potential litigation if not followed to the letter of the law. But employment laws are confusing, changeable and can be expensive if ignored. And of course, non-compliance can land your company’s name in the headlines. A multitude of Federal employment laws are applicable to employers and many states also have their own employment laws, sometimes with conflicting regulations.
Here are just a few of the governing bodies and Federal laws that impact your business:
The Department of Labor (DOL)
Wage and Hour Standards Board
Fair Labor Standards Act (FLSA) Title VII of the Civil Rights Act
Executive Order 11246 (Affirmative Action)
Health Care Reform Act
Penalties Can Be Expensive
On July 8, 2015, the Office of the Chief Administrative Hearing Officer (OCAHO), which has jurisdiction to review civil penalties for I-9 violations, ordered a CA company to pay the fine for more than 800 I-9 paperwork violations. Failure to thoroughly complete form I-9 paperwork has led to a fine of $605,250—the largest amount ever ordered— serving as a reminder that employers need to be taking I-9 compliance very seriously.
The Bottom Line: Get Help to Get Compliant
All in all, it can be a nightmare and “fingers crossed” is not a sustainable strategy. Companies are smart to address HR compliance issues head on and not wait to “feel the pain”.
To help you navigate this landscape and meet your compliance obligations, you need a knowledgeable partner.
Many mid-sized companies, and most small ones without HR support, opt to seek guidance from third-party professionals for compliance support or outsource the HR function entirely. By engaging HR Affiliates to handle your human resource compliance needs, you have the opportunity to reduce your compliance risk and improve productivity. In general, outsourcing essential HR functions is common and solves challenges like:
- Gaining relief from regulatory burdens: 70 percent of organizations cite regulatory demands as a main reason for outsourcing.
- Reducing costs: Outsourcing leads to lower costs, which is usually the primary objective for businesses.
- Gaining access to outside expertise: Let our experts handle challenging regulatory guidelines without shouldering the financial burden of dedicated resources.
- Focusing on strategic priorities: You focus on your day-to-day operations while we administer your human resource programs.
The financial consequences of non-compliance are valid concerns for business owners, senior leaders and HR professionals. Failure to comply is simply not a good option.
Learn more about how our solutions can work for you!