HR compliance is a serious issue in any workplace. Regardless of what you do, there are specific guidelines in place to safeguard you and your employees.
Failing to follow these guidelines can be dangerous as well as costly when something goes wrong.
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Incorrect Classifications
There’s a misconception that companies can pick and choose whether to classify their employees as exempt or non-exempt. The Department of Labor has extremely specific rules outlining exempt and non-exempt positions.
Always remember, menial jobs don’t mean the people working them are exempt from being paid overtime. Their job duties and rate of pay factor into it, all contributing to whether the employee is exempt or not.
By way of an example, a manager might assume that their accounting clerk is fulfilling some sort of white-collar position and that they’re somehow exempt. When a person fulfilling a job has no decision-making authority, however, it’s actually more likely the position is non-exempt and, therefore, eligible for overtime compensation.
These classifications are important because record-keeping and timesheets will differ, based on your employee’s status.
Incorrect Hiring Paperwork
This may be one of the simples processes that many companies forget to check every year. The correct eligibility-to-work documents are crucial to hiring a viable employee, and failing to record or document them can get you into hot legal water.
Before filing any paperwork, make sure to get dates and signatures confirming eligibility documentation in the form of the I-9. More often than you’d expect, employees fail to provide the correct supporting documentation, intentionally or not. A driver’s license or social security card may be necessary, but if the employer doesn’t request them, they’ll go by the wayside.
Ignoring Safety Regulations
Being a business owner doesn’t necessarily mean you’ll be good at managing all of the red tape of the various important onsite regulations. You’ll have to review the State and Federal Occupational Safety and Health Administration (OSHA) rules, specifically, to see how they to your business, employees and office space. The General Duty Clause requires employers to provide a location free of perceived risks to all employees, regardless of the size of the business.
Not Complying With Rapid Growth
Rapid growth sounds like something good and it often is. More employees means more work, which means a better shot at increasing your output and targeting more paying customers. During these fortunate periods of growth, however, it can be easy to get wrapped up in your successes and forget that more employees also means more exposure to compliance.
The cost of compliance, for instance, leads to businesses reclassifying workers as independent contractors, in an attempt to stay below the 50-person bar. Employees, however, can’t claim to be contractors with the same responsibilities as full-timers, however, without violating Labor Code regulations. Unpaid internships, similarly, are usually non-compliant according to the Department of Labor, making this a risky tactic as well.
Not Staying Current
Of all the HR mistakes a business leader could make, failing to keep up with the latest regulations that apply to the organization. Agency and employment laws have changed tremendously in the last few years, alone, and this isn’t a trend. It’s the industry, and you should stay aware of the latest policies managing:
- sick leave
- employee privacy
- employment regulations
- workplace safety and health standards
- salary regulations
- requirements for records management
- overtime laws
- discrimination and sexual harassment laws
- leave acts according to your region
HR Compliance: A Matter Of Safety
In the modern workplace, HR compliance is a matter of safety as well as corporate policy. Keep yourself and your employees taken care of with HR services from a trusted name, for a better, more reliable service.