What I Might Not Even Know About Human Resources Compliance!Jul 12, 2021
Business leaders need to watch corporate law, review contracts and keep abreast of current tax law to ensure they don't cross the line. But likely the biggest risk to your business are the laws and precedence set that impact the human capital in your organization. So what are the high impact human resources compliance issues that you need to be sure you understand as well!
A few of the key human resources compliance issues that you MUST be aware include:
- Definition of Exempt and Non-Exempt employees. This is a constant source of frustration in business. If employees are not properly classified and paid overtime, the penalties are massive.
- Minimum wage changes by municipality. We have always been familiar with the various minimum wage standards by state, but now awareness of the minimum wage by city and county is essential. This is particularly onerous for those that operate in multiple locations, or entities that complete across lines with different wage basis.
- Ban the box. This is the regulation that dictates when in the employment process you can ask candidates whether or not they have been convicted of a felony. To date, regulations are in place in 36 states and 150 municipalities and growing. Ban the box does not say you can’t ask – it simply requires you to remove the question from employment applications and inquire about convictions later in the employment process. We anticipate seeing this expand throughout the country fairly quickly.
- ACA compliance. The amount of reporting required by the Affordable Care Act has many HR professionals in a tizzy. Your benefit broker and payroll vendor should be aligned with your team to ensure the data they need is at their fingertips and easy to generate the required reports.
- Paid leave. There are an increasing number of states and municipalities that are now mandating paid leave for employees. This is generally seen in a number of sick or personal days an employee must be given during the year. The regulations vary based on the region.
- Prior Salary. Many areas now prohibit you and your management team asking the question of what a candidate earned in a previous role. There is a theory that this is the issue that continues to create pay disparity. Be aware of the regulation and how you can comply.
It is anticipated that the federal congress will remain quiet this year, but beware this will only fuel the fire of your state and local politicians. Be aware of what is on the table, and compliance dates that might be relevant to your organization.
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