Human resources compliance ensures that your company’s practices and procedures follow the guidelines set by federal, state, and local employment regulations. The goal of having companies comply is to ensure their employees are treated fairly and ethically.
Employment laws are typically grouped into seven categories. To stay compliant, here are some best practices that small and medium-sized businesses should follow.
Discrimination
Businesses should be aware of the anti-discrimination laws that apply to them. Some of these include the Americans with Disabilities Act (ADA), Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Equal Pay Act. There may also be state and local anti-discrimination laws that businesses must follow.
Businesses should create clear anti-discrimination policies within their HR department that cover areas such as hiring, termination, harassment, and promotion. They should also train employees and managers on the company’s anti-discrimination policies. This is to ensure that employees understand how to report discrimination incidents.
The HR department must also develop a straightforward process that allows employees to report discrimination complaints without worrying about retaliation. Within the workplace, the company must also actively create an inclusive culture. This extends to its hiring practices as well.
HR compliance requirements are fluid, and they do change over the years. Your business must stay up-to-date with the anti-discrimination policies.
Working Hours and Wages
Compliance with working hours and wages is crucial. Businesses of any size should know the federal, state, and local laws that dictate working hours and wages. Besides the Fair Labor Standards Act (FLSA), businesses should know their state-specific hour laws and wages.
Businesses should also be aware of the rules of overtime pay, breaks, and meal periods. There are also child labor laws that companies must adhere to. This may differ from state to state or even city to city.
To ensure your business complies with labor laws, businesses should maintain accurate payroll records. Develop detailed policies on scheduling, overtime, and break periods.
Businesses should also hand out employee handbooks to ensure every employee is aware of the labor law policies. This can prevent future legal issues.
Immigration
Companies operating within the US must abide by the Immigration Reform and Control Act (IRCA) and the Immigration and Nationality Act (INA). These require that companies within the US hire US nationals, US citizens, and those authorized to work in the US.
Within this framework, businesses must verify an employee’s eligibility and accept the required documents that are listed on the Form I-9, the Employment Eligibility Verification form. HR staff should be trained on correctly handling the form I-9 process.
Employee Leave
Your HR department must comply with federal, state, and local laws regarding employee leave, such as the Family and Medical Leave Act (FMLA). Find out which laws apply to businesses with fewer than 50 employees or less than 20 employees.
Your business must create clear policies on the types of leave offered and which are paid versus non-paid. Formal request procedures must also be for all employees demanding leave, such as parental or vacation leave.
Benefits
Small businesses with 20 employees and medium-sized businesses with 50 employees may be legally obligated to provide some benefits. It’s important to find out what category your business falls under. For example, businesses with 50+ employees must provide health insurance or an employment shared responsible payment paid to the IRS. Similarly, any 401(k)s must comply with the Retirement Insurance Security Act (ERISA).
Safety
To ensure safety in the workplace, HR departments need to comply with federal, state, and local safety laws. The Occupational Safety and Health Administration (OSHA) organization provides a handbook on safety protocol in the workplace.
Managers must also provide safety training for dangerous equipment. In addition, specific safety protocols should be put in place for all employees. Hazards in the workplace should also be clearly identified.
Make Sure You’re Covered
The above seven categories are human resources compliance 101, and they cover the basics of employment laws. Complying with federal, state, and local employment laws and staying up-to-date with any changes will create a healthier, safer, and more enjoyable workplace.
