HR laws and compliance refer to the legal and ethical obligations that HR departments have to follow regarding employment and workplace practices. HR compliance involves adhering to a wide range of mandates such as the Fair Labor Standards Act, the Affordable Care Act, the GDPR, the CCPA, and anti-discrimination and harassment laws. Non-compliance can result in substantial fines and criminal charges for the organization.
What are the different types of compliance?
There are different types of compliance within HR, such as statutory compliance, regulatory compliance, contractual compliance, and union law compliance. HR compliance is important because it protects both the employees and the employers from legal risks and liabilities. HR managers are responsible for ensuring HR compliance by building and enforcing policies and procedures that align with the local and federal laws. They also need to stay updated on any changes in the employment laws and regulations.
Some examples of HR compliance issues are:
- inconsistent documentation: HR needs to maintain accurate and complete records of employee information, such as contracts, performance appraisals, disciplinary actions, training certificates, etc. Inconsistent or missing documentation can lead to legal disputes or audits.
- Misclassifying workers: HR needs to correctly classify workers as employees or independent contractors based on their level of control and independence. Misclassifying workers can result in tax penalties, wage and hour violations, and employee benefits issues.
- Failure to pay overtime: HR needs to comply with the Fair Labor Standards Act (FLSA) and state laws regarding overtime pay for non-exempt employees who work more than 40 hours per week. Failure to pay overtime can result in back wages, fines, and lawsuits.
- Violation of leave laws: HR needs to comply with the Family and Medical Leave Act (FMLA) and state laws regarding employee leave for medical or family reasons. Violation of leave laws can result in discrimination claims, retaliation charges, and loss of productivity.
- Privacy and data security: HR needs to protect the privacy and security of employee data, such as personal information, health records, payroll data, etc. Privacy and data security breaches can result in identity theft, fraud, reputational damage, and legal liabilities.
- Manager/employee harassment policies and training: HR needs to implement and enforce policies and training programs that prevent and address harassment in the workplace based on protected characteristics such as race, sex, age, disability, etc. Harassment can create a hostile work environment, lower morale, and expose the organization to lawsuits.
- Pay equity: HR needs to ensure that employees are paid fairly and equitably based on their skills, qualifications, experience, and performance. Pay equity issues can arise from gender-based wage gaps, salary history inquiries, pay secrecy policies, etc. Pay inequity can result in discrimination claims, employee turnover, and reduced competitiveness.
- Workplace safety compliance: HR needs to comply with the Occupational Safety and Health Administration (OSHA) and state laws regarding workplace safety and health. Workplace safety compliance issues can include providing adequate personal protective equipment (PPE), conducting regular inspections and audits, reporting and investigating accidents and injuries, etc. Workplace safety compliance issues can result in fines, lawsuits, workers’ compensation claims, and loss of life.
- Compliance to immigration laws: HR needs to comply with the Immigration Reform and Control Act (IRCA) and other laws regarding the employment eligibility of foreign workers. Compliance to immigration laws issues can include verifying the identity and authorization of workers using Form I-9 and E-Verify, avoiding discrimination based on national origin or citizenship status, complying with visa requirements and deadlines, etc. Compliance to immigration laws issues can result in fines, sanctions, audits, and deportation of workers.
- Federal civil rights compliance: HR needs to comply with the Civil Rights Act of 1964 and other laws that prohibit discrimination in employment based on protected characteristics such as race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability or genetic information. Federal civil rights compliance issues can include ensuring equal opportunity in hiring, promotion, termination, compensation, benefits, training, etc. Federal civil rights compliance issues can result in complaints filed with the Equal Employment Opportunity Commission (EEOC), lawsuits filed by employees or applicants.
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