Compliance issues feel overwhelming, and employment law is always changing. At the same time staying compliant is a requirement that shouldn’t be overlooked. Fines, penalties, even legal issues can be avoided, not to mention maintenance of your company’s brand, all by staying compliant.
A recent study showed that 40% of surveyed business and risk leaders improved their approach to compliance, with 81% of top-performing organizations enhancing their regulations (PwC’s Global Risk Survey, 2023*).
HR Compliance is key so here is a list of tips on how you and your company can stay ahead of compliance updates.
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L Leave Out Noncompliant Interview Questions
HR compliance requires consistent reviews of interview questions asked to potential hires. Questions to avoid include anything that encourages a candidate’s personal information about protected classes. Examples of a noncompliant questions included: “where are you from,” “what year are you expected to graduate from university,” or “do you plan to have any kids?” While these questions seem normal, they cross the compliance line.
A Avoid Discriminatory Job Listings
All job listings should be free of discriminatory language and comply with laws such as the Fair Labor Standards Act and the Civil Rights Act. The way to avoid discriminatory language would be to use people-first and gender-inclusive language, avoiding any defining of people based on their class. According to the U.S. EEOC, protected classes include race, color, religion, sex, origin, age, disability, and genetic information. An example of using non-discriminatory language would be using, “A person with a disability” as compared to the discriminatory language of calling someone a , “A disabled person”.
K Keep Your Data Secure
Employees’ and candidates’ personal and health information must remain confidential and safe. This includes the protection of any digital information and copies of forms. Often by using an HR Management system (e.g. ADP or Workday) can help secure data and streamline processes, preventing security breaches and compliance issues.
E Employee Classification Must Be Accurate
Proper worker classification of employees or independent contractors affects their taxes, pay, and benefits, which is why knowing how to properly classify a worker is vital. Improper classification can lead to violations of tax and labor laws. The FLSA requires employers to pay minimum wage and overtime compensation for employees that work more than 40 hours a week.
S Stimulate a Culture of Compliance
Compliance doesn’t start and stop with HR or in leadership, it is important for all employees to know their role in being compliant. Offering training, providing tools, and encouraging compliant behavior supports an overall compliant company culture.
I Implement Anti-Harassment Policies
Having clear, concise anti-harassment policies in place plays a key role in fostering a safe workplace that can attract and retain top level talent. Ensure these policies are accessible and accurate. Harassment should never be tolerated, and setting clear expectations is the best way to navigate it.
D Document Policies and Practices
Proper documentation of company policies and practices is crucial to stay compliant. All documents should be clearly stated, secure, and easy to find for any employee to access.
E Ensure Proper Employee Benefits and Leave
Establishing properly written employee and paid leave benefits not only will keep your company compliant but will help decrease turnover rates. Educate yourself with laws such as the FMLA and ERISA, while staying informed about retirement and health care coverage minimums. A workplace that is well-cared for creates employees who respect and enjoy their job.
H Have All Regulations Up to Date
We know you are busy, and staying up to date with labor laws and varying regulations may not be at the top of your to-do list. This task would often fall in on your HR team (or you can hire an external fractional HR expert). Trusted resources to follow include the U.S. Equal Employment Opportunity Commission, SHRM , the Department of Labor , or by attending Lakeside HR’s educational webinars!
R Reach Out to A HR Services Provider
Staying in compliance can be hard, but outsourcing an HR partner to handle all compliance tasks is simple. Lakeside HR Group’s consultants and recruiters are experts in keeping our clients in compliance, mitigating risk, and boosting company success.
About Lakeside HR Group
We are a premier HR Consulting and Recruiting firm connecting people and businesses through personalized, full-service solutions. As a boutique firm of seasoned HR professionals, we specialize in providing customized HR services for small to midsize businesses. With expertise across diverse industries, positions, and states throughout the U.S., we partner with our clients to discover top talent and deliver the support needed to help their businesses thrive.
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