60% of business owners say they struggle to keep up with compliance and regulations.
Staying current with labor law regulations and practices to make sure your policies are properly documented can be an overwhelming task. However, this is crucial to ensure a safe, healthy, fair, and equitable workplace for employees. There are so many facets to compliance that it can feel like a serious undertaking - one that can decrease productivity and increase turnover across teams if not implemented and maintained correctly.
HR compliance pitfalls
The regulations you need to comply with depend on many factors related to your business like your location, your industry, and the size of your business. Determine what laws are applicable to your organization, and create an accessible list of all policy obligations. After that, regularly review and update to reflect changes in the processes, legal guidelines, and organizational needs.
Correctly classifying your workers
There are different requirements and responsibilities for different types of workers. The main two distinctions are independent contractors and employees. Employees are classified as either exempt or nonexempt under the FLSA based on their job duties - so make sure you classify and pay accordingly. Independent contractors have different compensation, benefit, and tax treatments to go by. You have less control over when and where your contract workers get the job done, but more over your exempt and non-exempt workers. Misclassifying your workers impact their taxes, pay, which benefits they have the right to, and ultimately which requirements you face as a company.
Compliant job descriptions and postings
The U.S. Equal Employment Opportunity Commission prohibits discrimination based on protected classes, such as “race, color, religion, sex (including pregnancy, sexual orientation or gender identity), national origin, age (40 or older), disability and genetic information (including family medical history).” Therefore, any language that shows favor to these classes is prohibited. Thoroughly review job postings to ensure you're compliant with the FLSA. Regularly evaluate job descriptions for accuracy and unintended adverse impact.
Standardized hiring process
An inconsistent hiring process leads to inconsistent results. Implement a hiring process that can be streamlined across all departments to create fluidity and effectiveness. Build standard interview guides to lead your hiring managers easily through this process effectively. Train your hiring managers, so they feel confident in this approach to create a good candidate experience. Not only do your hiring managers need to be equipped with guides to follow, but also what laws to abide by in this process like Uniform Guidelines for Employment Selection Procedures. Make sure you follow IRCA to retain a 1-9 form and The Equal Pay Act to abide by when giving offers.
Staying current with new labor regulations
Federal, state, and local laws and regulations are ever-evolving. Stay up to date by receiving labor poster subscription services, reading legal blogs, attending webinars hosted by government entities, or following trusted resources such as the U.S. Department of Labor. It is critical for your organization to stay on top of these changes, small or large.
Organizational HR communication
74% of employees feel they are missing out on company information and news. (Trade Press Services). Don't leave your employees in the dark. Provide resources to your new hires, inform employees of company policy changes, and establish a direct line of communication to foster an environment of transparency and openness within your organization.
A healthy and safe workplace that aligns with federal, state, and local laws and regulations is the first step in becoming a great place to work. Overwhelmed by where to start? Let HTI create a customized HR audit for your organization, so you can begin moving the needle where it matters.