HR Compliance: Human Resource Challenges

By NE Docs | September 15, 2015

HR Compliance

Your HR staff has plenty to worry about. In fact, the duties of your Human Resources department can directly impact your bottom line. With a major focus on legal compliance and the competitive nature of today’s business world, HR Managers are dealing with some extraordinarily important details.

Whether you employ 5 or 5 million employees, it is critical that your business remains compliant…or else you risk facing the wrath of non-compliance.

But just how many issues could an HR Manager possibly be dealing with? The answer may surprise you….

Areas of HR Compliance Concern

Paperwork
When it comes to paperwork, HR departments are often inundated with files. For each new hire, there is a massive amount of paperwork to account for. Unless you are electronically managing these documents, you will soon discover that manual processes are cumbersome and prone to errors. The HR paper problem extends far beyond new hire paperwork. They must also manage benefits, deductions, and make adjustments in accordance with legally required time frames. To compound matters, these administrative functions live in departments across your organization.

EEOC
EEOC, or the Equal Employment Opportunity Commission, is an agency focused on enforcing the federal laws which outlaw discrimination against a job applicant or employee due to race, color, religion, sex, age, disabilities, etc. The EEOC is responsible for acts such as the Americans with Disabilities Act of 1990 (ADA). As the EEOC steps up its enforcement, HR departments must be mindful of new changes and best practices. Failure to adhere to EEOC regulations could be very detrimental to the well-being of any organization. In fact, Pepsi ended up paying just over 3 million dollars to settle race discrimination charges. In one example, Pepsi used criminal background checks to screen out job applicants that were arrested…but never convicted.

Wages
Ensuring that your employees are paid properly is a big deal (for you and them). In the event that payments are not accurate, an employee may file “Wage & Hour” charges, which will result in an audit of all your payroll records. For every case in which the employer is found at fault, it may result in several years of back pay.

Employee Leave
Ensuring that employees are properly compensated during “leave” is also very critical. While your employees may not be eligible for paid leave, it is important that you recognize when they are. A company that does not provide paid leave for employees who meet the proper requirements can face DOL investigations, sanctions, and potentially an employee filed lawsuit.

Unemployment
Properly handling unemployment can cause some serious distress for HR managers. Unemployment laws will vary from state to state, and are always in a constant state of change. However, should a company unlawfully terminate an employee, or wrongfully reject unemployment compensation; they could find themselves on the wrong side of a costly unemployment claim.

Social Media
Social media has become a staple of today’s society…everyone has a Facebook right? Unfortunately for employers, there has also been an increase in unfair labor charges due to social media comments. HR managers must work with a legal team to ensure that their HR policies are both compliant and easily enforced.

I-9 Compliance
I-9 compliance will always be a critical part of the HR world. While you may not be concerned about employees not authorized to work in the US, you should be aware that the ICE is also pursuing technical violations. Yes…they will charge you for completing a form incorrectly. These technical violations can add up fast – as they did for Abercrombie & Fitch who shelled out over 1 million dollars in a settlement over technical violations.

Misclassification
While the ruling of Dukes v. Walmart has alleviated some class action lawsuits in regards to misclassification, initiatives are focused on the misclassification of employees as independent contractors. HR professionals must ensure that the proper classifications are being maintained.

As you can see, there are plenty of issues that your HR department must be concerned with. Should they fail to do so, your company will feel the repercussions. Help your HR department manage their files and concerns better with an electronic document management system. Learn how we can help today.

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