HR Compliance means different things depending on your company or professional position. However, at the heart of HR Compliance is that your organization is following Federal and State Employment laws which govern your industry, organization type, and organization (company) size. HR Compliance also means having appropriate HR Programs and HR Policies in place.
HR Compliance is complicated because employment laws are complicated. There are over 22 separate Federal Employment Laws plus each state has their own employment laws. What further complicates HR compliance is that the Employment Laws are often based on the number of employees that you have working for your business. This means that different laws apply if you have 10 employees compared to 100 employees.
What areas are covered in HR Compliance / an HR Audit?
Typically, an HR Audit for HR Compliance focuses on the following HR areas-all of which have associated employment laws:
- Employee Benefits
- Employee Compensation/Wages
- Employee New Hire Orientation
- Employee Payroll
- Employee Recruitment and Hiring
- Employee Recordkeeping
- Employee Separation/Layoff
- Labor Relations
- Performance Management
- Workers’ Compensation
- Workplace Safety
What happens if my organization is not in HR Compliance?
Nothing happens…until…you get audited or visited by various government agencies that have enforcement power; which means you get fined. For example, the fines for not posting Labor Law Posters, which cost anywhere from $12.99 to $125.99, is a huge $7,000 fine. When you consider the cost of non-compliance, you might decide it’s a prevention worth taking to have an HR Audit for HR Compliance.
For a quick check on your level of HR compliance, complete this FREE 15-question HR Compliance Audit that is offered through our HR Store, HRKnowledgeBase.
For more a more comprehensive review of your HR Compliance and HR best practices, visit our HR Store for an 80-Point HR Audit that evaluates both HR Compliance and HR Best Practices in order to protect your organization from employment lawsuits and to reduce your risk of legal exposure.
If you have other HR Compliance tips to share with our readers, please comment below.
Written by: Victoria Mavis, SPHR