The 3 Most Common Human Resources Compliance Issues

If one thing is still for certain in this shifting business landscape, it’s that organizations continue to face uncertainty when it comes to human resources compliance. In addition to the daunting regulations with which your organization must comply, HR is also tasked with numerous responsibilities, such as aligning HR functions with an organization’s business growth strategy. As you can see, managing this multifaceted department is no easy feat, which is why HR professionals are often under pressure to wear multiple hats, often at the same time.

Is your organization at risk for these human resources compliance issues?

Compliance issue 1: Employment and termination

Hiring the best talent in the industry may be a large concern for organizations today, but there is a much bigger picture employers should be looking at—and that’s complying with the law. First things first, you must ensure that your organization isn’t using any discriminatory practices in its hiring process. Doing so will confirm that you’re staffing the right people to fulfill the role, while also protecting you from a potential lawsuit.

On top of evolving regulations, management must comply with new concerns, such as utilizing social networks for recruiting and hiring. “The Federal Equal Employment Laws prohibit employment discrimination against qualified individuals with disabilities, and prohibit bias based on race, color, religion, sex, or national origin, age, as well as other considerations,” notes Howard Greenstein in a contribution to Inc. “State and Local laws may impose even stricter rules depending on where your business operates.” With social media, however, you can acquire this information with the click of a mouse. While you may have an all-access pass to your potential hire’s profile, what you do with that information may put your organization at risk of liability.

When it comes to demoting or terminating an employee, your process must also comply with the law to avoid potential backfire. One of the best ways to ensure this is to be consistent with your documentation. Performance evaluations and attendance sheets, for example, will prove that you’re demoting or terminating an employee solely based on his or her performance.

Compliance issue 2: Payroll and billing

Payroll administration can be a difficult process for any business size. For small businesses, these employees are tasked with doing more using fewer resources. For the enterprise it may be the opposite. However, both situations evoke challenges. By automating processes, such as gathering expenses and time, you can set yourself up to be in compliance with the law, while also freeing up your time to deliver value in other areas of your business.

Compliance issue 3: Health-care reform and other benefits

The Patient Protection and Affordable Care Act will challenge every organization’s ability to track and gather employee information from a number of systems and sources. It’s because of this that employers continue to face uncertainty in the looming PPACA requirements affecting their businesses. Furthermore, staffing, IT, and capital resources are already in short supply in most companies.

In order to head off risks at the source, management must stay up to date with the evolving tax and compliance regulations, and keep its staff in the loop. Fortunately, support is available to ease the PPACA compliance burden. Consider partnering with a vendor that is well-versed in common human resource compliance issues and concerns, such as the complicated nature of the PPACA.



Topics: HR Compliance