What You Need to Know About HR Compliance

There are a lot of things to consider when it comes to compliance, from teaching courses like cybersecurity learning from True Office Learning, down to HR compliance.

Hold up, what is HR compliance? Besides proper compliance training from platforms like True Office Learning, HR compliance is another aspect that ensures a company stays updated with the appropriate rules and regulations.

Read on to learn more about what HR compliance is and its importance. 

What is HR Compliance?

HR compliance refers to the process of defining policies and procedures, ensuring that the company’s employment and work practices show a thorough understanding of laws and regulations. This is also done with a focus on the company’s objectives.

Companies of any size face HR challenges with increasing employment laws and regulations. Moreover, the penalties for non-compliance are greater than ever before. That’s why it’s crucial to learn how to develop HR policies and procedures to reflect compliance in the company.

For instance, business owners must know the following:

  • Employers must follow employment laws, including local, state, and federal regulations.
  • Businesses can be subject to audits from enforcing agencies that may levy penalties and fines for non-compliance.
  • Not being aware of or understanding compliance obligations isn’t an acceptable legal defense.
  • Lawsuit settlements can bankrupt companies.

HR’s Role in Compliance

With that said, how important is HR in a company’s compliance?

A major role of HR departments is bridging the gap between their company’s compliance practices and growth trajectory. Such practices would influence activities like hiring, employee retention, and development. HR departments can strike a balance between compliance and strategy starting with a clear set of goals.

Understanding your company’s strategic priorities will lay the foundation to better understand various scenarios and how compliance can impact decisions. HR goals must be designed to support company strategies while considering different scenarios and consequences.

HR Compliance Issues

Most compliance issues HR departments face are related to employee situations, encompassing things from recruitment to retirement. These are common issues companies can face in terms of HR compliance:

  • Benefits compliance – This includes retirement plans and health insurance.
  • Anti-discriminatory laws – There are many federal anti-discrimination laws encompassing race, color, sex, disabilities, age, ethnic origins, and veteran status, among others. Different laws are falling within the category, such as the Americans with Disabilities Act.
  • Family and medical leaves – There is a Family and Medical Leave Act providing employees with up to 12 weeks of unpaid job-protected leaves per year.
  • Wage and hour laws – This encompasses requirements on minimum wage, hours worked, overtime pay, break time requirements, and child labor laws.
  • Immigration laws – There are many laws covering immigration, ensuring employers will only hire candidates eligible to work in their area.
  • Safety laws – The Occupational Safety and Health Act was created to ensure employees have a safe work environment.
  • Union laws – There are laws covering the rights of employees working together to improve work environments.

Wrapping It Up

Now that you know about HR compliance, make sure to implement this into your business now.