HR Compliance: Staying Compliant with Changing Labor Laws and Regulations

One of the major roles of the human resources team is to ensure HR compliance with both federal and state labor laws that govern their organization. It’s very easy to lose sight of the things that do matter and defile the laws that could get a company in big trouble. 

HR is tasked with keeping up with legal updates on HR policies to ensure that their organizations are safe and secure. There are several reasons why these labor laws and regulations must be obeyed. 

In this article, we explain what HR compliance is, why complying with labor laws is important, and how to stay ahead of these HR policies and trends. 

What is HR compliance?

HR compliance is HR’s way of ensuring that their organization is conversant with labor laws and regulations to keep it safe and secure for employees. The human resources department is to oversee the entire process that deals with laws governing the federal and state governments. This majorly includes hiring and onboarding, discrimination, compensation, employee well-being, and much more. An organization without this type of compliance is bound to fall into trouble at some point down the road. This is why it is necessary to stay ahead of these HR policies and trends. 

Why is complying with labor laws and regulations important? 

Laws govern the people, and failing to obey them can only put you in a tough spot. The same goes for complying with labor laws that govern every organization, whether a small or large company. There are several reasons why HR must stick to these laws, but we will highlight three of them: 

1. Huge loss of resources: One of the reasons why obedience to these laws matters is that there’s a tendency to either lose or gain more as an organization. When a company fails to comply with federal and state laws, there’s a high chance they’ll be sued and eventually lose a lot of money. This is bad for business and should be avoided at all costs. 

2. Loss of talents: There are several federal and state laws that serve different purposes. Some of which are the Fair Labor Standards Act (FLSA), the Age Discrimination in Employment Act of 1967 (ADEA), and so on. These laws speak specifically to discrimination in the workplace. They also address the hiring process by giving instructions on how job ads should be written. 

3. Instant bad reputation: Another point to note is that failing to obey labor laws can earn your company a bad reputation. It becomes less attractive to top talents who might be the right fit for an open position, and there will likely be an increase in turnover rates within the organization. 

How can you ensure compliance with legal updates on HR policies? 

If you’re new to the game or just completely need to understand how to go about legal updates on HR policies, we have something for you. These include: 

1. Determine the right laws: The first step will be to research and find out what laws you are to abide by. Consider the laws at all levels, including federal and state. This will help you create a proper company policy that addresses these laws and ensures they’re enforced. 

2. Add them to the company’s policies: Once you have taken note of the laws that your organization is governed by, it’s time to include them across the company’s policies. It should be accessible to all employees at all times. Try to highlight them in job postings, employee handbooks, company documentation, and so on. 

3. Educate your team: You should ensure that every member of your team is aware of these policies immediately after they are hired. Take some time to review the policies with them and ensure that they sign an agreement that they understand. 

4. Embrace technology: Technology, especially in HR, helps streamline processes that may appear difficult to handle. For example, HR can embrace the use of HR software in the hiring process. This makes it easier to focus on candidates’ skills and experiences instead of making decisions based on age, color, and sexual orientation. 

5. Follow up consistently: In cases where the laws are violated, it’s HR’s duty to ensure that the right procedures are followed. Ensure that everything is documented from start to finish during this process. 

6. Tweak your policies from time to time: Keeping up with legal updates on HR policies simply means that changes are likely to occur with these laws. So, HR must stay informed and continue to carry its workforce along if any changes are made. 

Conclusion 

HR compliance is important to every business in the workspace. To avoid troubles that come around due to non-compliance with these laws, HR can make it a duty to create strategies that address these issues. 

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