Misclassifying team members based on hourly, salaried, exempt, nonexempt, contractors, or employees can cause business issues, even unintentionally, and lead to potential problems for the organization
Fremont, CA: A human resources manager or department handles employee recruitment, hiring, onboarding, termination, administrative tasks, payroll, benefits, training, fostering a strong company culture, managing risk and safety measures, and ensuring legal compliance with labor and employment laws.
What Is HR Compliance?
HR compliance involves creating and enforcing internal HR policies that comply with employment and labor laws, preventing employment disputes and litigation. It is a legal requirement for organizations of all sizes and can be managed by full-time employees or outsourced professionals.
What HR Compliance Tasks Should Businesses Know About?
In HR compliance, there are too many things to list. But there are a few critical HR compliance tasks you shouldn't forget:
Acquire mandatory federal and state posters
Businesses must display specific labor laws on posters, which should be regularly updated due to changes in laws and regulations. "All-in-one" posters can be purchased to ensure compliance, and they are a crucial aspect of an HR audit.
Correctly classify your workers
Misclassifying team members based on hourly, salaried, exempt, nonexempt, contractors, or employees can cause business issues, even unintentionally, and lead to potential problems for the organization.
Update your employee handbook
An employee handbook is recommended as it helps communicate policies to staff and mitigates legal disputes. It is a living document that should be updated as laws and policies change. A client proud of their 50-page handbook was unaware that they were still following outdated and now-illegal policies, as they were unaware of the changes in laws.
Give all new hires their required documents
HR compliance involves providing new employees with essential documents upon their start, including legally necessary paperwork to avoid disputes and ensure smooth transitions. This policy also applies to employees leaving the company.
Follow the “final paycheck” laws
Many employers overlook that employees who give their resignation notice or are terminated must be paid on their last day, which is a simple way to maintain HR compliance.
