From labor laws to minimum wage regulations to healthcare legislation, the compliance issues that a company must be aware of is staggering – and always expanding. It can be frustrating for business owners, managers and HR departments, because it seems like your organization can fall out of compliance … just when you thought you were on top of all relevant regulatory matters. Though the list is constantly changing, here are a few of the top compliance issues you need to address right now.
- The Affordable Care Act (ACA): One major issue of compliance for HR departments is the ACA, mainly because many of the requirements are phased in over a period of several years. There are certain provisions, including those which impact many employers with additional legal requirements coming in 2017 and 2020.
- State Labor Laws: Many employers focus on the top compliance issues at the federal level without paying enough attention to state laws governing the workplace. There can be an entire regulatory scheme that applies to your company and/or industry and these laws typically impact every location where you operate: You may be required to comply with the laws in multiple states if you have several offices.
- Employee v. Independent Contractor: It’s important to comply with the specific labor distinctions between these two types of workers. Tax liabilities, benefits, insurance and other issues are impacted by whether you treat an individual as an employee or contractor.
- The Remote Workplace: As more companies turn to the remote workforce and allow employees to work from home, compliance matters can be complicated. For instance, an employee’s home may be considered an extension of your company’s headquarters, which means you need to comply with all labor and tax laws. In addition, some states require payment of payroll taxes while others do not. It’s important to know the regulatory matters in all jurisdictions where you operate.
- Exempt v. Non-Exempt Employees: The distinction between these two groups impacts their eligibility for overtime work, which falls under the umbrella of the Fair Labor Standards Act (FSLA). Exempt employees are not entitled to overtime, while non-exempt workers are. Factors to make the determination include the type of work they perform, job responsibilities and salary. And again, state laws may vary and you must still comply with them.
- Wages & Hours: Once you’ve designated an employee as non-exempt, there are certain wage and hour requirements to follow. There are laws regarding “break” periods and what hours or activities are considered “work.”
- Preparedness for Future Compliance Laws: For as many laws where compliance is required, there are definitely more on the way. Keep apprised of newly passed laws – at both the state and federal level – even before they become effective. Preparing for compliance makes transitions easier.
Overcoming your company’s compliance challenges doesn’t need to be an exhausting task, as technology makes it possible to stay current with all issues. Paypro is the developer of an innovative solution that filters through the federal and state laws that apply to your business, and organizes the information in an easy-to-use application. Compliance for HR departments helps your company avoid the costly consequences of violations. Please contact us for more information.