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Bringing COMPLIANCE Into Focus

Bringing COMPLIANCE Into Focus

Every business comes up against rules & regulations that dictate the way they operate & function. 

Not to be overlooked, Human Resources compliance is essential to the success of companies as a whole and their team members. 

HR Compliance, simply defined, is implementing policies & procedures that comply with these laws & regulations. Businesses everywhere must maintain compliance to avoid penalties, fees, & legal action. 

The HR department wears many hats – responsible for recruiting, hiring, onboarding, and termination of employees; performance of admin tasks; management of payroll & employee benefits; assisting with training & development; driving company culture; managing risk & safety measures; and, arguably the most important, maintaining legal compliance. 

As you can probably tell, we believe in the proper institution of compliance in businesses. Below are 5 compliance tasks that every company should know about:

1. Acquire the (updated) mandatory government posters. 
These posters list and outline particular labor laws. These need to be hung where all employees can see them (i.e. break room, training room, lounge, etc.)

2. Classify your employees accurately.
Avoid complications in your business by classifying employees correctly.

3. Keep your employee handbook updated. 
Handbooks are absolutely recommended, although most of the time not required. As your company grows, these are ideal for communication of your policies and procedures. They are also useful in mitigating legal disputes. Handbooks act as living documents and need to be updated as laws and policies change. 

4. Ensure all employees have the required documents. 
Most often done as an employee is onboarded, ensuring that documents are provided in a timely manner is a key component of HR compliance. The same policy applies as employees are exiting the company. 

5. Laws regarding final paycheck.
Most companies are not aware that they are required to pay the exiting or terminated employee on his/her last day. This is the simplest way to maintain HR compliance.


This being said, below are 6 steps everyone can take to uplevel their compliance game:
1. Hire the right HR team for your company. 
All businesses are unique and have different aspects. The HR team should be tailored to fit. 

2. Analyze & adjust policies & procedures to ensure they are clear.
Written according to federal, state, and local guidelines, the handbook should be written to accommodate the specific needs of your business. When developing policies, be explicit and incredibly detailed about what is expected and what is not acceptable. 

3. Train your team in HR compliance. 
To ensure your team is compliant, your company must foster a culture of open communication and consistent training, especially as policies and procedures are updated. 

4. Take every employee complaint seriously and investigate thoroughly. 
A major part of maintaining compliance is listening to your team. The best way to do this is to create a standard procedure for investigating complaints. 

5. Enforce disciplinary actions fairly.
You must be held accountable to your company’s policy and procedure manual. If a complaint is investigated and an employee has been found to be in violation, taking the appropriate remedial action as outlined is critical. 

6. Always maintain proper documentation.
During an investigation, it is essential to keep comprehensive documentation tracking the situation. This is a critical piece that is necessary if the circumstance moves into litigation. This is also useful if you are the target of an HR audit.