Human resources compliance or HR compliance is a broad term, because it depends on the context and situation of usage. In general terms, it can be considered the act of ensuring that the organization is in adherence with state and federal regulations with regard to employment and human resources operations. HR compliance is also about having relevant HR policies, laws, practices, programs and guidelines in place.
Some of the common HR-related policies that organizations’ HR has to show compliance with include Family and Medical Leave Act (FMLA), Employee Retirement Income Security Act’s (ERISA), Equal Employment Opportunity Commission (EEOC) Uniform Services Employment and Reemployment Rights Act (USERRA), and the recent Patient Protection and Affordable Care Act (PPACA) among many others.
Why is HR compliance difficult to enforce?
HR compliance is not as easy as just doing some paperwork. For an organization to show full HR compliance, it has to show that about two dozen laws are being implemented at the workplace, often simultaneously! Many of these laws differ based on the number of employees the organization has. So, if an organization has X number of employees, it has to put in place some regulations, which will have to be completely re-hauled and re-implemented once the organization reaches a strength of Y employees.
How is HR compliance ensured?
HR compliance in an organization is implemented by carrying out an HR audit. Some of the items that have to be implemented as part of HR compliance include:
- Performance Management
- Workers’ Compensation
- Workplace Safety
- Employee Benefits
- Employee Payroll
- Employee Recruitment and Hiring
- Employee Recordkeeping
- Employee Separation/Layoff
- Employee Compensation/Wages
- Employee New Hire Orientation
- Labor Relations
Consequences of being non-HR compliant
State or federal agencies carry out random checks, at which organizations have to show complete HR compliance. If an organization fails to do this, it could attract fines. These fines are disproportionately high in relation to the cost of implementing these policies. Worse; it could lead to loss of face for the organization. So, it is always a good idea for organizations to show HR compliance.
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