What Are the Most Common HR Compliance Mistakes?
Are you part of a Human Resources (HR) department? If you are, you already know how important it is to remain compliant with state and federal employment laws — but where do you start? To avoid HR compliance mistakes, it is important to know what the most common HR compliance mistakes are and we can help at Cahue Enterprises HR Consulting.
Top 5 Common HR Compliance Mistakes
HR compliance mistakes for violations of employment laws like the Affordable Care Act (ACA), Family and Medical Leave Act (FMLA), Title VII of the Civil Rights Act, Occupational Safety and Health Act (OSHA), Americans with Disabilities Act, and more can involve financial penalties. In addition to financial and legal penalties, HR compliance mistakes can result in a damaged reputation as a business, disrupted operations, loss of business, reduced productivity, security breaches, and more.
The legal and financial penalties that may be incurred with HR compliance mistakes make it even more important to know what mistakes to be cognizant of and we can help. Here is a closer look at theTop 5 Common HR Compliance Mistakes.
1. Misclassification of Employees
A common mistake that HR departments make is the misclassification of employees. This can happen when a business classifies a full-time employee as an independent contractor or a full-time employee as a part-time employee — whether intentionally or by mistake. Consequences for this mistake may include tax penalties, criminal penalties, having to pay back pay, and more.
2. Employee Discrimination
Employee discrimination is a serious, and unfortunately common mistake made by HR departments. Discrimination can be based on age, race, religion, sex, nationality, disability, and more. HR compliance for discrimination is covered by Title VII of the Civil Rights Act, the Pregnancy Discrimination Act, the Equal Pay Act, the Age Discrimination in Employment Act, and the Genetic Information Nondiscrimination Act.
3. Lack of Records or Incomplete Documents
Documentation is the foundation of human resources and a common mistake that HR departments make that can impact compliance is a lack of records or incomplete documents. Important documents that could result in violation include hiring and termination documents, employee information, and I-9 forms.
4. Violation of Local Labor Laws
Companies that employ remote employees in different states or countries must remain compliant with the labor laws in that area. Violations may include employment conditions, work hours, minimum wage, pension payments, and severance conditions. HR departments that are unfamiliar with local labor laws are at risk to make mistakes.
5. Wrongful Termination
The wrongful termination of an employee or the mishandling of a termination can result in compliance mistakes. When a company terminates an employee, they must follow state and federal termination procedures and terminate employment according to written employment contracts. HR departments may need to keep strict records of employee infractions and cause for termination. A compliance mistake when it comes to termination may result in a wrongful termination lawsuit.
READ MORE: Top 5 Reasons that Employers Get Sued
Employers who want to learn more about human resources compliance may be asking — what are the most common HR compliance mistakes? Cahue Enterprises HR Consulting may have the information that you need and we are here to answer all of your HR questions.
Contact Cahue Enterprises today to schedule a consultation with our team of experts!