𝗪𝗵𝘆 𝗶𝘀 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗼𝗻𝗲 𝗼n 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗰𝗼𝗿𝗲 𝘃𝗮𝗹𝘂𝗲𝘀 𝗶𝗻 𝗛𝗥?
There are numerous laws and regulations that govern the employment relationship that HR professionals must know and master to ensure their companies avoid costly fines and other penalties, including potential damage to the company’s reputation.
Common examples of laws that regulate the relationship between employers and employees include: the Fair Labor Standards Act, which establishes the minimum wage and the right to overtime pay for certain workers; federal civil rights laws that prohibit employers from considering race, gender, age, or other protected characteristics in hiring and firing decisions or in setting the terms and conditions of employment; the Family and Medical Leave Act, which grants employees the right to a certain number of unpaid leave days per year under certain circumstances and the right to be reinstated to the same or an equivalent position upon return from leave.
In many companies, HR also administers the various compensation and benefit programs, which are also highly regulated. For privately held companies, this means, among other things, complying with the reporting, disclosure and fiduciary requirements of Employee.
𝗖𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗘𝘅𝗲𝗰𝘂𝘁𝗶𝗻𝗴 𝗛𝗥 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲
Clearly, human resources (HR) compliance is essential for any company to succeed in today’s legal environment. However, achieving and maintaining compliance can be an elusive goal for companies that fail to recognize the challenges and develop an effective strategy to address them.
HR compliance should be viewed as a process of establishing both individual and group behaviors to ensure that applicable company laws and policies are followed. HR must hire and employ individuals who are knowledgeable about HR-specific laws and are able to create policies and procedures related to those laws. It is not enough to write policies and procedures and file them in an archive. Once they are established, they must be effectively communicated throughout the organization.
This is most likely to happen when HR compliance has been integrated into the company’s overall business strategy and management has taken steps to ensure that all employees understand the importance of HR regulations.