Navigating the landscape of employment law is a big hurdle. Regulations are increasingly complex, and while they are designed to protect both employers and employees, the onus of maintaining compliance rests squarely on the shoulders of businesses.
As HR professionals and business owners, it is crucial to understand just how easy it is to violate these laws—often unintentionally.
In this post, we discuss the common pitfalls you should avoid and offer practical measures to prevent them, ensuring your business remains in good standing.
It’s Too Easy for Small Businesses to Violate Employment Laws
Complying with employment laws is more challenging for small businesses. Larger organizations often have the luxury of dedicated HR departments that specialize in keeping up with these regulations. For smaller enterprises, the task is far more daunting for several reasons.
Lack of Awareness
One of the primary reasons companies violate employment laws is a lack of awareness. Employment laws change with some regularity, often without much public notice. This makes it challenging for businesses to stay up-to-date, particularly if HR management isn't a full-time role within the organization.
Resource Constraints
While large companies can deploy robust HR teams to manage compliance, small businesses typically lack the capacity to do so. This gap makes them more susceptible to accidental violations, leading to severe repercussions, including fines, lawsuits, and reputational damage. When your business is young and growing, any financial or reputational setback can have existential ramifications – so maintaining good standing is critical to your continued growth.
Maintain Compliance with an HR Partner
Fortunately, smaller businesses can effectively manage compliance by partnering with an expert HR firm. These specialized services relieve the burden of HR management, helping to ensure that your business remains compliant with all relevant laws and regulations. Essentially, you partner with a team of experts who are always on-call to help and can often offer customized services to resolve the issues you face regularly.
HR partners are equipped with the latest information on employment laws and can inform you about necessary changes to your processes. As specialists, they keep up with evolving regulations, ensuring your business adheres to legal requirements.
An HR partner can handle a wide array of tasks, including:
- Payroll Processing: As a baseline, these partners ensure payroll is managed correctly, taxes are paid, and wage and hour laws are adhered to.
- Local Employment Laws: They can guide your business to ensure you comply with local, state, and federal laws, including the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Americans with Disabilities Act (ADA).
- Employee Benefits Compliance: You can outsource the complexities of employee benefits, including compliance with the Affordable Care Act (ACA) and retirement plan regulations under the Employee Retirement Income Security Act (ERISA).
- Tax Codes: Stay current with managing employee withholdings and ensuring proper filing of employment taxes to avoid penalties.
- Health and Safety Regulations: Their guidance will make implementing standards mandated by the Occupational Safety and Health Administration (OSHA) to ensure workplace health and safety simpler and more manageable.
An HR Partner Like TEL Can Keep You Compliant
Compliance is about upholding your reputation as an employer, maintaining trust with your employees, and avoiding fines. An HR partner like TEL can help you manage these responsibilities effectively, no matter your HR needs.
TEL's expertise ensures that you stay compliant with all necessary laws and regulations, allowing you to focus on what you do best—running your business.
With a trusted partner by your side, you can confidently and easily navigate employment law.
Contact us today to learn how TEL can keep your business in good standing.
