When was the last time your company conducted a thorough human resources compliance review? If you have gone this far into 2023 without carrying out a compliance check, now is a good time to take a closer look at your human resources practices to make sure that your business is fully compliant.
Make Sure your Employees are Properly Classified
Take steps to ensure that your workers are properly classified as either employees or independent contractors. These designations have a big impact on the rights and benefits to which they are entitled, as well as your responsibilities as a company.
Even if you are not deliberately misclassifying your employees, misusing contractors can lead to compliance issues. For example, companies that expect their contractors to be at the office and set a strict schedule for them may be violating labor and tax laws.
Check All Job Listings to Ensure They Are Not Discriminatory
There are several laws in effect at the federal level that define discrimination, including the Civil Rights Act of 1991, the Equal Pay Act, the Americans with Disabilities Act, the Fair Labor Standards Act, and the Age Discrimination and Employment Act.
These laws prevent companies from discriminatory hiring practices that are based on factors such as age, disability, national origin, sex, religion and race. Using language in job listings that could be perceived as showing some sort of favor or discrimination is also prohibited.
Review Your Interview Questions
Another important HR compliance task for 2023 is reviewing the questions that your company asks in interviews to ensure they do not violate discrimination laws. Questions that seek information about any protected classes, such as asking people where they are from, when they graduated, or their plans for having children, cannot be asked.
Make sure that anyone who is involved in your company’s interview process is aware of the rules and choose questions that are focused on candidates’ work experience and qualifications for the job at hand.
Stay on Top of the Latest Regulations
Labor regulations are constantly changing at the local, state and federal levels, so it is important to put measures in place to ensure you are kept up to date with how the latest changes in the law affect your business. Consult trusted resources such as the websites for the U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission to ensure you remain compliant.
Ensure Proper Data Security
Businesses are required to keep their employees’ and job candidates’ personal information and health information confidential. This extends to protecting digital information and electronic copies from unauthorized access.
Therefore, your business should use a secure system for storing, sharing and receiving information, including bank account information, health care plans, resumes, tax forms and job applications. Be sure that printed documents are stored properly, and use password protection for digital forms.
Check your Employees’ Documentation of Eligibility to Work
New employees must complete Form I-9 to verify their authorization to work in the U.S. This includes documentation such as a U.S. passport, employment authorization card, driver’s license, permanent resident card or social security card.
Businesses must review these documents as they file the form. Employees hired by your company who are living here with a student visa must also possess work authorization; a student visa itself is not considered a work permit. Make sure that all of the paperwork is accurate.
Check Your Payroll, Timing and Leave Management Policies
Make sure your payroll, timing and leave management policies are fully compliant. Ensure your company is tracking all time for your on-site and remote employees while avoiding off-the-clock work. Nonexempt employees must be paid overtime and receive paid time off. Any leave taken under the Family Medical Leave Act must be tracked separately and accurately. Be sure you are following all applicable scheduling and paycheck laws.
Ensure Compliant Payment
Be sure your company is paying at or above the legal minimum wage for your area. Keep in mind that if your state’s minimum wage is different from the current federal minimum wage, your business must comply with whichever wage is higher.
Implement Sound Record-Keeping Processes
Keeping good records is essential for all businesses. Payroll records and union contracts should be kept for at least three years, while the following documents should be kept for a minimum of two years: wage rate tables, records of the deductions and additions to paychecks, work schedules, piecework records and timesheets.
If you have any doubt about whether a document should be kept, a good rule of thumb is to hold on to it.
Ensure Compliance With Support from Business Benefits Group (BBG)
Staying on top of evolving human resources regulations at the local, state and federal levels is essential for avoiding fines and other consequences and increasing employee retention. Make sure your business is fully compliant with tailored solutions from the human resources experts at Business Benefits Group (BBG). Contact us today to discuss your business’s needs.