As a small business owner, you may not understand just how important it is to be in compliance with federal, state, and local laws governing all aspects of Human Resources. In fact, unless you’ve ever owned a business or had experience in management, you might not be aware of the legal side of HR. Laws are very specific in terms of employee rights and the obligation of employers. Unfortunately, there isn’t just one set of laws by which to assess compliance. If for no other reason, it can be strongly argued that outsourcing your HR duties could save you more than a world of trouble.
A Quick Look at the Legal Obligations of HR
Unless you are aware of all the ways in which you could be in violation of laws that govern Human Resources, you could be subject to a wide range of consequences.Huge fines could be given to your company, but that may be the least of your worries. Some violations can result is a prison sentence and, in some cases, when the violations are severe enough, your company can be shut down.
Government takes employee rights very seriously and this is why you should as well. However, there isn’t just one government body that will slap you with a compliance violation. It depends which law you are found to be in violation of and the agency that oversees compliance. To get an idea of just how involved HR compliance is from a legal perspective, take a look at the 10 HR assessment questions outlined here.
Typically a Complaint Driven Investigation
Most often, HR violations are the result of complaints leveled against an employer. For example, if an employee feels they were discriminated against based on color or gender, it would be a violation of the Civil Rights Act, Title VII. This pertains to applicants as well. On the other hand, if an employee’s health and safety is threatened due to such things as hazardous chemicals, then OSHA (Occupational Safety and Health Administration) would be involved.
Then there are a number of forms which must be completed during the hiring process, among which is the I-9 that states a person is legally authorized to work in the United States. What happens if an illegal alien is found to be employed? HR would be made to answer for that violation of Federal law as well.
Is HR Compliance More Than You Can Handle?
All of the above is just a brief look at how important it is to be in compliance with laws governing Human Resources. In fact, the legal side of HR is so involved that most small businesses just aren’t equipped with what it takes tobe compliant with all levels of government. This is why so many small businesses outsource HR to an experienced group of professionals who can handle everything from recruitment to termination.Take the time to read those HR assessment questions referred to above and you just might discover that HR outsourcing can save you the headache of dealing with violations. Let them handle Human Resources while you do what you do best, and that would be running a successful business.