Common HR Compliance Mistakes
Top Ten HR Compliance Mistakes
Below are ten of the most common HR compliance mistakes organizations make. Readers should be aware that most are simple mistakes or are errors made by poorly trained managers and supervisors - not bad intent.
Regardless of the reasons why, these mistakes can still cost your organization in reputation and legal costs, so make sure that you self-audit regularly.
THE TOP TEN HR MISTAKES OR ERRORS
1. Misclassifying Employees vs. Independent ContractorsImproper classification under laws like the Fair Labor Standards Act can lead to back pay, penalties, and tax issues. Many companies label workers as contractors without meeting the legal criteria.
2. Failing to Pay Overtime CorrectlyNon-exempt employees must receive overtime pay. Misunderstanding exemptions or failing to track hours accurately is a frequent violation of the Fair Labor Standards Act.
3. Inadequate RecordkeepingLaws require employers to maintain accurate payroll, tax, and personnel records. Poor documentation can hurt you in audits or disputes, especially under Internal Revenue Code and labor regulations.
4. Noncompliant Employee HandbooksOutdated or overly broad policies (like social media or confidentiality rules) can violate employee rights protected by the National Labor Relations Board.
5. Ignoring Or Disregarding Anti-Discrimination LawsFailing to follow laws like Title VII of the Civil Rights Act or Americans with Disabilities Act can lead to serious lawsuits and reputational damage.
6. Improper Handling of Employee LeaveMismanaging leave requests under the Family and Medical Leave Act - like denying eligible leave or failing to restore employees to their roles - creates legal exposure.
7. Poor I-9 and Work Authorization ComplianceIncomplete or incorrect Form I-9 documentation can result in fines from U.S. Immigration and Customs Enforcement.
8. Wage Transparency and Pay Equity ViolationsMany states now require salary ranges in job postings and prohibit pay discrimination. Ignoring these rules can trigger penalties and employee claims.
9. Lack of Harassment Prevention TrainingFailing to train employees and managers on workplace harassment increases liability under laws enforced by the Equal Employment Opportunity Commission.
10. Not Keeping Up With State and Local LawsEmployment law isn't just federal. States and cities frequently update rules on minimum wage, paid leave, and scheduling. Companies that don't monitor changes fall out of compliance quickly.
...and though it did not make the Top Ten list, don't forget improper handling of complaints or investigations, as harassment, retaliation, and similar claims can be time consuming and very costly.
Find Seminars, Webinars, And Online Training In Your Area
770-410-1219
