Having a knowledgeable and skilled Human Resource(HR) is increasingly gaining importance as organizations are striving to become more productive and efficient. For long term success, it is essential that the staff is engaged and issues are quickly resolved. HR compliance is an integral part of this, otherwise it could turn out to be a liability for the company.

It is easy to overlook the compliance with the laws and regulations relating to employer-employee relationship. But it is imperative in order to avoid any lawsuits, penalties among other consequences.

The Human Resource Department has to ensure the compliance with:

Equal Opportunity Compliance

It is basically against the law to make any employment or termination decisions based on an individual’s age, race, disability status, gender or any other protected class. So, when hiring or terminating an employee, make sure it is in compliance with the state as well as federal laws. These decisions not only include hiring and termination but also salary changes, promotions among other things related to your employee.

Pay Compliance

The Fair Labor Standards Act governs minimum wage and overtime pay. These pay requirements differ in each state, so it is important that you understand the laws of your area to better cater to your employees. These rules pose significant risks to companies, especially those that have a large employee pool. They are even more prevalent in those organizations where employees are paid hourly wages. Make sure you are compensating your employees appropriately for their work.

Health Care Compliance

There have been many changes in health care act, which have recently become more stringent. So, it now more important for businesses to comply with the rules regarding healthcare of their employees. The new rules in this context could be confusing, so get assistance in determining what is required and what is not of your company.

Medical Leave Compliance

The Act regarding the medical leave basically allows employees who are eligible to take up to twelve weeks of unpaid medical leave in a year, in certain circumstances. If any of your employee need to take this time off, having compliance with medical leave and proper paperwork is essential.

Management of Compensation and benefit programs

It happens often that HR oversees the employee compensation and benefit plans that also consists of retirement plan. There have been number of other rules imposed by law which makes this a requirement on your part.

What happens if you are not in compliance

Organizations which are not in compliance with the latest HR state and fiduciary laws and regulations have to face significant amount of fines that could range from thousands of dollars to hundreds of thousands of dollars. It all depends on the extent of the error and your company’s size. Moreover, there are productivity and ethical issues that would affect your employees.


HR rules and regulations are constantly changing that makes it pretty difficult to keep abreast to them. This makes it harder for companies to ensure that they are in compliance with them. Not only the rules are always changing, there are number of regulations both inside and outside the HR department that needs to be followed. So, outsource your HR functions to an experienced and proficient company for better compliance and results.