When it comes to human resources, there is no room for error. Even the smallest, most unintentional mistakes can come with enormous consequences and must be avoided. Something such as misclassifying employees may not seem like a big deal, but can actually be extremely detrimental.
A company can be faced with huge fines for the misclassification of workers, so it is important to know the difference between full or part-time workers and independent contractors. One simple error could mean the payment of back taxes, the withholding of benefits, and even a lawsuit.
Regulations change on a regular basis
Employment laws and regulations are constantly changing, and the people in charge of that area must be on top of things at all times. Staying up to date on what is new is vital, and an HR employee cannot simply rely on experience or learn everything just one time.
Three new interpretations were put forth recently by the Department of Labor regarding the Fair Labor Standards Act and the Family Medical Leave Act. The revisions were made on January 7, 2020, and employers will be responsible for following all changes beginning on March 16, 2020. It is the responsibility of the HR employee to be completely familiar with all changes, and have all of their questions answered well in advance.
Even one violation is too much
When it comes to violations in the human resources department of any company, there is no such thing as "learning from mistakes" or even a "slap on the wrist!" Even if it is because of miscommunication or even a simple error, a violation becomes public record. This can mean damaging things for any company since having a less than perfect record will make it almost impossible for them to become an employer of choice.
There is certainly a lot to keep in mind when it comes to the specific details of a smoothly running human resources department. Any company, especially one that is expanding, can have their reputation permanently damaged by a human resource department that is inefficient. Simple mistakes can be catastrophic.
However, it is not always cost-effective to hire a dedicated regulatory expert. So, what is the best solution? It is much more affordable to partner with a Professional Employer Organization, giving the human resources department complete access to HR regulatory experts all the time. It will ensure a great company, and happy, productive employees that are proud to work for the organization. Contact us today!
