HR Compliance Services

HR compliance is crucial for every business. Employees are a company’s greatest asset, but they’re also your greatest expense—and that expense can skyrocket if not properly and professionally managed.

From keeping payroll running smoothly to keeping a company out of court, assessing, minimizing and proactively monitoring potential compliance risks saves time and money.

Avoiding infractions and costly penalties begins with understanding the potential areas of employment liability. Employers need to know and understand their responsibilities in order to implement measures to effectively reduce risk.

Both federal and state labor regulations are in place to ensure that employers do not violate employees’ rights. The Department of Labor administers and enforces more than 180 federal laws, including the Equal Pay Act, the Occupational Safety and Health Act (OSHA), and the Family and Medical Leave Act (FMLA). A range of state and local laws govern areas including minimum wage, paid breaks, meal times and pay periods.

There are numerous federal and state laws dictating employee personnel files. Documents such as application forms, disciplinary notices, disability claim forms, and drug-test records contain highly sensitive information, and must be accessed, stored, retained, and destroyed appropriately. Failure to do so leaves your company vulnerable to fines, civil lawsuits and even criminal liabilities.

Before you do a paperwork purge, keep in mind that there is a litany of laws surrounding the retention of employee records, and these laws vary from state to state. For example, all hiring records—from job posting to resumes to interview notes—must be retained for a year after a job offer is extended. Even after employment ends, businesses are legally required to keep many employee records, including detailed payroll documents for up to six years.

Employers have been required to verify the identity and legal work status of all employees since the Immigration Reform and Control Act of 1986. However, with recent government crackdowns, it’s more critical than ever to ensure full I-9 compliance. For both citizens and noncitizens, companies must properly prepare, retain and dispose of I-9 forms or face stiff penalties.

The regulations surrounding health and welfare benefits plans can be fluid and confusing. It is important for employers to ensure compliance with the rapidly changing regulatory landscape, including rules and regulations such as COBRA, HIPAA, Medicaid/Medicare, ERISA, Wellness Coverage, Dependent Plans, and more. Employers can focus on carrying out such measures as assessing current practices and procedures, analyzing gaps in compliance, and finding solutions to remain compliant.

Failing to ensure HR compliance is a costly mistake for businesses of all sizes. State and federal guidelines are in place to protect a company and its employees, and noncompliance leaves businesses vulnerable to government audits and fines as well as civil lawsuits. In some cases, not taking HR compliance seriously could result in criminal charges or the dissolution of the company.

Because of the importance of HR compliance, large corporations devote entire teams of attorneys to ensure that human resources laws and regulations are strictly followed. Smaller or mid-tier companies may consider using a corporate compliance consultant to avoid exposure and litigation.

At Lyons Companies, we make it our mission to help companies navigate the complex and ever-changing world of HR compliance, whether through our employee benefits or human capital management services. Backed by 25 years of human resource experience, we help businesses identify costly HR missteps and custom tailor proactive solutions. From auditing existing practices and developing new strategies to implementing training programs and providing ongoing manager support, our team has your team covered.