Are you complying with all the proper state and federal labor laws?
If not, it could cost you everything.
In large organizations, an entire human resources (HR) department navigates the complex minefield of federal and state labor laws. Some small organizations (under 100 employees) think of HR as an afterthought, or HR responsibilities like hiring, benefits, compliance, and payroll falls to a few people who aren’t properly trained. This can be a pricey mistake. Laws concerning overtime, unlawful termination, and equal rights are just a few areas that trip up organizations, big and small, all the time.
Labor laws fill volumes and are quite complex. Plus, labor laws vary from state to state! Even Walmart ran into trouble recently and incurred $4.83 million dollars in back wages, penalties, and fines for violating The Fair Labor Standards Act. The mistake? Managers were misclassified and not appropriately compensated for overtime work. Unlawful termination is another problem that has cost organizations like UPS, Carmike Cinemas, and Dial Corporation dearly. Yes, it’s tricky. Do you know the laws?
It gets worse—the government is ramping up efforts to check up on organizations and crack down. The Obama administration has allotted $25 million for the sole purpose of investigating those misclassified as “independent contractors,” hoping to reclaim alleged lost tax revenue and increase the IRS’s revenue. Be smart. Remember that stiff penalties and lawyer fees can decimate your organization. Are your workers properly classified?
Stay legal and remember these 3 key points:
- Child labor, non-resident labor, and equal rights legislation are the three areas where many organizations most often fail to comply.
- Both state and federal labor information is free and available online.
- Outsourcing with an HR professional firm can save your organization a lot of time and money.
Most organizations with fewer than 100 people benefit from outsourcing labor law compliance and other human resource tasks to HR professionals. The alternative is risky: employees are often uninformed about and under-trained in labor law compliance. Look out! Federal fines could be in store for you. In addition, HR often falls outside an employee’s main job focus, so getting it wrong or spending valuable time away from primary tasks can cripple productivity in a small organization. Get the right person trained or on your team to comply with labor laws.
Regrettably, staying legal has never been more difficult or important.
Make 2017 your organization’s best year ever. Make sure to get the Human Resources help you need right away.
Meet us at the ABHE Annual Meeting February 8-10, 2017 | The Wyndham Orlando Resort! We will be speaking during the Annual Conference as well as exhibiting. Contact us directly to set up a personal meeting in advance of the annual meeting. Looking forward to creating new friends and fostering deeper relationships with contacts we know.