The employer-employee dynamic is constantly changing on all levels in HR. From federal, to state, and city ordinances. Employers and senior management often have a hard time keeping up with changes in the law. In a recent poll, more than 80% of companies seek outside advice on HR compliance issues. With lawsuits on the rise in areas such as ADA compliance, wage and hour compliance, workers compensation compliance, and leave compliance, just to name a few, the need to be proactive is even greater.

Tips that we think will help:

Have a consistent resource that stays in the know

Employers today have many things to worry about and compliance is one of them. From employee files, interviewing, hiring, termination, leave of absences, and more. It’s no surprise lawsuits are on the rise with the ever changing landscape and HR often falls by the wayside.

It’s human nature to resist change, however HR best serves a business with a proactive approach. Keeping up to date with policies coming down the line will also help you prepare when it’s time to act.

Strategic Planning     

Create a plan that outlines how to prevent issues that may arise and how to go about solving them, instead of dealing with the issues as they arise.

The Department of Labor has a program that helps businesses manage compliance, it’s the Plan/Prevent/Protect program.

Plan: Identify areas where there may be a risk of legal and other violations. Engage employees in the plan and encourage them to participate in its creation. Provide copies of the plan to all employees and ask for help to oversee its implementation. Above all, keep communication lines open.

Prevent: Go beyond the paper. Make sure the plan you and your employees create is actually implemented. Too many “mission statements” are developed and then filed away. Take the time to get employee buy-in.

Protect: Regularly check up on employees to make sure the plan’s objectives are met. Remember, the plan is to be protected from employment violations.

Audit and Assess Regularly

Periodic audits are necessary to ensure compliance. Creating a simple checklist in key areas such as hiring, compensation, employee relations, and mandatory laws. Conduct audits on a regular basis using the checklist. When laws change, you’ll have a list to cross-reference so you’re not scrambling to meet regulations. Overall, the best way to stay on top of HR compliance is with the 3 P’s. Prepare, Prevent, Practice.

With summer fast approaching many employers use volunteer workers for a host of reasons. While being proactive, we highly recommend employers review the Department of Labor guidelines to ensure that they are not violating the law.

As a reminder, the Department of Labor strictly prohibits for-profit and private-sector businesses from using volunteers. Other key areas the DOL looks at in determining noncompliance are benefits for work and employer-employee relationships. These three areas are often overlooked by employers.

The Fair Labor Standards Act defines an employee as an individual employed by an employer. The term ”employee” does not include volunteers who work without any compensation, implied or not. Workers who expect to receive a benefit are employees and are entitled to mandatory wages, regardless of whether they view themselves as volunteers.

The test to determine whether an individual is an employee under FLSA is one of “economic reality” not technical concepts. If audited, the DOL and the courts review what the person expected to receive as a benefit for their work, the services provided, and if they were integral to the business. We strongly recommend a review of the DOL guidelines for potential exposures and contacting our offices for any guidance needed.

Benefits

HIPAA and Health Plans You Never Knew Applied.  Did you know that extra benefits your company offers its employees like Employee Assistance Programs and Wellness Plans are subject to HIPAA privacy and security rules? In both cases, employers must comply to the extent services are offered under a group health plan that provides medical care.

Examples of EAP medical care include providers that are staffed by healthcare professionals such as licensed counselors and therapists. Wellness programs are subject to HIPAA as it provides medical benefits at a reduced rate. Benefits like drawing blood, disease management, smoking cessation services, and flu shots all fall under HIPAA regulations.

Employers should review its compliance responsibility with its plan administrator or HR Consultant to develop and implement all the necessary documentation for compliance.

Payroll Compliance

The IRS has released an updated Backup Withholding Rate that has been reduced from 28% to 24% on payments made after December 31, 2017. The backup withholding requirements apply to information that is filed with a missing or incorrect taxpayer identification number. Filers may be required to withhold a specified percentage of certain reportable payments made to payees for whom the information return was filed. For more information visit www.irs.gov/pub/irs-pdf/p1281.pdf

For these and all other HR, Benefits, and Payroll related issues CorpStrat is here to help. Contact us today to learn more.