There are a lot of moving parts associated with human resources. In particular, your human resources department has to stay compliant with a variety of laws and policies, including plans about healthcare and retirement. Maintaining HR compliance can be confusing and overwhelming, but it’s better than the risks that come from ignoring compliance laws.
3 Risks of Ignoring HR Compliance
Some penalties for non-compliance start as low as $100 a day per employee, but if you have a lot of employees, that’s a number that can quickly grow. Penalties are meant to remind you to stay in compliance and avoid the ever-growing fine that can kneecap your business profits.
Penalties tend to revolve around unfair employment practices or discrimination on the base of gender, ethnicity, religion, pregnancy, national origin, and even sexual orientation.
Fines are more expensive than penalties and can create fines as much as $1000 per non-compliance case. Fines are generally focused on the forms that govern your business, such as retirement and healthcare benefits that every employer is required to offer.
Lawsuits can be exceptionally expensive and have been responsible for more than one small business going under. Common causes for lawsuits include employment discrimination, wrongful termination, wage law violations, including labor law, and breach of contract.
How Can You Maintain HR Compliance?
Using the right human capital management or resource management company can make sure you maintain your compliance simply by ensuring each aspect of your company’s internal operations is observed. This includes complying with laws and policies regarding HR concerns such as:
- EEO Reporting
- 5500 Filing
- Labor Law
Staying compliant with the current HR mandates is the best way to keep your business running smoothly. But if you aren’t sure how you can maintain compliance with your company, you may want to reach out to HR specialists. To learn more about HR compliance, please contact Magellan HCM today!