There are a few areas of legal compliance that businesses must be able to maintain consistently, and labor laws are great examples. Complying with labor laws is one of several areas where a PEO can be of enormous value to your business, and this value can be seen in a number of key ways.
At WTA Inc., we’re proud to offer the best PEO legal compliance services available for businesses around Salt Lake City, helping with HR compliance for any area – labor laws included. Here are some key areas of labor compliance regulations that your business needs to have a handle on and why they’re important, plus some specific ways PEOs like ours help monitor and maintain this compliance at all times.
Key Areas of Labor Compliance
Here are some key areas of compliance that are vital when it comes to labor laws for businesses:
- Wage/hour laws: These laws dictate how much an employee must be paid, what constitutes overtime, and when it should be paid, and other similar regulations. It’s important for businesses to adhere to these laws to avoid legal action from employees.
- Discrimination laws: Businesses must comply with various anti-discrimination laws such as those based on race, gender, age, disability, etc. Not only is this the right thing to do ethically, but non-compliance can result in costly lawsuits and damage to a company’s reputation.
- FMLA: The Family and Medical Leave Act (FMLA) requires eligible employers to provide employees with unpaid, job-protected leave for certain family and medical reasons. This includes caring for a newborn or adopted child, a seriously ill family member, or one’s own serious health condition.
- ADA: The Americans with Disabilities Act (ADA) prohibits employers from discriminating against qualified individuals with disabilities in all aspects of employment, including hiring, firing, promotions, and job training. Compliance with ADA may require employers to provide reasonable accommodations for employees with disabilities.
- HIPAA: The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of individuals’ health information and sets standards for how healthcare providers, health plans, and employers handle sensitive medical information. Employers must ensure that they are compliant with HIPAA regulations when handling employee medical records.
- Tax laws: Another key area of compliance for employers is tax laws. Employers are responsible for withholding and remitting taxes on behalf of their employees, as well as ensuring compliance with employment tax regulations such as FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax Act), and state-specific payroll taxes.
Risks of Noncompliance
There are several risks associated with noncompliance in labor law, including financial penalties and legal consequences. Employers who fail to comply with labor laws may face fines, lawsuits, and damage to their reputation.
In addition, noncompliance can also lead to employee dissatisfaction and turnover, as employees may feel that their rights are not being protected or that they are being treated unfairly. This can ultimately affect the overall success of a company.
Why Many Internal HR Departments Struggle With HR Compliance
While internal HR teams are responsible for ensuring compliance with labor laws, they often struggle to keep up with the ever-changing regulations and requirements. This is due to a variety of factors, such as limited resources and expertise in navigating complex legal requirements.
Moreover, internal HR departments may also face challenges in implementing necessary changes and updates to company policies and procedures. This could be due to resistance from management or a lack of support and understanding from employees.
How PEOs Help
Luckily, businesses can partner with a Professional Employer Organization (PEO) to help alleviate these challenges and ensure compliance with labor laws. PEOs are companies that specialize in handling HR tasks for other businesses, including payroll, benefits administration, and legal compliance.
By partnering with a PEO, businesses can tap into their expertise and resources to effectively manage their HR needs. This includes staying up-to-date on ever-changing labor laws and regulations, both local and federal, as well as providing guidance on how to implement necessary changes within the company.
Additionally, PEOs can also provide access to advanced technology and systems that make managing HR tasks more efficient. This not only saves time but also reduces the risk of errors or non-compliance.
And at WTA Inc., we’re here to help guide you through these complex HR compliance processes. Our team of HR experts stays informed on all labor laws and regulations to ensure your company is always in compliance. Contact us today to learn more about our PEO legal compliance services for clients around SLC and nearby areas!