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In 2020, PNC Bank was ordered to pay $2.75 million to three former customer service reps to settle an overtime pay dispute. The plaintiffs claimed PNC Bank neither tracked nor recorded their hours worked; they also reported they could only clock in once they’d booted their computers and read their emails, totaling three unpaid hours per week per employee.
Organizations can avoid lawsuits entirely if they prioritize HR compliance. Although the landscape can feel like a minefield of laws and regulations to keep up with, this guide explores what you need to know to ensure compliance during benefits administration.
Break down the HR compliance checklists of laws and regulations into the following categories to stay on top of your obligations:
The following laws and regulations kick in during your hiring procedures, before you’ve even recruited someone to join your team:
The above laws and regulations prevent interviewers from asking inappropriate questions during an interview, such as “Do you plan to start a family soon?” or “How old are you?”
Some states have introduced pay transparency legislation to combat wage discrimination. These laws generally prohibit employers from asking about salary history during the interview process, with states like California requiring employers to disclose salary ranges in their job postings.
Once hired, the laws above protect employees from discrimination throughout the entire employee lifecycle. For example, Title VII of the Civil Rights Act, ADA, and ADEA ensure that workers are safe from harassment while interacting with coworkers, managers, and leadership. These laws also require employers to provide reasonable accommodations for employees with disabilities in all aspects of employment, such as job duties and working conditions.
Additionally, the Equal Pay Act requires employers to pay men and women equally for equal work. This means employees should receive the same pay for performing substantially similar job duties, regardless of gender. Employers should be aware of state-level anti-discrimination laws, which may provide additional protection and requirements.
Employees must always know how to report any issues or concerns related to discrimination and harassment in the workplace. Employers should have clear policies and procedures for handling these situations and regular training sessions to educate employees on their rights and responsibilities.
Whether hourly, annual, or contract-based, all employees have a right to be paid fairly and on time for their work. Employers must comply with federal and state minimum wage laws for salaries and bonuses, as well as any applicable overtime pay requirements.
The Fair Labor Standards Act (FLSA) sets the federal minimum wage and overtime pay requirements, while states may have their own laws with higher minimum wages or additional overtime requirements. Employers must also know about special provisions for certain employees, such as tipped workers and minors.
Employers should keep accurate records of all hours worked by their employees, including breaks and meal periods, to remain compliant.
Payroll professionals’ work aligns closely with legal compliance. They must meet the following responsibilities as defined by the Internal Revenue Service:
Employers must provide their employees with certain mandatory benefits, such as health coverage. These are set out in the following regulations:
Of course, many companies also like to entice job seekers and reward employees with a generous mix of non-mandatory benefits, such as wellness stipends, professional development benefits, and parental leave. Employers must administer these perks and benefits fairly and consistently to prevent discrimination or unfair treatment. They must also understand how to tax them properly, according to IRS guidelines.
Employers must keep detailed records of their employees and comply with certain regulations when handling sensitive employee data. These determine how you store certain information, how long you keep it, and who has access to it. Some key regulations include:
Employees have a right to attend a workplace that is safe from hazards and accidents. Employers can comply with relevant safety regulations according to the Occupational Safety and Health Act (OSHA), which:
The number of acts, regulations, and forms you’re supposed to know inside out can be incredibly overwhelming if you’re an HR professional rather than a lawyer. Stay on top of your obligations by following the below best practices:
Visit important resources to ensure HR compliance. Remember: You don’t need to know the history of a particular law or the past versions of it. Instead, you must:
Keep a human resources compliance checklist of important resources handy, such as:
Fill up your HR calendar with:
Your employees must understand your company’s policies and procedures, which should be outlined in an up-to-date employee handbook. Make sure it reflects any changes to compliance laws and regulations and any updates to internal policies. Here are some tips for creating a practical employee handbook:
Manual HR compliance can be complex and difficult to manage. The alternative? The right HR software keeps you organized and ensures your policies and practices align with current laws and regulations. Look for software that offers features such as:
Remember: Any digital compliance feature is only as good as the way you’ve set it up and the people using it. Provide user training and conduct regular audits to ensure your software remains effective in helping you stay compliant.
Employee benefits are laden with compliance requirements—from reporting taxable income to keeping employees updated about their packages, there’s plenty to stay on top of.
Benepass offers a centralized benefits administration platform with built-in compliance features to beat the red tape by:
Ready to prioritize HR compliance in your organization? Book a free Benepass demo today or contact sales@getbenepass.com to connect with a benefits specialist.
