Addressing the Top HR Compliance Issues | Rea CPA

Addressing the Top HR Compliance Issues: A Guide for HR Professionals

Addressing the Top HR Compliance Issues | Rea HR Consulting Services

As an HR professional, you are responsible for ensuring compliance with a wide range of regulations and policies that govern the workplace. Compliance issues are critical to maintaining a positive work environment, protecting your organization from legal liability, and retaining your workforce. The top three issues HR professionals face are manager/employee harassment policies and training, The Fair Labor Standards Act (FLSA), and pay equity.

Manager and Employee Harassment Policies and Training

One of the most important HR compliance issues is ensuring that your organization has clear policies and procedures in place to prevent and address harassment in the workplace. Sexual harassment, racial harassment, and other forms of discrimination are unacceptable and can lead to legal liability and a damaged reputation.

To address this issue, your organization must have clear harassment policies and procedures in place that outline what constitutes harassment, how to report it, and how it will be investigated and addressed. It is also important to provide regular harassment training to your managers and employees to ensure they understand the policies and know how to help prevent and respond to harassment in the workplace.

Additionally, as an HR professional, you should be proactive in combatting harassment by creating a culture of respect and inclusivity in the workplace. Encourage open communication, promote diversity and inclusion, and provide resources for employees who have experienced harassment.

Fair Labor Standards

Another important HR compliance issue is ensuring that your organization is complying with fair labor standards. This includes making sure that employees’ jobs are classified correctly as either exempt or nonexempt, and that they are being paid fairly and in accordance with state and federal laws. 

To address this issue, it is important to conduct regular audits of your organization’s job classifications and compensation practices to ensure they are in compliance with fair labor standards. You should also ensure that your organization is complying with other requirements, such as minimum wage and overtime regulations. 

If you discover any issues with your organization’s compliance with FLSA, it is important to take immediate action to correct them. This may involve reclassifying employees, adjusting compensation, and implementing new policies and procedures to ensure ongoing compliance. 

Pay Equity

Finally, pay equity is a critical HR compliance issue that you should focus on. Pay equity refers to ensuring that employees are paid fairly for the work they do, regardless of gender, race, or other factors. Failure to ensure pay equity can lead to legal liability, negative publicity, and a damaged reputation. To address pay equity issues, it is important to conduct regular pay equity audits to identify any disparities in pay between employees. You should also ensure that your organization’s compensation policies and practices are fair and transparent and that employees have access to information about their pay and the factors that contribute to it. 

If you discover any pay equity issues in your organization, it is important to take immediate action to address them. This may involve adjusting compensation, revising policies and procedures, and conducting training for managers and employees on pay equity and the importance of fair pay practices. 

By addressing these issues proactively and regularly, you can help to create a positive work environment, protect your organization from legal liability, and retain your workforce. If you have any questions or concerns about HR compliance issues, contact your Rea advisor for guidance and support. 

By Renee West, SHRM-SCP, PHR (New Philadelphia Office)