HR compliance means aligning company HR processes and policies with applicable labor laws together with industry-specific regulations. It covers all procedures, policies, HR agendas, employee contracts and agreements.
- building policies and procedures that ensure your organization follows up-to-date labor and employment laws and regulations.
- enforcing the procedures to ensure all employees follow them
- HR compliance is essential to every company because employer's need to meet legal responsibilities. Non-compliance leads to fines, penalties, and lawsuits
What are the Main Pillars of HR Compliance?
Legal and Regulatory Compliance
- Following labor laws and workplace regulations at the federal, state, and local levels
- Companies must comply with specific agency rules, such as OSHA for health and safety
- Employers need to stay updated on regulations that apply nationwide as well as in their specific state and city
Contractual Compliance
- Adhering to agreements and obligations outlined in contracts your business is part of
- This includes contracts with employees, vendors, or partner organizations
Employee Compliance
- Certain roles or industries require employees to have specific training, licenses, or certifications
- Making sure employees maintain the necessary qualifications, skills, and training
Data Privacy Compliance
- HR systems must comply with data privacy laws and securely protect employee information
- Protecting employee data according to laws like GDPR and HIPAA
Union Compliance
- Some businesses work with unionized employees
- Companies must understand and follow the rules and agreements set by these unions