There are rules and regulations that are mandatory for ALL employers regardless of size. You are subject to fines, penalties, audits and possible law suits if you do not adhere to them. There are at least 13 federal laws that an employer with under 15 employees must follow. They are good policies to have in place and will support better hiring and retaining employees. Many states and cities have additional regulations that are more stringent than the federal requirements and must be followed.
For example, there’s the FLSA (Federal Labor Standards Act). If you were to be audited by Federal Wage and Hour, the first documents you will be asked for will be compliant, up-to-date job descriptions. Compliant job descriptions define the essential functions of each position. This is how the government can best determine whether an employee is exempt or non-exempt, and therefore being paid properly. If you have mistakenly mis-categorized any of your employees, you could be liable not only for fines and penalties, but also up to three years back pay.
The critical message to small and mid-size businesses:
- Know the legal requirements that govern all HR –related aspects of your business at the federal, state and local level to mitigate your exposure to lawsuits, legal fees, fines and penalties.
- Train all managers-and in many cases- all employees- in the importance of full compliance with these requirements.
- Implement HR Best Practices to ensure your firm’s current and continuing compliance and for the development, growth and loyalty of your employees.
- Have an HR Assessment and evaluation to review your compliance with the laws and regulations, best practices and safety.