Compliance 101: How to Stay Legally Savvy in the Workplace

23 of March, 2023

As an HR manager or business owner, you know how important it is to embrace legal compliance in the workplace. After all, the law can be ever-changing and complex, and staying up-to-date on new developments is a continuous challenge.

It’s only natural for you to want to be in the know—not only for your own sake but also so that you can confidently guide your employees as needed. This is where compliance comes into play. The good news? Compliance doesn’t have to be overwhelming.

In this article, we’ll walk you through the basics of legal compliance and provide some best practices for navigating compliance in the United States (U.S.) of America today. We’ll also discuss how using HR software from Sesame can help manage important documents and keep compliance top of mind in your organization.

Overview of Key Employment Laws in the USA

As an HR manager or business owner in the United States, it’s important to be aware of key employment laws that affect your operations. These laws are in place to protect employees’ rights, ensure fairness and legality in hiring practices, and guarantee payment of wages and benefits.

What are the essential employment laws you need to be aware of? Below, we’ll take a look at some of the most important—and newly revised—laws that you should know about:

• The Fair Labor Standards Act (FLSA): This act sets federal regulations for minimum wage, overtime pay, record-keeping and more. The FLSA has recently been reevaluated and aims to protect workers against wage theft.
• The Occupational Health & Safety Act (OSHA): OSHA enacted regulations to ensure employers provide a safe workplace environment by eliminating potential risks such as fire hazards, dangerous equipment and more.
• The Americans with Disabilities Act (ADA): The ADA provides protection against discrimination basing on disability status. This includes making reasonable accommodations for workers who suffer from disabilities so they can perform the same duties as other employees.
• Equal Pay Act (EPA): The EPA ensures men and women receive equal pay for performing similar jobs—thus prohibiting wage gaps between genders for equal work.

Being up-to-date with these regulations is essential for staying compliant and legally savvy in the workplace. We’ll take a closer look at each regulation later in this article.

Recent Changes to Employment Law You Need to Know About

The world of employment law is ever-changing, and it can be hard to keep up with all the newest regulations. That’s why it’s important to stay aware of recent changes in order to maintain compliance in the workplace.

To give you an idea, here’s a list of some of the most important developments:

• National Labor Relations Act (NLRA): This Act has recently been extended to cover more workers who may be exempt from federal labor laws, including gig workers and those who are considered independent contractors.
• Paid Sick Time: Several states now require employers to provide paid sick leave for workers, either through a city or state-mandated program or an employer-offered one. Make sure you familiarize yourself with the applicable laws in your area.
• Minimum Wage Increases: Cities, counties and even states have been slowly increasing the minimum wage over the last few years, so if you haven’t already, make sure to adjust your payroll accordingly.

Staying on top of these changes is essential for running a legal and compliant business. Taking the time now to do your research is well worth it compared to potential fines or legal recourse that could result from noncompliance down the line.

How to Ensure Your Organization’s Compliance With the Law

No matter the size of your business, compliance with employment law is a must. To make sure you’re staying up-to-date on all your legal obligations, follow these key steps:

Understand Your Obligations

It is essential to understand your obligations when it comes to employee rights, wages, taxes and other important issues. Federal laws like the Fair Labor Standards Act (FLSA) and Title VII of the Civil Rights Act set minimum standards that all employers must follow. Additionally, state and local governments have their own employment laws that must also be taken into account.

Develop Clear Policies & Procedures

Having clear policies in place helps ensure your staff know that everyone is treated fairly and objectively in the workplace. This includes job descriptions, codes of conduct, anti-harassment policies and more. Plus, clearly defined policies can help protect you from potential lawsuits or other legal action.

Use HR Software

HR software like Sesame makes it easier than ever to stay compliant with relevant employment laws — no matter where you operate or how often laws change. With software like Sesame, you can keep track of important documents securely in one single platform and never miss an important deadline again!

Navigating Audit Processes and Avoiding Penalties

Auditing processes can be difficult to navigate on your own, so make sure to have the proper professionals help you. Taking legal advice if needed and appointing an advisor can help keep you on the right side of the law and avoid costly fines down the line.

The most important thing is to remember that everyone must be in compliance with all of the necessary labor laws for their state or country, as well as any federal regulations that apply.

Things to remember when dealing with audits:

• Maintain accurate records: Proper documentation is key. Make sure to document everything correctly, like a timesheet or payroll record, which must be kept for at least three years.
• Invest in compliance software: With Sesame HR compliance software, you can have all your documents and information in one single platform in order to avoid penalties and easily find any required information quickly.
• Talk to a lawyer: When dealing with compliance issues, it’s always best to talk to a lawyer before taking any action. They will ensure that you comply with all laws in a timely manner — something essential if you don’t want costly fines down the line.

Tips for Creating an Internal Compliance Checklist

The good news is that developing a compliance checklist doesn’t have to be an overwhelming task. To get started, you can develop an internal policy document to help you and your team stay compliant. Here are some tips for creating a successful compliance checklist:

Understand the Requirements

The first step to creating a checklist is understanding the requirements of the relevant laws, rules and regulations. It’s important to understand both the letter and spirit of the law, so you can make sure all applicable requirements are met.

Choose Your Guidelines Carefully

Once you know what’s required, it’s time to decide on your own guidelines. Choose guidelines that are realistic and workable for your organization, while still being within the bounds of existing laws. Make sure they cover all applicable policies, such as anti-discrimination laws, health and safety protocols and wage and hour laws.

Implement It Right Away

Once your checklist is complete, it’s important to implement it right away. Make sure everyone in the organization is aware of any new procedures they need to follow — a key part of staying compliant. Additionally, you must be prepared to update your compliance checklist regularly in order to keep up with changes in legislation over time.

Finally, make sure you have a system in place for monitoring compliance on an ongoing basis — like Sesame’s easy-to-use software platform. That way you can save time by having all accumulated documents in one place and never miss a deadline when it comes to filing for regulatory adherence requirements.

The Role of HR Software in Legal Compliance

Navigating legal compliance doesn’t have to be a nightmare. With the right tools and systems in place, HR can help your organization stay legally savvy without breaking a sweat.

Fortunately, the right HR software can help you in a variety of ways, particularly when it comes to legal compliance. Here are just a few benefits that HR software can provide:

1. Automation – For starters, HR software automates many of the mundane tasks associated with legal compliance (e.g., tracking employee performance reviews, creating official records). This means fewer manual errors and more time to focus on strategic initiatives.
2. Accessibility – Storing all necessary documents in one central location makes it easy for HR professionals and other decision makers to quickly access the information they need when they need it most.
3. Data-Driven Decisions – Instead of relying on intuition or guesswork, the right software can help you make data-driven decisions based on real-time analytics and reporting capabilities. This ensures that your organization is compliant at all times.

With Sesame’s easy-to-use features and up-to-date info on all changes to employment law, you can rest assured that your organization is compliant at all times.

Conclusion

As an HR manager, staying legally savvy in the workplace is a challenging responsibility, but one that can be navigated successfully if you know the rules and the best practices for compliance. Research the latest changes to employment laws, analyze your organization’s policies, and evaluate potential risks.

With the right knowledge, you’ll be able to ensure your organization is compliant with the latest employment laws and regulations, and be better positioned for success.

Sesame can provide you with the insight and control of your HR compliance and help streamline this process. Our management software makes staying compliant simple and efficient, allowing you to focus on the goals of your HR initiatives instead of the compliance headaches. Try it for free now!