The Changing Landscape of Human Resources
The Legal Mine Field of Constantly Changing Laws & Regulations
Responsibilities of Human Resource professionals have grown exponentially over the last two decades. The entire spectrum of human management has a changed landscape. What formerly was a personnel department, tasked with maintaining employee records has evolved to a strategic department, overseeing the entire employer – employee relationship. Accordingly, the focus has shifted from Management to Human Resource Compliance.
Most small companies do not have adequate resources to develop internal controls and policies. Nor do they have access to HR & Legal Specialists in their field of expertise. This leaves them vulnerable to Department of Labor (DOL) and Equal Employment Opportunity Commission (EEOC) lawsuits, if an employee feels they have been wronged and files a complaint.
In today’s business climate, not having adequate knowledge about HR Compliance can very easily escalate to a very legal, very costly, and a very public PR battle for the employer.
There has been an exponential increase in the number of State & Federal laws in the last 20 years. Employers are subjected to an explosion of new laws and regulations, and faced with an uphill challenge to keep up with regulations and remain compliant. Unfortunately, the employer is forced to walk this regulatory tightrope, often wearing a blindfold.
The Equal Employment Opportunity Commission, (EEOC) actively investigates claims of employment discrimination and routinely fines employers who are in violation. Similarly, the Department of Labor investigates FLSA, OSHA, COBRA, ERISA, Disability Employment policy violations, and wage claim disputes.
The DOL has significantly narrowed the definition of an Independent Contractor and imposed a large degree of subjectivity to determining if the employee meets the criteria. Companies previously treating their contractors as 1099 should consult with HR Professionals to ensure the relationship meets the stringent criteria.
The new Affordable Care Act, also known as Obamacare, has created a new set of challenges for small to mid-sized companies. Reporting requirements of this law are extremely complex. An estimated one in every four employers is not in compliance with this law, and can be subjected to stiff penalties.
The increase in number of legal liability lawsuits against companies and managers is a harsh reality of conducting business in today’s litigious environment. The reality is, one misstep has the potential to open the company to a series of events, all of which will be financially detrimental to the company, regardless of the ultimate outcome. And the sadder reality is that almost 80% of companies are unknowingly in violation of numerous labor and tax laws at any moment in time.
PEOs bring HR Expertise to Clients.
PEOs bring a wealth of knowledge and experience in handling every aspect of Employee Management and Human Resource Management with client companies. We provide free consulting with Certified Human Resource Specialists to clients. By outsourcing HR Management, the company can avoid these problems and let HR Professionals handle the complex laws and regulations.
Services include defining job descriptions, measurement & feedback methods, HR Manuals, company policies & procedures, conflict management and more.
Our certified payroll tax specialists stay abreast of the changes in tax laws and shield our clients from errors in payroll processing.
The unique professional employer organization (PEO) relationship also allows the sharing of some employer risk liabilities which normally would be borne solely by the client. ACA reporting, compliance testing, COBRA, IRS payroll tax audits, employer legal liability discrimination law suits, are all handled by the PEO under the co-employment relationship.