HR Compliance is confusing! What should a business focus on besides benefits?
Human resource compliance is confusing but very important to consider when running an organization. First, ensure that whoever is responsible for compliance understands where to go for assistance. There must be a knowledgeable and trusted advisor available for support, even if you have an onsite HR professional.
Next, we recommend that employers audit their basic processes. For example, the I-9 form is required for every employee. Make sure that the resource completing the forms is trained and audited regularly. Forms should be completed on the date of hire EVERY TIME. Form retention is key to limiting liability, and knowing when to purge outdated forms, and complete purging on a timely basis, is important.
Review your application. Applications should ask if the applicant is over the age of 18 versus requesting age or date of birth. Likewise, don’t ask if the applicant is a US Citizen, instead, ask if the applicant is authorized to legally work in the United States. Keep all applications received on file for at least one year.
Employees’ HR files should always be kept in a secure area within a locked cabinet. Access to files should be restricted to only a few resources. And payroll records should be maintained for a period of at least seven years.
Simplifi HR Solutions is available to assist organizations with HR compliance matters. Call us today!
Tim Reed, Co-Founder and CEO
A version of this article first appeared in The Business Journals, September 13, 2016.)