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 Form retention is key to limiting liability, and knowing when to purge outdated forms, and complete purging on a timely basis, is important.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.
Digitize your HR files with cloud based services and HRIS systems. Organizations can use an HRIS to manage information on their employees, automate workflows, and streamline HR processes. If you are using hard copies then 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! (866) 491-5676