What Bad HR Can Cost You: Know the HR Compliance Risks

by | Apr 13, 2021 | HR Compliance, Human Resources Consulting

  • Amy Letke

    Amy Newbanks Letke, SPHR, GPHR, is the Founder of Integrity HR, Inc. Amy provides workplace solutions to improve performance, reduce liability and increase profits. She is passionate about helping other entrepreneurs and business owners achieve success. Contact us for more insights - 502-753-0970 or info@integrityhr.com

What Bad HR Can Cost You: Know the HR Compliance Risks

A full human resources department can be a lot to manage, particularly if you aren’t well versed in the ever-changing federal, state, and local regulations. Not only is non-compliance potentially damaging to your employees, but it can also rack up quite a bill if you’re not paying attention.

Whether or not you mean the mistakes you make, the truth of the matter is that the law doesn’t see intention. It sees compliance and non-compliance. We understand how hard it can be to keep up, especially for small businesses, but to avoid fines and lawsuits, every box has to be checked, every T crossed, and I dotted.

Let’s break this down by the numbers. HR mistakes and non-compliance can cost you:

  • $1,000 per mistake you make on the Form I-9
  • $500,000 if you aren’t compliant with the Affordable Care Act
  • $55,000 if you don’t follow the Americans with Disabilities Act
  • $100 fine per qualified beneficiary, up to $200 per family if you forget to offer COBRA
  • $1,100 per violation and back pay if you violate the Fair Labor Standards Act by not paying overtime wages
  • $50,000 or more if you get hit with one employment lawsuit

All of these fines and more can add up pretty quickly if you are not careful. It’s better to stay ahead of the game and keep your human resources department in order. Laws are changing frequently and compliance investigations are on the rise. The savvy business leader recognizes the need to be proactive and manages these matters efficiently before getting fined.

Not to mention, if your human resources department doesn’t have a strong strategy that aligns with the goals of your company, then you could see other damaging issues in your future. For instance, without proper recruitment techniques, you could end up with employees who are hurting your business, rather than pushing you forward.

How to avoid non-compliance

There are many steps involved in staying compliant with federal, state, and local regulations, but it can be boiled down to one piece of advice: using a certified HR consultant will make handling compliance matters simple.

Everything starts with an HR audit and operational review. No matter the size of your business, it is important that Human Resources is aligned with the business strategy and the goals of the organization. To make this happen, you first have to look at how you are doing things.

Using HR consulting services is a great way to take a deeper look at every aspect of your business to ensure that you are running efficiently, effectively, and in a way that is compliant with all regulations. Through an audit, an HR consultant will review your HR strategy, company culture, and so much more.

Rely on someone whose job it is to keep up with each new rule and regulation so that you can get back to running your business. At Integrity HR, we’re here to help you achieve success while relieving you of the burden of worrying about your Human Resources department.

When you work with Integrity HR, you get a team of experts standing behind you to ensure that every part of your business is productive, efficient, and compliant. Get started with us to make the most of your business.

Request an HR Compliance Audit today.

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