How Do Your Clients Deal with HR Compliance?

How Do Your Clients Deal with HR Compliance?

Managing compliance can be a never-ending, uphill battle, especially for your smaller clients. From recruiting to hiring to payroll and HR regulations, wrangling compliance rules can very easily turn into a full-time job.

So, how are your clients managing? Are they burying their heads in the sand, pretending that a lot of legislation simply won’t touch them? Do they have someone (or several staff members) in charge of ensuring nothing slips through the cracks? Or, like many companies, are they doing a little of both? Failing to make sure that they’re buttoned up when it comes to government compliance can result in disastrous consequences. As a trusted advisor, it’s incumbent on you to make sure they’re toeing the line. Here are some hot button topics to make sure they’re focused on.

Recruiting Compliance

Recruiting, especially in a tight labor market, is a fast-paced game. A company’s recruiters help make rapid and sensitive yes/no decisions, so the pre-hire phase of the employee lifecycle can be a risky time. EEOC (Equal Employment Opportunity Commission) and OFCCP (Office of Federal Contract Compliance Programs) ensure that companies’ hiring practices are fair to everyone and, in addition, do not discriminate against protected classes of applicants.

Who does it affect?

  • EEOC: All employers, state agencies and labor unions with 15 or more employees who have worked in that capacity for a minimum of 20 calendar weeks are required to comply with EEOC regulations.
  • OFCCP: All federal contractors who conduct business with the government in excess of $10,000, fall under the jurisdiction of the OFCCP.

Potential penalties:

  • EEOC: $355M in fines in 2017, on pace for more than 100K discrimination charges filed in 2018.
  • OFCCP: $40M in back wages and fines paid in 2017, more than $100M since 2000.

Hiring Compliance

Federal law requires all employers to use certain forms to verify the employment eligibility and identity of all employees hired to work in the United States. ICE (the U.S. Immigration and Customs Enforcement) has become far more active this past year, and fines for simple errors, such as incomplete forms, range from $110 to $1,100 per violation. Fines increase up to $16,000 per violation for knowingly employing unauthorized workers.

Who does it affect?

  • I-9: Form I-9 verifies employment eligibility, and it is required for every person a company hires. The I-9 does not require gathering a Social Security number or photo identification.
  • E-Verify: E-Verify is operated by the Department of Homeland Security and, like the I-9, allows employers to verify the employment eligibility of employees. While E-Verify is still a voluntary process* in many states, some states have made the process mandatory. Your HR teams are required to gather Social Security numbers and photo identification for E-Verify.

*E-Verify is also mandatory for employers with federal contracts or subcontracts that contain the Federal Acquisition Regulation (FAR) E-Verify clause.

Potential penalties:

  • I-9: Since early 2018, ICE has relied on I-9 inspections to discover and impose penalties on businesses that have not appropriately verified employment eligibility. The number of companies that have had their I-9 processes audited every year has rocketed from a few hundred to thousands.

If you’re searching for a trusted compliance partner for your clients, look no further than Paycor. For nearly 30 years, we’ve maintained a core expertise in payroll and compliance. To learn how we can support the businesses your work with, contact our expert team.

*Employment law firm Littler recently issued its seventh annual report on EEOC developments.

More to Discover

Banker

The Hidden Costs of In-House HR & Payroll

The Hidden Costs of In-House HR & Payroll

For years, many small businesses relied on in-house resources to process payroll and keep up with tax filings. Outsourcing payroll to a company was often deemed too costly and most businesses hesitated to relinquish full control.But with the growth of HCM technology and a host of available solutions to manage all components of the employee lifecycle, resistance to outsource HR and payroll has greatly declined. If you’re torn between the two options, check out our infographic below which highlights the risk and hidden costs of shouldering the burden alone.

Case Study: Pawtucket Red Sox

Case Study: Pawtucket Red Sox

The Pawtucket Red Sox Save 80+ Hours a Year with Paycor Solutions “Paycor’s solutions are truly influenced by the professionals who use them. I personally made a suggestion for a product enhancement and it was implemented within months. That tells me Paycor is focused on providing a useful tool and quality experience for users and not just making another sale.” - Matt Levin, Senior Vice President/Chief Financial & Technology Officer Why the Pawtucket Red Sox Baseball Club Chose Paycor The Pawtucket Red Sox (Pawsox) are more than a professional minor league baseball club. They’re an organization that’s dedicated to positively impacting their local community. But since their HR & payroll technology was more of a burden than a...

Case Study: Carolina Taco

Case Study: Carolina Taco

After experiencing numerous tax filing and payroll processing errors, Carolina Taco and Prepared For You Inc. found a provider they could trust in Paycor. “My favorite thing about Paycor is the customer service. The team I work with is so helpful and responsive. They never leave me hanging and go above and beyond to answer questions and support our business.” - Diane Labiendo, Corporate Office Manager, Carolina Taco & Prepared For You Inc. Prior to Paycor Processing payroll was a time-consuming and frustrating experience. Not only did they experience multiple payroll and tax issues, but their previous provider failed to properly pay an employee’s child support. Phone calls searching for support often went unanswered, and HR is still...

What Happens if I Incorrectly Pay Employees?

What Happens if I Incorrectly Pay Employees?

Overpaying or underpaying employees seems like an easy problem to avoid. But it’s a serious challenge that plagues small and medium-sized businesses alike. In 2019 alone, the DOL collected a record $322 million in back wages for employees. With more crackdown and higher penalties, businesses need to be more prepared than ever before. But Penalties Aren’t Your Only Problems Keep in mind the DOL won’t be your only headache. Employee satisfaction, brand reputation and your bottom line are all at risk. To help, here’s everything you need to know should you ever incorrectly pay an employee. What Should You Do If You Overpay an Employee? Let’s start with the basics: According to the Fair Labor Standards Act (FLSA), employers that make a...