HR compliance is a crucial aspect of the staffing industry, particularly in the light industrial sector. Employers in this industry must adhere to local, state, and federal laws, regulations, and guidelines to ensure worker safety and prevent legal and financial consequences.
Below are some best practices for compliance in the light industrial sector:
- Know the Regulations and Guidelines
It is essential to stay up to date on local, state, and federal laws and guidelines that impact your industry. This includes minimum wage laws, employee classification guidelines, safety regulations, and more.
The costs associated with misclassifying employees, for example, are steep. There are likely federal civil penalties of $1,894 per violation, state penalties, legal fees, and in some cases, the potential for jail time. If a case goes to court and a judgment is rendered in favor of the employee, statutory interest will begin to accrue on the amount owed—generally 10% per year.
- Conduct Regular Audits
Regular audits can help identify compliance issues before they become significant problems. Audits should cover areas such as employee classification, payroll, and benefits administration, record-keeping, and safety compliance.
- Train Your Staff
Ensure that all staff members are knowledgeable about compliance requirements and are trained to identify and report potential compliance issues. This includes training on safety procedures, employee classification, and anti-discrimination policies. Providing access to safety and compliance classes and videos is essential. The Occupational Health and Safety Administration (OSHA) 10-hour training programs are especially helpful and important in mitigating risk and creating a safety-minded culture.
- Use Technology
Technology can be a valuable tool for ensuring compliance. This includes using applicant tracking systems (ATS) to ensure compliance with Equal Employment Opportunity Commission (EEOC) regulations and using electronic timekeeping systems to track employee hours and prevent wage and hour violations.
- Partner with an HR Consulting Firm
HR consulting firms can provide expert guidance on compliance issues, assist with audits, and offer training and development programs for staff members. If you have any questions about these important areas of your business, contact a representative of a staffing-centric service provider like Vensure Staffing Alliance.
