Are you HR Compliant? 4 HR Compliance Mistakes to Look Out For


Is your business HR compliant? When your business is growing and every month is better than the last, it’s easy to forget about the importance of ensuring your human resources management team is completely compliant with all relevant laws.

From keeping records to appraising and recording performance, there are a variety of HR laws and best practices that are important for your business to follow. These regulations can protect your business, often significantly, during a dispute.

Are you worried about HR compliance? Read on to learn more about four common HR compliance mistakes, and make sure your company – whether it’s a small and rapidly growing business or a large, established one – isn’t making them.

1. Ignoring OSHA compliance. 

Is your business fully compliant with Occupational Safety and Health Administration (OSHA) laws? It’s important to comply with OSHA laws not just because of the legal implications of ignoring them, but also because they keep your employees safe.

Every year, thousands of people are injured or killed on job sites and in workplaces in all industries. Although your office may seem safe, if you’re not compliant with all OSHA regulations, you could be putting your employees at risk.

Keep your team safe by making complying with OSHA regulations is a major priority for your business. From having detailed safety rules to identifying and removing any safety hazards, it only takes a few simple steps to create a safer workplace.

2. Poor performance reviews. 

Does your business carry out detailed performance appraisals of its employees? If you need to fire or promote an employee, having detailed records of their average performance can help you make your case.

It’s essential that you carry out regular, standardized performance reviews for all of your staff members. Performance reviews are particularly important if you need to fire an employee for poor performance, as they’re evidence for your decision.

Letting an employee go for performance-related issues without documentation can leave your business exposed to the possibility of legal action from the employee – a threat that can be avoided through detailed, accurate and effective record keeping.

3. Forgetting about I-9 forms. 

Here’s an “obvious” aspect of human resources management and compliance that’s all too often forgotten. I-9 forms – forms for a person’s identity and authorization to work within the United States – are essential for proper and full HR compliance.

Does your business have complete, current I-9 forms for all of its staff members? It’s essential that your business completes the I-9 form and other relevant paperwork in three days upon hiring new employees in order to avoid fines.

Paperwork such as this may seem nonessential when you’re focused on growth, but it’s essential that your HR management team is on top of it to avoid facing fines and other setbacks that can affect your business’s ability to grow and prosper.

4. Misclassifying employees. 

Does your business have employees or contractors? Have you mistakenly classified an employee of your business as a contractor? Doing so could lead to your business facing fines and legal action as a result of its decisions.

It’s important to be honest and accurate about your business’s employees, even if it may increase the amount of tax your business pays or lead to additional costs. While some workers may be contractors, others may need to be classified as employees.

Misclassifying employees is illegal, and your business could face penalties if any of its workers decide to take action. It also faces the risk of lawsuits and the large costs that are associated with legal action from former employees and contractors.