Compliance Tracking Challenges

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compliance-tracking-challengesDo you find that keeping track of all your HR, payroll and benefits data has become more challenging over the past few years? How do you plan to keep up with new compliance responsibilities? Your number one concern may be complying with PPACA, the Patient Protection and Affordable Care Act, otherwise known as “health care reform.” Keeping track of hours and look-back periods is very complex and not easy to do without good reporting tools. Aside from PPACA, there are several other areas that must be tracked properly in order to comply with employment regulations and laws.

The Human Resources and payroll technology platform that you use has become very important in complying with these regulations. Not only does technology help companies work more efficiently by streamlining processes and providing metrics to measure and improve performance, but it also provides tracking information and reports for compliance with the laws. It allows different functions to “talk to each other.” Learn more about how the transformation of HR technology has changed the human resources role in a recent interview on KLRD 1080 CBS Radio, Eye on Technology segment.

Payroll administration and the associated regulatory and tax reporting is no longer a simple task. Record-keeping requirements, Wage and Hour compliance, regulatory reporting, and state, federal and local tax compliance are filled with hidden and costly accounting responsibilities and risks. In short, it’s a business process that drains considerable resources and exposes your company to significant risk.

I have included a list below of some of the other employment regulations that require tracking and documentation in order to comply such as FLSA, COBRA, and FMLA. This list also includes the penalties associated with non-compliance.

Employment Laws and Regulations

Who is Affected?

Summary Explanation

Penalty

FLSA

Generally, businesses with 2 or more employees

The Fair Labor Standards Act of 1938 requires employers to compensate employees a minimum hourly wage (prevailing wage rate). FLSA also specifies that employers must compensate eligible employees 1 1/2 times their wage for hours worked in excess of 40 hours (more stringent state laws may apply).

Employees may be eligible for double back wages for a period of 2 years; 3 years for willful violations, plus attorney’s fees.

Title VII

Companies with 15 or more employees

Title VII of the Civil Rights Act of 1967 prohibits discrimination in employment (hiring, firing, advancement & determining wages) on the basis of race, color, religion, sex, national origin or sexual orientation.

Damages up to $300,000 including reinstatement, promotion, back pay, benefits, attorneys’ fees for the prevailing party.

EEOA

All employees

The 1972 Equal Employment Opportunity Act strengthens the Civil Rights Act of 1964 and provides for affirmative-action programs.

Did you know that the cost of a single EEOC claim can cost you two years in back wages, plus attorney’s fees?

ADEA

Companies with 20 or more employees

The Age Discrimination in Employment Act of 1967 prohibits discrimination, failure or refusal to hire or discharge against any individual with respect to compensation, terms, conditions or privileges or employment due to the individual’s age. ADEA prohibits printing or publishing notices or advertisements for employment indicating preference, limitation, specification, or discrimination on the basis of age.

Back pay, value of lost benefits, reinstatement and attorney’s fees for prevailing party.

COBRA

Companies with 20 or more employees

COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1987, requires employers to offer same group health insurance benefits to employees upon termination of employment for up to 18 months, at the employee’s expense. Coverage may be extended to an employee as a result of a “qualifying event”. Examples of qualifying events include the death of an employee; employee becoming eligible for Medicare; divorce or legal separation; or change in child’s dependent status under the plan due to age, marriage, or completion of schooling.

Penalties for failure to comply may result in fines of $100 per day, per violation. Penalties may be charged to the employer or any person who is responsible for the plan which caused the non-compliance.

ADA

Companies with 15 or more employees

The Americans with Disabilities Act of 1990, Title I & V, prohibits discrimination against persons with disabilities in employment. Employers are required to make “reasonable accommodations” for disabled persons who are qualified to work. Reasonable accommodations means an employer must make accommodations for disabled workers without causing undue hardship (financial) on the employer.

Damages (compensatory and punitive) up to $300,000 in addition to hiring, reinstatement, promotion, back pay, benefits and attorney’s fees to the prevailing party.

FMLA

Companies with 50 or more employees (10 or more, for government contractors)

The Family and Medical Leave Act of 1993 requires employers with at least 50 employees within a 75-mile radius to allow employees up to 12 weeks of unpaid, protected job leave in any 12-month period for childbirth or adoption, serious health condition of the employee or serious health condition of an employee’s immediate family member (parent, spouse or child), active duty leave or service member family/caregiver leave.

An employee may bring suit against an employer in State or Federal court for a violation of the Act to recover lost compensation, reinstatement or promotion and attorney’s fees.

At Staff One, we have the technology and team of experts that will help keep you from being distracted with employment regulations and government requirements. You will be able to focus on your core competency and grow the bottom line of your business.

To request a demonstration of the Staff One HR platform, call 405.830.0115 or email donna.meek@staffone.com.