The Rules Do Apply: Navigating HR Compliance
- 5. Building and managingteams of highly specialized practioners that exceed the needs of our clients and yours. 500+ successful client engagements (and counting) 75% decrease in time to deliver critical resources 35% reduction in cost per engagement BY THE NUMBERS Representing some of the most iconic brands in the world. Recruitment Onboarding Training Process Operations Continuous Improvement Ann Meyers Piccirillo, SVP HR
- 6. Agenda • Introduction: Whatis HR Compliance? • Understanding HR Compliance: Legal & Regulatory Landscape • Key Compliance Areas • Recruiting & Hiring Practices • Wage and Hour Compliance • Job Protected Leaves • Data Protection & Privacy • Employee Relations • Diversity, Equity, Inclusion & Belonging (DEI&B) • The New Frontier: Comments on AI in HR
- 7. Compliance is Foundational to Culture Complianceshapes a company’s values and behaviors. It also establishes an ethical framework making employees feel more secure and valued.
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- 9. What is HR Compliance HRCompliance is adhering to federal, state, and local government regulations, relevant laws that ensure your organization follows the most current labor and employment laws. HR leads this effort to ensure that your organization's actions and decisions related to employment are lawful and ethical to protect the rights and well- being of employees while mitigating legal and regulatory risks.
- 10. Understanding HR Compliance: Legal& Regulatory Landscape
- 11. HR Compliance: Legal& Regulatory Landscape What is your role as an HR professional in compliance? Understand labor laws at the local, state and federal levels: Ø Statutory compliance: government legislation Ø Regulatory compliance: enforce legislation and rules established by regulatory commissions (DOL, SEC, EEOC, OSHA, DHS…) Ø Contractual compliance (client/employee contracts) Ø Union contracts
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- 13. Key Areas in HR Compliance EqualEmployment Opportunity (EEO) Fair Labor Standards Act (FLSA): Wage/Hour compliance Occupational Safety and Health Administration (OSHA) Leaves (FMLA, Maternity, Parental, Military, Paid Time Off) Americans with Disabilities Act (ADA) Employee Benefits (ACA, ERISA…) Privacy and Data Protection I9 Compliance (IRCA) Diversity, Equity, Inclusion & Belonging (DEIB) All of the above is foundational to EMPLOYEE RELATIONS
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- 15. Compliance in therecruiting/hiring process Background Checks: must comply with Fair Credit Reporting Act (FCRA) and all state laws. Offer must be accepted before background is initiated and must get candidate’s written consent. Fair and Consistent Hiring Procedures: use standard processes to mitigate bias, use uniformed screening criteria to assess candidate’s qualifications/skills, use structured interviews (STAR: Situation, Task, Action, Result) to mitigate bias by highlighting skills, accomplishments and achievements. Job Advertisements and Recruitment Strategies: ensure that all aspects of the recruiting process, including job postings, outreach efforts, and candidate selection methods, adhere to relevant laws, regulations, and best practices. Non-Discrimination Policies: ensure fair and unbiased treatment of all candidates throughout the recruitment process. Emphasize the organization's commitment to equal employment opportunity and prohibiting discrimination based on factors such as race, color, religion, sex, national origin, age, disability, genetic information, or any other characteristic protected by law.
- 16. Background Checks Offer mustbe accepted before background check is initiated Candidate must agree in writing to have background check initiated Know the local and state laws to understand what you can consider in making your decision If a misdemeanor or felony comes back, does it affect the job the person is being offered? How dated is it?
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- 18. Wage & Hour Compliance •Failure to Pay Minimum Wage (check state laws) • Employee Misclassification • Exempt/non-exempt • W2/Contractor • Failure to Pay Overtime • FLSA requires employers to pay non-exempt employees time and a half for every hour worked in excess of 40 hours in one workweek • Employees classified as exempt (executive, administrative & professional employees receiving a salary) are not eligible for overtime pay Failure to Provide Paid Sick Time • There’s a movement among states requiring employers to pay part- time hourly employees paid sick time. Check state laws for compliance.
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- 20. FMLA: Family &Medical Leave Act. FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons, such as the birth or adoption of a child, caring for a family member with a serious health condition, or the employee's own serious health condition. FMLA also provides certain military family leave entitlements. PFMLA: Paid Family & Medical Leave Act. Some states have enacted paid family leave laws that provide eligible employees with paid time off to care for a new child, a seriously ill family member, or to address certain military family needs. PFL laws vary by state in terms of eligibility criteria, benefit amounts, and qualifying reasons for leave. Check state law. Prenatal Personal Leave (2025): Beginning January 1, 2025, New York employers will be required to provide employees with 20 hours of paid “prenatal personal leave” during any 52-week calendar period to attend prenatal medical appointments during or related to pregnancy. New York is the first state in the country to mandate paid leave specifically for pregnant employees. Maternity Leave: Maternity Leave can be covered under FMLA, PFMLA, state and local laws. Employer may offer additional time-off benefits. Military Leave: The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides job protection for employees who leave their jobs to serve in the uniformed services, such as the U.S. Armed Forces, Reserves, National Guard, or other uniformed services. USERRA requires employers to reemploy returning service members in their previous positions or comparable positions with the same seniority, status, and pay. Domestic Violence Leave: Some states have enacted laws that provide job-protected leave for employees who are victims of domestic violence, sexual assault, or stalking, allowing them to take time off to seek medical attention, obtain legal assistance, or address safety concerns. Check state law. Job Protected Leaves
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- 22. Data Protection isParamount Legal Compliance: HR departments are entrusted with sensitive employee information. Compliance with data protection and privacy laws is essential to ensure that all employee data is collected, processed, and stored in accordance with legal requirements, such as the GDPR, CCPA, HIPAA, SOC2, and other relevant laws. Trust and Confidentiality: Maintaining the privacy and security of employee data builds trust between employees and the organization, fostering a positive workplace culture and employee morale. Risk Management: Failure to protect employee data can expose organizations to significant legal, financial, and reputational risks. Data breaches or violations of data protection laws can result in regulatory fines, lawsuits, damage to brand reputation, and loss of employee trust and confidence. Employee Rights and Fairness: Employees have a right to privacy and control over their personal information. Protecting employee data safeguards their rights and ensures fairness in HR practices, such as recruitment, performance management, compensation, and benefits administration. Compliance Audits and Investigations: Regulatory authorities may conduct audits or investigations to ensure compliance with data protection and privacy laws. There must be data protection measures put in place to demonstrate compliance and mitigate legal risks should there be an audit or investigation. Global Transmission of Data: If you have a global workforce, HR may need to transfer employee data across borders. Compliance with data protection laws, particularly regarding data transfers, is critical for legal compliance. Employee Well-being and Safety: Protecting employee data safeguards against identity theft, fraud, or misuse of personal information. Employees are more likely to feel secure and valued when they trust that their data is handled responsibly by the organization. Should there be any breach of data, employees need to be immediately made aware and measures put in place to support them.
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- 24. Employee Relations in HRCompliance Employee relations in HR compliance involve promoting a culture of fairness, transparency, and legal compliance while addressing workplace issues in a timely manner and maintaining positive employee relations.
- 25. Labor Laws Compliance:Compliance with federal, state. and local labor laws and regulations governing the employer-employee relationship. Employee Policies and Procedures: Develop and enforce employee policies and procedures to ensure compliance with legal requirements and promote fair treatment of employees. Union Relations: With unionized workforces, employee relations involve managing relationships with labor unions in compliance with collective bargaining agreements and labor laws. Conflict Resolution: Resolving conflicts and disputes between employees or between employees and management in a fair and equitable manner. Employee Engagement and Communication: Employee engagement is promoted by implementing employee feedback channels, conducting employee surveys, and creating strategies to enhance employee morale, motivation, and overall satisfaction. Performance Management: Employee relations involve managing performance-related issues in compliance with legal requirements and company policies. HR should have a performance management process in place that is accessible to employees so that they are aware. Termination and Separation of Employment: HR manages employee terminations and separations in compliance with legal requirements and company policies. (Check states for final payroll processing and payout of accrued unused vacation days.) Recordkeeping and Documentation: Employee relations activities require accurate recordkeeping and documentation to demonstrate compliance with legal requirements and company policies. (HRIS systems provide this compliance component.) Employee Relations
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- 27. HR practices andpolicies should support diversity, equity, inclusion and belonging (DEIB). Equal Employment Opportunity (EEO) Compliance: HR must comply with EEO laws and regulations that prohibit discrimination based on protected characteristics such as race, color, religion, sex, national origin, age, disability, genetic information, and gender identity. Affirmative Action Compliance: Federal contractors and subcontractors are subject to affirmative action requirements and HR must ensure compliance with affirmative action obligations. Diversity Recruitment and Retention: HR should implement strategies to attract candidates from diverse backgrounds, review recruitment processes for potential bias, and foster an inclusive workplace culture that values diversity and promotes belonging. Harassment and Discrimination Prevention: HR is responsible for preventing and addressing harassment and discrimination in the workplace. Accessibility and Accommodations: HR ensures compliance with the Americans with Disabilities Act (ADA) by providing reasonable accommodations to employees with disabilities and ensuring accessibility in recruitment, hiring, training, and other HR processes. Remember: Compliance doesn’t guarantee accessibility. Key aspects of HR compliance in Diversity, Equity, Inclusion & Belonging
- 28. The New Frontier: Commentson AI in HR