HR leaders, what is one workplace compliance mistake that you (or others) may not know you are making? How can this be avoided?
 

To help you identify or avoid workplace compliance mistakes you may be making unknowingly, we asked HR managers and business leaders this question for their best insights. From failure to follow up on investigations to not adapting risk management and other policies to remote or hybrid work, there are several things that you may need to check about workplace compliance to see where you may be making mistakes without knowing.

Here are 9 compliance mistakes these leaders are mindful of in their workplaces:  
●    Failure to Follow Up on Investigations
●    Delayed or Improper Conflict Resolution
●    Not Properly Applying The Americans With Disabilities Act
●    Losing Track of Overtime Exemptions
●    Failing to Properly Document Employee Training
●    Not Being as Current with Employment Laws as You Should
●    Not Keeping Contracts for Independent Contractors Updated
●    Not Being Up-to-Date with Safety Regulations
●    Failure to Properly Document Standards and Procedures

1. Failure to Follow Up on Investigations

One of the most common mistakes is failing to follow up on investigations that were completed. This can result in fines and penalties being issued, and workers feeling frustrated and confused about what happened. The best way to avoid this is to keep track of all investigations. It is important for HR leaders to keep track of all investigations so they know when it is safe to end a case or take additional action. Paw Vej, Chief Operating Officer, Financer.com

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2. Delayed or Improper Conflict Resolution

One of the most crucial roles of HR is to handle issues around workplace violence, harassment, discrimination, and other forms of interpersonal conflict. Therefore, HR teams need to be well-versed in conflict management and understand precisely where their legal obligations lie to protect their team and deal with the issue safely. If an HR employee fails to address the issue, delays their response, or is unequipped with the skills to deal with it, your business will be exposed to potential lawsuits. All HR employees must stay up-to-date with conflict protocol training and pass those protocols on to team managers. If an employee comes to a manager with an issue and they do not know their required next steps, you leave your business and employees at risk. Similarly, busy HR teams must drop other issues to deal with these immediately to avoid unnecessary delays and ensure their team’s safety above all else. Jeffrey Zhou, Co-Founder and CEO, Fig Loans

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3. Not Properly Applying the Americans with Disabilities Act

The Americans with Disabilities Act and state laws require employers to make accommodations for employees with disabilities as long as it does not impose “undue hardship” on business operations. HR must deeply understand that definition to ensure that where they draw the line for undue hardship would be considered fair in a court of law. HR also needs to be mindful that just because they can ’no accommodate an employee with a disability somewhere, they can ’no wash their hands of the issue until they have tried to find another reasonable solution. HR must work to identify another accommodation for them wherever possible or risk entering non-compliance. Marina Vaamonde, Real Estate Investor & Founder, HouseCashin

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4. Losing Track of Overtime Exemptions

Especially in smaller teams where HR can be less defined or is run by one person, it can be easy to lose track of which employees are exempt from overtime. Overtime has such specific outlines depending on pay rate, hourly vs salaried employees, and they are all outlined in black and white by the Department of Labor. Simply familiarizing yourself with these specifications puts you in a good position to be in compliance, but informing management and the employees themselves about their status can help too. If an employee knows from the start they are eligible for overtime, they can usually flag a mistake faster than HR or management. This does not hoist the accountability onto the employee, rather adds transparency to the compensation expectations on all sides. Gates Little, President/CEO, altLINE Sobanco

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5. Failing to Properly Document Employee Training

One compliance mistake that HR leaders may not know they are making is failing to properly document employee training. Employee training is crucial for ensuring that employees are familiar with company policies and procedures. However, if training is not properly documented, it can create potential liability issues for the company. To avoid this mistake, HR leaders should make sure to keep a detailed record of all employee training, including the date, time, and location of the training, as well as the names of all employees who attended. By taking these simple steps, HR leaders can help to protect their companies from compliance risks. Jim Campbell, Founder, Wizve Digital Marketing

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6. Not Being as Current with Employment Laws as You Should

Do not make the mistake of thinking you are current. Just because you researched new laws and regulations two years ago does not mean those are the same today. A mistake that too many HR leaders (actually, just leaders in general) make is thinking they are current with employment laws, when in fact, those laws changed and they are now non-compliant. For example, over the last few years, agencies have grown tremendously, and with them, their employment laws have grown, as well. HR leaders now have to be up-to-date with new workplace safety and health laws, sick leave policies, overtime pay laws, anti-discrimination and anti-harassment laws, and employee privacy laws. If you break any of these laws, that is your company's reputation down the drain. So as an HR leader, do not make the mistake of thinking you are current because two years ago you brought your company up-to-speed. You need to be proactive and stay on top of the expanding and ever-evolving laws. Karim Hachem, VP of eCommerce, Sunshine79

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7. Not Keeping Contracts for Independent Contractors Updated

As an experienced HR professional turned team leader, I understand that updating contracts for long-term independent contractors can get lost in the muck at times. Especially in small startups, the informality of vague contracts or indefinite agreements can be commonplace mistakes that actually leave your company and your freelancers vulnerable. If you have faced massive growth in the last year or two, it is time to revise all of these contracts ASAP. Ideally, get a lawyer involved to make everything airtight, clear and consistent. It is a pain to get everyone new contracts, but keeping them up to date and relevant as you grow will be less hassle than dealing with lawsuits, disputes and fines down the road. Volodymyr Shchegel, VP of Engineering, Clario

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8. Not Being Up-to-Date With Safety Regulations

The more hazardous the job the more regulations are generally needed to keep everyone safe. There can be a lot of rules that need to be followed, and it is not unusual for some safety measures to slip between the cracks. As if that was not enough, regulations can change year to year, as new measures are implemented to match the needs of workers and businesses. This can mean that the regulations that you were compliant with last month may no longer be valid. It is in a company's best interest to check its safety regulations, and ensure they are regularly up to date and followed to the letter. While it can be a meticulous affair, it is much better than any potential workplace accidents that might come from being ill-prepared. Soji James, 1AND1 Life Expert Certified Personal Trainer, 1AND1 Life

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9. Failure to Properly Document Standards and Procedures

One of the most common workplace compliance mistakes is failing to properly document standards and procedures. This can lead to confusion and chaos in the workplace, as everyone trying to keep up with the ever-changing rules may feel like they are working in a minefield. Not only does this make it difficult for employees who need clarity about their rights and obligations, but it also creates an environment that is susceptible to lawsuits. To avoid this, it is important to always have written policies and concise documentation that clearly outlines what workers are required or permitted to do. Clarify expectations at all times so there are no surprises later on down the road. Additionally, HR leaders should be prepared to recertify employee understanding of policy on a regular basis. This will help ensure compliance with relevant legal requirements and continued trust between management and staff members. Johannes Larsson, Founder and CEO, Joha

 

Author Bio

Brett Farmiloe is the Founder / CEO and currently the CHRO of Terkel.io. Brett is an SHRM Influnecer and has also been a keynote speaker at several state SHRM conferences around the topic of employee engagement. Connect Brett Framiloe

 
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