“Just Google it.” When it comes to making sure your HR policies are compliant with local, state and federal laws, Google isn’t always your friend. We all used to be trivia gurus, but now that typing our questions into a search engine is our default, it’s a lost art. I remember sitting with my dad one evening when the topic of baseball came up. Who knows the answer to: “Who did the Braves beat to win their only World Series title in the 90s?” If you guessed Cleveland Indians without hitting a search button, you get extra points! Trivia questions have concrete answers, but employment law and other specifics in HR require a little more digging. Here are a few tips for finding answers to your HR compliance questions.
Federal, State and Local Laws
You could easily type in “minimum wage laws” and get dozens of results. If your browser is picking up your location, laws from your state will probably be at the top of the page. Unfortunately, one quick internet search won’t generate the facts you need as easily as looking up the winner of a baseball game. Federal, state and local laws usually cover the same topic differently. Although subtle, those differences could spell trouble if you’re not following all of them concisely.
Do you know how employment laws and regulations affect companies of your size? Here’s a quick breakdown to help:
FLSA and IRS Employee Misclassification
Many small business owners rely on independent contractors to keep operations running. But depending on their relationship with the business, these workers may be considered employees by the federal government. Both the IRS and the Department of Labor are targeting businesses that purposely misclassify workers to avoid paying overtime, payroll taxes and other employee-related expenses,
The level of control the employer has over the worker’s day-to-day operations, as well as his or her contributions to the business, will usually dictate the worker’s status. If you control when and where the contractor works, they are not independent and are your employee.
Overwhelmed? Don’t stress!
If the above points have you confused and a bit stressed, there’s no need to panic. The countless employment laws and regulations can make the idea of managing your employees seem daunting. Having a skilled and educated HR professional on staff can help you navigate these treacherous waters. Don’t have someone like this in your office? Not to worry, we have HRO outsourcing options that are perfect for your business. Schedule a call with us and let us take the stress of compliance off your shoulders.