The legal aspect becomes essential for workers in the human resources department as they always have to look for updates and make sure the rights of their colleagues and newcomers aren’t violated. For example, in the United States, the law has a solid impact on business decisions. Employment regulations are adjusted by local, state, and federal governments. Moreover, the changes always update, and keeping up with these changes becomes more than just a routine. It becomes obvious when we see how fast HR legal responsibilities increase each year. Specialists must spend no less than 10 hours per month familiarizing themselves with the regulation compliance. You won’t be able to resolve this problem by simply getting help at grademiners.com. You need to understand all the details, and we will explain them to you. Keep reading this article to learn how legal issues change human resource management.
How HR and Employment Law Are Correlated?
Specialists from the Human Resources department must be familiar with all laws and regulations related to employment laws and regulations. What does it mean? Each worker must understand the legal framework in-depth to be familiar with all the procedures and operations. Also, understanding employment law decreases discrimination claims and wrong termination cases.
The Most Important Laws to Remember for Every Organization
The list of laws and regulations HR specialists should remember is enormous, but we will outline the most important in our article. So, it’s essential to know:
Fair Labor Standards Act
Payroll was never a strength of most companies. Statistics show that nearly 50% of workers face paycheck errors. These are not minor issues but errors that cost a lot for business. Companies have to avoid overpaying and control the salary release process carefully. FLSA, or the Fair Labor Standards Act, sets a salary minimum and protects employees from employer exploitation. This act helps ensure workers receive their salaries and nobody tries to exploit them.
Equal Pay Act
The Equal Pay Act (EPA) states that men and women are paid equally for the same tasks. If the employer is paying women less than men for the same tasks based on the same agreements, they should be penalized according to the restriction of the EPA because of gender-based discrimination.
Family Medical Leave Act
According to the Family Medical Leave Act (FMLA), companies that have more than 50 workers must provide qualified employees with 12 weeks of unpaid leave based on various reasons, including the birth of a child (or adoption), the care of a parent, a spouse, or a child with a severe health condition, and employee’s health problems that makes them unable to do the job. Still, the problem is that healthcare is not free. In 2019, healthcare coverage for one family cost around $14,000.
Occupational Safety and Health Act
OSHA is responsible for workplace safety and health requirements. Simply put, each employee has a right to a safe workplace. On the other hand, employers are responsible for creating a safe work environment that does not contain any hazards or risks for workers.
What Happens if Employers Ignore the Existing Standards?
Those who violate employment standards should face penalties. It could be fines or back pay awards if the employer does not pay the minimal salary according to the Fair Labor Standard Act. It’s not only financial damage; it’s also serious damage to the whole company and its reputation. People will think twice before joining a company that violates employment standards.
Retirement and Pension: Legal Risks
There are also a lot of bureaucracy and legal issues surrounding retirement and employees’ movement to pension. The situation became more problematic after the pandemic because companies had to manage retirement funds for workers. Due to the rapidly changing situation around the question of retirement, small businesses name this process one of the most complicated things in this area of law. Moreover, non-compliance with ERISA can cost your company serious penalties, about $16,000 for one improper distribution.
How to Navigate in a Rapidly Changing Legal Landscape?
The best option for those who want to adapt fast and avoid possible issues is to collaborate with a law firm. When you work with professional lawyers, you protect yourself from possible wrong moves and reduce pressure on your HR department. Law specialists will provide you with all the latest updates about laws and regulations, so there’s no chance of missing something.
Another advantage of collaboration between an HR department and a law firm is that you establish your environment, making it free from discrimination. When all the standards are followed, there is no reason to talk about violations, especially if you know that you always receive the latest updates about the changes. A stable team that has no issues will show higher productivity and spend no time resolving possible problems.
Still, it’s not just about hiring attorneys and asking them to provide information about recent updates in the legal field. HRs and attorneys have a role to play, and clarifying these roles is essential before starting cooperation. For example, when you hire an attorney, you can consult with the specialist about recent changes, potential issues, and possible challenges your business can face shortly.
Final Thoughts
Some business owners say the law frame is a living hell, especially for the HR department. Since these specialists have so much work to do, they must monitor the updates, analyze them to avoid the wrong interpretations, and keep the whole company updated about the recent changes. Cooperation with law firms is a game-changing decision for businesses as they can reduce pressure and improve their working practices with acts and regulations on all levels. Moreover, a plan of action becomes more obvious once you understand the key steps and know what parts should be prioritized. The sooner you select a reliable partner and start acting according to a new plan, the quicker you`ll adapt to new changes.
