Chapter 11

HR Compliance

HR Compliance—Key Laws for Fairness, Diversity, and Inclusion

There’s a lot you need to keep track of as an HR professional with regards to the laws and regulations for hiring and employment. While it’s essential to follow legislation to avoid costly penalties and liability, HR compliance isn’t just about crossing your t’s and dotting your i’s. These rules help keep your employees safe by protecting them from discrimination, harassment, and other unfair or dangerous treatment.

Don’t think of labor laws and HR regulations as all that red tape that makes things harder for you and your organization. Instead, think of HR laws as a way to ensure your employees have guaranteed access to certain rights and protections.

This chapter will cover the basic definition for the most relevant and important HR laws (but be sure to keep up to date as HR regulations and labor laws may change over time). We’ll discuss:

While not a labor law per se, diversity, equity, and inclusion principles will help you grow a culture where anti-discrimination, HR compliance, and workplace safety aren’t just afterthoughts but integral parts of your values.

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Workplace Discrimination

What Are the Main Federal Anti-Discrimination Employment Laws?

Employers need to follow federal anti-discrimination laws in order to protect their employees and remain compliant.

Here are some of the main HR laws:

Each of these HR laws also protects anyone from retaliation for making a complaint or participating in an investigation relating to discrimination based on any of these laws. For more details on these laws and other discrimination laws relating to employment, visit the Equal Employment Opportunity Commission (EEOC) website.

How Many Employees Does a Business Need to Have for Federal Anti-Discrimination Laws to Apply?

Small and medium businesses in the private sector have different requirements for following federal anti-discrimination laws, depending on how many employees they have.

The following federal anti-discrimination laws apply if you have:
An employee is defined as anyone who is:

Federal law also requires employers to display the relevant anti-discrimination laws with a poster, informing employees of their protections and rights. For more information on the HR compliance requirements for small and medium-sized business, visit the EEOC website. Be sure to also check if there are any additional state or local anti-discrimination laws you need to follow.

Compliance should be more than just a checklist.

Learn how your attitude towards compliance can strengthen your company’s culture.

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Wages and Hours

What Are the Main Federal Laws Governing Wages and Hours?

There’s more that needs to be said about payroll and time tracking than can fit in this chapter, so go to our chapters about payroll and time tracking to read about best practices, software, and how to create time-off policies.

In terms of HR legislation that affects these responsibilities, here’s an overview of the two most important laws that have to do with how employees are paid and how much they work:

For additional federal laws regarding hours and wages, check the Department of Labor (DOL) website. Also be sure to check your state and local regulations.

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How Many Employees Does a Business Need to Have For Federal Wages and Hours Laws to Apply?

The FLSA isn’t limited by the number of employees per se. There are two types of coverage that qualifies who gets covered by the law:

For more detailed information, consult the DOL website on who is covered under FLSA.

The FMLA, on the other hand, is a little easier to figure out. Employers in the private sector who have 50 or more employees for at least 20 workweeks a year are required to provide coverage under the law. All government agencies and schools need to provide coverage.

However, there are further requirements that employees need to fulfill before they can be eligible for FMLA leave.

On top of working for a qualified employer, employees need to:

For more detailed information, consult the DOL website on employee eligibility for FMLA leave.

Health Insurance and Benefits

What Are the Main Federal Immigration Laws Relevant to Employment?

As an HR professional, you’ll be fielding many questions about plan eligibility and coverage, and you’ll be handling incredibly sensitive information about employees. It’s vital that you understand both your organization’s responsibilities towards employees and how to protect their benefits and information.

The main HR laws to know are:

There are also many best practices surrounding benefits that you should consider in combination with these HR regulations. For more details, read our chapter on compensation and benefits.

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Immigration Laws

What Are the Main Federal Laws Governing Health Insurance and Benefits?

While immigration laws contain restrictions with regards to citizenship and legal residency, it’s important to note that immigration laws and regulations also include protective measures for employees and candidates. When thinking about HR compliance from an immigration legislation point of view, remember to not just protect your organization but workers as well.

The most relevant laws are:

All businesses, regardless of size, need to adhere to these laws. Be sure to check for any additional state and local laws, e.g., rules regarding sanctuary cities.

Workplace Protection

What Are the Main Federal Workplace Safety Laws?

There are many regulations on workplace safety, so what you need to follow and be aware of will depend on your industry. However, there is one main source for these regulations that you will need to consult:

How Do You Maintain a Safe Workplace?

When it comes to your employees’ safety, it’s important to be proactive and to prevent issues from arising in the first place. OSHA offers an on-site consultation program to help businesses, especially new and small businesses, identify potential hazards. This is separate from official OSHA inspections and doesn’t result in any penalties. It’s a free program, but you have to be the one to request it. Visit the OSHA consultation web page for more information.

If you’re not interested in a consultation, OSHA has a few general recommendations for all employers to remain compliant and keep a safe workplace:

As with other HR laws, OSHA protects workers against retaliation from employers. For other questions about workplace safety or OSHA, visit the Department of Labor employer page on health and safety.

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Diversity and Inclusion

What Does Workplace Diversity, Equity, and Inclusion Have to Do with Labor Laws?

We know this to-do and to-don’t list of HR regulations can seem daunting. The good news is that following these HR laws doesn’t just keep you on the right side of HR compliance; it also shows your employees that you can be trusted to keep them safe, whether that’s in a physical sense or in an emotional sense (e.g., from discrimination or retaliation). While it’s incredibly important to maintain a healthy working environment, it’s only part of the equation for building an engaged, productive workforce.

Instead of sticking to a basic mentality of workplace safety where employees don’t get hurt and your organization doesn’t get sued, you can and should do more to build a successful work environment where employees feel welcomed, engaged, and encouraged. Taking time to address DEI issues shows that your organization understands and appreciates your employees as human beings, not just productivity providers with legal strings attached.

Three-quarters of Americans say it’s “important for companies and organizations to promote racial and ethnic diversity in their workplace,” according to the Pew Research Center.

Why Is DEI Important in Business?

The 2018 U.S. census data shows that racial diversity is increasing across all age groups. So, on the one hand, increased diversity is just a growing reality. But different perspectives also bring new, creative solutions to problems, so it should come as no surprise that workplace diversity is also good for business.

There is a wealth of evidence that more diversity equals better business outcomes, including:

Something else to consider is your employees themselves. Three-quarters of Americans say it’s “important for companies and organizations to promote racial and ethnic diversity in their workplace,” according to the Pew Research Center. Additionally, Millennials will soon make up a large majority of the workforce, and diversity and inclusion is a top criteria for them when they make employment decisions.

Here’s the bottom line: Diversity makes organizations stronger, more profitable, more innovative, and more attractive to employees. Inclusion is the active part of that equation; it’s how you show your diverse workforce that they are welcome in your organization.

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How Can You Promote Inclusion in the Workplace?

Workplace diversity is quantifiable. For example, you can look at the gender or age makeup of your workforce, or you can compare your organization’s demographics to local census data to see if you’re being fair and equitable in your hiring and sourcing. Inclusion, on the other hand, is more about how people feel and think, and that can make it more difficult to measure and work on.

Johnny C. Taylor, Jr., president and CEO of the Society for Human Resource Management (SHRM), warns that it’s easy to think you’ve achieved both diversity and inclusion if you have a diverse workplace. “We often forget the ‘I’ in the D&I conversation,” says Taylor. “The challenge is in having a culture where all employees feel included. It’s a major investment to bring talent into your organization, so why bring them in if they’re not happy when they get here? You’ve got to get the inclusion part right.”

The goal of inclusion is to make employees feel like they belong and that they are valued by the organization. And while belonging certainly means making social connections, it’s also about employees being able to contribute and make a difference in the work. So, inclusion has to be a wide-ranging effort that spans well beyond your hiring practices and into your culture, brand, communication practices, leadership training, and more.

“It’s a major investment to bring talent into your organization, so why bring them in if they’re not happy when they get here? You’ve got to get the inclusion part right.”

—Johnny C. Taylor, Jr., SHRM president and CEO

The goal of inclusion is to make employees feel like they belong and that they are valued by the organization. Inclusion is a wide-ranging effort that spans well beyond your hiring practices and into your culture, brand, communication practices, leadership training, and more.

Here are some strategic and meaningful ways to promote inclusion in the workplace:

Inclusion is an ongoing process—wherever you start and decide to change, there are always opportunities to make a difference and create more inclusion.

Helpful Resources

To make it easier to navigate the many HR regulations, here are a few key links we mentioned throughout this article and a few additional ones with useful information for employers.

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Chapter 12: HR Software