HR compliance is defined as the process of aligning workplace policies with a city’s, state’s, country’s, and the world’s labor laws in sync with industry-specific regulations. In addition to policy setup, enforcing practices to follow these policies daily is also part of HR compliance.
Compliance is among the critical functions of any HR department. You are tasked with making sure that hiring practices, workplace rules, treatment of employees, and a variety of other factors all comply with the relevant laws. Companies also outline their own HR compliance policies to be followed internally.
But managing this HR compliance landscape could prove to be a challenge. A 2019 survey of 1,300+ respondentsOpens a new window found that employers anticipate a significant impact from regulatory laws. Variances at state and local levels add to this complexity, making it hard to manage paid sick leave (69%), the legalization of marijuana (54%), and background checks (52%).
In response, companies must take proactive measures to maintain HR compliance. There are several layers of rules and standards to follow, requiring a multifaceted compliance strategy from HR. And these rules are continually evolving.
For instance, just recently, the U.S. government released the Families First Coronavirus Response ActOpens a new window , which makes it mandatory for employers to offer paid sick leave or extended family and medical leave until December 31, 2020, for reasons associated with COVID-19. The rollout of GDPR two years ago was another law that introduced a tectonic shift in HR compliance.
Typically, an HR compliance officer (working with a dedicated HR compliance team) takes charge of handling these regulations, ensuring that an organization is up to date and compliant at all times. From retiring outdated practices to implementing forward-looking action plans, the HR compliance officer is at the center of a smooth-functioning organization.
HR compliance often works alongside a company’s legal team so that the laws and standards are interpreted correctly. It can also reach out to the learning and development (L&D)Opens a new window department to train employees on compliant practices, for instance, in workplace safety in a manufacturing unit.