The Difference Could Be Costly to Your Business
In the world of Human Resources the difference between being in compliance with the myriad of state and federal HR regulations and taking the position that nothing has ever happened to your company so it probably never will, could cost you dearly in penalties and fines – regardless of the size of your company.
Not only has the amount of both state and federal regulation increased many times over in recent years, but increasingly these statutes apply to smaller and smaller companies. In addition, both state and federal agencies have increased enforcement actions dramatically. A recent Department of Labor action against a company in Novato, California was the result of the company’s misclassification of only 29 employees as exempt from overtime. The judgment was a whopping $209,000, or more than 7,000 per employee!
Add Heath Care Reform, where the IRS released updated rules on December 22nd that could affect your health insurance offerings to your employees, to the NRLB’s recent proposal regarding union organizing activities, and how is a small business owner to keep up? And, don’t forget that ignorance of the law is not a defense that would protect you from fines and penalties.
While there are many resources to help you stay abreast of rules and regulations that you need to know, one thing is for sure; you can’t afford to simply assume that everything is OK since nothing has ever happened in the past. The current world of HR compliance is very different than in the past and the savvy business owner will take proactive action to stay informed and protect their business and profit.
At YPP, we help our clients stay informed and in compliance as needed. As regulations are release or updated, our HR experts immediately assess the risk to each client and then recommend actions that keep them compliant with the least disruption to their business operations. You should have the same awareness set up for your business. If you need help, give us a call!