2019 People Management Compliance Guide for Finance Leaders

We think of “people management” compliance as a cluster of regulations that govern the day-to-day working lives of your team. Occupational Safety and Health Administration (OSHA) assures safe and healthful working conditions for employees by setting and enforcing workplace safety standards and by providing training, outreach, education and assistance.

FMLA is a federal law that provides medical and maternity leave rights to eligible employees. COBRA is covered under the Employee Retirement Income Security Act of 1974 (ERISA) and relates to continued health care benefits after an employee separates from the company. And sexual harassment, broadly defined, falls under the purview of the EEOC.

Who does People Management Compliance affect?

OSHA: Businesses with more than 10 employees.

FMLA: Companies with 50 or more qualified employees on the job 12 months.

ERISA – COBRA: Companies with 20+ employees that offer a group health plan.

Sexual Harassment: Any business can be at risk for a sexual harassment claim.

Potential Penalties of People Management Compliance

OSHA: There are six specific categories of violations. The most serious is a willful violation. The minimum penalty for each willful violation is $12,934 and the maximum fine is $129,336.

FMLA: If your company loses an FMLA case, you can be required to provide back pay, actual money lost by the employee and fines by the DOL’s Wage and Hour Division.

COBRA: General notices must be distributed within the first 90 days of coverage. Election notices, which describe employees’ rights to COBRA and how to make an election must be provided to employees within 14 days after receiving notice of a qualifying event.

Sexual Harassment: Sixty-three percent of harassment lawsuits filed in 2017 included sexual harassment claims.* These claims can result in enormous settlements or jury verdicts.

What you should know?

To prevent yourself from people management compliance penalties, consider the following points:-

Good communication is the foundation of “people management” compliance.

The penalties, fines and settlements associated with people management violations can be devastating to your company. Your HR team’s Employee Handbook (you have one, right?!) not only communicates FMLA, OSHA and EEOC entitlements and obligations to employees, but is also useful in demonstrating that your organization strives to be compliant.

For example, if your employee is called away to active-duty military service, HR needs to make sure they understand their rights and obligations when communicating their reason for taking leave. Your Military Leave Policy should clearly define these parameters to the employee.

Similar policies should communicate rights and obligations regarding state disability leaves, federal FMLA leave and other government mandates.

Note that FMLA regulations are separate from your company’s sick leave policy. Even employees who are not entitled to company paid-time-off may be eligible for FLMA relief.

FMLA also has strict notification requirements, which is another communication challenge.

In addition to displaying the mandatory FMLA poster and notifying employees of their rights and responsibilities, you must also provide a written notice of this information within five business days of an employee requesting FMLA leave.

You must then allow at least 15 calendar days for the employee to submit a completed certification form. Within five business days of receiving the certification form, you must provide a company response form indicating whether or not the request has been approved.

Federal law also requires the OSHA poster (and/or the state plan equivalent) to be hung in a prominent location within the workplace.

Which business software can help you with people management compliance requirements?

One name. Paycor.

Yes, it comes with most complete people management compliance support. It provides the following support in this regard.

1. Human Resource Management
2. Payroll Management
3. HR Support Center

Paycor has been listed one of the toppers in managing finance compliance while dealing with human resource management tasks. It is yet simple but, powerful HR compliance support business software with everything you need at one place.