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Human Resources Compliance and Risk Management Audits

"The number and complexity of laws today make it virtually impossible for organizations to be in full compliance."

There are two primary areas of Human Resource law: statute and tort.

Statutes are laws created by a federal, state, or a local government body. Violations of statute law is against society in general (opposed to an offence against an individual), and enforcement of these laws come through a government agency.  A few statues that fall within the realm of employment or Human Resources laws include Title VII of the Civil Rights Act, the Americans with Disabilities Act, and COBRA.

The number and complexity of laws today make it virtually impossible for organizations to be in full compliance. Some common areas of non-compliance that create headaches for employers are wage and hour regulations, leaves, and adhering to the rules of the Affordable Care Act. An organizations best defense is understanding the laws and crafting policies and practices that place appropriate guardrails to keep an organization in line. Periodic audits are an important step in maintaining compliance.

There are several regulatory agencies that enforce and set standards and guidelines for the application and interpretation of these statute laws. There are two agencies that businesses deal with the most, the EEOC and the Wage and Hour Division of the Department of Labor. These agencies and others like them set their own guidelines for enforcement.

The Equal Employment and Opportunity Commission (EEOC) functions as the regulatory agency for several laws, including the Age Discrimination Act (ADEA), Title VII of the Civil Rights Act, the Equal Pay Act, and the Americans with Disabilities Act (ADA).

The Division of Wage and Hour is responsible for the administration of several laws related to wages, benefits, and worker classification. Employers interact with this agency most often when dealing with the Fair Labor Standards Act (FLSA) and The Family and Medical Leave Act (FMLA).

A tort is a wrongful act committed against a person by another individual or an organization that results in a lawsuit. Since a tort is committed against an individual or an organization, the judgment is rendered in civil court. Generally, employers incur the most significant liability in civil court because employees will generally sue an employer and use statute law as the basis of the lawsuit. Missteps in hiring, layoffs, terminations, monitoring of leaves, and workers compensation issues tend to create the greatest areas of risk and liability and should be monitored and audited periodically for adherence to best practices.

Solutions

S. Miller Consulting can provide a progressive series of audits and assessments designed to evaluate an organization’s compliance to regulations, provide an overall assessment of risk, and help employers navigate risk and litigation.

Defenitions

Statute Law

 - An offence against society or the people in general.

 - Administered by regulatory agencies as representatives of the people.

Tort

 - An offence against an individual or group of individuals.

 - Judgements are rendered in civil court through lawsuits.

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