Beyond the HR Compliance Basics: What You’re Probably Missing

In Part 1, we covered the foundational elements of HR compliance – those employment laws, employee handbooks, proper classification, hiring practices, payroll, and benefits. But today? We’re diving into those other compliance areas that often fly under the radar but can still create serious problems if they get overlooked.

Let’s face it – most entrepreneurs don’t start a business because they’re passionate about HR compliance. But ignoring these less obvious requirements can turn into a massive headache faster than you can say “Department of Labor investigation.” So let’s tackle the compliance areas you might not be thinking about, but absolutely should be.

Critical Recordkeeping Requirements – Yes, It Really Matters

The government expects you to maintain specific employee records – and these requirements vary depending on the size of your business and your industry. At minimum, you need:

• Personnel files with basic employment information
• Separate confidential medical files
• I-9 forms
• Payroll records

And pay close attention to how long you need to keep these records. I-9 forms must be retained for three years after the date of hire or one year after termination, whichever is later. Payroll records generally need to be kept for at least three years, while employee benefit plans and seniority systems should be maintained for the full period the plans are in effect, plus at least a year after.

Poor recordkeeping might seem like a minor issue until you face an audit or investigation. Then what? Without proper documentation, you’ll have no way to defend your decisions or prove compliance. And trust me, that’s not where you want to be.

Employee Accommodations – It’s About More Than Just Being Nice

Disability Accommodations

The Americans with Disabilities Act applies to businesses with 15 or more employees, but lots of states have similar laws that apply to even smaller companies.

You’re required to provide reasonable accommodations to qualified employees with disabilities unless it would cause undue hardship. These accommodations might include modified equipment, adjusted work schedules, or changes to job duties.

The key here is engaging in what’s called the “interactive process” – that’s a good faith dialogue with the employee about potential accommodations. If you don’t engage in the process properly – well, that’s one of the quickest ways to end up with a discrimination claim.

Pregnancy Accommodations

Pregnancy discrimination is prohibited under federal law, and again, a lot of states have additional protections that require reasonable accommodations for pregnant employees. Things like more frequent breaks, temporary transfers to less physically demanding roles, or modified work schedules.

Religious Accommodations

Religious accommodations also create compliance obligations. You need to reasonably accommodate an employee’s religious beliefs or practices – again, unless it would cause undue hardship. That might involve scheduling changes for religious observances or modifications to dress codes for religious clothing.