Human Capital Management
Human Resource Compliance: 5 Trends to Watch
In today’s social climate, organizations must remain compliant with state and federally mandated laws. According to XpertHR, there will be more than 140 new human resource compliance requirements across 30+ states and localities introduced this year. Here are five key human capital trends employers should be aware of:
- Anti-Harassment/Discrimination Laws – With societal changes like the #MeToo movement, workplaces are cracking down on harassment and discrimination. HR leaders must focus on human capital management and protecting employees while still following the law. One way to do this is through human capital training, a way to educate employees on preventing future incidents.
- Minimum Wage & Overtime Regulations – The Fair Labor Standards Act (FLSA) sets minimum wage, overtime and minimum age requirements, making it critical for employers to understand. Beginning January 1st, more than 21 states and localities increased their minimum wage. Federal overtime protections also went into place, raising the threshold for eligible income. These regulations can be complex but making a mistake could cost an employer millions of dollars in settlement fees.
- Leaves of Absence – The Family and Medical Leave Act (FMLA) currently allows eligible employees to take up to 12 weeks of unpaid leave without losing their jobs. While few changes are happening on a federal level, some states are making the change to offering mandatory paid leave. Employers should check that they’re compliant with current requirements and monitor any potential changes.
- Healthcare Benefits – As wellness initiatives become more common and improve employee experience, employers must check how they interact with existing programs like COBRA and FMLA. Employers must also check for laws regarding insurance changes, as mandates increase and required coverage expands.
- Worker Classification – After complaints from workers this past tax season, the IRS introduced a new W-4 form. One big change is that workers no longer claim withholding allowances- they provide information for their employer to determine the amount of tax withheld. Another change is that independent contractors can have taxes directly removed from their wages. Most current employees don’t need to resubmit their form, but it’s important to on-board new employees properly and update as needed.
Human Resource Compliance is ever-changing and can be overwhelming to HR leaders who are tasked with staying abreast of all of these regulatory changes. If you’re unsure about how to handle any of the above situations, you may benefit from human capital consulting. At Exude, our HR Compliance Team partners with you and your team to deliver a road map to effective and compliant HR policies, procedures and best practices. Our HR Compliance Assessment helps you avoid fines, lawsuits and employee complaints by identifying your issues upfront and creating a plan to correct them. It also creates efficiencies around HR process so that you can fully utilize your team. For a consultation, contact Exude today.