HR regulations for small businesses are continuously evolving and it is important for you to stay compliant. Not only do you need to comply with federal laws pertaining to human resource management, but also keep yourself updated about changes in the state and local regulations. PeopleCentral is an all-in-one platform that empowers small businesses to understand relevant HR regulations and stay compliant.
Discussed here are the four key steps of HR compliance:
1. Before You Hire
Make a lasting impression on potential candidates and stay compliant with an impactful and inspirational job description. It should not be an exhaustive list of job requirements that overwhelm the candidate at the first glance. First, determine what precisely you expect from the job role and then present it in a compelling manner with a catchy title.
When you list the job details, make sure these comply with relevant federal, state, and local requirements. Describe clearly how the job can boost a candidate’s career prospects and how to apply for the role. Similarly, you must understand and comply with specific HR regulations regarding interviewing and onboarding.
Recruit Central is an intuitive platform that makes recruiting and onboarding fast, simple and compliant.
2. Pay Your Employees the Minimum Wage
Depending on the country or region where your small business is located, you must pay your employees the current minimum wage based on their employment status, job duration, and responsibilities. This will help avoid steep penalties and back wages.
3. Medical Coverage Requirements
Typically, regulations regarding medical coverage plans do not apply for small businesses with less than 50 full-time equivalents (FTE) employees. However, if you have over 50 FTE employees, the federal or state government may require you to provide health coverage. Failure to do so may attract penalties.
4. Performance Reviews
To comply with changing HR regulations and avoid penalties or lawsuits, it is important even for small businesses to regularly review performance for all employees. This also ensures better employee engagement and motivation.
Use PeopleCentral to streamline critical HR functions and stay compliant.