Understanding what and why HR compliance is important can mean the difference between huge financial risk and a minimal risk.

Welcome to “Leveling Up Your Human Resource Understanding Series.

Running your nonprofit or any organization has its perks but also challenges: Leadership changes, employment classification, volunteers, hiring the right people, and internal and external professionalism, to name a few.

But even if everything else is going your way, there’s one ever-present challenge—HR compliance. You have to understand what HR compliance is to level up your HR.

In this series we will discuss:

  • HR Compliance Defined
  • Understanding Why HR Compliance Is Not Always Guaranteed
  • Understanding Why HR Looks Like The Way It Does
  • Understanding How These Viewpoints Have Played Out

HR Compliance Defined

HR compliance is the work of ensuring that your employment practices conform to federal, state, and local laws. But there’s so much more to it. HR compliance is a critical aspect of managing a successful organization. It involves diligently ensuring that all human resource practices align with the ever-changing landscape of federal, state, and local regulations. By adhering to compliance guidelines, organizations can protect themselves from potential legal issues and maintain an intentionally inclusive workplace.

Organizations must identify which laws and regulations apply to their industry and location to achieve HR compliance. That is easier said than done, as different jurisdictions may have varying requirements. For those who need help deciphering the legalese, it’s wise to seek legal advice or partner with HR compliance experts to support them in understanding and implementing regulations effectively.

Once these laws are determined, it is crucial to thoroughly apply them in your organization through policies and procedures that minimize your risk.

Next, ensure that everyone from the executive team to new supervisors and managers knows what they can and cannot do. All this is a great start; the bare minimum is necessary but not enough to create a successful, compliant, and vibrant workplace culture.

Compliance encompasses various areas such as hiring practices, DEIB, workplace safety, compensation, benefits, record-keeping, and more.

Ultimately, HR compliance plays a critical role in mitigating legal risks, fostering an intentionally inclusive workplace, and safeguarding the rights of both employers and employees. By staying knowledgeable, proactive, and responsive to changes in employment laws, organizations can minimize potential legal liabilities and create a foundation for a successful and compliant workplace.

Moving Forward With The Culture and Compliance Series

Some compliance obligations are definitive; others are unresolved. As you’ll read in this series, compliance obligations often must be clarified, and many laws require you to make a judgment call. Let’s look at a few examples.

 

Article 1 Level Up Series