HR Compliance Concerns for Business Owners in 2024
Navigating the matter of HR compliance is yet another challenge that business owners will have to face in 2024. This becomes more complicated every year due to ever-changing regulations at both state and federal levels. To maintain a healthy and productive company culture, as well as avoid any legal repercussions, full compliance is a must. Here are a few areas where your company may need additional HR assistance to get through 2024.
HR Compliance Concerns to Be Aware of for 2024
Companies will be expected to implement more health, privacy, and discrimination protections for their workers this year. Half of the country's minimum wage increases for 2024 and there will soon be new precedents in place regarding how to classify members of your workforce. To successfully adapt to these changes, you will have to address:
Evolving Labor Laws
Thanks to minimum wage increases, companies may have to modify their current pay scales and scheduling practices. Remote work also continues to gain popularity in the United States, and with that comes even more policies to protect remote employees. Hiring more remote workers becomes even more complicated when you have employees in other states with different taxation laws. Employers can face serious legal consequences if they don't stay abreast of all the newest labor law additions in 2024. PEOs will break down what every new employment regulation means for your business and help you navigate each one accordingly.
Data Security and Privacy
Many companies rely on technology, including AI, to streamline daily business operations like payroll and handling customer data. By using these tools, business leaders must consider data breaches and other cybersecurity threats that could leak personal information.
Companies can be held liable for these incidents with heavy fines and lawsuits. Proper encryption and the use of authentication systems can help keep your employees' sensitive data protected. You can create a streamlined data protection plan by utilizing HR technology solutions, and a PEO can help you select the best one by analyzing your company's security needs.
Diversity, Equity, and Inclusion (DEI)
56% of employees agree that maintaining DEI practices is essential for cultivating a healthy work environment. Due to this, having an inclusive workplace that's friendly towards workers of all backgrounds can increase productivity and retention rates in your company. You'll be able to prevent discrimination charges and other legal issues associated with neglecting DEI policies.
An equitable workplace allows every employee to work comfortably regardless of age, race, orientation, gender identity, or disability status. With so many factors at play, a PEO can be an invaluable resource for your company. These experts will make your workplace even more inclusive with training programs, reading materials, and assistance with crafting sound DEI protection policies.
Since the advent of the global health crisis, wellness and safety have both become crucial considerations for company leaders. While some pandemic-related regulations will expire this year, a spike in new cases could bring those rules back into effect at any time. Your workplace should also have protection plans in place for other common viruses. Some employers are required by law to provide paid sick leave or personal protection equipment for their workers.
Business leaders also must be prepared to handle chemical outbreaks and property damage that could pose potential hazards to employees. Many companies are also expected to have violence prevention plans and awareness training. PEOs can help you enforce all the safety protocols required in your area. Making your workplace as safe as possible allows you to handle challenges without issues and instills peace of mind for your employees.
Beginning in March 2024, a new law will go into effect dictating new standards regarding how companies differentiate between employees and independent contractors. The new guidelines factor in worker equipment costs, investments made by both the employer and the workers, and the degree of control maintained by the employer.
The misclassification of employees often leads to a loss of benefits, workplace protections, wages, and more. It's the employer's responsibility to update their employee classification policies and adapt to current gig economy trends. A PEO will examine these policies to ensure complete compliance, offering additional insights whenever necessary.
How to Successfully Keep Up with HR Compliance This Year
As the business landscape evolves, it's only natural that labor laws will change along with it. Company leaders must be vigilant about addressing HR concerns for the good of their workforce and the growth of their business.
HR compliance is still a complex issue to manage and often takes a whole team to achieve. Professional Employer Organizations (PEOs) leverage a variety of innovative tools and resources to develop customized, affordable HR solutions for every business. No matter the number of HR-related changes that come your way, PRO Resources gives you the support to help you maintain compliance. Schedule a consultation and let's get started.