Insight on Manufacturing

May 2012 IOM

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INSIGHT FROM ... | MARY FELTON, founder and president of HR Business Partners The key to compliance Understanding employment law helps avoid violations, expensive fines are keenly focused on digging up employer violations in employment law in order to generate revenue. In an effort to be more efficient, agencies like the Department of Labor are calling employers and requesting records for audits rather than knocking on doors. OSHA has increased its staff and is on track to conduct 1,000 audits in this regional area in 2012. Other agencies such as EEOC (Equal Employment Opportunity Commission) are also collecting staggering amounts in recovery from employers. The focus of the audit can be anything from wage and hour practices, benefit administration, independent contractors, record keeping requirements, affirmative action plans, recruiting practices, OSHA regulations, I-9 forms, etc. Even if you only have a couple of employees, there are 19 federal and 25 state employment laws to comply with. DON' T LET YOUR EMPLOYMENT practices or your employee handbook be expensive liabilities for your company. Compliance is essential for employers in today's litigious society. Employers must know the laws and have their handbook in order because if they don't, it could wreak havoc for them and lead to legal ramifications. With additional funding under the Obama form (required for all employees) completed inaccurately will cost an employer on average $750 per form. So if a company has 50 employees and all forms are wrong, the fine could be $37,000 or more. The more you are out of compliance, the higher the fines get. Employers need to take this seriously and realize the I-9 forms are a common area that's audited. A simple I-9 liability that could occur by being out of compliance. Even if you only have a couple of employees, there are 19 federal and 25 state employment laws to comply with. If you are thinking you won't be audited because you are a Administration, governmental agencies have added investigators to conduct employment law audits. This is happening right now in Northeast Wisconsin. Employers need to get their house in order because auditors are using more aggressive tactics than ever. These agencies 24 | INSIGHT on Manufacturing • May 2012 smaller employer, don't count on it. A company's size doesn't matter. Audits are conducted in companies as small as six employees. No matter what your size, you need to comply with the rules. So what should an employer do? Make it a priority to set aside time to review your employment practices. Understand what laws you must comply with. If you don't know, get www.insightonmfg.com

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