Running a company isn’t easy, and one of the most difficult aspects is managing human resources. Hiring the right people, making sure they are training and managing their benefits and compensation is a huge job. But what you may not realize is that it can cost a lot more than you think if you overlook one of these compliance hazards.
If you aren’t working with an outsourced firm to handle your HR compliance, you’ll want to take a look at these six areas carefully. A mistake in compliance – which can be as simple as not having up to date posters – can cost you anywhere from hundreds to hundreds of thousands of dollars.
According to the Department of Labor, failure to notify employees of their extended-leave rights is the most common FMLA violation. The average cost to defend an FMLA lawsuit is $78,000, regardless of the outcome, and managers and supervisors can be sued personally for damages.
ACA Filing Errors
By now you know that ACA non-compliance can quickly add up to thousands of dollars in fines. But did you know that simple ACA filing errors cost you money, too? A single ACA filing mistake for one employee can cost you $500 in penalties.
The IRS estimates that 90% of businesses are out of compliance with COBRA regulations. The Department of Labor can penalize you $110 per day per beneficiary for non-compliance.
In 2011, the ADA Amendments Act expanded employers’ duties to make reasonable accommodations for employees with disabilities. And in 2014, the maximum penalty for a first-time ADA violation rose from $55,000 to $75,000. Second-violation penalties increased from $110,000 to $150,000.
Failure to display the most up-to-date OSHA job safety and workplace protection posters can result in a $7,000 penalty. Actual workplace hazards can lead to government fines of up to $500,000 and even imprisonment.
HIPAA Compliance for Non-Healthcare Providers
HIPAA rules don’t just apply to medical care providers; they apply to any business that has any contact with electronic health records or medical information. Under the HITECH Act and HIPAA Omnibus Rule, civil penalties for noncompliance have increased from $25,000 to $1.5 million per year per violation.
Outsourcing HR functions to a company like Payce by Deluxe can transfer responsibility for compliance quickly. But whether you keep these functions in house or hire outside help, being aware of potential penalties is critical to protecting your company’s reputation and bottom line.