Understanding HR Compliance in Modern Era

HR Compliance: An Overview

All organizations propagate a profit making initiative, while it competes to thrive in accordance to the requirements of the changing market.

But, do all organizations follow the stringent norms of operation as laid down by the Federal law?

Following this, what do you think the role of HR should be in the given context?

Do the HR team play a significant role to enforce proper procedures and norms of operation in place?

HR compliance remains to be a big issue, in the contemporary context, and most of the global organizations consciously strive for the same. It remains to be a vital responsibility of the contemporary managers to meet the standards related to legal compliance framework in any given circumstance.

But how does one go about it?

Are there too many aspects involved which complicate the framework, while being governed by a stringent budget?

In the US, a majority of the businesses would be required to align workplace policies failing which might charge heavy penalties. Sometimes, issues related to HR compliance could file lawsuits against so called valuable brands, which prove detrimental to the brand image. Prioritizing HR compliance on the other hand, may help the businesses to promote a safe and secure workplace environment to go!

Will formulation of labor laws change expectations associated with HR?

Almost 21 states in the US had formulated new wage rates during the beginning of 2020, the much dreaded pandemic year. The same year was marked with incorporation of ‘Minneapolis wage theft law’ that was brought into effect. At the same time, the US had observed payment of overtime, as applicable in order to stabilize workplace performance. However, legal compliance framework, especially in the context of the US takes into consideration the level of engagement being looked at. The hours of engagement relate to a particular employee is crucial as per Federal law, as this is the most important factor in determining the level of wage or salary to be paid. Notably, there are several areas to be complied with so forth.

Labor laws in the context of the US require managers to stay abreast of any major changes. Federal law enforces compliance although, while understanding the broader compliance framework is the key towards sustenance.

HR Compliance in US: A Case Study of FabIndia

Discussing case studies of organizations like FabIndia, it is clear that HR compliance starts with hiring ‘ideological fits’, within to promote a great workplace culture. Being an equal opportunity player, a gender blender can be the best way to maintain diversity within the context of the workplace. Wage management therefore, happens through developing an entrepreneurial culture wherein strategic business units are formulated to drive profits. Profits are shared, on the other hand in the context of incentivization, so that employees remain energized to perform on stretched out work schedules. Following the below mentioned compliance framework, FabIndia takes into account a number of aspects to drive a safe workplace culture.

Recommended: Talent Retention in 2023: Diversifying Employee Benefits to Retain and Attract Talent

Going forward, it is understood that defining the set of aspects related to the compliance framework can help the contemporary HR managers to understand better. The table below can give a glimpse on the major aspects of the organizational framework of compliance, for businesses operating in the US market of US.

Wage and hour laws The minimum wage bracket as per the US Federal law remain

  • $7.25 per hour,
  • minimum wage for the state of Oregon is $13.50 per hour, while Oregon is identified as a highly populated market,
  • Portland defines a limit of $14.75 per hour (as of July 2022).
The Family and Medical Leave Act (FMLA) FMLA makes provision for eligible US employees to take

  • Job-protected unpaid leave for personal exigencies.
  • Employees have the right to take unpaid leaves depending on situation as related
Workplace safety Workplace safety is to be maintained as per workplace safety norms laid down by the North American Industry Classification System (NAICS).
Union laws Union laws abide US industries like that of aviation for instance.
Immigration laws Education businesses, operating in the US, must adhere to immigration regulations. Immigration norms should be in adherence to the Department of Homeland Security (DHS) in US
Employee classification Dealing with the contemporary talent market, requires HR managers to understand the wage and salary benefits in accordance to the nature of employment. Federal law supports different levels of employee engagement, while different compensation benefits are laid down in accordance to changing business requirements.
Data security Data privacy is the key towards sustenance. For instance, the California Consumer Privacy Act (CCPA) takes into consideration any organization earning $25 million or higher to disclose data related to individual privacy.


Nevertheless, HR compliance is associated with maximization of business welfare, especially if the worthy organizations look forward to building up a great workplace. Non-compliance, in any particular aspect, on the other hand would reflect heavily on the brand value concerned. Nevertheless, US organizations promote compliance as an integral component of business framework towards driving business growth. Therefore,HR compliance mechanisms create an enduring workplace wherein  employees consciously contribute to ignite career promotions!

Read Also: 5 Tips for Using Tech to Streamline Healthcare HR

[To share your insights with us, please write to sghosh@martechseries.com]