Common Compliance Questions

Last Updated on May 18, 2023 by VantagePoint

Employment laws and regulations are constantly changing, which means the struggle to stay compliant is never-ending. While many prospects can see the challenges of staying abreast of compliance regulations; the struggle is larger for employers.

With a multitude of laws, rules, and regulations to comply with and employees that must be managed, staying on top of compliance can be impossible.

In this article, we will outline some of the most significant compliance questions and answers.

Biggest Compliance Challenges in 2022. Changes to Federal Laws and Guidelines

The biggest challenge that compliance faced in 2022 was the changes to federal laws and guidelines. The current administration has been making changes to existing laws and regulations for years, and these changes have impacted businesses of all sizes.

For example, in 2019 the government passed a law requiring companies to report their employees’ salaries to the IRS. This was done to combat income inequality, but it also harmed many small businesses that did not have the resources or manpower needed to comply with this new regulation.

Other changes have included new rules regarding overtime pay, minimum wage requirements, and employee healthcare coverage. These changes will continue over time as well as other more controversial ones like gun control legislation which has already sparked protests across America since its passage earlier this year.

The Most Common Compliance Questions

In the first few months of this year, we’ve seen a huge trend in compliance questions. We’ve been asked so many of them that we’ve compiled a list of the most common questions and their answers.

This post will go over some of the most common compliance questions and how to best address them.

What are the Main Challenges to the Post-COVID Workplace?

The main challenge to the post-COVID workplace is a lack of clear, consistent guidelines for what it means to be compliant with the new regulations.

This means that people are still not sure what they need to do to make sure they’re staying out of trouble.

The government is working on developing some guidelines, but they’re taking a while. Until then, companies are left relying on their judgment and experience to make decisions about how they should act to stay compliant.

Other challenges include:

• The prevalence of mental health issues in the workplace, which can lead to a lack of productivity and even employee turnover.
• A shift in communication norms and expectations leads to misunderstandings between employees.
• A need for more training on how to deal with various diversity issues that may arise in the workplace.

Should We Have a COVID Section in Our Employee Handbook?

COVID is a serious issue that impacts companies of all sizes and industries. But should your company have a COVID section in your employee handbook?

The answer is yes, and here’s why:

• It’s a legal requirement in many states.
• Employees need to know what they can do to protect themselves from getting sick, as well as which behaviors are required of them during this time (such as staying home if sick).
• It could save you money down the road by reducing the number of employees who take off work due to illness and helping you avoid having to pay for higher insurance premiums that result from more absences.

Are Remote Employees Eligible for FMLA?

The Family and Medical Leave Act (FMLA) provides 12 weeks of job-protected leave to eligible employees for certain family and medical reasons.

• To be eligible, an employee must have been working for the employer for at least 12 months and have worked at least 1,250 hours during the previous 12 months.
• The FMLA also protects employees from retaliation or discrimination by their employer for taking leave or requesting an accommodation.
• Remote workers who meet these requirements may be entitled to FMLA protection.
• However, employers may not be required to provide remote workers with FMLA-protected leave if they are only occasionally present on company premises or work remotely most of the time.

Do We Have to Pay for Unauthorized Overtime?

The most common compliance question we’ve been asked is, Do we have to pay for unauthorized overtime?

The answer is no—at least not in the traditional sense. In 2022, employers were no longer required to pay their employees for the extra hours they work. Instead, they can offer paid time off (PTO) in exchange for the overtime hours worked.

For example, if an employee works 12 hours on a Friday and wants to take the next day off, he or she could use that PTO as paid vacation or sick leave. And if an employee works 10 hours on a Friday and wants to take Monday off, he or she could use that PTO as paid personal time off.

If an employer still chooses to pay its employees for overtime hours worked, it must do so at least twice as much as it would under federal law (in other words, $30 per hour). However, many employers choose not to pay their employees for this time because of the costs associated with overtime pay and recordkeeping requirements.

What Does Leave Entitlement Mean?

Leave entitlements are the amount of paid leave that is available to a worker. The amount varies based on the terms and conditions of their employment contract. For example, some companies offer unlimited leave to new mothers while others may only allow three months of maternity leave.

Who is Protected from Employment Discrimination?

The Civil Rights Act of 1964 protects certain groups from discrimination in employment. These groups are:

• Age (40 and older)
• Race (blacks or African Americans, Asian Americans, Native Hawaiian, and Pacific Islanders, Hispanics or Latinos, and American Indians or Alaska Natives)
• Sex (women)
• Religion (Jews and Muslims)

What Are Expiring Benefits Plan Relief Provisions?

Expiring Benefits Plan Relief Provisions are new provisions in the Internal Revenue Code that allow employers to continue offering certain benefits plans that would otherwise have been terminated.

The Expiring Benefits Plan Relief Provisions apply only to employers who terminate qualified retirement plan coverage during or after 2020, but before January 1, 2021. An employer may use these provisions to continue offering certain benefits plans for up to two years after termination of qualified retirement plan coverage if:

• The employer has 100 or fewer employees;
• The benefits plan is frozen before termination; and
• The employer files an election with its return for any taxable year beginning before January 1, 2023.

What Are the Changes to the Sexual Harassment Prevention Policy?

The changes to the sexual harassment prevention policy are as follows:

• A new definition of sexual harassment, includes any unwelcome sexual advances, requests for sexual favors, and other conduct of a sexual nature.
• Employees are now required to take an online course on sexual harassment prevention every two years.
• Managers must report any complaints of sexual harassment made by employees directly to HR within 24 hours of receiving the complaint, rather than waiting for the employee to file a report themselves.
• Managers are also required to complete two hours of sexual harassment prevention training each year, which employees are now required to attend every two years.

Conclusion

Take these compliance questions seriously. They are important and may just save you from a liability-inducing scenario in the future. Implementing compliant processes and policies can be difficult. If you need help, please consult VantagePoint Benefit Administrators.

We have a 20-year track record of helping employers implement superior programs to simplify payroll, benefits, and HR into a cohesive, compliant, and affordable package, providing a long-term strategic approach that manages the ever-increasing cost and complexity of employee management.

Whether you’re a team of one needing a helping hand or a larger team looking for HR outsourcing services, support, and expertise everyone loves, we’ve got you covered. Making complicated tasks and decisions as simple and personal as possible.