Business

How to Define Regulatory Compliance?

Every business has to be conducted by following certain regulations. For different business there are different regulatory laws, which not only tells about how to conduct business but it also tells the role of employees of the company and all companies in the USA need to follow these laws in order to be compliant.

What is this compliance?

When we talk about regulatory compliance then we mean that the company will follow certain standard guidelines related to various aspects of their business activities. They mainly cover the following areas:

  • Hiring practice

While hiring an employee in any US company there are laws that exist as per Equal Employment Opportunity Commission (EEOC) where there is protection against discrimination due to national origin, race, color, sex, religion, age, disability or any other genetic information.

  • Employee health benefits

If the company employs more than 50 employees then the employee must be provided with health insurance under Employee Benefits Security Administration (EBSA) and also retirement benefits under Employee Retirement Income Security Act (ERISA)

  • Work environment

In the USA, every employee must be provided with conducive work environment where they can work safely without any fear of discrimination. Employee must have freedom to set their rules and conduct at workplace and there should not be any fear about criminal investigation or civil liability.

  • Wages and hours

All employees must be paid minimum wages as per the directive and if they work for any additional hours due to any reason then they are supposed to be paid additional 1.5 times of their normal hourly pay.

  • Safety of workplace

All employees must be provided with safe working environment which is as per the directives of Occupational Safety and Health Administration (OSHA). OSHA can visit anytime in any organization without any prior information and inspect the working environment of the company. After they are satisfied OSHA may give them the certificate of compliance.

  • Recruitment and retention

Nowadays there are too much business competition and therefore HR managers need to find and hire right talent and look at their various positive traits. Those who exhibit positive qualities then such employees may be provided with training and their talent should be nurtured.

  • Discipline and termination of employees

If any employee does not follow the required discipline then HR need to intervene and try to counsel the employee. If the employee does not improve, then the company can terminate by following certain steps.

Also, sometimes the company may need to layoff large number of employees and under such situation proper guidelines must be followed.