Employers Bearing the Burden of Employment Laws

Can you imagine a time when only two federal laws applied to human resources? It may sound impossible but in 1900, there were only two regulations on the books. Here’s how the regulations have grown since:

Now more than ever, business owners need HR and operations strategies to survive and thrive in a highly-regulated environment. According to Jury Verdict Research, there has been a 400% increase in employment lawsuits in the last 20 years due to these complicated and ever-increasing HR laws.

The Added Burden of the ACA

In addition to the regulations and laws in the above chart from NAPEO, the Affordable Care Act (ACA) continues to be a growing burden for employers, as well. On average, complying with the ACA will cost small businesses more than $15,000 a year, according to a survey by the National Small Business Association (SBA). Many small businesses don’t have the HR departments or computer systems that large companies have, making it harder to handle the increased load of paperwork and data collection required by this law. Companies that have separate software for payroll, attendance, and benefits management have no easy way to combine the necessary data from all three systems. Next year, employers must  complete new IRS forms using information from those different sources. The process is more complex for businesses with operations in different states.

How Can Businesses Keep Up

A recent study of small and mid-size companies revealed that roughly half of the businesses surveyed felt they did not have the ability to keep up with the constant changes and additions. And up to 90% see compliance issues becoming even more challenging over the next few years.

The SBA reports that smaller firms spend 36% more per employee to comply with federal regulations than larger companies. In small companies, 64% of HR managers stated they lacked the time and resources to confront the growing burden. Additionally, 52% of mid-size companies reported at least one incident of HR-related complaints, charges, or lawsuits. As a result of these challenges, more than 70% of companies of all sizes seek outside advice on compliance.

Share the Burden

If you are feeling the weight of these regulations, we can help. As a Professional Employer Organization (PEO), it's our job to understand the myriad of laws and regulations, and help your business remain compliant. We take primary responsibility for all of your compliance issues. That means you can spend your time on driving revenue. Examples of services we provide are:

  • Workplace safety training and support
  • Training managers on employee relations
  • Administration of employee benefits – health, retirement, life
  • Development of policies and handbooks
  • Workers’ compensation insurance management
  • Payroll, payroll taxes, garnishments, and child support orders
  • Hiring assessment tests and programs

According to a 2009 SHRM report, partnerships with a PEO can save 30-50% over handling these tasks in-house. Additionally, it could help you avoid costly litigation.

Considering the prevailing assumption that compliance issues are not getting any easier, it makes sense to partner with experts so you can focus on your company’s core strengths. Reach out today and let’s start working together toward your company's goals.

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