COMPLIANCE REGULATIONS
Why is it important to have effective human resource practices within an organization?
Reason #1 - Potential Penalties & Fines
Compliance Regulations
The potential exposure to penalties and fines for compliance related violations can range from a simple warning to multi-thousands of dollars. This does not include the cost of lost productivity as a result of the distraction audits and allegations can have on the human resource department, as well as, others within the organization.
Sample - Potential Penalties & Fines:
Fair Labor Standards Act- Willful or repeated violations may result in penalties up to $10,000 per violation
Employee Polygraph Protection Act- Violation can bring court action and assessment of civil money penalties up to $10,000 per violation.
Fair & Accurate Credit Transactions Act (FACTA)- Failure to observe shredding rules may include statutory damages of up to $1,000 per employee; federal fines up to $2,500 for each violation; and state fines up to $1,000 per employee.
Form I-9 Immigration & Naturalization Act- Paperwork violations range from $110 - $1,100 for each individual with a mistake; Substantive violations may result in fines between $200 - $2,000 for each unauthorized worker (first-time offenders); knowingly employing unauthorized alien penalties ranges from $275 - $11,000 per violation.
OSHA Violations- Willful violations range from $5,000 (non-serious) to maximum $70,000 (serious); Posting & Reporting violations $1,000 up to $7,000 for each violation.