consequences of non-compliance in business
Post on 04-Jun-2018
225 Views
Preview:
TRANSCRIPT
-
8/13/2019 Consequences of Non-Compliance in Business
1/21
Consequences of Non-
Compliance in Business
-
8/13/2019 Consequences of Non-Compliance in Business
2/21
What is compliance?
Compliance is HR-speak which basicallymeans observing all federal, state, local and
even international law that applies to your
company.
The goal of compliance is to
keep your company in goodstanding in the locations it
conducts business.
-
8/13/2019 Consequences of Non-Compliance in Business
3/21
Who are at risk from non-
compliance?Everyone! From corporations to self-employed
individuals, everyone is subject to a state or
countrys regulatory setting. However, smaller
companiesare at more risk as compared
to their larger counterparts
because of lack of resources
and access to regulatory experts.
ClearRisk
-
8/13/2019 Consequences of Non-Compliance in Business
4/21
Overview of Non-Compliance
for Companies
1. State or country may revoke your operational license,
penalize your company or even dissolve it
2. In the case of LLCs, business owners who fail tomaintain their limited liability protection may face the
risk of piercing the corporate veil, which means the
owners personal assets can be sequestered by the
state to pay off penalties. (Think George Bluth of cultcomedy sitcom Arrested Development.)
-
8/13/2019 Consequences of Non-Compliance in Business
5/21
Laws to Observe to Keep Your
Organization in Compliance
1. Federal and State Discrimination Acts
2. Fair Credit Reporting Act
3. OSH Act
4. Family and Medical Leave Act (FMLA) of
1993
-
8/13/2019 Consequences of Non-Compliance in Business
6/21
1. Federal and State Discrimination Acts
The US Equal Employment Opportunity
Commissions enforces the following laws to
protect US citizens from employment
discrimination:
Title VII of the Civil Rights Act
of 1964 (Title VII)
- Law against discriminationsrelating to race, gender,
citizenship and religion
-
8/13/2019 Consequences of Non-Compliance in Business
7/21
Equal Pay Act of 1963 (EPA)
Law governing fair compensation
-
8/13/2019 Consequences of Non-Compliance in Business
8/21
Age Discrimination in Employment
Act of 1967 (ADEA)
Law that protects workers 40 years and
above from not getting the promotions and
opportunities that are due them
-
8/13/2019 Consequences of Non-Compliance in Business
9/21
Title I and Title V of the Americans
with Disabilities Act of 1990
Law that protects applicants from
discrimination for their disabilities and
medical histories
-
8/13/2019 Consequences of Non-Compliance in Business
10/21
Sections 501 and 505 of the
Rehabilitation Act of 1973 These two sections refer to providing equal
work opportunities for people with disabilities
for federal positions.
-
8/13/2019 Consequences of Non-Compliance in Business
11/21
Title II of the Genetic Information
Nondiscrimination Act of 2008
(GINA)
This law refers to providing people with
genetic disabilities endemic to their ethnicityequal recruitment and employment
opportunities.
-
8/13/2019 Consequences of Non-Compliance in Business
12/21
Civil Rights Act of 1991
The act that protects employees who have
sued previous employers for discriminatory
work practices.
-
8/13/2019 Consequences of Non-Compliance in Business
13/21
Fair Labor Standards Act
The act that refers to fair labor practices,especially in terms of work hours, breaks,
overtime and salary rates for adults, as well
as work limits for minors.
-
8/13/2019 Consequences of Non-Compliance in Business
14/21
-
8/13/2019 Consequences of Non-Compliance in Business
15/21
3. OSHA Act The Occupational Safety and Health
Administration, which was established underthe OSH Act of 1970, had created standards
governing a number of industries that include
the Construction, General and Maritimeindustries. Through these standards, the
agency ensures that American workers are
working in a safe and healthful environment.
-
8/13/2019 Consequences of Non-Compliance in Business
16/21
4. Family and Medical Leave Act
(FMLA) of 1993
This act protects eligible workers to take
leave for medical reasons or to care for sick
family members with undisrupted fringe
benefits for a 12 work week or 26 work week
leave in a year.
-
8/13/2019 Consequences of Non-Compliance in Business
17/21
Examples of Non-Compliance Failure to incorporate overtime pay for
overtime work hours, or completely notpaying workers who work overtime.
Failure to provide an
employee a handbook thatexplicitly states conditions of a
certain regulation, then
suspending or terminating anemployee for that regulation.
-
8/13/2019 Consequences of Non-Compliance in Business
18/21
During the screening process, a worker was
asked if he or she has kids and responded he or
she does. The worker wasnt hired supposedlybecause of it.
When female workers were mistreated and
verbally and physically abused in the case of
Mitsubishi workers, which still remains as one ofthe biggest sexual harassment class action
cases in the United States.
-
8/13/2019 Consequences of Non-Compliance in Business
19/21
Exposing to workers to
hazards because shopequipment werent
repaired/maintained.
GNA Partners
When eligible employees are prevented
from taking advantage of a companys
pension plans
-
8/13/2019 Consequences of Non-Compliance in Business
20/21
How to Address Non-Compliance
Completely reevaluating existing compliance
laws, and if needed, an overhaul of existing
HR compliance programs;
Hiring a business coach to
help you manage andmitigate risks.
-
8/13/2019 Consequences of Non-Compliance in Business
21/21
Sources: http://www.gnapartners.com/news/poor-workplace-compliance-
produces-serious-consequences-10
https://manager.clearrisk.com/Resources/RiskTool/Regulatory_Ri
sk_-_Consequences_of_Non-Compliance
http://www.eeoc.gov/facts/qanda.html
http://static.bdo.uk.com/imported/2010/3/Consequences_of_non-
compliance.pdf
www.legalzoom.com/legal-headlines/corporate-lawsuits/five-
biggest-sexual-harassment-cases
http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10https://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttp://www.eeoc.gov/facts/qanda.htmlhttp://static.bdo.uk.com/imported/2010/3/Consequences_of_non-compliance.pdfhttp://static.bdo.uk.com/imported/2010/3/Consequences_of_non-compliance.pdfhttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://www.legalzoom.com/legal-headlines/corporate-lawsuits/five-biggest-sexual-harassment-caseshttp://static.bdo.uk.com/imported/2010/3/Consequences_of_non-compliance.pdfhttp://static.bdo.uk.com/imported/2010/3/Consequences_of_non-compliance.pdfhttp://static.bdo.uk.com/imported/2010/3/Consequences_of_non-compliance.pdfhttp://www.eeoc.gov/facts/qanda.htmlhttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttps://manager.clearrisk.com/Resources/RiskTool/Regulatory_Risk_-_Consequences_of_Non-Compliancehttp://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10http://www.gnapartners.com/news/poor-workplace-compliance-produces-serious-consequences-10
top related