consequences of non-compliance in business

8/13/2019 Consequences of Non-Compliance in Business

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Consequences of Non-

Compliance in Business


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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.


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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


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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.)


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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


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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


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Equal Pay Act of 1963 (EPA)

Law governing fair compensation


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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


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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


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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.


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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.


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Civil Rights Act of 1991

The act that protects employees who have

sued previous employers for discriminatory

work practices.


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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.


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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.


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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.


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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.


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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.


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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


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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.


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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

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