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Compliance Is Easier with Integrity Employee Leasing

Integrity Employee Leasing HR expert pulls tan block that reads compliance from stack of red blocks that read regulations, rules-law, requirements, standards, transparency and policies

Did you know that a mistake as simple as misclassifying an employee can cost employers in back taxes, unpaid wages and other penalties? If you are worried about your company’s labor and employment law compliance, especially after recent 2024 federal changes, consider working with a PEO partner like Integrity Employee Leasing to make life easier.

The regulatory environment for today’s businesses is complex. Wage and hour laws change often, requiring constant attention to ensure compliance.

If a business fails to follow all rules and regulations, even by accident, it can result in steep fines and penalties. These are levied by government agencies on employers – including entrepreneurs and local business owners – who don’t fulfill their responsibilities and obligations.

One example is an employer who improperly classifies workers as exempt, and then fails to pay overtime wages. “Very commonly, employers will do this as an administrative convenience, stated Senior HR Specialist Christina Faro-Pilliteri. “However, the requirements needed to meet the overtime exemption are quite specific. Such an oversight can result in an audit of three years of timecards and payroll records of current and former employees. It could cost 10 times more than a sexual harassment claim in punitive and compensatory fines.”

Federal Changes to Compliance Effective March 11

A recent update sent payroll departments across the nation scrambling when, on Jan. 10, the U.S. Department of Labor published its Final Rule on Employee or Independent Contractor Classification in the Federal Register. The purpose is to ensure all workers entitled to employment benefits such as health insurance or overtime pay, receive them.

The Final Rule consists of a six-factor test that determines whether workers should be classified as independent contractors or employees. The criteria are:

  • Opportunity for profit or loss, depending on managerial skill
  • Nature and degree of control
  • Degree of permanence to the work relationship
  • Work is integral to the potential employer’s business
  • Specialized skill and initiative
  • Relative amount of capital investment or entrepreneurial effort by the worker, compared to potential employer’s investment

Businesses can expect to face significant compliance concerns if found misclassifying employees as independent contractors. Also, the Department of Labor has adjusted its 2024 penalties for inflation, including those assessed to employers for violations of the FLSA, Employee Retirement Income Security Act (ERISA), Family and Medical Leave Act (FMLA) and more.

The new guidance took effect on March 11, 2024. Ensuring that your business properly classifies your workers under the Fair Labor Standards Act (FLSA) is critically important for your bottom line.

Compliance Is Easier with a PEO Partner

Do you have a clear picture of what these new changes mean for your business? Are you confident that your company complies? Have you updated your company’s policies and procedures in accordance with the new guidelines? Is your paperwork both accurate and meticulous, filed clearly and accessible, in case of an audit? Can you afford the time and focus it takes to monitor for future regulatory changes and correctly determine how they apply to your business?

Most common federal labor laws violations for businesses:

  • Failure to pay minimum wage
  • Misclassifying employees (exempt, non-exempt and independent contractors)
  • Not paying for work breaks of less than 20 minutes
  • Making illegal wage deductions
  • Keeping inadequate and/or inaccurate records
  • Failure to maintain Worker’s Compensation Insurance
  • Restricting employee speech regarding wages, benefits, working conditions

For most business owners and entrepreneurs, this is more time and attention than can be spared amidst launching and growing a successful company. It’s why so many choose the easier solution and partner with a professional employer organization (PEO) like Integrity Employee Leasing. PEOs are designed to help businesses thrive by handling the headache of administrative duties like payroll and compliance, workers’ compensation, HR and workforce management, employee benefits, business liability insurance and more.

One of the leading PEOs in the nation, Integrity Employee Leasing’s payroll and human resources teams excel both at workforce management and at ensuring our clients’ compliance with all applicable state and federal regulations. There’s no need to fear payroll taxes or penalties for noncompliance when you’ve got Integrity’s capable team on your side.

Our experienced team of compliance specialists are well-versed in local, state and federal laws, proactively monitoring for any changes that impact current practices. Known for our responsive communication, Integrity will keep business owners apprised of relevant updates. These will come with trustworthy recommendations to help you navigate the situation with confidence.

Integrity’s experts also look for opportunities to help our clients save money. A great example is the U.S. Department of Treasury’s SBA-backed Paycheck Protection Program, which offered a lifeline to many businesses during the recent pandemic. Integrity quickly set about alerting our clients before the news spread. Then, we handled the loan process, applying our commitment to accurate, mistake-free work while tackling piles of paperwork. This efficient response secured some much-needed financial relief for our clients during that difficult season.

The bottom line? Compliance is easier with a PEO like Integrity. Our team of HR professionals has the experience and skills to provide expert, step-by-step guidance that will help mitigate your risks and alleviate your compliance burdens.

Let Integrity Employee Leasing capably manage compliance for your company. We’ll set you up for success, so that your time remains free to focus on what matters most: successfully growing your business while providing exceptional experiences to your customers. Give us a call today at 941.625.0623 to schedule a free consultation to explore how a PEO partner can add value to your business.

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