Lawsuits can ruin businesses. Whether your company has just a few or several thousand employees, it’s important for business owners to stay compliant with HR processes.

What is the meaning of compliance in HR?

Human resources compliance is a necessity for any business in today’s litigious environment. Between the Fair Labor Standards Act (FLSA), OSHA, sexual harassment, and anti-discrimination laws, a business that isn’t aware of its regulatory responsibilities is headed for trouble. When done correctly, HR compliance is a process that ensures laws and policies are defined, understood and followed.

What Processes Pose a Risk?

There are many HR processes that can pose a risk if not defined and kept current. The main ones are:

  • Hiring
  • Employee Pay and Benefits
  • Employee Policies and Procedures
  • Performance Reviews
  • Discipline and Termination
  • Benefit Related Notices
  • Employee Records

Let’s look at two of these HR processes in more detail.


Did you know interviews need to be legally compliant? Having a professional HR person or team on staff to craft appropriate interview questions will keep your business out of trouble. Questions and conversations cannot be perceived as discriminatory by the candidate based on race, sex, religion, age, ethnic group, national origin, marital status, military service, disability or other protected status.  Municipalities may also have a more extensive list of protections.

Employee Pay

Employee pay and incentive programs need to exist in a way that treat employees equitably and decisions regarding promotions and merit raises are based on clear, objective criteria. Federal laws mandate certain pay practices for overtime compensation.  There are also state and municipalities with laws that must be taken into account.

Get Good Advice

ZM Ventures recommends an annual review of   HR processes to ensure compliance with the federal, state and municipal regulatory mandates.

ZM Ventures also recommends using a skilled HR professional to assess current practices, correct and update dated procedures and continuously monitoring ever changing laws.

If you have questions regarding your business HR practices or if you would like a professional to review your business processes reach out to ZM Ventures, Inc. –

ZM Ventures provides private and public sector businesses with the federal and state guidelines so businesses can effectively and efficiently deal with the many compliance issues they face on a day-to-day basis.



Tags: Compliance, Law Suits, Employees, HR, Hiring Process, Employees, Employers, Jobs, ZM Ventures, Recruitment and Hiring

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