Measures, Regulations and Legislation to Track
Navigating the landscape of HR compliance can sometimes feel like finding your way through a maze in the pitch black.
There are two key reasons business owners and HR leaders need to focus on compliance: 1) employee health and safety, and 2) to avoid costly penalties that continue to grow. Within the last two years, Department of Labor (DOL) penalties for repeated Occupational Safety and Health Act (OSHA) violations increased by nearly $6,000 to $161,323 per violation.
While the DOL’s Wage & Hour Division tries to help employers stay compliant, the tools offered can be confusing to use. With all that HR and business leaders need to juggle on a day-to-day basis, the last thing they want to do is navigate a confusing government website.
You’re not alone on this journey.
As an HR professional, business leader or small business owner, you carry the weight of ensuring your organization not only meets legal requirements but thrives within them. At Namely, we recognize that’s no small feat, and we’re here to support you every step of the way.
In Part 1 of a two-part series, we’ll delve into some of the critical measures, regulations, and legislation you need to keep an eye on in 2025.
Key Legislative and Regulatory Areas to Watch
Affordable Care Act (ACA) Changes
The Affordable Care Act continues to be a cornerstone of employee healthcare benefits. Ensuring compliance with the ACA means understanding its requirements—such as employer shared responsibility provisions, reporting obligations, and the nuances of minimum essential coverage.
With a new administration in place, here are a few things to keep an eye on:
- How updates to the Deferred Action for Childhood Arrivals (DACA) program could impact ACA eligibility.
- Subsidy expansions within certain states for ACA enrollees.
- If increased enrollments during the Biden administration affect insurance pools.
- Income estimations for new pricing for ACA enrollees influencing policy details.
- Whether the DOL will adjust any of the ACA-encouraged workplace wellness incentives used by small businesses.
For 2025, staying on top of ACA will involve ongoing diligence in reporting and adapting to any changes in legislation or IRS guidelines. Regularly reviewing your health coverage plans and maintaining accurate records will be key. A helpful source of information may be the Small Business reference pages on Healthcare.gov.
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Multi-State Compliance
Even with increasing “return to office” mandates, remote work is still an in-demand option for employees. In fact, remote workers have reported a higher likelihood of relocating than their in-office counterparts. Companies might not plan on needing to adhere to multi-state compliance, but the chances are you will with a remote workforce.
Each state may have its own set of labor laws, from minimum wage rates to specific leave requirements. The challenge lies in managing these diverse regulations cohesively. Developing a robust HR framework, using online compliance tools like ones offered by Namely, and consulting with legal experts can help mitigate risks associated with multi-state compliance.
Pay Transparency
In 2022, pay transparency skyrocketed into public discourse and became a key aspect of workplace fairness. Why? Because a lot of huge names were called into court to account for wage disparities between gender and race.
To date, cautionary tales include:
- Google, which paid over $118 million in a settlement to thousands of female employees.
- Walt Disney Company, which agreed to pay $43.3 million to settle a lawsuit with female employees for the last 8 years.
- Nike, which was blasted by both employees and gold-medal athletes when it became public that the company paid male employees $11,000 more than female coworkers each year.
Pay transparency keeps employees happier and employers compliant with any changing regulations from state to state. Some tips for staying compliant include:
- actively reviewing your compensation policies,
- conducting regular audits to rectify disparities,
- and clearly communicating your pay structures.
By embracing transparency, you stay within legal bounds while building trust and morale among your team.
Minimum Wage Increases
New year, new paycheck! Roughly 21 states and 48 cities and counties have planned minimum wage increases for 2025. Staying ahead involves monitoring these changes and prepping your payroll systems accordingly.
It’s also crucial to evaluate the ripple effects those wage increases will have on your overall compensation strategy. Adjusting budgets, forecasting financial impacts, and communicating with your team will ensure a smooth transition.
To understand how wage changes can impact your company’s financial health, use a salary benchmarking tool (like the one from Namely!).
Overtime Pay – New Requirements for 2025
New overtime pay regulations set to take effect this year will require careful attention. Understanding the new thresholds, re-evaluating employee classifications, and updating timekeeping practices are essential. Providing comprehensive training for managers and employees about these changes can foster compliance and minimize disruptions.
General Strategies for Effective HR Compliance
Every policy issue might not affect your business, but here are a few tried-and-true strategies from Namely that can help alleviate compliance-related headaches, regardless of which policies change:
- Stay Informed: Regularly update yourself on the latest legislation and regulatory changes. Subscribe to newsletters, attend webinars, and participate in industry forums.
- Leverage Technology: Use HCM software like Namely to automate compliance tracking, manage employee records, and generate necessary reports. You can also use Namely to get law alerts and access an extensive compliance library.
- Training and Communication: Conduct regular, company-wide training sessions about compliance requirements. Establish clear communication channels to ensure everyone is on the same page.
- Policy Review and Audits: Review and update your organization’s policies to align with current laws. Conduct internal audits to identify and address compliance gaps proactively. Don’t have the bandwidth to keep up? Try Namely’s Managed HR Services!
- Consult with Experts: Sometimes, the best course of action is seeking advice from legal or compliance experts like our Namely team! We can provide valuable insights and help navigate complex regulatory landscapes.
Staying informed and proactive in HR compliance is not just about avoiding penalties; it’s about leading with excellence and integrity. By understanding and tracking regulatory requirements and employment law updates, you empower your business to thrive (within a legal framework, of course).
Through a strategic combination of technology and managed services, Namely is positioned to help you navigate the complex world of HR compliance. Together, we can ensure that your organization not only meets its legal obligations but also sets the standard for excellence in the workplace.
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