The Burden of Todays Employment Law
Can you imagine a world in which all you had to worry about while running your business were two types of employment laws? Back in 1900, this was the case. Employment-related matters were regulated solely by two legal bodies: common law and case law. Today’s world is vastly different, employment is not only controlled by case law and common law but also federal and state statutes, city and local ordinance, and hundreds of other employment specific rules and regulations.
It comes as no surprise that for the past 20 years there has been a 400% increase in employment lawsuits largely due to the increase in complicated employment law and regulations. Day by day it is getting more complicated to be an employer in the United States. Not only do you have to worry about generating enough profit to sustain your business, but also remain compliant in the ever-changing world of employment law.
These regulations don’t only vary state by state, but also vary by city and county. Needless to say, many companies struggle with the resources needed to stay up to date in today’s highly regulated environment ACA.
Aside from the commonly known employment laws and regulations, the Affordable Care Act (ACA) has become an increasing burden for all employers. According to a survey released last year by the National Small Business Association (SBA) complying with the ACA will cost small businesses over $15,000 per year. Without having the necessary HR team and software that many larger businesses have, smaller companies struggle to handle the increased paperwork and data collection required by the ACA.
Effective 2016, companies will be required to report on various information such as hours worked by each employee, cost of medical contribution, affordability of the health plan and much more. While ACA is monitored on a federal level, some specific states have more robust reporting requirements in addition to the standard reporting required.
Keeping up with the changes
Today’s business world is ever-changing, from new technology to new compliance demands it is essential to keep up in order for your business to survive. According to a recent study by ADP, nearly half of the businesses surveyed do not feel capable of keeping up with the constant changes in employment law and regulation.
Roughly 90% foresaw compliance issues only becoming more challenging over the next few years and particularly 64% of HR Managers in smaller companies stated they lacked sufficient time and resources to confront this growing burden. It comes as no surprise that half of the surveyed businesses also reported at least one incident of HR-related complaints and lawsuits.
Solution
Particularly smaller to mid-sized or international companies often seek a solution that will help them handle the complexities of employment in the United States. It is important to find a partner that can mitigate the risk associated with employing across the US and ensure your compliance. This will allow you to grow your business without the many disruptions that can occur in the highly litigious states.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.