Employment Compliance for Small Businesses: How a PEO can Help


Compliance solutions

There are many responsibilities that come with being a small business owner, one of them being employment compliance. All businesses are different, but small businesses specifically tend to be a little less concerned about what should be in place in terms of compliance, as there are fewer employees, or even employees that are family and friends. But the law is not something to take lightly, which is why it’s important small business owners are up to date on all employee compliance. 

What happens when an employee decides to sue for damages due to not having workers’ compensation? You might think you generally get what needs to be in place, until something like that happens. Here are a few reasons why a PEO can help with employment compliance for small businesses. 

Basic Requirements

Let's start with what you need to know in order to avoid problems with the law. There are a few things you have to have in place in order to be legally in compliance with hiring people. 

EEOC Requirements

EEOC stands for Equal Employment Opportunity Commission. There are many factors that have changed over the years in terms of what it means to be EEOC compliant. It applies to not only current employees, but also potential applicants. EEOC requires businesses not discriminate due to race, religion, color, sex, age, disabilities, national orgin, or genetic information. It doesn’t pay to know the rules associated with EEOC, but it does to violate them. 

I-9 Compliance

This is another form of compliance for small businesses that can easily be overlooked. I-9 compliance deals with businesses proving that every employee working is legally able to do so. Employment compliance for small businesses depends on the business owner, and it’s important to be properly trained on how to accurately fill out I-9 forms to avoid getting flagged by ICE. 

FSLA Wage Compliance

FSLA wage compliance in your state has its own minimum wage laws that need to be followed, like the fact that your state’s minimum wage supersedes the federal one. It’s important for small businesses to stay up to date on minimum wage requirements, as well as overtime laws as non-compliant labor practices can be very costly. 

Stay Protected by Working with HR Professionals

There are many small businesses that can’t afford to hire an HR person, but they don’t have to! PEOs are a cost-effective way to outsource HR functions for small businesses to ensure all compliance issues are met. Not only will they keep you employee compliant, but they can also take over your company’s payroll processing, payroll taxes, benefits and insurance, workers compensation, and more. If you need help with your employment compliance or other HR related responsibilities, a PEO could be right for your small business.

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