Running a small business can feel like a juggling routine. Not only do you have to keep up with operations, but you also have to ensure compliance with an ever-evolving set of HR laws and regulations.
If you’re an Arizona business owner, here are the top 10 laws and regulations you need to keep up with.
1. Family and Medical Leave Act (FMLA)
The FMLA has a small collection of guidelines and requirements, including:
- Who is eligible for leave
- How much leave is allowed
- How to pay employees during leave
Additionally, the FMLA requires that employers notify their workers of their leave policies.
Small business owners may lack the resources to devote to these regulatory concerns, which is why many outsource these needs to an HR firm.
2. Fair Labor Standards Act (FLSA)
The FLSA establishes rules for minimum wage and overtime pay. Keeping up with FLSA guidelines requires employers to track employee hours and pay them accordingly. Small business owners often lack the time or tools to accurately track employee hours, especially given the FLSA’s complex recordkeeping requirements.
Many HR firms offer support in the form of time and attendance tracking to help small businesses remain in compliance.
3. Americans with Disabilities Act (ADA)
Few small business owners would actively seek to discriminate against disabled workers. But the ADA requirements can be complex. What exactly constitutes a disability? What are “reasonable accommodations”? And how can you navigate the complex recordkeeping requirements?
Outsourcing these needs allows busy entrepreneurs to tap into the knowledge and expertise of an HR firm.
4. Title VII of the Civil Rights Act of 1964
According to Title VII, no employee may be discriminated against based on their race, color, religion, sex, or national origin. But many business owners are unclear about what constitutes discrimination. This leads to confusion regarding how to prevent discrimination in the workplace and how to respond to complaints.
5. Occupational Safety and Health Act (OSHA)
OSHA sets safety and health standards for employers in all 50 states. But not every business owner will understand how OSHA’s requirements apply to their unique company or industry. Arizona business owners may need guidance regarding the best ways to comply with OSHA standards or conduct safety inspections.
6. Immigration Reform and Control Act (IRCA)
Under the IRCA, business owners are prohibited from hiring undocumented workers. Small business owners may not always know the best way to avoid this. Complying with the IRCA requires that businesses understand what documentation is required for employment eligibility and how to verify this eligibility with their workers.
7. Arizona’s Minimum Wage and Overtime Laws
In addition to the FLSA, Arizona has state-level minimum wage and overtime laws. These laws are more stringent than federal laws and require employers to comply with rules regarding:
- Arizona minimum wage
- Arizona overtime pay
- When overtime pay is required
- How to pay employees correctly
HR firms can provide state-specific guidance for complying with these laws, as well as assist in handling payroll.
8. Arizona’s Paid Sick Time
Proposition 206 in Arizona increased minimum wage and introduced paid sick leave. Businesses with 15+ employees must provide up to 40 hours of paid sick leave per year, while those with fewer than 15 employees must provide up to 24 hours. Sick time accrues based on hours worked, and employees are protected from retaliation for using or filing complaints about sick time.
9. Employee Retirement Income Security Act (ERISA)
ERISA sets specific requirements for employee retirement plans. Small business owners will have to learn the ins and outs of how this works, including:
- What retirement plans are covered
- How to establish a retirement plan
- How to comply with ERISA’s reporting and disclosure requirements
Otherwise, employers could inadvertently be guilty of denying benefits to their workers, which can result in fines and other penalties.
10. Privacy Act of 1974
Data protection laws in the US, such as The US Privacy Act of 1974, aim to safeguard personal data. Businesses must comply with these laws, ensuring transparency, data security, and the option for individuals to opt out. Violations can result in fines of up to $7,500 per violation. Key practices for business owners include having a privacy policy, maintaining strong website security, and using customer data only with consent. Understanding and adhering to data privacy laws is essential to protect customer data, avoid penalties, and maintain trust.
Partner with an HR Firm to Maintain Compliance
Most small business owners lack the resources to dedicate to compliance and reporting requirements. Trying to keep up with these ever-evolving regulations can steal focus from the revenue-generating activities that drive your business forward.
Outsourcing these needs to an HR firm helps you maintain compliance with federal and Arizona laws. If you need advice for your business, contact Focus HR today.
