Sunday, October 28, 2012

Importance Of Basic Labor Law And Compliance In California


The U.S. Department of Labor has established certain standards which target employment and labor in America as a whole. Different states can go above and beyond the standards set by the U.S. Department of Labor. California labor employment law specifically protects the rights of California employees. Its standards and principles involve issues on employees’ overtime pay, meal and rest breaks, tip pooling laws, vacation laws and more.

Regulatory compliance, on the other hand describes the goal that corporations or public agencies aim to achieve to ensure that the employees understand and take the necessary steps to conform to the relevant laws and regulations. Basic Labor Laws and regulatory compliance are important because they both offer protection to the employee and employer.

Employee Protection

Every employee is entitled to be compensated fairly and to receive equal opportunity for hire.  They also have the right to work in a safe environment. Employment laws are designed to balance out the master-servant relationship that usually happens in the work area so that the employers will not be able to abuse their power.

Employer Protection

Aside from employee protection, there are standards and principles in the labor laws that protect the rights of the employer. For example, employers are entitled not to hire someone they do not feel qualified. There are laws that ultimately guard the employer's output and profits.

Employee-Employer Protection

Labor laws are designed to offer dual protection to both employers and employees. Compliance with labor laws is also fiscally beneficial to both parties. If an employer is compliant, he avoids potential lawsuits. Likewise, adherence to labor laws means that employees are properly compensated for the work they do. Having these kind of mutual protection can guarantee a good and lasting employee-employer relationship.

In California, there are many resources available to employees to help them understand the basic labor law governing their workplace. Both employees and employers can search the internet to understand further the basic labor law and regulatory compliance being implemented in their area. Another way to find information employment and basic labor law in California is by talking to a reputable lawyer who understands the different laws governing employment and service. There are also online resources that can keep you well informed so these sites are worth checking.

California labor law posters and notices are also available and regularly they are found in areas frequently used by employees like break rooms, lobby areas, lounges and bulletin boards. Employees can find information about Federal Equal Opportunity Civil Rights Notice, Discrimination Notice, Payday Notice, Employee Polygraph Notice, trends and other changes concerning labor laws in California. Employers are required to post these pieces of information so that their workers will know the trends in labor and employment. Aside from that fact that it is mandated, it will really play a big part in keeping their employees informed. It is just right to have this kind of information visible for everyone.

Monday, October 22, 2012

Human Resource Auditing – The Foundation of a Corporation’s Growth


Human Capital is one the vast assets of either a small-scale or a huge corporate enterprise. Because of this it is one of the main focuses of companies, and different changes have been put in place to address needs to cater Human Capital’s progress. One of the changes is tools that have been evolving regarding Human Resources audit.

Human Resources audits set different rules for strategic management. Because of this, it is imperative that they use technologically advanced tool for auditing products and services. HR auditing is a process that should be objective, systemic and independent. It assures legal compliance are abided by to meet government’s standards. HR auditing manages business objectives are met through talent management. The most important is they identify risks, assesses what needs to be done and makes sure these risks are managed.

These tools are becoming progressively complex and multi-faceted. Their objectives are:

- Ensure that HR management is aligned with employment practices and the entire business’ mission and vision.

- Assess the results of the organization’s employment guidelines, policies, activities, and outcomes.

- Develop human capital’s drive to achieve goals while making sure that practices to perform on these goals are done in favor of diversity and benchmarking best practices.

- Identify liabilities and assets, opportunities are acted upon and possibility of risks are given possible measures of correction.

- Develop HR auditing processes that will cater to the ongoing change in the market and employee behavior.

- Deal with employment-related fraud.

Regulatory requirements are influenced by:

Securities and Exchange Commision. They require corporations to “…exercise reasonable management oversight.” Due diligence is implied to because if Human Capital is the largest asset of a company, so it will also be their largest expense. When HR audit is put in place effectively management is reducing risks that can be brought about by simple oversight.

Sarbanes-Oxley. This law was put in place to require effective internal controls within the enterprise that will be conducted by HR auditing. Employment-related claims and litigation can lead to negative impact that will reduce earnings per share. Consequently, this will reduce the organization’s value that will negatively impact an organization’s long-term capacity.

Governmental agencies also look on systemic non-compliance by different organizations. For example, the OFCCP requires self-assessment among employees to be conducted. This is a best practice that needed to be conducted by corporations. The EEOC encourages employers to conduct HR audits based on sophisticated tools that will watch out for systemic discrimination. The US DOL is very strict on wage and hour self-audits. The DHS and immigration lawyers encourage employers to make audits regarding I-9s and hiring processes tin compliance with US immigration laws.

The US Federal Sentencing Guidelines implies to different corporations that they should take reasonable yet effective standards when implementing a culture of compliance. They require that monitors and audits should consider activities behavior and results. Legal compliance is consequent to ethical conduct and non-discriminatory practices within the workplace thus, Employment posters would be a big help.

It is also interesting that capitalist financiers, investors and stockholders are on the lookout for Human Resources’ management practices, process and guidelines, and results that are brought about by HR audits. They look in to the feedback that recognizes human capital asset, liabilities and performing due diligence when risks arise.

This regulatory compliance assures that the five critical components of HR audit process are met. One of the components is the activities that corporations conduct which encourage best practices regarding policies and procedures. This paves way to uncover the next critical component which is behavior. This is brought about by the prevailing culture in the corporation that will take into consideration values, equal employment opportunities, compliance and diversity.

Behavior leads to uncovering risks within the corporation which will identify the net critical component – assessing risks. This moves HR auditing closer to the management side. This tests how apt the corporation is to deal with these risks and what steps to do about it. They may be able to create the next critical component which is internal controls or processes, tests and assessments done and completed to assure corporate goals.

At the end of all the steps, this should lead the HR to evaluate on the last critical component that is outcome. This measures the qualitative and quantitative response of the entire process. This needs scientific interpretation of results in order to derive fruitful recognition of assets, liabilities, improvements and risks. This end step predicts what the corporation needs to do moving forward.

Monday, October 15, 2012

The Need For Minimum Wage Increase In Different US State


Many people are confused with the minimum wage and the basic income. According to Wikipedia, minimum wage is the lowest hourly, daily or monthly salary that employers pay to workers. In the same way, it is the lowest pay that workers can expect in which they can sell their services or labor. On the other hand, a basic income or some people call it negative income tax is a system of social security that from time to time provides each citizen with a sum of money that is sufficient to live on. Thus, it is important to know the minimum wage before you accept any job offer.

Minimum Wage Controversy

There are many controversies and debate on going about the minimum wage increase in different US state. According to idebate.org, the argument over the existence of a minimum wage and whether it should be increased at various times has been around in America since the 30s. In 1938, the US minimum wage was established after being first passed in 1933. It was then ruled unconstitutional by the Supreme Court. 

Historically, the minimum wage has been raised several times. Every time, it is raised or someone proposed it to be raised, it encounters controversies and a similar debate like the one present in America between 2006 and 2007. Records show that the year 2006 is the longest in history without an increase. Many argued that an increase has been due. Several proposals were made that year to increase the minimum wage. The debate also brought out several issues including the net effect on workers, employers, and the overall economy.

Minimum Wage Hike In 2013

It is important to know that the minimum wage differ in each state. In Colorado, the current minimum wage is $7.64/hr.  In Washington, it is $9.04/hr. Complianceposter.com, posted a recent report showing a list of states that will adjust their minimum wage rates in the coming year. In Colorado, the proposed wage is $7.78/hr, while in Washington, it will be $9.19. The website also mentioned that every year there are about ten states that adjust their minimum wage rates for an increase in the cost of living. The increase in minimum wage is based on the Consumer Price Index (CPI) which ascended to 1.7% since August of 2011.  Other states that are expected to increase their minimum wage next year are Montana, Ohio and Oregon. This is such a good news to job seekers especially to the head of the family or bread winner. With minimum wage increase, they are more likely to buy their needs and have enough money for other things. This will also guarantee a higher income to those homeowners who are still paying rents and other bills.

Compliance posters are updated regularly so that both employees and employers can view the current statutes and regulations enforced by the U.S. Department of Labor. DOL often provides electronic and printed copies of these required posters free of charge. Employers affected by the minimum wage hike are required to post the updated Minimum Wage posting for 2013.