For more than 30 years, Sage has been a leader in the development of Human Resource Management Systems (HRMS) software. Thousands of midsized businesses nationwide have implemented our popular Sage HRMS solutions. From those experiences, we’ve learned that compliance is one of the top challenges facing any human resources department. It can be difficult to stay on top of all of the state and federal workforce laws, regulations, and reporting requirements.
It’s up to HR to ensure that hiring, discipline, and termination practices are compliant with the law. Otherwise, you could put your company at risk of incurring fines, penalties, and employee lawsuits. And mistakes can be costly. More than one-third of private companies surveyed by Chubb Insurance had experienced an employment-law event (EEOC charge filed or employee lawsuit), at an average cost of $74,400 per incident.
Sage created this guide to help you stay informed about the latest workforce compliance laws and regulations that may affect your organization. Staying abreast of current mandates enables you to communicate with and train management and employees so that the company is not at risk of expensive employee lawsuits. As with all issues with legal circumstances, the use of this material is not a substitute for the advice of a lawyer and when in doubt or for advice with respect to any specific human resources mandate please contact your lawyer. Additionally, this material is provided for informational purposes only and not for the purpose of providing legal advice.
Investment vehicles available for foreign investors in China: The wholly foreign-owned enterprise. How to set up a wholly foreign-owned enterprise (WFOE) in China. Its features, maintenance, taxation.
Investment vehicles available for foreign investors in China: The wholly foreign-owned enterprise. How to set up a wholly foreign-owned enterprise (WFOE) in China. Its features, maintenance, taxation.
Companies Act, 2013-Presentation on Accounts & AuditSASPARTNERS
A detailed presentation prepared by SAS Partners Team, Chennai which gives an insight to the important provisions on Chapter IX - Accounts & Audit under Companies Act, 2013. This can be used by the Corporates, Professionals and Students as a ready reckoner for better understanding of the provisions and easy reference.
Secretarial Audit has been mandated by Section 204 of the Indian Companies Act, 2013 for every listed company and other class of companies.
This presentation talks about, introduction, historical background, Objective and Purpose, Scope, Benefits and Beneficiaries of Secretarial Audit. This presentation also talks about offences and penalties as prescribed in Section 204 and 143 of the Companies Act, 2013 for any default committed.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
While the financial sector is facing headwinds including increase in non-performing assets resulting in increased losses and shortage of liquidity, the real estate sector too has witnessed a tough time due to disruptions in labour supply, logistics and increasing finance cost on unsold inventory.
OmniPro\'s Company Law Spring Update 2011. Includes review of the European Communities (statutory Audit Regulations) 2010, Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 & Multi-Unit Development Act 2010
Practical guide to basic legal issues to be aware of when planning China entry, including corporate structure, tax planning and intellectual property protection.
Compromises, Arrangements & Amalgamations with special reference to Protectio...Corporate Professionals
A presentation ‘Compromises, Arrangements & Amalgamations with Special reference to Protection of Minority & Dissenting Shareholders under Companies Act, 2013 ‘ given by Mr. Chander Sawhney at IICA
Governance observer volume 2 - December 2014Misbah Hussain
In this year’s edition, we take a closer look at the structure of corporate boards of India's top 150 companies by market capitalisation. The study provides several key insights, which would be useful to companies in structuring and managing their boards. The report will also enable regulators identify the extent to which India Inc. is complying with the corporate governance norms in line with the Companies Act, 2013 and the revised Clause 49 of the Listing Agreement.
HR & EMPLOYMENT LAW COMPLIANCE GUIDE for AZ 501-c-3 organizationsHRHelp
By threshold numbers of employees, learn the employment laws with which your religious organization must comply, the compliance requirements, the notice & poster requirements, and the recordkeeping & documentation requirements.
Companies Act, 2013-Presentation on Accounts & AuditSASPARTNERS
A detailed presentation prepared by SAS Partners Team, Chennai which gives an insight to the important provisions on Chapter IX - Accounts & Audit under Companies Act, 2013. This can be used by the Corporates, Professionals and Students as a ready reckoner for better understanding of the provisions and easy reference.
Secretarial Audit has been mandated by Section 204 of the Indian Companies Act, 2013 for every listed company and other class of companies.
This presentation talks about, introduction, historical background, Objective and Purpose, Scope, Benefits and Beneficiaries of Secretarial Audit. This presentation also talks about offences and penalties as prescribed in Section 204 and 143 of the Companies Act, 2013 for any default committed.
This information sheet provides general information on insolvency for directors whose companies are in financial difficulty, or are insolvent, and includes information on the most common forms of external administration.
While the financial sector is facing headwinds including increase in non-performing assets resulting in increased losses and shortage of liquidity, the real estate sector too has witnessed a tough time due to disruptions in labour supply, logistics and increasing finance cost on unsold inventory.
OmniPro\'s Company Law Spring Update 2011. Includes review of the European Communities (statutory Audit Regulations) 2010, Criminal Justice (Money Laundering & Terrorist Financing) Act 2010 & Multi-Unit Development Act 2010
Practical guide to basic legal issues to be aware of when planning China entry, including corporate structure, tax planning and intellectual property protection.
Compromises, Arrangements & Amalgamations with special reference to Protectio...Corporate Professionals
A presentation ‘Compromises, Arrangements & Amalgamations with Special reference to Protection of Minority & Dissenting Shareholders under Companies Act, 2013 ‘ given by Mr. Chander Sawhney at IICA
Governance observer volume 2 - December 2014Misbah Hussain
In this year’s edition, we take a closer look at the structure of corporate boards of India's top 150 companies by market capitalisation. The study provides several key insights, which would be useful to companies in structuring and managing their boards. The report will also enable regulators identify the extent to which India Inc. is complying with the corporate governance norms in line with the Companies Act, 2013 and the revised Clause 49 of the Listing Agreement.
HR & EMPLOYMENT LAW COMPLIANCE GUIDE for AZ 501-c-3 organizationsHRHelp
By threshold numbers of employees, learn the employment laws with which your religious organization must comply, the compliance requirements, the notice & poster requirements, and the recordkeeping & documentation requirements.
Join G&A Partners for this look back to 2009 employment law:
As 2009 draws to a close we will take a look back at legislative developments that have taken place over the past year. As an employer, keeping up with the regulatory environment is imperative. Join us on December 15th for a special 60 minute briefing where you will learn about new employment regulations that may directly affect your business in 2010.
The webinar will cover the following topics:
Significant legislative developments including the Ledbetter Fair Pay Act, the ADA Amendments Act and the Genetic Information Non-discrimination Act (GINA).
An overview of the latest decisions by the U.S. Supreme Court that impact equal employment opportunity in the workplace.
Recent Federal District Court decisions in Texas regarding personnel practices.
Learn more at www.gnapartners.com!
Short & simple presentation created for an HR interview in which I had to demonstrate "knowledge of and experience in human resources."
Have you ever tried to summarize employment law in five minutes?
Notes contain text from the wikipedia writers and personal memory joggers.
Labor laws change with every administration, and as an employer, keeping up to date is a necessary burden. G. Mark Jodon of Littler Mendelson discusses what has happened and what can be expected during President Obama's administration in terms of labor and employment legislative and executive initiatives. He explores the administration's priorities from both a regulatory and a legislative perspective.
This seminar was given to clients and friends of the Columbus, Ohio, law firm of Kegler, Brown, Hill & Ritter on March 11, 2010. Topics covered include USERRA, hiring and firing, employment law updates, workplace investigations, employee benefits, COBRA, HIPAA, ERISA, harassment, discrimination and more.
The act had a profound effect on corporate governance in the United .pdfhtanandpalace
The act had a profound effect on corporate governance in the United States. The Sarbanes-Oxley
Act requires public companies to strengthen audit committees, perform internal controls tests, set
personal liability of directors and officers for accuracy of financial statements, and strengthen
disclosure. The Sarbanes-Oxley Act also establishes stricter criminal penalties for securities
fraud and changes how public accounting firms operate their businesses.
One direct effect of the Sarbanes-Oxley Act on corporate governance is the strengthening of
audit committees at public companies. The audit committee receives wide leverage in overseeing
the company\'s top management accounting decisions. The audit committee members must be
independent of the top management and gain new responsibilities such as approving numerous
audit and non-audit services, selecting and overseeing external auditors, and handling complaints
regarding the management\'s accounting practices.
The costliest part of the Sarbanes-Oxley Act is Section 404, which requires public companies to
perform extensive internal control tests and include an internal control report with their annual
audits. Testing and documenting manual and automated controls in financial reporting requires
enormous effort and involvement of not only external accountants, but also experienced IT
personnel. The compliance cost is especially burdensome for companies that heavily rely on
manual controls. The Sarbanes-Oxley Act encouraged companies to make their financial
reporting more efficient, centralized and automated.
The Sarbanes-Oxley Act changes management\'s responsibility for financial reporting
significantly. The act requires that top managers personally certify the accuracy of financial
reports. If a top manager knowingly or willfully makes a false certification, he can face 10 to 20
years in prison. If the company is forced to make a required accounting restatement due to
management\'s misconduct, top managers can be forced to give up their bonuses or profits made
from selling the company\'s stock. If the director or officer is convicted in securities law
violation, he can be prohibited from serving in the same role at the public company.
The Sarbanes-Oxley Act significantly strengthens the disclosure requirement. Public companies
are required to disclose any material off-balance sheet arrangements, such as operating leases
and special purposes entities. The company is also required to disclose any pro forma statements
and how they would look under the generally accepted accounting principles (GAAP). Insiders
must report their stock transactions to the Securities and Exchange Commission (SEC) within
two business days as well.
The Sarbanes-Oxley Act imposes harsher punishment for obstructing justice and securities fraud,
mail fraud and wire fraud. The maximum sentence term for securities fraud increased to 25
years, and the maximum prison time for obstruction of justice increased to 20 years. The act.
Chapter 4 The Institutionalization of Business Ethics 107.docxchristinemaritza
Chapter 4: The Institutionalization of Business Ethics 107
services use the same letter grades, but use various combinations of upper- and lowercase
letters to differentiate themselves.
As early as 2003, financial analysts and the three global rating firms suspected that there
were some major problems with the way their models were assessing risk. In 2005, Standard
& Poor’s realized that its algorithm for estimating the risks associated with debt packages was
flawed. As a result, it asked for comments on improving its equations. In 2006–2007 many
governmental regulators and others started to realize what the rating agencies had known for
years: Their ratings were not very accurate. One report stated that the high ratings given to
debt were based on inadequate historical data and companies were ratings shopping between
companies so as to obtain the best rating possible. It was found that investment banks were
among some of the worst offenders, paying for ratings and therefore causing conflicts of interest.
The amount of revenue these three companies annually receive is approximately $5 billion.
Further investigations uncovered many disturbing problems. First, Moody’s, S&P’s,
and Fitch had all violated a code of conduct that required analysts to consider only credit
factors, not “‘the potential impact on Moody’s, or an issuer, an investor or other market
participant.”’ Also, these companies had become overwhelmed by an increase in the volume
and sophistication of the securities they were asked to review. Finally, analysts, faced with
less time to perform the due diligence expected of them, began to cut corners.
SEC Chairman Mary Schapiro believes that the SEC must take more drastic measures to
implement oversight for credit-rating firms—a group that was largely blamed for not catching
risky activity in the financial sector sooner. Part of the problem, as Schapiro sees it, is that
credit rating firms are paid by the securities that they rank. This creates a conflict of interest
problem, and can affect the reliability of the ratings.23 No organization is exempt from criticism
over how transparent it is. While large financial firms have received most of the fury over risk
taking and executive pay, even nonprofits are now being scrutinized more carefully.24
THE SARBANES–OXLEY ACT
In 2002, largely in response to widespread corporate accounting scandals, Congress passed
the Sarbanes–Oxley Act to establish a system of federal oversight of corporate accounting
practices. In addition to making fraudulent financial reporting a criminal offense and
strengthening penalties for corporate fraud, the law requires corporations to establish
codes of ethics for financial reporting and to develop greater transparency in financial
reporting to investors and other stakeholders.
Supported by both Republicans and Democrats, the Sarbanes–Oxley Act was enacted to
restore stakeholder confidence after accounting fraud at Enron, WorldCom, ...
Acquisory News Chronicle May 2016 - Article on Insolvency and Bankruptcy Code 2016 – A dawn in the era of Credit Market Laws
Latest Corporate News updates- RBI Bank, MCA, SEBI, Tax, DIPP and others
FOR MORE CLASSES VISIT
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ACC 291 is a online tutorial store we provides ACC 291 Entire Course And Final Guide You can find here
Axia College Material
The Sarbanes-Oxlet act (SOX) was primarily enacted following the Enr.pdfnipuns1983
The Sarbanes-Oxlet act (SOX) was primarily enacted following the Enron and other scandals. It
basically sought to remove the compliance and audit gaps that may lead to the same kind or
scandals in future. This is considering the fact that these scandals lead to losses worth trillion
dollars to the investors and the general public and hurts the image of corporates and government
identically.
The SOX was enacted for US corporations and sought to tighten accounting, financial reporting
and audit practices to strengthen the basic foundations that may lead to humongous
consequences. However the basic difference was that this act only was implemented to the
corporations and management alike.
The following were the major points which impacted corporations financial reports in a way that
set a benchmark for all future compliances:
This was basically set up to oversee the funtioning of independent audit firms which do
compliance and financial audit for the specific companies. It was taken care that there the
auditors be registered and there be specific set and defined processes which should be followed.
All systems for process, compliance, quality control etc. were put in place to prevent any further
slippage and mistake.
This takes care of the utmost factor of independence of the audit firms. It seeks to minimize the
conflict of interest that may arise in the event that a particular audit firm auditing the company is
already providing some said non-audit service to the company. This is taken care of by this
provision.
This basically takes care of micro-reporting of sorts. There are enhanced reporting of all
financial transactions i.e. off-balance-sheet transactions, any stock transactions of corporate
management etc. The point also mandates strict internal controls for disclosures, and accuracy of
the financial reports. It specifies audit controls and enhanced reviews by the SEC or its agents.
This includes measures related to help and restore investor confidence. This paves way for
investor confidence in reporting of securities analyst. This also mandates disclosures of conflict
of interests is any and code of conduct for these analysts.
This consists of sections which require the SEC with the Comptroller General to report specific
findings. These reports include the effect of credit rating agencies, whether there are any
securities violations, and whether any investment banks assist the companeis to manipulate
financials. ALso reporting related to effects of consolidation of public accounting firms are
provided in this.
This seeks to provide whistle-blower protection for any information that they reveal. It mandates
penalties i.e. criminal in sense, for alteration and manipulation of financial records.
This is expecially a step ahead of point 8 in terms of the penalties. It recommends stronger and
stricter sentences and implies that any failure to properly certify financial reports is a crimilThis
section increases the criminal penalties associated.
An industry-leading, customizable HRMS solution, Sage HRMS helps companies optimize their HR business processes as well as maximize their Return On Employee Investment (ROEI)™. Developed by HR professionals for HR professionals, Sage HRMS delivers a tightly integrated set of comprehensive features and functionality that increase efficiency and improve productivity at every level in the organization.
With Sage HRMS, you can successfully meet and respond to the HR management challenges you face every day in the areas of payroll, benefits, employee self-service, attendance, recruiting, training, workforce analytics, and more. By automating and streamlining your day-to-day HR business processes using Sage HRMS, you and your staff are freed up to spend more time and energy on the business asset that is most vital to your company—your employees.
It is the perfect time for HR to take a proactive position at the strategic planning table, looking at ways to optimize today’s and tomorrow’s workforce. With payroll as one of the highest line items on the balance sheet, and worker productivity and intellectual property the real lifeblood of business survival, there is an urgent need for renewed efficiency in managing workforce assets.
HR and managers have an opportunity to answer such questions as:
How do we structure ourselves and organize our workforce to be the most effective and productive?
How can we continually align ourselves with our current business conditions and still give our employees confidence and security?
How do we revamp processes to build in agility?
How can we anticipate changing workforce needs?
How do we retain talented, engaged employees?
How do we track and anticipate changing costs?
How do we do all of this with an increasingly complex workforce?
Top Seven Benefits of an Automated Time and Attendance SystemSage HRMS
Increasing information accuracy and reliability are the two paramount reasons a time and attendance system is installed in any organization. Because an organization’s workforce is often its largest expense, impacting production and profitability, inaccurate timekeeping can lead to costly regulatory compliance missteps, among other pitfalls.
On the other hand, it should be noted that employees also represent an organization’s biggest asset with regard to growth and profitability. Thus, maintaining accurate and reliable time and attendance information makes labor management a whole lot more manageable.
At surface level, the immediate time-saving, as well as bottom-line saving, benefits of time and attendance automation are easy to highlight. However, without accurate and reliable time data captured from employees and passed to other parts of the human resources and payroll system, error-prone breakdowns are likely to occur. These can result in employees’ not being paid properly, noncompliance, decreased employee morale, and turnover.
An appropriate time and attendance system that meets your organization’s needs can help to eliminate and even prevent many, if not most, of the negative aspects of inaccurate and unreliable timekeeping.
The following will outline the top benefits of a time and attendance system and the positive effect they can have on your organization.
When making the switch to a new payroll solution, it’s important to carefully weigh your company’s needs and budget when selecting a vendor. Payroll solutions typically fall into one of two types:
Commercial software—Payroll software that runs on your PC or server and allows you to run your own payroll and manage all your payroll processes in-house, including printing checks, reporting, forms, and managing direct deposits and payroll taxes. Commercial payroll software typically involves a one-time software purchase and annual support contract for software enhancements, tax table updates, and technical advice.
Outsourced service—A service bureau processes your payroll, prints checks, handles tax filing, and prints W-2s and other year-end forms. The bureau maintains all payroll data and charges initial and ongoing “per employee” or “per check” processing fees for the service, with additional fees for optional services and reports.
Of these, commercial software typically offers more flexibility and return on investment for midsized companies. Not only is commercial software more cost-effective, it allows you to protect wage and salary information and maintain control over payroll processing to easily handle last-minute changes. With the many commercial payroll software options available, selecting a solution and a vendor can seem like a difficult task. That’s why it’s important to arm yourself with good information, and know the right questions to ask.
For more than 30 years, Sage has been helping midsized businesses in all industries choose and implement human resource and payroll solutions. Our experience has taught us that when people begin searching for human resources management software, they find the process overwhelming and need help identifying their needs, determining the questions they should ask, and gathering the vendor information they need to effectively compare and select the right solution.
We believe expertise unshared is knowledge wasted, so we’ve distilled what we’ve learned from our over 12,000 Sage HRMS customers and created this HR software buyer’s guide with useful information you need to know, including, recent trends in human resources and HR technology, top ten considerations for HRMS, a key software capabilities checklist, and how to evaluate the company behind the product.
We want to make the HR software purchase process as painless as possible and help you find the right HR software solution for your needs whether that solution is Sage HRMS or another.
Sage Source allows you to streamline business processes and offer employees access to valuable online business tools and benefits at no additional cost as part of Sage Business Care. Requiring no implementation or IT administration, the intelligent, customizable online interface easily leverages existing Sage HRMS on-premise data and combines it with complimentary services from third-party solution providers.
Sage HRMS empowers the human resources (HR) department to actively support company objectives while improving HR efficiency. Integrate and streamline your HR processes and closely monitor employee records and personnel actions, HR compliance, benefits administration, absence management, reporting (standard and custom), and data import/export actions with Sage HRMS.
Automate your company’s business processes and promote workplace satisfaction by giving employees ownership of their personal information with Sage Employee Self Service (Sage ESS). With workflow capabilities and customizable features, Sage ESS provides a central location for employees, managers, and administrators to view and manage important personal data and company information. Instead of calling the HR department with routine inquiries, employees and managers will feel more self-sufficient when they can access information, such as time off, current benefits, and current job details—anytime, anyplace over the Internet or company intranet.
Cut the costs and complexity of benefits administration by securely automating the communication of employee benefits enrollment data to insurance carriers with Sage HRMS Benefits Messenger. This powerful solution will eliminate the need to submit paper enrollment forms or create and maintain customized electronic file formats. Sage HRMS Benefits Messenger also eliminates the costly errors associated with duplicate data entry and “missed enrollments” both during annual open enrollment periods and for employee changes throughout the year.
For some time, HR professionals have aspired to create a “paperless office” with automated technology to create, store, and manage all of the employee information necessary to run a business effectively. Today the technology exists to turn this goal into reality with a desirable Return on Investment (ROI). Current business trends toward environmental sustainability provide the additional impetus to make the business case for paperless HR today, to help support the workforce of tomorrow.
Increasingly, reducing the use of paper in business processes will become a necessary step toward corporate sustainability efforts. Some global and regional companies are pushing sustainability initiatives not only within their own operations, but also out into the supply chain, encouraging vendors and partners to implement greener business practices. “Going green” is a competitive response to changes in social attitudes and to the expectations of customers, employees, and stakeholders.
Because of the many paper-intensive administrative processes in the Human Resources department, it is a great area to embrace corporate sustainability objectives by eliminating paper. Going paperless also saves costs and increases the efficiency and accuracy of HR functions. It can even help with recruiting and engagement—many sought-after job candidates and top-performing employees are passionate about environmental causes. This white paper provides information on the benefits of a paperless HR department and the technology for putting it in place.
Why are some companies thriving while others are struggling to stay in business? What is the distinctive difference between a good company and a truly great company? The answers to these questions can only be found when looking at what defines the company: its people. The people who make up a company are that organization’s unique and biggest asset. For most businesses, the workforce is also its largest expense, or better put, its largest investment.
At Sage, we believe that employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return.
We call that the Return on Employee Investment or ROEI. This white paper looks into investments that can help a company maximize the value of its workforce, and shows how technology can help improve ROEI and build a more profitable and successful business.
A company is only as good as its workforce. A company does not generate ideas, does not give service, and by itself is neither efficient nor productive. People make all of those things happen. In that sense, employees are the most important component in the quest to improve business results. It makes sense to treat employee-related expenses as an investment in the workforce. Like any other investment, this critical company investment must yield a healthy return. At Sage, we call that the Return On Employee Investment or ROEI.
These are not easy times for HR managers. Like other executives, they must do more with less. A viable approach to the consequences of an economic downturn is tighter “strategic alignment” of HR processes to the company’s overall competitive strategy. One way that HR managers might adapt to doing more with less is to develop initiatives that designate HR as a strategic partner to revenue-generating business units and to the executive team.
HR Management by Spreadsheet: Is there a Better Way?Sage HRMS
The Easy Way to Manage HR. A Human Resources Management System (HRMS) can automate the way you maintain and access both current and historical information about Recruiting, Onboarding, Policy Communication, Compensation, H&W Benefits, Payroll, Training, Performance, Evaluation, Promotion, Retirement, and Leave.
Employee Leave Issues: 5 Tips to Navigate the Bermuda Triangle of Employee Le...Sage HRMS
If your company has more than 50 employees within a 75-mile radius, it must follow the requirements of the Family and Medical Leave Act (FMLA). There are also additional federal and state laws that your company must abide by in order to remain compliant with leave entitlement programs. These laws include the American with Disabilities Act Amendments Act (ADA-AA), workers’ compensation laws, Uniformed Services Employment and Reemployment Rights Act (USERRA), and state leave laws.
It is imperative that employers stay up to date on changing compliance requirements in order to ensure that employees receive the benefits and protections of these laws, as well as to control costs, and avoid possible penalties.
Three of these laws, FMLA, ADA-AA, and workers compensation, often intersect and can be tricky for employers to follow. These laws are sometimes referred to as a “Bermuda Triangle” of employee leave. Decisions about employee leave, as well as tracking of leave and documentation must be handled properly, or your company could face lost productivity and compensatory or punitive damages.
15 Factors to Consider When Changing How You Process PayrollSage HRMS
When changing how you process payroll, there are numerous considerations that must be taken into account. You will want to think about the features that are important to your company and decide on a solution that meets your needs within budget. The key to selecting the right payroll solution for your organization is to make certain that all of the vendors you evaluate can meet your needs before you begin to narrow down your choices. As you gather requirements and create your Request for Proposal (RFP), you’ll need to consider the functional capabilities required to produce accurate payroll, the vendor qualities you value most, and finally, how you plan to implement a new solution.
Social media is quite a phenomenon. It’s changing the way we use the Internet, communicate with friends and business colleagues, interact with corporations (or customers), gather information, and make decisions. Social media may still seem like a technological fad that is mainly used by younger people, but in truth, it is rapidly gaining users across generations and becoming a main stream business tool.
From an HR perspective, it can be hard to tell if social media is your friend or your foe. But one thing is clear: The time to adopt social media strategies and policies for your business is right now.
HR Data Management: The Hard Way vs The Easy WaySage HRMS
The Easy Way to Manage HR. A Human Resources Management System (HRMS) can automate the way you maintain and access both current and historical information about Recruiting, Onboarding, Policy Communication, Compensation, H&W Benefits, Payroll, Training, Performance, Evaluation, Promotion, Retirement, and Leave.
The HR Managers Guide to Employee EngagementSage HRMS
How can your company increase employee engagement and retain top performers? In this guide, we will examine some current statistics about employee engagement, show how employee engagement affects companies’ financial performance, and provide tips to effectively increase employee engagement at your company.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
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Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Table of Contents
Introduction.......................................................................................................... 3
Current Compliance Mandates............................................................................. 3
Sarbanes-Oxley Act of 2002 (SOX)........................................................................................ 3
Payroll Compliance............................................................................................... 5
Federal Insurance Contributions Act (FICA)............................................................................ 5
Federal Unemployment Tax Act (FUTA).................................................................................. 6
Fair Labor Standards Act of 1938 (FLSA)............................................................................... 7
Consumer Credit Protection Act (CCPA)................................................................................ 8
Benefits Compliance............................................................................................. 9
Healthcare Reform................................................................................................................. 9
Consolidated Omnibus Budget Reconciliation Act (COBRA)................................................ 11
Health Insurance Portability and Accountability Act of 1996 (HIPAA).................................... 12
Employee Retirement Income Security Act (ERISA).............................................................. 13
Family and Medical Leave Act of 1993 (FMLA)..................................................................... 14
Avoiding Discrimination....................................................................................... 15
Americans with Disabilities Act of 1990 (ADA)...................................................................... 15
Civil Rights Act of 1866 Section 1981.................................................................................. 16
Equal Employment Opportunity Act of 1972........................................................................ 16
Civil Rights Act of 1991........................................................................................................ 17
Title VII of the Civil Rights Act of 1964.................................................................................. 18
Equal Pay Act of 1963......................................................................................................... 18
Age Discrimination in Employment Act of 1967 (ADEA)........................................................ 19
Rehabilitation Act of 1973 (Section 503).............................................................................. 20
Vietnam Era Veterans Readjustment Assistance Act of 1974............................................... 21
Executive Order 11246........................................................................................................ 22
Other Hiring Records.......................................................................................... 23
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(New Hire Provision)............................................................................................................. 23
Immigration Reform and Control Act of 1986 (IRCA)............................................................ 24
Safety Regulations.............................................................................................. 25
Occupational Safety and Health Act (OSHA)........................................................................ 25
About Sage HRMS............................................................................................. 26
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Introduction
For more than 30 years, Sage has been a leader in the development of Human Resource
Management Systems (HRMS) software. Thousands of midsized businesses nationwide have
implemented our popular Sage HRMS solutions. From those experiences, we’ve learned that
compliance is one of the top challenges facing any human resources department. It can be difficult
to stay on top of all of the state and federal workforce laws, regulations, and reporting requirements.
It’s up to HR to ensure that hiring, discipline, and termination practices are compliant with the
law. Otherwise, you could put your company at risk of incurring fines, penalties, and employee
lawsuits. And mistakes can be costly. More than one-third of private companies surveyed by Chubb
Insurance had experienced an employment-law event (EEOC charge filed or employee lawsuit), at
an average cost of $74,400 per incident.
Sage created this guide to help you stay informed about the latest workforce compliance laws and
regulations that may affect your organization. Staying abreast of current mandates enables you
to communicate with and train management and employees so that the company is not at risk of
expensive employee lawsuits. As with all issues with legal circumstances, the use of this material
is not a substitute for the advice of a lawyer and when in doubt or for advice with respect to any
specific human resources mandate please contact your lawyer. Additionally, this material is provided
for informational purposes only and not for the purpose of providing legal advice.
Current Compliance Mandates
Sarbanes-Oxley Act of 2002 (SOX)
The Sarbanes-Oxley Act of 2002 was passed to restore public confidence in corporate governance
following serious accounting scandals at large companies such as Enron and WorldCom. This law
creates strict rules to ensure accurate financial reporting from public corporations and their auditors.
Under Sarbanes-Oxley regulations, CEOs and CFOs must personally certify the integrity of financial
reports, as well as the procedures and internal systems used to create them. Public accounting
firms must also attest to the validity of the financial reports and assessments. The law allows for
both executives and their accounting firms to be held criminally liable for accounting inaccuracies.
The Sarbanes-Oxley Act of 2002 (SOX) requires public companies in the U.S. to certify their
internal control procedures for their corporate affairs. The most reviewed areas for a company are
its information technology, financial, and accounting processes. To ensure proper standards are
met, payroll procedures—since they touch each of these areas—are assessed during the SOX
certification process, which includes detailed documentation of any process that results in a financial
transaction. Since payroll is a financial transaction, and almost all HR activities eventually affect
payroll, HR policies and practices must be part of the assessment.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Legislation and Requirements
If a registered public accounting firm or any associated person thereof refuses to testify, produce
documents, or otherwise cooperate with the Securities and Exchange Commission Public
Company Accounting Oversight Board in connection with an investigation under this section, the
Board may suspend or bar such person from being associated with a registered public accounting
firm. The Board may also require the registered public accounting firm to end such association,
suspend, or revoke the registration of the public accounting firm, and invoke such other lesser
sanctions as the Board considers appropriate.
• Title VIII: Corporate and Criminal Fraud Accountability
Imposes criminal penalties for knowingly destroying, altering, concealing, or falsifying records
with intent to obstruct or influence a federal investigation or a matter in bankruptcy. It also
imposes penalties of up to ten years in prison for failure of an auditor to maintain for a five-
year period all audit or review work papers pertaining to an issuer of securities.
• Title IX: White Collar Crime Penalty Enhancements
Establishes criminal liability for failure of corporate officers to certify financial reports, including
maximum imprisonment of ten years for knowing that the periodic report does not comply
with the act. Penalties include up to 20 years’ imprisonment for willfully certifying a statement
knowing it does not comply with this act.
• Title XI: Corporate Fraud Accountability
Amends federal criminal law to establish a maximum 20-year prison term for tampering
with a record or otherwise impeding an official proceeding. Authorizes the SEC to seek
a temporary injunction to freeze extraordinary payments earmarked for designated persons
or corporate staff under investigation for possible violations of federal securities law.
Authorizes the SEC to prohibit a violator of rules governing manipulative, deceptive devices,
and fraudulent interstate transactions from serving as officer or director of a publicly traded
corporation if the person’s conduct demonstrates unfitness to serve.
Enforcement Agency
The Securities and Exchange Commission Public Company Accounting Oversight Board. This
board was established to oversee the audit of public companies that are subject to the securities
laws and other related matters. Its purpose is to protect the interests of investors and further the
public interest by preparing informative, accurate, and independent audit reports for companies
the securities of which are sold to and held by and for public investors. The Board shall be a body
corporate, operate as a nonprofit corporation, and have succession until dissolved by an Act of
Congress.
Covered Employers
Public Accounting Firms. All firms must register with the Public Company Accounting Oversight
Board. Publicly Traded Companies.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Violations
Violations of this Act, any rule or regulation of the Commission issued under this Act, or any rule
of the Board shall be treated in the same manner as a violation of the Securities Exchange Act of
1934 or the rules and regulations issued therein, consistent with the provisions of this Act. Any such
person shall be subject to the same penalties, and to the same extent, as for a violation of that Act
or such rules and regulations.
• Title VIII: Corporate and Criminal Fraud Accountability
Impose a fine or up to 25 years of imprisonment of any person who knowingly defrauds
shareholders of publicly traded companies.
• Title IX: White Collar Crime Penalty Enhancements
Increases the penalties for mail and wire fraud from 5 to 20 years in prison. Increases
penalties for violations of the Employee Retirement Income Security Act (ERISA) of 1974,
resulting in fines up to $500,000 and ten years in prison.
• Title XI: Corporate Fraud Accountability
Increases penalties for violations of the Securities Exchange Act of 1934 to up to $25 million
dollars and up to 20 years in prison.
Payroll Compliance
Accurate payroll is essential for any company. Mistakes in employee pay calculations can lower
employee satisfaction. Errors in government filings and tax payments can result in costly fines. In
addition to Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA)
tax filing and reporting, you must keep detailed records about employee wages and hours to satisfy
compliance with the Fair Labor Standards Act (FLSA).
Federal Insurance Contributions Act (FICA)
Legislation and Requirements
The Social Security Act of 1935 created a system of old age and survivor’s insurance and, later,
disability insurance (OASDI). Later amendments in 1965 were made to expand the scope of the
program to include Medicare, or health insurance (HI). Social Security, disability, and Medicare are
often referred to jointly as FICA. FICA records must be kept in a safe and convenient location for
at least four years after the due date of such tax for the return period to which the records relate,
or the date such tax is paid, whichever is later. Wages and taxes are reported quarterly to the IRS
on Form 941 or annually on Forms 944 or 943 (for agricultural employer). Forms W-2 and W-3 are
submitted annually to the Social Security Administration; appropriate W-2 copies are also provided
to employee. Taxes are deposited based on employer’s deposit schedule as determined by their
look-back period.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Enforcement Agency
Internal Revenue Service
Covered Employers
For FICA purposes, all employers—defined as any entity that employs one or more employees— are
covered.
Violations
Employers may be subject to both civil and criminal penalties for failing to meet employment tax
obligations. These obligations include the timely filing of employment tax returns, paying the tax due,
and meeting deposit requirements. Penalties may be assessed for the late filing of employment tax
returns, late payment of taxes shown on employment tax return, and federal interest assessed for
underpayment of taxes. Additionally, criminal penalties may apply to willful failures to file, pay, or
deposit employment taxes.
Federal Unemployment Tax Act (FUTA)
Legislation and Requirements
Under the Social Security Act of 1935, all states were required to establish unemployment
compensation programs. To assist the states in funding these programs, the federal government
enacted the Federal Unemployment Tax Act (FUTA). Subject to certain restrictions imposed by the
U.S. Department of Labor, each state regulates and administers its state unemployment program
independent of the federal government. For this reason, covered wages, tax rates, and workers’
benefits vary from state to state. FUTA records must be kept in a safe and convenient location for
at least four years after the due date of such tax for the return period to which the records relate, or
the date such tax is paid, whichever is later. Unemployment wages and taxes are reported annually
to the IRS on Form 940. Taxes are deposited quarterly or annually based on the tax amount.
Enforcement Agency
Internal Revenue Service
Covered Employers
Employers with one or more employees who work at least some portion of a day in each of 20
weeks or pay wages of $1,500 during any calendar quarter. (Agricultural and domestic worker
employers have different tests to determine liability.)
Violations
Employers may be subject to both civil and criminal penalties for failing to meet employment tax
obligations. These obligations include the timely filing of employment tax returns, paying the tax due,
and meeting deposit requirements. Penalties may be assessed for the late filing of employment tax
returns, late payment of taxes shown on employment tax returns, and federal interest assessed for
underpayment of taxes. Additionally, criminal penalties may apply to willful failures to file, pay, or
deposit employment taxes.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Fair Labor Standards Act of 1938 (FLSA)
Legislation and Requirements
The Fair Labor Standards Act of 1938 regulates minimum wage, overtime pay, equal pay, and child
labor. Employers are required to comply with FLSA’s record-keeping requirements of maintaining
records of employment and earnings; order, shipping, and billing records; additions or deductions
from wages; certificates of ages; wage rate tables; and work time schedules for two years. In
addition, records which show employee’s name, address, sex and birth date; occupation and
daily work schedule; individual contracts and bargaining agreements; sales and purchase records;
regular hourly rate of pay for any week in which nonexempt person worked overtime; record of
hours worked on a daily and weekly basis with total earnings due for nonexempt employees; and
actual wages paid and deductions taken for three years. Employers are required to post a notice
determined by the Wage-Hour Division in a conspicuous place at the worksite.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Wage and Hour Division
Covered Employers
Enterprises with two or more covered employees and specified volume of sales must consider all
employees covered. Annual sales test: $500,000. Enterprises that were covered by the Law as of
March 31, 1990, but don’t gross $500,000 per year continue to be subject to the to the overtime
pay, child labor, and record-keeping provisions of FLSA. However, these businesses need only pay
the federal minimum wage that was in effect on March 31, 1990 ($3.35 per hour), and not the most
current minimum wage ($7.25 per hour, effective July 24, 2009), provided the state minimum wage
is not higher. The following enterprises are covered without regard to volume of sales: hospitals and
related institutions and schools, profit or nonprofit; public agencies.
Violations
Court action against an employer can be filed by the employee or Secretary of Labor Statute of
limitations on enforcement for unpaid minimum wage, unpaid overtime compensation, or liquidated
damages is two years for non-willful action and three years for willful action. Civil penalties of up
to $50,000 can be assessed and/or imprisonment up to six months upon a second conviction.
Injunctive and monetary relief for back pay and/or overtime may be assessed. Damage awards may
be doubled when violations are willful.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Consumer Credit Protection Act (CCPA)
Legislation and Requirements
The Consumer Credit Protection Act protects the consumer from unfair or harsh collection
practices. Title III of the CCPA specifically protects employees by restricting the amount of earnings
that can be attached for the payment of creditor debts, alimony, child support, and federal debts
such as defaulted student loans. No separate reporting is required; however, records must be
maintained that show garnishment of individual wages did not exceed 25% of the individual’s weekly
earnings or the amount by which his weekly earnings exceed 30 times the federal minimum hourly
wages prescribed in the Fair Labor Standards Act of 1938, whichever is less. Exceptions to this rule
exist for child support and debt due for any state or federal tax.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Wage and Hour Division
Covered Employers
All employers, regardless of the size of the employer or the extent of employer’s involvement in
interstate commerce.
Violations
In states where an exemption for state-regulated garnishments has been granted, the state enforces
the limitations on the amount that may be garnished in a pay period, but not the restrictions on
discharge from employment. Anyone who willfully violates the discharge provision is subject to
criminal prosecution and a maximum fine of $1,000, imprisonment for up to one year, or both. Either
an employee who has been illegally discharged or the U.S. Department of Labor may bring a court
action asking for reinstatement to employment and restitution of lost wages.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Benefits Compliance
There are a myriad of compliance laws surrounding employee benefits such as retirement, medical
leave, insurance plans, and healthcare.
Healthcare Reform
The Patient Protection and Affordable Care Act (PPACA), signed into law by President Obama
on March 23, 2010, and the amendments made by the Healthcare and Reconciliation Act of
2010 (together, the Healthcare Act), have significant employment tax and information reporting
implications. Fortunately, the requirements of the Healthcare Act are being phased in over a period
of eight years, with limited provisions, such as the change in qualified dependents for medical care
expenses, effective in 2010.
Of particular note are a number of new Healthcare reporting requirements that are needed to assist
in the enforcement of the various health coverage requirements that will be required of individuals,
employers, and insurers, with staggered effective dates beginning in 2011 and through 2014, and
an additional Medicare withholding tax that takes effect in 2013.
The more immediate changes are listed here in chronological order:
Qualified dependent for medical care expenses purposes:
Under the Healthcare and Reconciliation Act of 2010, and effective in 2010, the definition of
dependent child is amended to extend the general exclusion for reimbursements for medical care
expenses under an employer-provided accident or health plan to any child of an employee who has
not attained age 27 as of the end of the taxable year.
Reporting of cost of employer-sponsored health coverage on Form W-2:
Under the PPACA legislation, W-2 reporting of the value of health insurance sponsored by
employers was to have become mandatory for 2011. However, to give employers more time
to update their payroll systems, IRS Notice 2010-69, issued on November 10, 2010, made this
requirement optional for all employers in 2011. IRS Notice 2011-28 provided further relief for smaller
employers filing fewer than 250 W-2 forms (in the prior year) by making the reporting requirement
optional for them at least for 2012 and continuing this optional treatment for smaller employers until
further guidance is issued.
• Effective for plan years beginning in 2013, health flexible spending arrangements (FSA) limit
annual employee contributions to $2,500. The amount is indexed to the CPI beginning in
2014. Employer contributions are not limited.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
• PPACA legislation requires an employer to withhold Additional Medicare Tax on wages or
compensation it pays to an employee in excess of $200,000 in a calendar year beginning
with wages paid on and after January 1, 2013. An employer has this withholding obligation
even though an employee may not be liable for the Additional Medicare Tax because, for
example, the employee’s wages or other compensation together with that of his or her
spouse (when filing a joint return) does not exceed the $250,000 liability threshold. Any
withheld Additional Medicare Tax will be credited against the total tax liability shown on the
individual’s income tax return (Form 1040) and reconciled at the time of filing.
• Starting in 2014, certain employers must offer health coverage to their full-time employees or
a shared responsibility payment may apply. Information may be found in news releases IR-
2011-92 and IR-2011-50 and Notices 2011-73, 2011-36 and 2012-17. Additionally, Notice
2012-58 expands upon and modifies previous guidance and describes safe harbors that
employers may use to determine whether certain workers are full-time employees and to
establish that coverage is affordable at least through the end of 2014. Notice 2012-59
provides related guidance for group health plans on the waiting periods they may apply
before starting coverage.
Employer “Pay or Play” Mandate
In 2014, the pay-or-play mandate requires employers of 50 full-time equivalent employees or more
to offer quality, affordable health insurance coverage to full-time employees (those working on
average at least 30 hours per week or 130 hour per month) and their families. Failure to offer such
coverage potentially subjects the employer to a penalty for a given month.
Employers who “opt out” of providing benefits
Employers who do not provide health coverage to all full-time employees (and their dependents) are
penalized:
• If at least one full-time employee (30+hrs/wk or 130+ hrs/mo) is eligible for, or receives,
a subsidy in a state exchange. The employer is subject to an annual penalty of $2,000 ×
all full-time employees (except for the first 30) applies
• Penalty is assessed monthly (that is, $167.67 per full time employee per month
Employers who provide “unaffordable” coverage
Coverage is affordable only if the premium for single coverage under the employer’s lowest cost plan
with at least a 60% “actuarial value” does not exceed 9.5% of household income (or W-2 wages).
Annual penalty is the lesser of $3,000 for each full-time employee who receives a subsidy through
a state exchange, or $2,000 multiplied by all full-time employees (subtracting the first 30). Penalty is
assessed monthly (that is, $250 per subsidy-receiving full-time employee per month).
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Consolidated Omnibus Budget Reconciliation Act of 1985 provided that employees be allowed to
purchase medical insurance at the employer’s group health plan rate plus 2% upon occurrence
of a qualified event (for instance, termination, death, or divorce). The American Recovery and
Reinvestment Act of 2009 included a provision that, effective with health coverage periods
beginning on and after February 17, 2009, provided a federally funded premium assistance payment
of 65% of the health insurance premium for up to nine months (through December 31, 2009) to
employees and their families who are otherwise eligible for health benefits continuation (assistance
eligible individuals) under the Consolidated Omnibus Budget Reconciliation Act of 1985. Under the
Defense Appropriations Act of 2010, Congress extended the 65% government subsidy for COBRA
health payments to workers involuntarily separated through February 28, 2010, and lengthened the
subsidy period to 15 months. The Continuing Extension Act of 2010 extended the 65% government
subsidy for COBRA health payments to workers involuntarily terminated from employment through
May 31, 2010.
Individuals who qualified on or before May 31, 2010, may continue to pay the reduced premiums
for up to 15 months, as long as they are not eligible for another group health plan or Medicare. If
COBRA coverage did not start until a later date due to the terms of a severance arrangement, the
use of banked hours, or a similar provision, a qualified individual may still be eligible for 15 months
of coverage. For example, if an individual was involuntarily terminated on May 31, 2010, and due to
the terms of a severance agreement, his COBRA coverage did not start until December 1, 2010, he
would still be eligible for the full 15 months of subsidy through February 29, 2012, as long as he is
not eligible for another group health plan or Medicare.
The employee COBRA subsidy is reported on forms 941, 943, or 944. The Department of Labor
has issued a model statement that employers can use to comply with the act’s notification
requirements to employees.
• Enforcement Agency
U.S. Department of Labor and Internal Revenue Service
• Covered Employers
Group health plans maintained by employers with 20 or more employees in the prior year. It
applies to plans in the private sector and those sponsored by state and local governments.
The law does not apply to plans sponsored by the federal government and certain church-
related organizations.
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Avoiding Costly Fines: A 2013 Guide to Compliance Mandates
Violations
Companies that fail to comply with notification obligations may be fined up to $110 per day (under
the Employee Retirement Income Security Act) until proper notification is given to employees and
are subject to an excise tax of $100 per day ($200 if more than one family member is affected by
the employer’s failure to comply). In addition, companies are liable for the costs of medical expenses
incurred by an individual who would otherwise have been covered. “Good faith compliance” is
expected of employers. If employers do not comply, they will not be allowed to claim group health
plan costs as a business expense, and they will therefore not be allowed to deduct it. Highly
compensated employees —who are required to list employer contributions to their health plans on
their tax forms—may also be penalized if their employers do not comply with COBRA.
Health Insurance Portability and Accountability Act of 1996 (HIPAA)
Legislation and Requirements
Health Insurance Portability and Accountability Act of 1996 is a federal law designed to protect
the privacy of employees’ and plan participants’ personal health information and to ensure that it
is not used improperly by employers. Under this act, group health plans and insurers are required
to furnish a statement of prior health coverage, commonly referred to as a “certificate of coverage”
to provide documentation of the individual’s prior creditable coverage. This certificate must be
provided in the following circumstances: when an individual loses coverage under the plan; when
an individual becomes entitled to elect COBRA continuation coverage, at a time no later than
when notice is required under COBRA; within a reasonable period of time after the plan learns that
COBRA continuation coverage has ceased or after the individual’s grace period for the payment of
COBRA premiums ends; and upon request, before an individual loses coverage or within 24 months
of losing coverage.
Enforcement Agency
U.S. Department of Health and Human Services; Attorney General’s office at the state level
Covered Employers
HIPAA provisions are imposed upon group health plans and issuers. Eligibility for an individual’s
enrollment in a group health plan is determined according to the terms of the health plan and
the rules of the issuer, but not according to an individual’s health status or that of an individual’s
dependent. HIPAA guarantees access to health coverage for small employers. Small firms (50 or
fewer employees) are guaranteed access to health insurance, and generally, no insurer can exclude
a worker or family member from employer-sponsored coverage based on health status. Insurers are
required to renew coverage to all groups, regardless of the health status of any member.
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Violations
Except as provided in subsection (b) of the Act, the Secretary of Health and Human Services shall
impose on any person who violates a provision of this part a penalty of not more than $100 for each
such violation, except that the total amount imposed on the person for all violations of an identical
requirement or prohibition during a calendar year may not exceed $25,000.
Employee Retirement Income Security Act (ERISA)
Legislation and Requirements
The Employee Retirement Income Security Act of 1974 is a federal law that sets minimum standards
for most voluntarily established pension and health plans in private industry to provide protection for
individuals in these plans. ERISA requires plans to provide participants with important information
about plan features and funding, provides fiduciary responsibilities for those who manage and
control plan assets, requires plans to establish a grievance and appeals process for participants
to get benefits from their plans, and gives participants the right to sue for benefits and breaches
of fiduciary duty. Employer must preserve for six years all records containing basic information and
data that could be used to verify, explain, or clarify reports or descriptions required to be filed under
ERISA. All plans covered by ERISA must file financial and actuarial reports (Form 5500) with the
Treasury Department on a yearly basis.
Enforcement Agency
Internal Revenue Service enforces vesting, participation, and funding requirements. The Department
of Labor enforces the fiduciary requirements.
Covered Employers
All employers engaged in commerce with the exception of churches and federal, state, and local
government employers.
Violations
Willful violations of ERISA can result in both criminal and civil penalties. Enforcement agencies have
the right to: force plan fiduciaries to restore profits made through improper plan transactions, make
good on losses, and pay civil fines; withdraw tax exemptions that such plans normally carry; and
sanction employers with fines in amounts up to $500,000 and prison terms of up to ten years.
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Family and Medical Leave Act of 1993 (FMLA)
Legislation and Requirements
The Family and Medical Leave Act of 1996 grants qualified employees up to 12 weeks of medical
leave per year to care for themselves or qualified family members, without losing their jobs or
group health benefits. The Act does not require employers to pay employees while on medical
leave, but some do anyway as a voluntary employee benefit. In 2008, the FMLA was amended to
provide eligible employees working for covered employers two new leave rights related to military
service. The Act requires that documentation be kept to track the employee’s FMLA request,
dates, disposition, and so on to support that no detrimental action was taken as a result of his/her
FMLA request—including Form WH-380 Certification of the Healthcare Provider and Form WH381
Employer Response to Employee Request for Family or Medical Leave. A notice summarizing the
pertinent provisions of the law must be posted in an area accessible by employees.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Wage and Hour Division
Covered Employers
Private employers engaged in commerce or in any industry affecting commerce who employed 50
or more employees in 20 or more work weeks in the current or preceding calendar year AND public
agencies, including state, local, and federal employers and local education agencies (no minimum
number of employees for private elementary or secondary schools).
Violations
Department of Labor has investigatory authority to review records annually, or more often if there
is reasonable cause to believe violations have occurred and to resolve complaints by employees.
The Secretary of Labor and also the employee have the right to sue. Penalties include monetary
damages and equitable relief including employment, reinstatement, or promotion. Violations of
record-keeping or posting requirements can result in a fine of $110 per offense.
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Avoiding Discrimination
Employee discrimination claims are among the most frequently filed lawsuits and the most
expensive jury verdicts. Federal employment laws have been established to prohibit discriminatory
practices against employees based upon their gender, race, religion, disability, and other attributes.
This is a very active area of workplace litigation. To protect your company from employee
discrimination complaints and lawsuits, it is essential to conduct regular training with managers and
employees about workplace discrimination and harassment and to establish formal processes for
dealing with complaints and keeping records.
Americans with Disabilities Act of 1990 (ADA)
Legislation and Requirements
The Americans with Disabilities Act of 1990 is a wide-ranging civil rights law that prohibits, under
certain circumstances, discrimination based on disability.
Enforcement Agency
EEOC and/or the Department of Justice and/or the Office of Civil Rights, depending under which
Title the complaint falls (Title I, Title II, or Title III)
Covered Employers
• Title I (Employment) requires employers with 15 or more employees to provide qualified
individuals with disabilities an equal opportunity to benefit from the full range of employment-
related opportunities available to others.
• Title II (State and Local Government Activities) covers all activities of state and local
governments regardless of the government entity’s size or receipt of federal funding.
• Title III (Public Accommodations) covers businesses and nonprofit service providers that
are public accommodations, privately operated entities offering certain types of courses and
examinations, privately operated transportation, and commercial facilities.
Violations
Private individuals may bring lawsuits in which they can obtain court orders to stop discrimination.
Individuals may also file complaints with the Attorney General, who is authorized to bring lawsuits in
cases of general public importance or where a “pattern or practice” of discrimination is alleged. In
these cases, the Attorney General may seek monetary damages and civil penalties. Civil penalties
may not exceed $55,000 for a first violation or $110,000 for any subsequent violation. Remedies
may include hiring, reinstatement, back pay, court orders to stop discrimination, and reasonable
accommodation. Compensatory damages may be awarded for actual monetary losses and for
future monetary losses, mental anguish, and inconvenience. Punitive damages may be available as
well, if an employer acts with malice or reckless indifference. Attorney’s fees may also be awarded.
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Civil Rights Act of 1866 Section 1981
Legislation and Requirements
The Civil Rights Act of 1866 Section 1981 is a federal law in the United States that pertains to
everyone born in the U.S. and not subject to any foreign power. This act prohibited employment
discrimination based on race and color. Employers are required to maintain records which reflect
nondiscrimination against any individual with respect to compensation, terms, conditions, or
privileges of employment because of individual’s race.
Enforcement Agency
Enforcement: No agency; direct court action.
Covered Employers
All private employers are covered by the 1866 Act; there is no size of business requirement, nor is
there any requirement affecting interstate commerce.
Violations
Section 1981 permits victims of race-based employment discrimination to obtain a jury trial at which
both equitable and legal relief, including compensatory and, under certain circumstances, punitive
damages may be awarded. Such damages may include back pay and fringe benefits the employee
would have earned during the period of discrimination from the date of termination (or failure
to promote), to the date of trial. Compensatory damages are allowed for future loss, emotional
distress, pain and suffering, inconvenience, mental anguish, and loss of enjoyment of life. The caps
placed on compensatory and punitive damages do not apply in a Section 1981 claim.
Equal Employment Opportunity Act of 1972
Legislation and Requirements
The Equal Employment Opportunity Act of 1972 prohibits employment discrimination on the
basis of race, color, national origin, sex, religion, age, disability, political beliefs, and marital status.
Employers are required to comply with EEOC reporting requirements and maintain records of
recruitment activity to demonstrate compliance with equal employment opportunity rules. Guidelines
apply to employee selection procedures which are used in making employment decisions, such as
hiring, retention, promotion, transfer, demotion dismissal, or referral. Private employers with 100
or more employees or federal contractors with 50 or more employees, and private contractors or
subcontractors with contracts of $50,000 or more must report annually using Form EEO-1. State
and local government employers with 15 or more employees report biennially on Form EEO-4. The
EEOC-approved notice summarizing the pertinent provisions of Title VII of the Civil Rights Acts of
1964 as amended must be posted in an area accessible by employees.
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Enforcement Agency
Equal Employment Opportunity Commission
Covered Employers
Employers who are subject to Title VII of the Civil Rights Act of 1964
Violations
Under most EEOC-enforced laws, compensatory and also punitive damages may be available
where intentional discrimination is found. Damages may be available to compensate for actual
monetary losses, for future monetary losses, and for mental anguish and inconvenience.
Punitive damages also may be available if an employer acted with malice or reckless indifference.
Punitive damages are not available against the federal, state, or local governments. The making of a
false statement on the EEO-1 report is punishable by fine or imprisonment.
Civil Rights Act of 1991
Legislation and Requirements
The Civil Rights Act of 1991 amended the Civil Rights Act of 1964 to strengthen and improve
federal civil rights laws, provide for damages in cases of intentional employment discrimination,
and clarify provisions regarding disparate impact actions. It provided for the right to trial by jury on
discrimination claims and introduced the possibility of emotional distress damages, while limiting
the amount that a jury could award. Employers are required to maintain records which reflect
nondiscrimination against any individual with respect to compensation, terms, conditions, or
privileges of employment because of an individual’s race, color, religion, sex, or national origin. The
EEOC-approved notice summarizing the pertinent provisions of Title VII of the Civil Rights Act of
1964 as amended must be posted in an area accessible by employees.
Enforcement Agency
Equal Employment Opportunity Commission
Covered Employers
Private employers engaged in an industry affecting commerce with 15 or more employees for each
working day in each of 20 or more calendar weeks in the current or preceding year AND state and
local governments which employ 15 or more employees or which receive revenue sharing funds.
Violations
Prior to the enactment of the Civil Rights Act of 1991, remedies under Title VII were limited largely
to reinstatement, back pay, and the recovery of attorney’s fees. Monetary recovery for emotional
distress and punitive damages were unavailable. Under this act, victims of intentional employment
discrimination may now recover compensatory and punitive damages ranging from $50,000 to
$300,000 depending on size of employer, in addition to those damages already available under
Title VII.
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Title VII of the Civil Rights Act of 1964
Legislation and Requirements
Title VII of the Civil Rights Act of 1964 is the landmark federal employment discrimination law.
It prohibits discrimination in any aspect of employment on the basis of race, color, religion,
national origin, or sex. Employers are required to keep all records for one year related to
applications and hirings; promotions and transfers; layoffs and terminations; pay rates and other
terms of compensation; and selections for training or apprenticeship programs that will reflect
nondiscrimination based on race, color, religion, sex, or national origin. Two exceptions to Title VII
relate to a bona fide occupational qualification or a bona fide seniority system. The EEOC-approved
notice summarizing the pertinent provisions of the law must be posted in an area accessible by
employees. The EEO-1 report is required by the amendment to this act; see Civil Rights Acts
of 1991.
Enforcement Agency
Equal Employment Opportunity Commission
Covered Employers
Private employers engaged in an industry affecting commerce with 15 or more employees for each
working day in each of 20 or more calendar weeks in the current or preceding year AND state and
local governments which employ 15 or more employees or which receive revenue-sharing funds.
Violations
Equitable remedies are provided, including injunctive relief, reinstatement, hiring, back pay, and
front pay. Damages for intentional discrimination include consequential, compensatory, and
punitive damages. Damages for nonmonetary losses are capped between $50,000 and $300,000
depending on the employer’s size. Damages are not available for nonintentional discrimination.
Compensatory and punitive damages for racial discrimination are precluded if such damages can be
recovered under USC, Section 1981.
Equal Pay Act of 1963
Legislation and Requirements
The Equal Pay Act of 1963 disallows wage discrimination based on gender for all jobs that require
equal skill, effort, and responsibility under similar working conditions at the same employer.
Employers are required to comply with FLSA’s record-keeping requirements but must also maintain
records that describe or explain the basis for payment of any wage differentials to employees of
the opposite sex. Such records may include job evaluations, job descriptions, merit, incentive, or
seniority systems and collective bargaining agreements. The EEOC-approved notice summarizing
the pertinent provisions of the law must be posted in an area accessible by employees.
Enforcement Agency
Equal Employment Opportunity Commission
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Covered Employers
Generally covers both private and public employers; there is no minimum number of employees
established for coverage under the Act.
Violations
Enforced through civil lawsuits and jury trials. An individual’s right to bring suit terminates when
the EEOC commences an action to enforce the individual’s rights. As provided by the Fair Labor
Standards Act, civil penalties of up to $11,000 can be assessed and/or imprisonment up to
six months upon a second conviction. Injunctive and monetary relief, including reinstatement,
promotion, and liability for lost wages may also be assessed. Damage awards may be doubled
when violations are willful.
Age Discrimination in Employment Act of 1967 (ADEA)
Legislation and Requirements
The Age Discrimination in Employment Act of 1967 prohibits age discrimination in any aspect of
employment against individuals who are 40 years old or older. Employers are required to comply
with FLSA’s record-keeping requirements but also must maintain records which do not reflect age
discrimination practices against persons 40 years and older. Such records may include privileges,
compensation, terms, and conditions of employment. The Act does allow mandatory retirement
of highly compensated executives or top policy makers who have reached 65 years of age and
who stand to receive at least $44,000 annually in pension payments. The EEOC-approved notice
summarizing the pertinent provisions of the law must be posted in an area accessible by applicants
and employees.
Enforcement Agency
Equal Employment Opportunity Commission
Covered Employers
Employers with 20 or more workers are covered if they employed that many persons for each
working day in each of at least 20 calendar weeks in the current or preceding calendar year, and
they are engaged in an industry affecting commerce. State and local governments must comply with
ADEA requirements. However, elected public officials and certain others are generally exempt. The
law contains special provisions for federal employers.
Violations
Enforced through civil lawsuits and jury trials. An individual’s right to bring suit terminates when
the EEOC commences an action to enforce the individual’s rights. Injunctive and monetary relief
includes reinstatement, promotion and liability for lost wages, and front pay. Compensatory damage
awards may be doubled when violations are willful. While states are covered under the terms of the
Act, the U.S. Supreme Court held that state employees may not sue their employers for alleged
violations under the Act. Separate procedures also exist for federal agency employees. Damage
awards may be doubled when violations are willful.
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Rehabilitation Act of 1973 (Section 503)
Legislation and Requirements
Rehabilitation Act of 1973 prohibits discrimination by federal contractors and grantees against
individuals with disabilities who are able to work. No specific limitation appears in the statute or its
implementation regulations. However, by virtue of the OFCCP’s requirement that nonexempt federal
contractors/subcontractors submit affirmative action data for compliance review audits, a two-year
retention period is required for maintenance of AAPs and data supporting current and prior AAPs.
Records of complaints under this section must be kept for one year. Employers must post a notice
of equal employment opportunity requirements in a conspicuous place.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Office of Federal Contract
Compliance Programs
Covered Employers
Public and private contractors and subcontractors holding contracts with the federal government
worth $10,000 or more. No minimum number of employees; however, 50 employees plus a contract
worth $50,000 or more triggers a requirement for a written affirmative action plan to hire and
advance qualified persons with disabilities.
Violations
Section 503 is enforced through administrative enforcement with resort to the courts through the
Attorney General in instances where denial of further contract work might be ineffective; there is
no private right of action. Enforcement through sanctions can include the following: enforcing the
contractual obligation through a court order, withholding payments that are due on the contract,
terminating the contract altogether, and preventing the contractor from receiving any contracts in
the future.
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Vietnam Era Veterans Readjustment Assistance Act of 1974
Legislation and Requirements
Vietnam Era Veterans Readjustment Assistance Act of 1974 prohibits employment discrimination by
employers with federal contracts or subcontracts of $25,000 or more and provides affirmative action
programs for Vietnam-era veterans, special disabled veterans, and veterans who served on active
duty during any war, campaign, or expedition for which a campaign badge was authorized.
Records must be maintained which reflect nondiscrimination in personnel practices for all veterans
that served in the U.S. military who are disabled veterans, recently separated veterans (three years),
Armed Forces Service Medal veterans, and other protected veterans. In accordance with Title 38,
United States Code, Section 4212(d), the U.S. Department of Labor (DOL), Veterans’ Employment
and Training Service (VETS) collects and compiles data on the Federal Contractor Program Veterans’
Employment Report (VETS-100 Report) from federal contractors and subcontractors who receive
federal contracts that meet the threshold amount of $100,000 on or after December 1, 2003.
Prior to amendment by the Jobs for Veterans Act (JVA), the Vietnam Era Veterans’ Readjustment
Assistance Act (VEVRAA) and its implementing regulations at 41 CFR 61.250 required all
contractors and subcontractors with federal contracts in excess of $25,000 to report their efforts
toward hiring and employing veterans in four specified categories: veterans of the Vietnam era,
special disabled veterans, other protected veterans, and recently separated veterans. JVA raised
the VETS-100 reporting threshold from $25,000 to $100,000 for contracts awarded on or after
December 1, 2003, and modified the report categories of veterans to: disabled veterans, other
protected veterans, armed forces service medal veterans, and recently separated veterans.
Additionally, JVA will require federal contractors and subcontractors to report the total number of
all current employees in each job category and at each hiring location. The EEOC-approved notice
summarizing the pertinent provisions of the law including how to file a complaint must be posted in
an area accessible by applicants and employees.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Office of Federal Contract
Compliance Programs
Covered Employers
Public and private contractors and subcontractors holding contracts with the federal government
worth $100,000 or more for the procurement of personal property and nonpersonal services
(including construction). No minimum number of employees; however, 50 employees plus a contract
worth $100,000 or more triggers a requirement for a written affirmative action plan.
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Violations
Enforced through withholding of contract payments, termination of contracts, debarment from
future contracts; make whole remedies, including reinstatement and back pay. Appropriated funds
cannot be used for contracts with entities that do not meet the veterans’ employment
reporting requirements.
Executive Order 11246
Legislation and Requirements
Executive Order 11246, as amended, prohibits discrimination and requires affirmative action to
ensure that all employment decisions are made without regard to race, color, religion, sex, or
national origin. The EEOC-approved notice summarizing the pertinent provisions of the law must
be posted in an area accessible by employees. The EO Survey is required to be filed annually for
federal contractors or subcontractors which have 50 or more employees and a federal contract or
subcontract worth $50,000 or more.
Enforcement Agency
U.S. Department of Labor Employment Standards Administration, Office of Federal Contract
Covered Employers
Private employers and state/local governments that have federal contracts worth more than
$10,000; no minimum number of employees. Fifty employees plus a contract worth $50,000 or
more triggers a requirement for a written affirmative action plan.
Violations
General enforcement of systemic discrimination which requires contractors and subcontractors to
refrain from employment discrimination on the basis of race, color, religion, sex, or national origin
and to take affirmative action with regard to hiring and advancement of minorities and women.
Individual complaints are referred to the EEOC. Violations may result in cancellation, suspension, or
termination of contracts, withholding of progress payments, debarment, and sanctions.
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Other Hiring Records
In addition to the hiring records explained in previous sections, the government requires employers
to keep records that help determine employee eligibility to work and locate parents who are
delinquent in child support obligation.
Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (New Hire Provision)
Legislation and Requirements
The new-hire provision in this law established a Federal Case Registry and National Directory of New
Hires to track delinquent parents across state lines. It also requires that employers report all new
hires to state agencies for transmittal of new-hire information to the National Directory of New Hires.
Each state may provide the time within which the required report shall be made with respect to an
employee, but such report shall be made: not later than 20 days after the date the employer hires
the employee; or in the case of an employer transmitting reports magnetically or electronically, by
two monthly transmissions (if necessary) not less than 12 days nor more than 16 days apart.
Enforcement Agency
U.S. Department of Health and Human Services, Office of Child Support Enforcement; New Hire
Reporting. Units at the state level.
Covered Employers
For new-hire reporting purposes, the term “employer” is the same as for federal income tax
purposes and includes any governmental agency or labor organization. For practical purposes, any
entity that is responsible for providing a worker with a Form W-2 must meet the new-hire reporting
requirements. The following exceptions exist: Employers on Native American reservations and lands
are not subject to the new-hire reporting requirements unless the tribe accepts the jurisdiction of the
state for this purpose. An agency that simply places employees and is not responsible for paying
the workers’ salaries is not responsible for reporting the workers as new hires.
Violations
Civil money penalties assessed on noncomplying employers as follows: The state shall have the
option to set a state civil money penalty which shall be less than: $25; or $500 if, under state law,
the failure is the result of a conspiracy between the employer and the employee to not supply the
required report or to supply a false or incomplete report.
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Immigration Reform and Control Act of 1986 (IRCA)
Legislation and Requirements
This law amends the Immigration and Nationality Act to prohibit U.S. employers from hiring illegal
aliens. It also prohibits employment discrimination against individuals other than illegal aliens based
on citizenship status or national origin. Employers must verify the eligibility of each employee hired
after November 1986 to work in the United States by completing Form I-9.
An employer must examine documents that establish the employee’s identity and eligibility to work
in the United States before completing this form. Section 1 must be fully completed and signed
by the employee at the time of hire (first day of employment). The employee must then present
the employer with original documents proving his or her assertions regarding identity and work
authorization, as set forth in Section 1 of the Form I-9, within three (3) business days of commencing
employment. IRCA contains antidiscrimination provisions to protect noncitizens against unlawful
discrimination; thus, an employer may not refuse to consider a person for employment just because
it suspects the applicant is an unauthorized alien.
An employer is required to verify an applicant’s status only after an offer of employment is accepted.
Every employee must complete Form I-9, which is issued by the Immigration and Naturalization
Service, attesting to his or her legal status. IRCA requires an employer to keep proof of identity and
authorization to work on file for three years following the first date of employment, or for one year
following the termination of employment, whichever is later.
Enforcement Agency
Department of Homeland Security U.S. Citizenship and Immigration Services
Covered Employers
The Immigration Reform and Control Act made all U.S. employers responsible to verify the
employment eligibility and identity of all employees hired to work in the United States after
November 6, 1986.
Violations
Hiring and recruiting violations and improper referrals may result in: a cease-and-desist order; a
fine ranging from $110 to $11,000, depending on the type and number of violations; and criminal
penalties, which are also available under IRCA for certain violations.
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Safety Regulations
The Occupational Health and Safety Administration (OSHA) regulates workplace safety. This agency
is part of the U.S. Department of Labor and seeks to reduce workplace injuries and fatalities through
enforcement of safety regulations. OSHA reports that in the 35+ years since its inception, workplace
fatalities decreased more than 60% and occupational injury and illness rates have fallen by 40
percent. To ensure compliance with OSHA regulations, all employers must display the OSHA poster
in a prominent location, report the work-related death or hospitalization of three or more employees,
and in many cases, comply with additional OSHA recordkeeping requirements.
Occupational Safety and Health Act (OSHA)
Legislation and Requirements
The Occupational Safety and Health Act requires covered employers to prepare and maintain
records of occupational injuries and illnesses. Employers must preserve the following records for five
years: all recordable occupational injuries and illnesses no later than six working days after receiving
information that injury or illness occurred; annual summary of occupational injuries and illnesses; and
any accident causing death of one or more employees or hospitalization of five or more employees,
which must be reported to the area director of OSHA within 48 hours. OSHA forms 300, 300A, and
301 are used to comply with the reporting requirements. Employers must post notices that advise
employees of their rights, as well as each OSHA citation the company receives.
Enforcement Agency
Occupational Safety and Health Administration
Covered Employers
Employers engaged in interstate commerce. Employers with ten or fewer employees and federal
and state governments are exempt from certain requirements.
Violations
Failure to maintain required records may result in a citation and civil penalties. Employers that
willfully make false statements are subject to criminal penalties, as well. If an investigation reveals
unacceptable conditions, OSHA will issue a citation describing the violations and the proposed
civil and/or criminal penalties. Citations may be contested before the Occupational Safety and
Health Review Commission (OSHRC). An administrative law judge presides over OSHRC hearings.
Awards for discrimination include reinstatement and back pay. An employer that violates the
antidiscrimination provisions may be prohibited from committing future violations of these provisions
and ordered to post a notice, provided by OSHA, which informs employees of its unlawful conduct.
In addition, employers may be penalized with fines of up to $7,000 per violation. The Act provides
that an employer who willfully violates the Act may be assessed a civil penalty of not more than
$70,000 but not less than $5,000 for each violation.
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