Last Updated on December 17, 2022 by Anda Malescu
What is regulatory compliance in the United States? What laws and regulations do companies in the U.S. have to adhere to?
The answers are far from simple, but the article seeks to shed some light on what is regulatory compliance and what are the most important regulations companies should follow when conducting business in the United States.
Generally, regulatory compliance refers to an organization’s compliance with a set of laws, regulations and guidelines specific to a business. Regulatory compliance depends largely on the type of business, employees and location, but in the United States also varies from state to state and with each county within a state. In other words, in the United States, a company must comply with laws and regulations of the county, state and federal government.
For example, a business headquartered in Miami, Florida is required to comply with the regulations in Miami-Dade County, the laws of the State of Florida and the laws of the federal government for certain aspects of the business. Moreover, the company’s compliance standards depend on whether the business is a tattoo shop, a talent agency, a restaurant, or other type of business. It is important to know that violations of compliance regulations can result in punishment including federal fines.
U.S. federal law deals with regulatory compliance with respect to hiring practices, advertising, accounting, benefits, workplace environment and safety, discipline and termination.
Companies are encouraged to familiarize themselves with the following laws and investigate and comply with all the relevant rules:
- Hiring practices. Companies should always conduct their hiring practices in accordance with the law to avoid discrimination, or face discipline from the Equal Employment Opportunity Commission (EEOC). The EEOC protects all workers who may be employed by a U.S. company against discrimination based on sex, race, color, religion, national origin, age, disability and genetic information. In addition, the Migrant and Seasonal Agricultural Worker Protection Act provides standards for wages, housing, hours, and other limitations on temporary agricultural workers.
- Health benefits and employee privacy. The Employee Retirement Income Security Act (ERISA) covers employee benefit plans. Employers with more than 50 employees are required to offer a health insurance plan or pay fines. Health insurance coverage given by an employer is often governed by state laws, with specific areas of coverage that employers need to maintain in a company-sponsored plan.
- Work environment. In the United States, the government strives to provide a work environment free from discrimination. Employers are generally free to create their own rules for workplace conduct but they cannot promote discriminatory attitudes and practices. Failure to do so may subject the employer to civil liability or criminal investigation. The Civil Rights Center enforces rights guaranteed as part of the Civil Rights Act of 1964.
- Wages and hours. The Fair Labor Standards Act (FLSA) maintains the way workers may be employed, how time off is considered, and how much they must be paid. The federal minimum wage in 2019 is $7.25, but states can set a higher minimum. Based on the industry, FLSA requires employers to maintain regulatory compliance for workers under the age of 18.
- Workplace safety. Employers must provide a safe working environment and must regularly pass inspections by Occupation Safety and Health Administration. In addition, employers are required to have insurance for Workers’ Compensation irrespective of the industry in order to protect employees who are injured on the job.
- Recruitment and retention. In today’s marketplace companies should ensure that HR managers recognize good employees and support them in their growth.
- Employee discipline and termination. When a business needs to lay off a large number of employees all at once, the Worker Adjustment and Retraining Notification (WARN) Act of 2003, enforced by the Employment and Training Administration of the Department of Labor, requires businesses to give at least 60 days notification to employees who will lose their jobs. Companies should also inquire with the U.S. Department of Labor for more information.
Contact us or schedule a consultation with your business attorney in Miami, Florida USA to help with your regulatory compliance needs.
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