Maintaining poster compliance with outsourced payroll

Maintaining poster compliance with outsourced payroll

The U.S. Department of Labor requires businesses to display posters on the walls around their offices. These posters convey important information about employee rights in the workplace. Full of image- and text-based information, the DOL posters are varied, and each one is applicable to different types of businesses. An outsourced payroll vendor can inform a company which posters it must display and how to keep them updated based on current regulation changes.

What types of posters might go up at a business?
Almost any federal or state law pertaining to employment has its own poster. Here is a short list of some posters employees may find in their workplaces:

  • Job Safety and Health Protection poster
  • Equal Employment Opportunity – Section 503 of the Rehabilitation Act of 1973 (as amended) poster
  • Fair Labor Standards Act Wage and Hour Division poster
  • Notice to All Employees Working on Federal or Federally Financed Construction Projects Wage and Hour Division poster
  • Office of Labor-Management Standards Executive Order poster

Each of these posters pertains to a very specific collection of businesses and has its own set of rules regarding where the poster can be displayed. For instance, construction companies must post one version of the Wage and Hour Division poster, while small businesses have to post another. Requirements vary depending on the industry, company size and types of employees.

Where can businesses find posters?
As HR360 pointed out, all of the federally mandated posters are available for free on the Department of Labor website. However, each state has its own unique series of guidelines companies have to follow when it comes to posters in the workplace. This is where outsourced human resources systems come in.

Outsourcing payroll improves poster compliance
It's no surprise outsourced HR is there, ready to step in and streamline processes like maintaining compliance when it comes to paychecks, benefits enrollment, tax deductions, hiring and more. But when it comes to posters physically in the workplace, these service providers are also on top of things, keeping businesses up to speed on any changes to poster guidelines or information that employees must be aware of.

For example, as of April, private employers working in the commerce sector have to display the Job Safety and Health Protection poster issued by the U.S. Occupational Safety and Health Administration in a spot where both employees and applicants can clearly see it. Should an original poster not be available, these types of companies would have to print out an 8.5-by-14-inch poster with at least 10 point font for workers to observe and read. HR is already bogged down by daily tasks, managing entire businesses and ensuring workers are meeting their potential. Monitoring updates and deadlines for posters could waste time and money if the posters don't go up in a timely manner.

Having an outsourced HR provider is especially helpful for enterprises with locations in multiple states. Since each state requires unique versions of some posters, a single department may find it difficult to keep track of all the regulatory changes or guidelines for each location.

Failure to comply could result in fines
If the DOL completes an audit of a particular business and finds the company isn't up to date on its mandatory posters, each violation could cost the business a fine or penalty fee. The company could also receive contract sanctions or have to appear in court where civil penalties would be assessed. Some violations have no consequences.

Outsourcing payroll can not only improve businesses' compliance to specific paycheck deductions and benefits administration, but it can also enhance the daily lives of workers around the country.

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