PEO Consultants Blog

HR Compliance: As Clear as Alphabet Soup

It all started with Franklin D. Roosevelt’s “New Deal.” FDR created at least 100 agencies during his tenure to combat the Great Depression, and all the agencies were referred to with abbreviations, acronyms and confusing language resulting in an “alphabet soup” of federal offices.

Federal and state governments have continued this tradition with current employment laws resembling a jumbled bowl of alphabet soup – ADA, EEOC, FMLA, ERISA, FLSA, ACA, OSHA. It practically takes a law degree to keep up with all the rules and regulations businesses must comply with in today’s workplace.

Overwhelming Regulations

With 69% of small business owners saying they feel overwhelmed by regulations, rules and mandates and 81% reporting the appeal of owning their own business has weakened, it’s no wonder that business owners struggle to keep track of current requirements, stay up-to-date with reporting and still remain in business!

Finding your way out of this alphabet maze is as easy as A-B-C with a Professional Employer Organization (PEO). As your co-employer, a PEO monitors and tracks the latest state and federal compliance processes so you have a complete audit trail to minimize legal risk.

Financial Risk

The financial risk of non-compliance is high and puts small- and medium-sized businesses at a considerable disadvantage if they don’t proactively manage the regulations effecting their businesses.

In today’s environment of increasing rules (with no end in sight!), a business’ bottom line is at the forefront of management’s concerns. Just one employee lawsuit could put a business under. With 44 percent of business owners admitting they are not confident in their ability to meet compliance requirements, PEOs can reduce administrative expenses, non-compliance fines and penalties, and stress related to managing labor laws.

The Math

On average, business owners spend 4 hours a week (2,000 hours a year) dedicated to government regulations and tax compliance. But, it’s your PEO partner’s full-time job to ensure your company is compliant.

So, not only do you have an extra 2,000 hours a year to focus on your core business operations, you can be confident that your company is fully compliant with employment laws, saving beaucoup dollars in potential infractions.

Employment compliance areas which a PEO manages:

(In alphabetical order, of course)

  • ACA – Affordable Care Act
  • ADA – Americans with Disabilities Act
  • ADEA – Age Discrimination in Employment Act
  • CCPA – Consumer Credit Protection Act
  • DFWA – Drug Free Workplace Act
  • EEO – Equal Employment Opportunity
  • ERISA – Employee Retirement Income Security Act
  • FLSA – Fair Labor Standards Act (wage and hour compliance)
  • FMLA – Family Medical Leave Act
  • GINA – Genetic Information Nondiscrimination Act
  • OSHA – Occupational Safety and Health Administration
  • Title VII of the Civil Rights Act

Your PEO partner gives you guidance and recommends policies and procedures to ensure compliance with federal and state employment laws. The PEO also assists with supervisory and employee training, employee litigation responses, claims replies, and other communications with regulatory agencies.

Wade your way out of the alphabet soup knowing that your business is meeting legislative compliance with a PEO co-employer. PEO Consultants helps you navigate the PEO marketplace to find the best fit for your business goals and employees. Contact our team of experts to learn more about how we can help.


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