ComplyRightComplyRightComplyRightComplyRight
  • WEBINARS
    • Upcoming
    • On Demand
  • TOPICS
    • I want to learn about:
      • Hiring an Employee
      • Creating Policies
      • Paying Employees
      • Discrimination & Harassment
    • Column 2
      • Employment Law
      • Labor Law Postings
      • Employee Leave
      • Employee Recordkeeping
    • Category 3
      • Independent Contractors
      • Tax Reporting
      • Improving Employee Performance
      • Firing an Employee
    • Seven Reasons Why Employee Performance Reviews Still Matter in a Remote Work World

      Employee Performance Reviews
      Read More
  • SOLUTIONS
    • Employee Management
      • Hiring
      • Time and Attendance
      • Training and Safety
      • Recordkeeping
      • Employee Policies
    • Labor Law Posters
      • Poster Guard® Service
      • ComplyRight Posters
      • Electronic Posters
      • Employee Handouts
      • Partner Solutions
    • Tax Information Reporting
      • DIY Filing Solutions
      • Processing Services
      • Partner Solutions
    • NEW! Secure Document Print and Mail Services
    • Featured Solution

      Poster Guard Compliance Protection
      Learn More
  • ABOUT
    • Who is ComplyRight
      • Mission
      • Core Values
      • Leaders
      • Contact
    • Careers
      • Culture
      • Benefits and Perks
    • Brands
      • HRdirect
      • HRdirect Smart Apps
      • Poster Guard
      • eFile4Biz
    • Join Our Team

      Join Our Team
      Learn More
  • SUBSCRIBE

Survey Reveals the Top HR and Employment Law Troubles (and Tactics) for Small Businesses

Survey Reveals the Top HR and Employment Law Troubles (and Tactics) for Small Businesses
Published on September 11, 2019
  • Employment Law
  • State and Local Trends

For the third consecutive year, the National Small Business Compliance Pulse Survey revealed that small business employers continue to grapple with complex employment laws and their impact on business. In particular, participants indicated uncertainty about their ability to handle investigations or legal actions related to these laws. And new this year, the survey also identified growing concern about legally hiring or firing employees, along with the sensitive issue of harassment in the workplace.

Sponsored by ComplyRight, the survey targeted owners, CEOs and other professionals responsible for HR and administrative tasks at 300 small businesses (five to 100 employees) across the U.S. The results shed light on how small businesses are navigating a rapidly changing labor law environment — one that involves a measurable increase in state and local employment-related legislation, an immigration crackdown that has affected hiring and employment practices, and a growing threat of legal claims due to heightened awareness and action around harassment.

With Complexity Comes Reduced Confidence

Among the key findings, the survey revealed that only about one in four businesses is “very confident” in their full awareness of employment laws and regulations at the federal (23%), state (26%) and city/county (29%) levels. Specifically, there was a jump from 2018 to 2019 in participants expressing a high level of concern about “legally hiring or firing employees,” with one out of five employers highlighting “new limitations on what you can ask a job candidate” as their top HR concern.

Further still, the survey identified that the proportion of small businesses with a “high” or “moderate” level of concern about the potential for employee lawsuits increased significantly during the past year (from 30% to 47%). Barely half (48%) of small businesses are “very confident” they are well-prepared to handle investigations or legal actions related to labor law compliance.

There’s a possible explanation for the diminished confidence with employment law awareness and preparedness, particularly when it comes to hiring and firing. Under the current administration, deregulation at the federal level has led to a rise in legislative activity at the state and local levels (such as bans on asking about criminal history and salary history when hiring) — a trend that may be contributing to these concerns.

Primary Resources for Staying Informed and Administering Tasks

How do small businesses keep abreast of changing employment laws and related posting requirements? While about half (54%) of participants consider companies that provide HR products and services to be “useful” in this regard, far more of them (78%) rely on colleagues and friends to keep them informed of changes in employment law. About two-thirds (68%) say they also depend on written notifications from federal and state agencies (a curious response, as most government agencies don’t provide this communication).

It would seem that a primary obstacle to complying with labor laws (and, in turn, to feeling confident) may be the heavy reliance on non-expert resources for information about these laws.

The survey also set out to capture how small businesses manage employee-related administration – the day-to-day tasks stemming from applicable employment laws. There was a fairly even split between approaches: 31% informal/manual processes, 31% formal/manual processes using standardized business forms and 38% more sophisticated processes.

However, those using a modern HR system are substantially more likely to be “very confident” about their awareness of employment laws/regulations. In fact, more than 50% of small businesses who use a modern HR system are “very confident” in their awareness of employment laws and regulations vs. 20%-34% among those using other approaches to manage HR tasks. This appears to be a clear argument for exploring and switching to emerging online HR solutions.

Workplace Harassment Garners More Attention and Employer Response

A new area of exploration with the 2019 annual survey was employer attitudes and behaviors related to workplace harassment – a topic that has dominated the headlines in recent years. One in five (20%) small business employers report an increased level of concern about harassment in their workplaces, a number that more than doubles (to 41%) for employers with 20+ employees.

One in five small business employers report an increased level of concern about harassment in their workplaces, which doubles among employers with 20+ employees.

To address these concerns, at least three-quarters of small business employers proactively address the issue using a combination of strategies, including a zero-tolerance anti-harassment policy (79%) and ensuring employees know how to report harassment (76%). Yet, anti-harassment training is not as prevalent among these employers: Only 59% conduct training and awareness programs for employees, and 60% provide similar training for managers and supervisors. This is concerning, as regular harassment training is considered a critical component and a “best practice” in harassment prevention.

Check Out Additional Insights from the National Survey

The National Small Business Compliance Pulse Survey yielded interesting findings and possible takeaways regarding the ever-changing landscape of employment laws and trends. Certainly, the lack of confidence and preparedness underscores the importance of keeping current with changing laws, turning to reliable sources for support and taking the proper steps to protect your business from legal risk.

Download the full Executive Summary to learn more about the dominant attitudes, pain points and responses of small businesses.

Related Content

  • play-button
    COVID-19 Considerations: Communication Strategies and Policies for What Comes Next
    July 2021

    Pandemic pandemonium is finally beginning to settle down. And although you and your employees may be eager to return to … Read more

    Employment Law

  • play-button
    Election Countdown: How to Handle Political Discussions at Work and Other Potential Legal Issues
    August 2020

    Emotions are running high as the November 2020 presidential and congressional elections draw near. During these particularly volatile political and … Read more

    Employment Law

    Politics at Work

  • 5 Tactics for Protecting LGBTQ Employees Under the Recent Supreme Court Ruling
    August 17, 2020

    Before the historic U.S. Supreme Court ruling on June 15, 2020, gay, lesbian and transgender workers were shielded from workplace … Read more

    Employment Law

  • Returning to Work after COVID-19play-button
    Returning to Work After COVID-19: Legal Considerations and Best Practices for Concerned Employers
    June 2020

    As employers around the country consider when and how to bring employees back to work, they face a multitude of … Read more

    Employment Law

    COVID-19

  • Taking Employee Temperatures
    Taking Employee Temperatures During the COVID-19 Crisis? 5 Things You Need to Know to Do It Safely and Legally
    June 24, 2020

    As employers inch closer to reopening their doors and resuming regular operations, worker safety is of utmost concern. The coronavirus … Read more

    Employment Law

    COVID-19

  • Return to Work Plan
    From Workplace Social Distancing to Staggered Shifts: 10 Tips for Creating a Safe, Successful Return-to-Work Plan
    June 11, 2020

    With equal parts concern and commitment, many employers are moving toward reopening their workplaces after the COVID-19 shutdown. But it’s … Read more

    Employment Law

    COVID-19

  • Managing Remote Employees During COVID-19play-button
    Avoid These 5 Legal Landmines When Managing Remote Employees During COVID-19
    May 2020

    Many employers are allowing employees to work remotely during the COVID-19 crisis. While this approach makes sense for many businesses, … Read more

    Employment Law

    COVID-19

    Remote Workers

  • Workplace Reduction Options
    Workforce Reduction Strategies to Keep Your Business Afloat During the COVID-19 Crisis
    May 7, 2020

    When we rang in the new decade, no one could have predicted what the world is now dealing with. Very … Read more

    Employment Law

    COVID-19

Upcoming Webinar

Webinar Name

Date & Time

Presented by:

Learn More
Shop Our Brands 
HRdirect
HRdirect Smart Apps
Poster Guard
Formstax eFile4Biz

At ComplyRight, our mission is to free employers from the burden of tracking and complying with the complex web of federal, state and local employment laws, so they can stay focused on managing and growing their businesses.

©2021 ComplyRight, Inc.

Webinars

  • Upcoming
  • On Demand

Solutions

  • Employee Management
  • Labor Law Posters
  • Tax Information Reporting

About

  • Who is ComplyRight
  • Careers
  • Brands

Legal

  • Privacy Policy
  • Terms of Use

Popular Topics

Performance Policies Discrimination and Harassment Employment Law HiringLabor Law PostingsIndependent Contractors

Subscribe to Our Newsletter

Subscribe

Follow Us

  • RESOURCES
    • Knowledge Center
      • Tip Sheets
      • E-Guides
      • Podcasts
      • Infographics
      • Videos
    • Webinars
      • Upcoming
      • On Demand Webinars
    • Research and Trends
      • Compliance Survey
      • Trend Surveys
      • Minimum Wage Monitor
    • HR 101 Courses
  • TOPICS
    • Hiring an Employee
    • Creating Policies
    • Paying Employees
    • Discrimination & Harassment
    • Employment Law
    • Labor Law Postings
    • Employee Leave
    • Employee Recordkeeping
    • Independent Contractors
    • Tax Reporting
    • Improving Employee Performance
    • Firing an Employee
  • SOLUTIONS
    • Employee Management
      • Hiring
      • Time and Attendance
      • Training and Safety
      • Recordkeeping
      • Employee Policies
    • Labor Law Posters
      • ComplyRight Posters
      • Poster Guard®
      • Partner Solutions
    • Tax Information Reporting
      • DIY Filling Solutions
      • Processing Services
      • Partner Solutions
  • ABOUT
    • Who is ComplyRight
    • Newsroom
    • Careers
    • Brands
    • Contact Us
  • SUBSCRIBE
ComplyRight