Hiring the right talent is crucial for growing your business, but it also comes with serious legal responsibilities. Keeping up with labor laws and compliance standards can be tricky, especially as rules change. Even one small mistake during hiring can lead to lawsuits, fines, and damage to your reputation.
In this blog, we’ll break down the common legal mistakes businesses make when hiring and share how good HR practices can help you avoid them. Plus, we’ll explain how America’s Back Office, an IRS-certified PEO, can be a game-changer in keeping your business compliant and your processes running smoothly.
The Equal Employment Opportunity Commission (EEOC) is a federal agency that enforces workplace anti-discrimination laws. Its goal is to ensure that job applicants and employees are treated fairly throughout the hiring process and their time on the job.
The EEOC prohibits discrimination based on these protected classes:
These rules apply to most employers with 15+ employees, labor unions, and employment agencies. Ignoring them can result in lawsuits and penalties.
In fiscal year 2024, the EEOC filed 110 lawsuits over illegal hiring practices, with some tied to new laws like the Pregnant Workers Fairness Act (PWFA). Staying up to date with current regulations isn’t just important—it’s essential to avoid serious legal trouble.
More and more states are making it illegal for employers to ask about a candidate’s past salaries. The goal? To stop wage inequality and ensure people are paid for their skills and qualifications, not for what they earned before.
These laws, now in place in 37 states and over 100 cities, push back questions about a candidate’s criminal history until later in the hiring process. This gives everyone a fair shot by focusing on qualifications first, especially for those with prior convictions.
The wage gap hasn't gone away, even with rules like the Equal Pay Act. To tackle this, many places are rolling out stricter equal pay laws and requiring more salary transparency to help level the playing field.
HR teams play a significant role in ensuring fair and legally compliant recruiting practices. Here are three ways HR can help:
Hiring regulations can be tricky, but staying compliant is always worth it to avoid costly mistakes. Meeting EEOC, OFCCP, and state-specific requirements is key to building a fair, inclusive hiring process while reducing legal risks.
That’s where America’s Back Office comes in. We’re here to help simplify the process and ensure your business stays compliant with state and federal regulations. Spend less time stressing over rules and more time focusing on growing your company.
Do you need help with HR compliance? Contact America’s Back Office today, and let us do the heavy lifting.