Regulations from the Equal Employment Opportunity Commission are intended to protect employees against discrimination in the workplace. Employers who fail to comply with these regulations can become the target of EEOC enforcement actions, as well as civil lawsuits brought by employees who feel they have been wronged. And these regulations are complex, covering all aspects of employer-employee relationships, from placing the initial help-seeking ad to retirement. Therefore, EEOC compliance is not easy and the consequences of non-compliance can be costly, both financially and in damage to your small business’s reputation. Online recruiting software that includes EEOC compliance tools can help protect your business by automating the compliance process.
The EEOC record-keeping rules for employers require that all employment or personnel records be retained for one year after termination of employment, including wage rates, job evaluations, seniority, and systems of merits. Payroll records must be kept for at least three years, and employers are required to maintain records on employee benefit plans and seniority or merit systems for the entire period the plan or system is in effect and for at least least one year after you have finished using it. . These requirements apply to all employers who are subject to federal anti-discrimination laws, regardless of whether any charges have been filed against the employer. Keeping all of those employee details up to date and in order is a never-ending task for the average small business owner. For this reason, many turned to EEOC compliance software to compile those records, ensuring that relevant information is not overlooked.
If a complaint is filed against your company, the record retention requirements become even more stringent. When a complaint is filed, the employer will receive a notice of charge from the EEOC requiring that all employment or personnel records related to the matters under investigation be preserved until final disposition of that charge, and any resulting laws filed by the EEOC or the employee who made the discrimination complaint. The records that are included in that withholding requirement include all records related to the affected employee, as well as records of other individuals holding or seeking similar positions.
Documenting the details of employer-employee interactions is a good idea for other reasons as well. In addition to meeting recordkeeping requirements, documenting everything related to the hiring and continued employment of workers is the best way to protect your business in the event an employee files a complaint with the EEOC. An accurate written record of the circumstances surrounding a complaint can help you defend against false accusations, lending credibility to your version of events. Being prepared with details that can prove your side of the story can be the difference between a complaint being resolved in his favor and hefty penalties imposed on your business.
Online recruiting software is invaluable to a small business owner in a variety of ways, but EEOC compliance software may well be its best feature. EEOC regulations and compliance standards can be confusing, even contradictory in some areas. Also, they are frequently changed and updated, which makes it even more difficult to keep up. However, EEOC compliance software is regularly updated, which makes it easy to ensure that your company is aware of the latest changes. Only accurate and efficient EEOC compliance makes an investment in online recruiting software worthwhile.
