Compliance Cheat Sheet

Name What Potential Violation

Examples of Violations

Paycor Solution

I-9 Violation

Employers must complete and sign Form I-9 within three business days of the date of hire of their employee. The I-9 must be filled out completely and properly to avoid legal trouble.

$1,100 Maximum Per Employee.

In 2015, Hartmann Studios was ordered to pay a $605,250 fine. They had more than 800 I-9 paperwork violations.

Onboarding Electronic

Document Storage

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E-Verify

E-verify compares I-9 data with government databases on info like as Date of Birth, Social Security number, and more. Used to make sure the employees are compliant before hiring.

$3,200 per worker who is not eligible to work in the United States. E-Verify safeguards against this mistake.

Great American Hotels and Resorts paid $15 million in fines for E-Verify violations. They employed about 3,000 workers at the time.

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Paying Overtime

Any salaried exempt employee earning under $47,476 must be paid OT for hours worked above 40. Many other roles will also require that OT be paid.

The burden of proof on employer. The employer must Pay 1.5 times hours worked above 40 and then double it as well as pay plaintiff fees.

Frederico's chain was audited to pay workers $202k in overtime back pay and damages. This will only get worse with the new rules.

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Workers’ Compensation

Form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Having no compensation plan in place could cost a company a lot of money in fines and penalties.

An employer is liable for a penalty of $2,000 per 10 days, the actual award for the settlement, plus other penalties the board assess for non-compliance.

Sedgwick Claims Management Services Inc. was required to pay a $1.13 million settlement to the California Division of Workers' Compensation for violating workers compensation laws.

Workers’ Comp.

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OSHA Compliance

OSHA is an agency for the enforcement of occupational safety and health standards in that state. They fine the employer for hazardous work conditions. Employer gets many fines as there are violations so the violations often add up.

$1,000 for a violation that probably would not cause physical harm, up to $7,000 if there is a substantial chance of injury and up to $70,000 if the employer knowingly put the employees in danger.

Texas steel contractor W.S. Steel Erection LLC was fined $175,700 including two repeat and six serious violation citations involving fall protection.

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Compliance Cheat Sheet

FMLA Violations

FMLA entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons. Violation of FMLA could result in a lawsuit.

Law suit similar to discriminations. Could include: Front Pay, Back Pay, reinstatement, compensation, punitive damages.

After interfering with FMLA leave, Arizona JDA Software employer pays $114,618 in back pay and damages.

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Wrongful Termination

Wrongful termination is being fired for an illegal reason and can apply to termination due to discrimination, being punished for “whistleblowing”, or breaking employment contracts.

A Wrongful Termination suit could result in the employer paying for lost pay, lost benefits, emotional distress, punitive damages, and attorney fees.

In June 2016, Las Vegas Sands settled a wrongful termination case with former CEO, Steve Jacobs. It will cost the company over $75 million.

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Gender Pay Equality

It is illegal to discriminate based on sex in regards to pay and benefits. The jobs need not be identical, but they must be substantially equal.

Gender pay inequalities go directly to court where the employer would potentially pay for lost pay, distress, and other court fees.

A Citicorp Service Manager was awarded nearly $340,000 in back pay when she was found to have earned significantly less than her male counterparts for several years.

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Racial Discrimination

The law prevents treating someone (an applicant or employee) unfavorably because he/she is of a certain race or because personal characteristics associated with race.

Results in $3,200 for first time violation per worker. $6,500 for second time. $16,000 for third time. Also could evolve into a potential lawsuit.

In 2016, a Washington, D.C. bar was forced to pay $687,000 for racial discrimination against one bartender.

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Age Discrimination

Treating an applicant or employee less favorably because of his or her age is prohibited and will be settled in court. Age Discrimination only forbids discrimination on people 40 years or older.

Employer must pay the employee all wages, benefits, and other compensations. Also the employer must take action to remedy the discrimination.

Dr. Zane Hurkin, 81, was awarded $340,000 by a Polk County jury for age discrimination at Woodward County Resource Center in Des Moines.

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Sexual Harassment

Examples include: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Can result in a court date which could potentially cost a company a lot of money.

Depends on type of sexual harassment. Could result in paying extra job benefits or a lawsuit. Employer can be liable even if he/she didn't perform the act.

Chipotle was just ordered to pay three former general managers nearly $200,000 each after a jury in Cincinnati, Ohio ruled the women were harassed and fired because of their gender.

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