The Equal Employment Opportunity Commission regulations are intended to protect employees from discrimination in the workplace. Employers who fail to comply with those regulations may be the subject of EEOC enforcement actions, as well as civil lawsuits brought by employees who feel they have been wronged. Additionally, these regulations are complex and cover all aspects of employer-employee relations, from initial aid advertisement placement 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.
EEOC record keeping regulations for employers require that all personnel or employment records be maintained for one year after employment termination, including salary rates, job evaluations, seniority, and merit systems . Payroll records must be kept for at least three years, and employers are required to keep files on employee benefit plans and seniority or merit systems for the entire period that the plan or system is in effect and for at least less one year after its use has been terminated. . 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 those details on each employee up-to-date and in order is a never-ending task for the average small business owner. For this reason, many have 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 charge notice from the EEOC requiring that all personnel or employment records related to the matters under investigation be maintained until the final disposition of that charge, and any resulting lawsuit filed by the EEOC or the employee who filed the discrimination complaint. Records that fall under that retention requirement include all records pertaining to the affected employee, as well as records of other individuals holding or seeking similar positions.
Documenting the details of employer-employee interactions is advisable for other reasons as well. In addition to meeting record-keeping requirements, documenting everything related to the hiring and continued employment of workers is the best way to protect your business if an employee files a complaint with the EEOC. An accurate written record of the circumstances surrounding a complaint can help you defend yourself against false accusations, giving credence to your version of events. Being prepared with the details that can prove your side of the story can make the difference between having a complaint resolved in your favor and heavy penalties being imposed on your business.
Online recruiting software is invaluable to a small business owner in a variety of ways, but EEOC compliance software may be its best feature. EEOC regulations and compliance standards can be confusing, even contradictory in some areas. Plus, they’re frequently modified and updated, making it even harder to keep up. However, EEOC compliance software is updated regularly, making it easy to ensure your business is aware of the latest changes. Accurate and efficient EEOC compliance alone makes an investment in online recruiting software worth the price.