Exploring business strategies for assuring compliance to changes in employment laws

Abstract

Noncompliance with employment and labor laws can result in compensatory and punitive damages, adversely impacting business profitability. Human Resources (HR) personnel who lack strategies to anticipate and react to changes in employment laws risk penalties for noncompliance, resulting in reduced profitability. Grounded in the top-down model of adaptation and political risk management, the purpose of this qualitative multiple case study was to explore strategies some HR personnel use to anticipate and react to changes in employment laws, to avoid compensatory and punitive damages. The participants included nine HR personnel from nine organizations located in the District of Columbia, Maryland, and Virginia tristate area who implemented successful strategies to align with mandated legislation and other existing and new employment laws. Data were collected using semistructured interviews and review of company documents related to applicable labor laws. Thematic analysis was used to analyze the data. Three themes emerged: (a) strategies to anticipate and react to changes in employment laws; (b) strategies to anticipate and react to changes in “ban the box” legislation; and (c) obtaining feedback on reacting to changes in employment laws. Key recommendations include: (a) providing employment law compliance education and training programs for all supervisors and HR staff; (b) changing the company culture and values, beginning with upper management; and (c) collaborating with the legal team to ensure compliance. The implication for positive social change includes increased employment among marginalized members of society, including persons with criminal histories, which may reduce crime rates, recidivism, and reliance on government assistance programs.