Finding Answers to Your HR Questions

“Just Google it.”

When it comes to making sure your HR policies are compliant with local, state, and federal laws, Google isn’t always your friend.

Some questions have clear, definitive answers. So sure, Google might be helpful for finding out the name of that actor from that movie you can’t remember but it’s not much help when you’re trying to figure out how to handle employee classification when your state has specific overtime exemptions and your employees are in multiple roles.

Compliance issues like these require more than a quick search — they need a deeper understanding of the law and how it applies to your business. Here's why you can’t always rely on Google and how to get the real answers you need.

Federal, State, and Local Laws

You could easily type in “minimum wage laws” and get dozens of results. If your browser is picking up your location, laws from your state will probably be at the top of the page.

Unfortunately, one quick internet search won’t generate the facts you need as easily as looking up who that actor was in the movie you saw five years ago. 

Federal, state, and local laws often cover the same topic differently. Those differences may seem subtle, but if you’re not following all of them concisely, you could be out of compliance.

Let’s use the minimum wage example to see how complex these topics can get.

Do you know how employment laws and regulations affect companies of your size? Here's a quick breakdown to help:

FLSA and IRS Employee Misclassification

Many small business owners rely on independent contractors to keep operations running. But depending on their relationship with the business, these workers may be considered employees by the federal government.

Both the IRS and the Department of Labor are targeting businesses that purposely misclassify workers to avoid paying overtime, payroll taxes, and other employee-related expenses. 

So how do you know if a worker is truly an independent contractor or if they should be classified as an employee?

The biggest factor is control:

• If you dictate when, where, and how they work, they’re likely an employee.
• If they have control over their own schedule, methods, and tools, they may be a contractor.

Misclassification can lead to penalties, back wages, and tax liabilities. Are you certain you’re paying and classifying your workers correctly? Download our guide to understand IRS definitions, ensure compliance, and confidently set your team up for success.

HR Compliance Shouldn’t Feel Like a Full-Time Job

If the above points have you confused and a bit stressed, there’s no need to panic. The countless employment laws and regulations can make the idea of managing your employees seem daunting. Having an HR expert in-house would make things easier, but that’s not always realistic.

Having an HR expert in-house would help, but that’s not always an option. Outsourcing HR gives you the support you need without the extra overhead.

Curious about how it works? What Is HRO? explains how outsourcing HR can save time, reduce risk, and help you focus on what matters most—your business.