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MSDIS CORNER
EMPLOYMENT COMPLIANCE LAWS
> Title VII of the Civil Rights Act
> Americans with Disabilities Act (ADA)
> Family and Medical Leave Act (FMLA)
> Immigration Reform and Control Act (IRCA)
> Uniformed Services Employment and Reemployment Rights Act
(USERRA)
> Sexual Harassment - Title VII
> Occupational Safety and Health Act (OSHA)
> Consolidated Omnibus Budget Reconciliation Act (COBRA) > Health Insurance Portability and Accountability Act (HIPAA) > Employee Retirement Income Security Act (ERISA)
> Fair Labor Standards Act (FLSA)
> Genetic Information Non-discrimination Act (GINA)
> Affordable Care Act (ACA)
EFFECTIVELY MANAGING HR CHALLENGES AND COMPLEXITIES
As with most operational functions, there are multiple solutions to
to HR, consideration of taking on this liability internally should be
• “Going It Alone:” The Traditional Approach of Internal HR Management
For decades, start-up and small-to-medium-sized organizations
have attempted to minimize their potential employment liability and assumed the core responsibilities of managing each aspect of HR compliance internally. These duties often fall on the shoulders of a Practice Manager with limited or no training in personnel matters
or the time to keep abreast of ever-changing labor laws. Often, an external payroll company is contracted to handle payroll processing, employee data in a single location or provide guidance as it relates
to the Department of Labor (DOL) mandates. This often creates an environment where a Practice Manager is overwhelmed and results in management taking a reactive approach to addressing or resolving lawsuits.
• “Leave It to the Professionals:” Outsourcing Your HR Responsibilities
Human Resource Outsourcing (HRO) with a proven Professional Employer Organization (PEO) utilizes a co-employment model that
a single vendor. The PEO model achieves economies of scale by aggregating hundreds of clients, resulting in a reduction in the time, liability, and overall cost of employment to each individual client.
OUTSOURCED HR FIRMS REDUCE EMPLOYMENT COST & UNCERTAINTY
the following:
• Economies of Scale are achieved when the PEO can replicate the
required employment functions and services for multiple organizations
the service provider to distribute its costs and deliver a cost-effective solution to each client.
• HR Technology known as a Human Resource Information System (HRIS) may not be a cost-effective solution for a small practice on its own. However, through the PEO, this technology becomes a viable option to provide access to robust reporting and tracking of critical employee data through management and employee self-service portals.
• HR Expertise is made available, starting with a proactive approach to developing and implementing the proper protocols and policies to minimize potential employment liability. Ongoing HR guidance is provided to address changes in employment laws, updates to employee handbooks, job descriptions, and access to guidance to help navigate adverse employment situations as they arise.
• Peace of Mind that employment compliance has been achieved and maintained, enabling the physician and staff to focus on the core function of the practice.
UNIQUE BENEFITS OF OUTSOURCING HR
With a PEO, some additional programs that are usually only available in large corporate environments become accesible to small medical directly to the practice ownership.
• Multiple Employee Plan (MEP) Retirement Plans: Asset management fees for a 401(k) plan are typically determined based on the amount of assets in the plan. Therefore, smaller employers pay higher fees as they have fewer assets under management than a larger counterpart. The PEO can offer an MEP, which is a 401(k) retirement plan that has more assets in the plan and therefore reduces the cost inside the plan. It is also able to reduce the administration, liability, and costs to administer the plan.
• Deferred Compensation Plans: These plans are typically only offered in large corporations. But a PEO may offer a deferred compensation plan that enables highly compensated owners and key employees to defer income into future years. By deferring income, participants also defer taxes while the monies are invested.
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