New employment laws are being pushed out with ever-increasing frequency and complexity, which makes compliance a never-ending process – with PEOs and staffing firms are on the front lines each day. And let’s be honest, your compliance work is never really done. Just staying up to date and knowing about new laws is not enough. You have to update your policies and procedures, train your leaders and employees, and effectively communicate the changes throughout your organization. What can your organization do ensure you and your clients stay in compliance in 2024? Here are five steps to consider.

1. Catch Up. First things first. To make sure you start the year off on the right foot, make sure you are caught up on last year. If you are still digging out from last year’s avalanche of new laws, this Insight provides a great summary of recent legal developments with links to more detail.
2. Be Intentional. Gone are the days when legal updates and related compliance activities could be shuffled to Q4 of each year. Employment law compliance should be a scheduled weekly task all year long for your compliance, HR, and operations teams. Use this scheduled time to discuss recent developments and plan your compliance activities.
3. Be Strategic About Sourcing Information. Identify several reliable sources for employment law updates, including law firms, HR organizations, and government agencies. Many organizations offer subscription services so you know that you will get the latest updates.
4. Adopt An Annual Update Cadence. Handbooks, policies, job descriptions, and wage-hour and payroll procedures all need annual review and update to keep pace with the ever-changing legal landscape.
5. Leverage Legal Resources. Employment counsel isn’t just for when you get sued anymore. Many companies are setting up regular touch-ins with their legal counsel to get training and support for their compliance initiatives throughout the year and ensure they are on the right track in the first instance.

Challenges for PEOs and Staffing Firms

PEOs need to be ready to educate and assist their clients with needed updates to their policies and practices. Staffing firms need to make sure their client service teams are ready to implement updated policies and procedures for the locations where employees are providing services.

Additionally, both PEOs and staffing firms should have their service agreements reviewed and updated by their legal counsel at least once a year to make sure that legal developments are incorporated.

In addition, 2023 was particularly challenging for staffing firms with operations in New Jersey and Illinois. Both states adopted and/or amended laws that mandate “equal pay” for temporary workers and permanent employees of a third-party client. Operations in those states have been severely hampered and there is fear that similar proposals could spread to other states in 2024.