10 Compliance issues at work (and how to tackle them)
Published
July 29, 2024
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Complacency is the enemy when it comes to building an equitable workplace. As an organization, it’s your responsibility to stay on top of compliance. Not only is it the right thing to do from an ethical standpoint, but it also protects your employees and keeps your operations running smoothly.
So how do you get a handle on compliance? Let’s start with getting to know the different compliance issues in the workplace and how you can work around them.
What are compliance issues?
Compliance issues happen when organizations don’t follow the rules and regulations they’re supposed to. They can crop up in all sorts of areas, from workplace safety to financial reporting to data privacy. And the consequences can be severe.
But compliance issues don’t always happen on purpose. Sometimes, it’s simply a case of not knowing the relevant laws and regulations. Other times, there may be a deliberate decision to ignore them. Either way, the end result is the same - disruption to the organization, loss of trust among employees, and potential penalties down the line.
To help you prevent these consequences, we’ve listed 10 issues and suggested ways to deal with them.
Compliance issue #1 - Workplace safety violations
Workplace safety is a top priority, but unfortunately, safety violations still happen too often. These are compliance issues where the safety protocols, regulations, or industry standards designed to protect employees from harm are violated or neglected. Some examples are lack of safety training, failure to give proper personal protective equipment (PPE), and neglect of hazardous conditions.
When these kinds of safety lapses occur, it puts employees at risk of injury or illness - even death in the worst-case scenarios. It can also lead to legal troubles, hefty fines, and serious damage to the organization’s reputation. Beyond that, safety issues can contribute to low morale, high absenteeism, and a decline in productivity.
To address workplace safety compliance, start with vigilance. Conduct regular safety inspections, clearly communicate policies and procedures, and build a culture where your employees feel safe to report any concerns. Take swift action to correct violations once identified. And of course, offer regular safety talks and training to prevent them.
Training platforms like SC Training (formerly EdApp) help you quickly onboard, train, and improve your teams’ skills so they have the necessary knowledge to meet compliance standards. You can deliver training for different compliance training topics that fit seamlessly into the workflow, making it easy for all team members to access training materials on any device.
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Compliance issue #2 - Discrimination
Workplace discrimination is a compliance issue that no organization can afford to ignore. Whether it’s unfair treatment based on someone’s race, gender, age, religion, disability, or sexual orientation - discrimination in all its forms is unacceptable. It can have serious consequences not just for the individuals directly affected but for the entire organization.
Discrimination can show up in hiring and promotion decisions, denied benefits, unequal pay, harassment, or just a generally hostile work environment. As an organization, it’s important that you maintain legal and ethical standards in the workplace.
Create a workplace culture that values diversity, promotes equal opportunities, and makes everyone feel respected and included. When you get that right, it doesn’t just improve employee satisfaction and productivity; it also helps you attract and retain top talent, which can lead to long-term success.
Establish clear policies that forbid any kind of discriminatory behavior, along with strong reporting and investigation processes to address issues quickly. Comprehensive anti-discrimination training for all employees is also necessary, so everyone understands how they can contribute to an inclusive environment.
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Compliance issue #3 - Sexual harassment
Every organization should prioritize creating a safe and respectful workplace. Apart from addressing discriminatory practices, make sure to also take measures against sexual harassment.
Sexual harassment can go from unwanted sexual advances and requests for favors to other inappropriate sexual behaviors that create an intimidating work environment. It can happen between coworkers, between supervisors and their employees, or even involve outside parties.
Protect your employees’ rights and well-being through clear, well-communicated policies that prohibit this kind of behavior and give them multiple channels to report any incidents. When a complaint comes in, it’s crucial to investigate thoroughly and take immediate, appropriate action.
But policies and procedures alone aren’t enough. Training programs and ongoing awareness campaigns can help make sure everyone understands what’s acceptable, how to identify problematic behavior, and how to respond effectively as a bystander.
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Compliance issue #4 - Wage and hour violations
Wage and hour violations include failing to meet minimum wage requirements, not properly compensating overtime, and misclassifying employees as contractors. These kinds of company compliance violations can deceive your workers and put your business at legal and financial risk.
It’s essential to comply with the complex web of federal, state, and local wage and hour laws. But to do that, you need to have a firm understanding of the rules around minimum wage, employee classification, overtime pay, record-keeping, and more. Your policies, processes, and practices should be fully aligned.
Regularly audit your payroll and timekeeping records, give clear guidelines to employees about their rights, and invest in effective timekeeping systems. And, make sure your managers and HR staff are up-to-date on the latest wage and hour regulations by using a robust online training platform. These platforms will help you deliver lessons and typically offer ready-made compliance training courses.
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Compliance issue #5 - Privacy breaches
A privacy breach happens when someone accesses, uses, or shares personal data without permission. This could include customer details, employee records, financial information, or any other private information. Privacy breaches can lead to legal issues, financial costs, damage to the company’s reputation, and loss of customer trust.
For companies, the best way to avoid this compliance issue is to have strong privacy rules in place. Set strict access controls and authentication so only authorized people can access the private data, and keep software and systems up-to-date to fix any weaknesses that hackers could exploit.
Have a plan ready in case a privacy breach does happen. Regularly teach your employees about your company’s privacy practices, such as handling data safely, using secure communication, and spotting potential privacy issues. Taking the right steps can go a long way in safeguarding sensitive data.
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Compliance issue #6 - Data security breaches
While a privacy breach is the unauthorized exposure of private information even if no theft occurred, a data breach is the illegal access and theft of private or personal data. It’s often used to conduct crimes.
Protect sensitive data and keep the trust of your customers and stakeholders by fixing this corporate compliance issue. To avoid violations, your organization needs to set up strong data security protocols, follow privacy regulations, and take steps to prevent, detect, and respond to data breaches.
You can develop an incident response plan, monitor and audit the systems for any unauthorized activities, and train your employees on best practices for data security. That way, they know how to use strong passwords, spot phishing attempts, and handle sensitive information properly.
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Compliance issue #7 - Drug and alcohol abuse
Drug and alcohol misuse in the workplace is another serious issue that companies need to address. When workers struggle with substance abuse, they’ll find it harder to do their jobs properly and safely. This can lead to more accidents, lower productivity, and increased absenteeism.
To handle compliance issues related to drug and alcohol abuse, first, develop and communicate your company’s policy on drugs and alcohol. Spell out exactly what substances are prohibited, what’s expected of employees, and what will happen if someone doesn’t follow the rules.
Conduct education and awareness programs to help your workers understand the serious risks and consequences of substance abuse. Let them know about any counseling, treatment, or other support resources available if they need help.
For managers and supervisors, make sure they’re equipped with the knowledge to address these challenges. Train them on how to recognize signs of abuse and deal with situations where someone’s under the influence.
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Compliance issue #8 - Non-compliance with industry regulations
Staying on top of industry rules and regulations shows that you’re operating ethically and following the specific requirements set by governing bodies and industry standards. Take a proactive, company-wide approach to avoid serious problems from non-compliance.
Start by learning the industry rules, standards, and best practices that apply to your business. Regularly review your compliance to quickly spot and fix any potential issues. Catching and correcting those problems early on can save you from legal penalties, lost licenses or certifications, and major financial losses down the road.
Make sure to thoroughly train your employees, too. You’ll want to educate them on the industry regulations, their responsibilities, and the consequences of non-compliance. Encourage accountability, transparency, and ethical behavior throughout your whole organization.
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Compliance issue #9 - Environmental violations
Some companies don’t always follow the laws and regulations about protecting the environment. But, it’s an important compliance risk that every organization needs to address - especially in industries like manufacturing, construction, energy, and agriculture.
Environmental violations can include improperly disposing of hazardous waste, polluting the air or water, not meeting emissions standards, and damaging protected natural areas. These violations not only lead to legal problems but also harm the surrounding ecosystems and communities.
To prevent this, stay informed about the environmental laws, regulations, and permits that apply to your company’s operations, and make sure you’re following them. Implement strong environmental management systems and procedures to monitor, track, and manage your company’s environmental impact. Also, train your teams on managing waste, preventing pollution, and conserving resources.
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Compliance issue #10 - Failure to adhere to health and hygiene standards
Keeping up with proper health and hygiene practices in workplaces, restaurants, healthcare facilities, and public spaces can be challenging, but it’s not something you can ignore. After all, non-compliance can lead to the spread of diseases, accidents, and damage to your reputation - something you’d want to avoid.
To create a safe environment for employees, customers, and the public, you need to have strong protocols in place and follow all the relevant regulations and guidelines. Handle compliance issues related to health and hygiene standards by setting clear policies and procedures when it comes to cleanliness, sanitation, personal hygiene, and infection control.
It’s also best to regularly inspect and audit the facilities so you can identify areas where health and hygiene standards are not being met, and take action to keep the premises, equipment, and surfaces clean and sanitary. Be sure to teach your teams proper practices and encourage them to take responsibility for their own health and hygiene, too.
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Author
Ella Mar
Ella is a content writer for SC Training (formerly EdApp), an award-winning e-learning management system designed to help companies deliver high-quality workplace training. In her free time, she enjoys painting, reading, or playing with her cat.