Non-Compliance = $$$$$$

The number of dollar signs is significant. 5 dollar signs, just like the restaurant guides, means "Very Expensive." Not that I'm big on drama, but if you're in the HR field long enough, you start seeing some of the judgments and awards for non-compliance with local, state & federal laws and it really gives you pause. Here are three recent decisions:

• Cracker Barrel, EEOC Violations - $2M (http://www.eeoc.gov/press/3-10-06b.html)
• Carmike Cinemas, Sexual Harassment - $765,000 (http://www.eeoc.gov/press/9-27-05.html)
• Pfizer, Inc., Family Medical Leave Act (FMLA) Violation - $333,305 (Lawyers Weekly cover story, June 5, 2006)

It's interesting to me that fast-growing companies think HR compliance is important - in fact, it's their #1 concern: http://www.hroeurope.com/News.asp?id=827

Isn't is worth it to get this very important part of HR right in your organization? Even if you win these cases, it costs money, and your time defending it. Be smart, understand the rules, over-communicate, and if there's any "gray area", consult your company's legal counsel just to make sure. Of course, if you're in a Human Resources outsourcing arrangement, then consult with their company's attorney (why do companies really want to do this in-house anyway?).

Don't throw money away because you don't understand the rules. When it comes to HR compliance, rules & regulatory issues, it is often a case of "you don't know what you don't know". And that can hurt financially - big time.