Does Regulatory Compliance Matter In 2016?

There are a lot of things that have changed in the last 15 years or so when it comes to running a business. However, staying in compliance with relevant regulations is something that is just as important now as it has ever been. What are some of the reasons why you want to stay in compliance at all times?

Avoid Costly Fines or Shutdowns

If OSHA were to come to your job site and declare that you weren’t providing adequate safety gear for your workers, you could be cited for a violation. After an initial citation, inspectors will come back to monitor your progress. At that point, if you have still failed to comply with the guidance in the citation, you could be fined or have your site shutdown until you come into compliance. Subsequent violations¬†could result in larger fines or even criminal charges brought against you.

Keep Your Company’s Reputation Intact

You don’t want your company to be known as the type that skirts the rules. While violating wage rules or hiring workers who are ineligible to work in the United States could help save money, it will create several problems as well. First, owners and managers may face criminal charges for violating the law. Second, owners or managers could be personally liable for fines or back pay for each violation of the law. Finally, other companies and individual consumers will not want to do business with a company that hires illegal workers or pays their workers less than the prevailing minimum wage for any reason.

The Government Is Doing More to Find Violations

In 2015, OSHA created a new rule that says a company must report any injury that results in time missed or a trip to the hospital. While many larger employers are complying with the rule, some smaller businesses are not. However, regulatory agencies have an idea as to how prevalent injuries on the job are. Therefore, they will become suspicious of companies that report below average numbers of injuries or deaths, and that may trigger an inspection where one wouldn’t have necessarily taken place in the past.

Its is critical that you stay in compliance with all regulations imposed by state and federal agencies. Failure to do so makes it harder to run your company as you will be bogged down by paperwork and other consequences of your failure to be compliant. If necessary, you can outsource to or partner with a third-party to ensure that you are operating within the law at all times.