How HRIS Systems Enable Legal Compliance


With the advancement of technology, it is no surprise that Human Resource Information Systems (HRIS) have developed in such a way to not only provide tracking mechanisms, sophisticated analytics, and reporting, but to also allow for automation of key legal compliance challenges. Compliance with wage-and-hour time-keeping requirements is one example.

HR professionals are tasked with understanding and complying with both federal and state wage and hour laws. This can be particularly challenging for multi-state employers. Enhanced HRIS systems can assist HR professionals in meeting these requirements. Generally, the time-keeping module can be configured and customized to the specificity outlined by the employer. Although these types of customizations are costly up front, in the long term, the customizations pay for themselves by systematically tracking employees’ hours worked, overtime, and break periods, reducing the administrative time spent on this task. Employers should also consider implementing a system where employees verify their hours worked as a precaution against wage claims. An approval workflow process where supervisors sign off on the employees’ hours worked is a good step, but may not be enough of a safeguard, as different supervisors have different understandings of the legal requirements and may not follow them properly.

Most HRIS systems are capable of handling complicated computations and exceptions if programmed and customized appropriately. HR professionals may consider a more advanced HRIS solution if their current systems are not tracking key legal challenges or other important HR data accordingly. If the tracking involves checking and shuffling several spreadsheets, the company may want to consider a change.

With the sophisticated systems available, money saved in efficiency will pay for the upfront implementation cost and may save a few headaches along the way as well.