State Required Forms: Why They Matter for Employers

Consequences of Non-Compliance

Over the past two years, more than 50 state bills containing new hire form requirements have been introduced. It's important to note that a lot of these requirements carry monetary penalties for non-compliance. However, failing to provide an employee with proper forms can lead to increased scrutiny by a governing body, even if the form isn't directly tied to fines. For instance, if the Department of Labor comes in and sees that your organization has an area of non-compliance, they may expand any given audit and start looking into other areas.

Additionally, U.S.-based companies with more than 10 employees have at least an 11.7% chance of having an employment charge filed against them at some point.

It's also important to note that state laws can have a significant impact on the risks that businesses face. Even in cases of existing federal legislation, state legislation may extend the rights of the employee further. This can result in additional risks and obligations that employers need to be aware of.

What Makes Them So Challenging?

Not only do employers need to keep track of new bills coming down the pipeline, but also learn how those regulations impact current forms. There are states that make nuanced changes to required forms on an annual basis. Employers need to be aware of these changes so they can provide the proper versions to employees each year.

Additionally, many states have more than one type of form for a specific regulation. This adds an additional challenge of ensuring that every individual employee receives the correct version. Wage theft prevention is a good example of a form with multiple versions. How an employee is paid will determine which form he or she should be given.

Sometimes states don't provide a model notice to employers. They simply include the critical details in the bill, and it's up to employers to create their own template. In these cases, employers should consult with their legal counsel to ensure their form includes all elements that were in the law.

Finally, employers typically have a limited time to implement new legislative measures. This can be tricky when the legislation is effective immediately - and can be especially tough to comply when there's no model notice.

How to Simplify The Process

Keeping up with state required forms can be a challenge for employers who manage the process on their own. An automated solution like the State Onboarding Compliance Solution from Equifax can help you manage state new hire form requirements. Our solution can help to:

  • Get the right form
  • In the right format
  • Delivered to the right employee
  • With the right tracking

Register for a demo of our Compliance Center portal to learn more about efficiently managing onboarding - including state required new hire forms - across multiple locations.