What does a legal compliance checklist for companies comprise-of? There are various regulations that a business enterprise should be in compliance with. The compliance regulations are usually set by the governing body in an area and should be adhered to by every company to ensure that a business is operating legally. In this piece, you are going to find highlights of a compliance checklist for companies that can guide you in the process.
Compliance Checklist for Companies
For a business to be legal, it must be in compliance with the employment laws. Some employment laws include:
- Meet average salary standards
- Classify every employee as either an independent contractor or an employee
- Ensure workplace notices and posters are posted
- Have an appropriate record of illnesses and serious occupational injuries according to OSHA guidelines
- Confirm Department of Labor (DOL) forms are filed
- Terminate employee contract in compliance with the set legal procedures
- Follow employment practices without discrimination on basis of religion, race, national origin or sex.
- Obtain a record of your employee’s citizenship
- Maintain a handbook for employees with clear protective policies against sexual harassment and discrimination.
- Keep contracts for employment with confidentiality and non-compete clauses to protect staff status
You should also ensure your business is in compliance with certain tax laws. Tax laws include the following:
- Remain with accurate and complete financial records, with the inclusion of expenses and income records.
- Ensure you file all state and federal taxes, including excise, employment, franchise, sales, and privilege taxes.
Different locations have certain set corporate laws that a business enterprise should abide with. To ensure your business is operating legally you should ascertain it is in compliance with corporate laws. They include:
- Ensure your company is registered for operation in all the states where you have a branch
- Maintain error-free and adequate records and books
- Comply with outlined security and safety laws when selling investments and other stock in the business
- Prepare correct minutes for all committee, board and shareholders meetings
- Maintain updated copies of articles of Bylaws and Incorporation of business at your company’s principal place
- Ensure officers and directors are accurately and lawfully elected
- Make sure the company is registered lawfully with a clear outline of ownership
In addition to the compliance checklist for companies, you should also ensure your business is legal by complying with advertising laws such as:
- Obtaining and or verifying the business trade names, trademarks, and copyrights status
- Ensuring that your company is conducting non-deceptive and truthful advertising
- Ensuring your business website domain name does not break other organizations service marks or trademarks
- Ensuring you post set terms and conditions on your business website
- Obtaining third parties permission to post or use third parties contents
Last, but not least, to ensure a business is legal there are a few miscellaneous regulations that it should comply with. They include the following:
- Ensure the company complies with environmental agreements
- Have procedures and policies that ensure all your business data, including your clients’ data, remains private and protected
- Abide with outlined contract provisions you enter into
- Obtain and maintain legal and fair agreement in writing involving all business activities and other businesses relations
- Ensure protection of confidential trade secrets
- Obtain up-to-date business operations permits
- Secure both federal and state licenses
- Verify if your business complies with all warranties and representations
- Ensure it complies with loan covenants
- Ensure compliance with the outlined CPSA (Consumer Product Safety Act)
- Insurance coverage review
- Ensure your relationship with your competitors and other third parties complies with antitrust obligations
This is a general summary of what a legal compliance checklist for companies would contain. The outlined compliance regulations contain information derived from general legal principles. You should note that some facts might change at times, and they may alter legal results. Although this is a good premise to base your compliance checklist off of, it is still recommended consulting with your business’ lawyer to construct a list that is specifically designed for your company.