Is your company looking to expand and establish another office in a different state? If so, congratulations! It's exciting to be a part of a growing, thriving organization.
But with growth comes growing pains and multi-state employers face numerous challenges. Many times these challenges must be overcome by HR departments. In this blog, we'll discuss the three most prominent issues you'll likely face and give you tips to overcome them.
Challenge #1: Providing Adequate Compensation
Every state has different laws regarding compensation. While the national minimum wage has been regulated to $7.25, many states, counties, and even cities have their own compensation requirements.
But that's not all. To further complicate matters, it's likely that the location of each new office your company opens will also have to adhere to varying payroll taxes, overtime and paid leave regulations. Talk about an HR headache!
Fortunately we have a few tips to help you navigate the compliance issues your bound to encounter when attempting to open an out-of-state office.
Besides addressing compliance issues inherent with multi-state employers, HR is also responsible for maintaining company culture across multiple offices. Offices that are sometimes separated by thousands of miles. Is it even possible?
Of course it is! It might not be easy, but the following tips will help you keep your company culture strong and thriving.
There will be times where state laws contradict each other. For example, we mentioned earlier that the national minimum wage is $7.25. But in Wyoming, the minimum wage is set even lower at $5.15. Which regulation do you abide by?
When companies have multiple locations in different states, HR departments will encounter contradictions such as these regularly. Fortunately, the solution is fairly simple: always abide by the law that is most generous to the employee.
So in our above scenario, you would commit to paying workers no less than $7.25 an hour because that is the figure that benefits your staff most.
There you have it; the three most prominent challenges multi-state employers face and how to solve them. As part of the HR team at your company, these tips will be invaluable to you as you help your organization expand to new locations.
Remember, no matter what problem you're facing, getting ahead of the issues and researching potential roadblocks before any major decisions are made is paramount. That combined with the other points made in this post will ensure your new office is up and running in no time!