by Spark Team

United States (U.S.) employers will continue to face a complex regulatory landscape in the year ahead. What will organizations need to do to stay compliant?

In this Workforce News Minute, ADP vice president of compliance and government affairs Pete Isberg shares two key focus points businesses should prioritize in the new year.

Above, Isberg expects more employment law regulatory changes along with increased enforcement to impact employers this year.

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Article: 4 Major HR Trends to Follow in 2023

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Folks are asking, you know, what to expect in terms of compliance and the regulatory landscape evolving over the next year or so. And I’ve got two basic answers.

One is that midterm elections point to less legislative change over the next two years and more focus on the regulatory agenda and enforcement. Of the regulatory changes we’re expecting, an example would be the pending U.S. Department of Labor regulations on independent contractors and who could be treated as a contractor versus an employee.

We expect others, for example, there may be regulations concerning pay equity involving employer reporting of details that would permit the agencies to assess employers in terms of, you know, are people being paid equitably.

The second major issue is that I would emphasize is increased enforcement. We expect increased enforcement from all the agencies. But from a federal perspective, very important. The Inflation Reduction Act in 2022 gave the IRS an additional $8 billion in funding. This is literally a 60% budget increase for the IRS. And they’re going to be expected to ramp up enforcement on employers and across the board as a result.

This article originally appeared on SPARK powered by ADP.

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