Operating a successful business is a challenging undertaking. Executives and business owners need to track changes in their industry and monitor the conduct of local competitors to protect their business interests. They need to oversee daily operations while maintaining a focus on long-term goals for the company.
They also need to ensure the company remains compliant with all relevant federal, state and local statutes. Violations of business laws or employment rules can lead to major consequences for an organization. How can leadership at a company guard against statutory infractions that could affect company operations?
Outside support is often necessary
It can be a full-time job to track changing statutes. For example, Congress passed the Corporate Transparency Act years ago. Then the law theoretically went into effect on January 1st. This federal law requires a special report identifying those who have a beneficial ownership interest in an organization. However, there have been court rulings as well as federal rule adjustments that may influence whether the CTA applies to a business or not. Businesses that are non-compliant with the statute could be at risk of large fines.
That is just one example of recent changes to federal laws. The government has also changed its policies on mergers, overtime pay and worker classification in the last year. A planned merger could face more scrutiny now than it may have just a few years ago, leading to increased expenses and more chances for the transaction to fall apart.
State laws and local regulations also shift as the economy and social priorities change. The average executive or business owner does not have the time necessary to consistently track all three levels of regulations. Failing to learn about an important update or new law could lead to non-compliance and either fines or prosecution in some cases.
Partnering with a lawyer can help companies ensure compliance with relevant statutes. An attorney can help companies track changing laws and recommend adjustments to company practices to ensure that no overt violations occur. An attorney already working with the company to ensure compliance is in an ideal situation to respond to allegations of inappropriate business conduct.
Recognizing how regulatory violations could damage a business may prompt leadership at an organization to focus on proactive compliance. Adherence to all applicable state and federal regulations can help protect a company’s profit margins and its reputation.