Compliance Issues: The High Cost of Non-Compliance

The Payroll Company Compliance, Compliance audit, Compliance RIsk


The litany of rules and regulations for businesses to follow is complex and constantly changing. From OSHA to HIPAA, FMLA, and EEOC, it takes a lot of comprehensive knowledge and organizational skills for an HR department to simply keep a business compliant. Doing so, however, is a necessary responsibility that keeps a business out of hot water. Compliance is not something to be trifled with nor treated lackadaisically. The costs of fines and litigation for non-compliance are significant and the impact can be disastrous.

Compliance is an overarching term that encompasses regulations pertaining to a business. Such regulations are applicable to social responsibility, corrupt practices, health, safety, etc., and are extremely integral to comply with in order to legally and ethically conduct business.

Are Compliance Claims All That Common? 

The U.S. Equal Employment Opportunity Commission’s (EEOC) Office of the General Counsel (OGC) resolved 165 noncompliance merit suits in the fiscal year 2020, recovering $106,193,215 for 25,925 individuals.

The OGC achieved a favorable judgment in 95.7% of all suit resolutions, including:

  • 99 contained claims under Title VII (60%)
  • 5 contained claims under the EPA (3%)
  • 11 contained claims under the ADEA (6.7%)
  • 58 contained claims under the ADA (35.2%)
  • 72 cases sought relief for multiple individuals (43.6%)

Additionally, the EEOC resolved 33 systemic noncompliance cases with a 100% success rate in the fiscal year 2020, recovering $69.9 million for approximately 26,000 individuals. 

Are Compliance Claims Really That Costly?

Covered more in-depth in our ebook “The Hight Cost of Non-Compliance,” suffice it to say that juries have been known to hand down awards in the tens of millions of dollars. The ebook shares actual cases so that you have an idea of the types of cases that are being brought forward and the compensation awarded to employees. 

With compliance claims, ignorance is costly. We share these cases so that you are aware of what is happening and can be proactive in your business practices to make sure you’re following rules and regulations appropriately. Rules and regulations set forth by governing bodies are not meant to impose tight restrictions that simply limit businesses and penalize them for mistakes. In fact, compliance regulations exist to keep employees happy, healthy, and productive and to make sure that businesses are in a good position to grow and be successful. They may seem excessive and be a source of frustration, but they are not there to make life difficult. Quite the contrary, in fact. 

How Can I Use the Information in This Ebook?

Training is super important when it comes to compliance. HR Managers and Directors should be sure that their team is armed with the right information to do what’s necessary to keep a business in compliance. Sometimes part of that training requires sharing what’s at stake if compliance requirements aren’t met. Never assume that someone understands the importance and impact of a mundane task they are being required to perform. 

This information can be shared with fellow workers so that they understand why HR is asking for information, requiring forms, and strictly enforcing deadlines. The hope is that by sharing the consequences of non-compliance, employees would be motivated to support those goals. 

We’ve also created a free comprehensive compliance self-assessment. It's a list of questions pertaining to all areas of compliance. You can answer the questions yourself and receive your results via email. It will give you a clear understanding of what areas you excel in, and which need improvement.

Have any questions? Contact us to see how we can help. At TPC, we’ve spent decades navigating the nuances of business compliance in a wide variety of industries. Our team of experts will be able to help you also. 


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