The latest episode of the 'You Should Know' podcast, hosted by Ryan Leary of the WRKdefined Podcast Network, sheds light on the HR compliance risks that companies often overlook. In the episode titled 'The HR Compliance Risks Companies Keep Missing,' Jeremy Mancheski, Founder and CEO of OutSolve, discusses why compliance has become more challenging in an era of overlapping federal, state, city, and county regulations, aggressive ICE enforcement, and the rapid adoption of AI hiring tools.
Mancheski, who founded OutSolve in 1998, emphasizes that technology has not eliminated the need for experienced human oversight. He points out that many employers are quietly exposed to significant risks, particularly in areas such as I-9 compliance, remote workforce management, and AI-driven hiring decisions.
One of the key topics covered is the persistence of paper I-9 forms and inconsistent retention practices. Mancheski warns that fines for I-9 violations can reach up to $27,000 per employee, and with ICE enforcement currently prevalent, most employers have deficiencies they are unaware of. This financial stake underscores the urgency for companies to review their compliance processes.
The episode also explores the complexities of managing a remote workforce across different state, city, and county rules. Posting requirements, pay transparency laws, and reporting obligations can vary significantly, creating a compliance minefield for employers with employees in multiple jurisdictions.
AI hiring tools are another focal point. Mancheski compares them to the first-generation applicant tracking systems of the mid-1990s, noting that they are useful but flawed. The potential for bias in AI decisions is a growing concern, and litigation, such as the Workday-related case, is raising questions about accountability. Plaintiffs' attorneys and regulators are already testing these issues in court.
Break room compliance posters are highlighted as an often overlooked foundation of a company's compliance posture. Mancheski urges HR leaders to physically read these posters, as federal OSHA notices and state-specific requirements may reveal contradictions between red-state and blue-state obligations.
The uncertain future of the EEO-1 report is also discussed. Mancheski notes that blue states are building their own versions, adding another layer of complexity for employers.
Mancheski does not mince words about the political whiplash affecting HR compliance. 'You've had harder swings in one direction, then the next administration swings them in the other, and it's muddied those lanes a bit,' he says. This instability makes it even more critical for companies to stay informed and adaptable.
The conversation is direct and practical, grounded in the experiences of OutSolve's roughly 70 HR compliance consultants who see these issues inside client accounts every week. The episode is available now on the WRKdefined Podcast Network and can be found at wrkdefined.com/podcast/you-should-know.
