While the economy and jobless rates ranked at the top of HR discussions in 2010, another topic slipped under the radar by comparison: regulatory change. Here are a few of the legal and regulatory issues that should have ramifications throughout 2011: Health Care The most prominently covered regulatory change is the Patient Protection and Affordable Care Act, which made sweeping changes to health care. While most of the headline-making changes won't take effect for a few years, some of the provisions will begin in 2011. This includes coverage for dependents under the age of 26, full coverage for preventative care and the elimination of exclusions due to pre-existing conditions in children. CNN compiled a full list of the changes that go into effect in 2011. Many HR professionals predict that small to medium sized businesses will shift towards employee-provided insurance due to the higher cost of health care. However, 2011 will probably see smaller changes as the legality of the law is fought in courts around the country. Payroll Changes Many employees may be surprised at their next paycheck— starting in January, employees will receive a 2% pay raise from the federal government. Instead of the typical 6.2% contribution to Social Security, employees will only part with 4.2% on the first $106,800 of their wages. HR departments should look for the change to occur in January. All businesses have been mandated to change their payroll systems by February. If your company didn't make the change by the first pay day in the New Year, you will have until March to repay your employees for the extra amount withdrawn. Labor Law Enforcement 2011 looks like it’s going to be a year of regulatory enforcement. The Obama Administration increased funding to regulatory bodies including OSHA, the Wage and Hour Division and the Employee Benefits Administration. The budget included funding for 25 new OSHA inspectors— that means your company can look forward to increased enforcement in 2011. Companies will need to ensure that they’re complying with federal regulations, as issues that were typically under regulated are being brought to court. In late December, the EEOC sued Kaplan for using applicants’ credit history in their hiring process— one where credit doesn’t affect an applicant’s ability to complete their job. This is just one of over 250 cases prosecuted by the EEOC in 2010 and the third time the agency has ever filed suit over the use of credit reports. For most HR departments, this change means that it’s time to take a deeper look at your company’s policies to ensure that you’re following regulations. Revisions to the Family and Medical Leave Act The Family Medical Leave Act expanded its definition of parent-child relationship in 2010. This means that individuals who often served as a parent are now entitled to 12 weeks protected leave to care for their child.

Congress intended the definition of “son or daughter” to reflect “the reality that many children in the United States today do not live in traditional ‘nuclear’ families with their biological father and mother. Increasingly, those who find themselves in need of workplace accommodation of their child care responsibilities are not the biological parent of the children they care for, but their adoptive, step, or foster parents, their guardians, or sometimes simply their grandparents or other relatives or adults.

This means that parental figures who do not have legal guardianship are protected by FMLA. Grandparents, same sex partners and non-married step-parents can take up to 12 weeks of protected leave to care for a child after birth, adoption or during a severe illness. A Year of Regulatory Changes As the job outlook improves, 2011 will be a year to watch the regulatory environment. With more employers interested in hiring and a significant number of legal changes, HR departments will need to consider the legal implications of their processes. Image Courtesy of Flickr User Joe Lanman