Why HR Compliance Looks Like This?


If HR compliance seems convoluted, that’s because it is. Our current legal landscape is the result of three competing philosophies about how the workplace should be governed, who should govern it, and whose rights in the workplace should be prioritized in the law. Owner Control

According to the first view, business owners should have control over their workplaces and the work that takes place for the simple reason that they own the business. It’s their property, and as owners they should have the legal right to govern it. Employees have no right to control aspects of the workplace because the workplace isn’t theirs. They don’t own it. It’s not their property. If their desires don’t align with the owners, or if they don’t like the terms and conditions of their employment, they can and should go elsewhere. Of course, an owner might employ managers or an executive team to make decisions about who to hire and fire, what to pay, how to assign work, and other such matters, but in principle the owner is still in charge. Advocates of this view include the economist Milton Friedman who, in 1970, famously wrote that corporate executives have a direct responsibility to conduct business according to the desires of the owners. The will of the owners reigns supreme. Worker Control

According to the second view, workers should have a say in the decisions that get made simply because those decisions affect them and their livelihoods. In this line of thinking, the governance of the workplace should adhere to the principles of democracy, although proponents for this view differ on how democracy in the workplace should be practiced. In the 1930s, Senator Robert F. Wagner introduced the National Labor Relations Act to guarantee the “freedom of action of the worker” and ensure that workers were “free in the economic as well as the political field.” And, today, talk of democratizing the workplace usually refers to bolstering unions. But there are other proposals to note. Some champions of workplace democracy, like Senator Elizabeth Warren, have pushed for employee representation on corporate boards. Others favor cooperative models in which the division between employers and employees doesn’t exist. Full-fledged workplace democracy is still a fringe view, though. The very definition of an employee remains a worker who does not have the right to control what the work is, how it’s done, or how it’s compensated. However much authority employees are given to make decisions, however much influence they have over their superiors, they are not legally in charge. Societal Control Advocates of the third view argue that the government has an interest in exercising some measure of control over the work and the workplace. In the employer-employee relationship, employers typically have significantly more power than employees—especially an employee acting as an individual. Frances Perkins, who served as Secretary of Labor and was a key architect of the New Deal, believed that government “should aim to give all the people under its jurisdiction the best possible life.” She saw a role for legislatures in countering long hours, low wages, and other conditions unfavorable to employees.


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