Businesses of just about any size will have to make sure that they are following all kinds of rules and regulations as they operate.
Federal, state, and local laws may govern how the business owner must operate. Additionally, just about any business may have to follow other guidelines, standards and contractual provisions.
Exactly what rules apply will depend on the size and the type of the business, as well as the business’s individual circumstances.
In any event, though, not following the rules, even because of an oversight or honest mistake, can lead to costly fines or penalties at the hands of regulators. Likewise, rule violations can diminish a business’s reputation, lead to additional time and expense and also expose the business to civil liability and other potentially crippling economic risks.
Regulatory compliance is an umbrella term used in business law to refer to a business’s effort to follow the oftentimes complicated and confusing rules that apply to it while maintaining a successful business model.
Regulatory compliance takes a lot of legal skill. For one, the business is going to have to know in detail exactly what requirements it must follow. Some laws will apply to just about every business of significant size; for instance, both Oregon and federal employment laws have broad application.
Additionally, the business will have to be aware of certain industry-specific regulations. Workplace safety rules will vary depending on what type of industry a business is operating. Moreover, some business may be subject to environmental rules and regulations.
Ultimately, the goal of regulatory compliance is to have a strategy to work within the law in order to operate a profitable and ethical business.