To keep your business, employees, and reputation safe, you must stay within HR compliance. With workplace regulations constantly shifting, and some companies working with contractors, international employees, and remote employees alike, regulatory compliance is a bit more complex than it was before WFH became a standard.
In 2025, updates to pay transparency laws, remote work regulations, and data privacy standards are redefining how companies handle people operations. For growing businesses and HR departments already stretched thin, that means greater risk—and greater responsibility.
In this guide, we’ve pulled together a practical HR compliance checklist for 2025—whether you’re building from the ground up or just making sure everything’s in place, we’ve got you covered.
What Is HR Compliance?
HR compliance refers to the processes and practices that guarantee that your HR team and your company follow employment laws and regulations at the federal, state, and local levels. It’s the framework that keeps your workplace legally sound, and your employees protected.
Why does it matter? Because non-compliance goes far beyond being a legal issue. It’s also a financial and reputational one. Penalties can range from hefty fines to lawsuits and damaged employer branding.
Key areas HR compliance typically covers include:
- Labor and employment laws: They promise fair treatment, pay, and working conditions.
- Employee documentation: It keeps accurate, timely records for audits or legal verification.
- Data privacy and security: Which protects sensitive employee information under laws like GDPR or CCPA.
The Complete 2025 HR Compliance Checklist
Use this ultimate HR compliance checklist to make sure your HR operations stay compliant, efficient, and audit-ready in 2025. We’ve broken it down by category to keep things simple.
Hiring and Recruiting
Hiring is one of the most regulated—and risk-prone—areas in HR. Here’s what to keep in check to stay compliant from the first job post to the final offer.
- Job descriptions and pay transparency — Include clear responsibilities and salary ranges to comply with new pay transparency laws taking effect in more states. For example, the state of New York expects employers to feature the salary in the job description!
- Anti-discrimination laws compliance (EEOC) — Make sure that your hiring practices meet Equal Employment Opportunity Commission (EEOC) standards to reduce bias and legal risk.
- Background check laws — Follow federal and state rules on when and how to conduct background checks, including consent and “ban-the-box” compliance.
- Built-in ATS software — Use applicant tracking systems that support legal compliance (e.g., secure data storage, automated consent tracking, audit trails).
Onboarding and New Hire Documentation
After the offer is accepted, the statutory compliance work continues. These steps help will help you be sure new hire documentation is timely, accurate, and legally sound.
- I-9 and other employer forms — Complete these federal forms to verify work eligibility and tax withholding, and store them securely.
- Offer letters & employee agreements — Clearly outline terms of employment, at-will status, and role expectations using compliant templates.
Workplace Policies
Strong, up-to-date policies help create a safe, respectful, and legally sound work environment. Don’t let these areas fall out of date.
- Employee handbook updates — Review and update your handbook annually to reflect new laws, hybrid work changes, and company values.
- Harassment prevention — Offer required training and enforce anti-harassment policies in line with state and federal mandates.
- Health & safety (OSHA standards) — Follow Occupational Safety and Health Administration (OSHA) rules for your workplace setup—including remote work safety policies where applicable.
Wage and Hour Laws
Wage and hour compliance is one of the most common pain points for growing businesses. These are the key areas to monitor.
- Overtime eligibility (FLSA) — Classify employees correctly as exempt or non-exempt to avoid misclassification under the Fair Labor Standards Act.
- Minimum wage compliance (federal vs. state) — Stay current with applicable wage laws in every state where you operate.
- Time-tracking policies — Use reliable systems to track employee hours, especially for non-exempt and remote workers.
Employee Benefits
Offering benefits is a great way to attract talent—but getting the compliance part right is just as important. These basics matter.
- ACA compliance — Make sure your health insurance offering meets Affordable Care Act (ACA) coverage and reporting requirements.
- Retirement plan documentation (ERISA) — Comply with Employee Retirement Income Security Act (ERISA) guidelines for retirement plans, including required notices and fiduciary duties.
- Leave policies (FMLA, parental leave, sick leave) — Maintain compliant policies that align with the Family and Medical Leave Act (FMLA) and state-specific leave laws.
Payroll and Tax
Mistakes in payroll can easily lead to fines. Keep these areas in check to stay compliant and build employee trust.
- Payroll tax filings (federal/state/local laws) — File and deposit payroll taxes accurately and on time at all required levels.
- Pay stub compliance — Check that stubs meet federal and state standards, including itemized hours, wages, and deductions.
- End-of-year reporting (W-2, 1099) — Prepare and distribute required tax forms for employees and contractors by IRS deadlines.
Termination and Offboarding
When an employee leaves, proper offboarding protects both the organization and the individual. Here’s what to cover.
- Final pay laws — Adhere to your state’s timeline for delivering final paychecks and any unused PTO payouts.
- COBRA requirements — Notify eligible employees of their right to continue healthcare coverage, and manage required documentation.
- Exit interviews and documentation — Conduct structured interviews, gather feedback, and maintain records of the separation process.
Data and Privacy Compliance
With privacy laws expanding and digital risks rising, employee data protection is now a core HR responsibility.
- GDPR/CCPA obligations (for applicable companies) — If your business operates in affected regions (GDPR is a European regulatory framework), check your policies comply with global and state-level data privacy laws.
- Policies on keeping employee records — Make sure that your HR records are kept for as long as the federal and state laws say they should be, and safely get rid of them when you no longer need them.
- Cybersecurity and access control — Limit access to sensitive HR data, enforce password policies, and use secure systems for storing personal information.
Monthly, Quarterly, and Annual HR Compliance Tasks
Effective HR compliance is an ongoing process that requires attention at different intervals throughout the year. Breaking down tasks into monthly, quarterly, and annual checkpoints helps maintain a steady rhythm, reduces risks, and means nothing slips through the cracks.
Monthly Tasks
These regular tasks keep your day-to-day HR operations compliant:
- Process payroll and file taxes — Make sure that each employee's paycheck is processed correctly, that the right taxes are taken out, and that payroll tax returns are filed on time with federal, state, and local agencies.
- Record updates for employees — Make sure that when someone is hired, fired, promoted, or their status changes, these events are promptly and correctly recorded in your HRIS or other system for keeping records.
- Monitoring compliance alerts and legal updates — Stay informed of any new or updated labor laws or regulations that may affect your HR practices, especially for multi-state employers.
Quarterly Tasks
You can catch potential compliance gaps with a quarterly review.
- Reviews and updates of training programs — Look at what is taught and how many people are participating in required training programs like safety at work, preventing harassment, and diversity and inclusion. Update training materials as laws or company policies change.
- HR compliance audits — Perform internal audits covering hiring practices, employee benefits administration, and record retention.
- Performance and compensation reviews — Review pay structures and employee classifications to check ongoing compliance with wage and hour laws, including minimum wage and overtime regulations.
- Benefit plan compliance checks — Review your employee benefits offerings and ensure they remain compliant with applicable laws like ACA and ERISA.
Annual Tasks
Annual reviews make sure you don't skip important compliance updates, but, as the name suggests, these checks can be done just once per year.
- Employee handbook review — Thoroughly review your employee handbook to incorporate changes in laws, workplace policies, and company culture.
- Check benefits for next year — Prepare for the new round of benefits by working with providers to assess costs, renew plans, and create a clear communication strategy. Don’t forget to check all benefit offerings meet current compliance requirements.
- General compliance training — Train employees once a year on important compliance topics like harassment at work, wage and hour laws, data privacy rules, and health and safety rules.
- Record retention and document management review — Audit your HR record retention policies to make sure documents are kept for the legally required duration and disposed of securely when no longer needed.
- Plan strategically for HR compliance — Set compliance priorities and a budget for the next year based on what you learn from audits, new laws, and company goals.
Promoting Transparency and Compliance with an Anonymous Reporting Tool →
What’s Next: Tools to Simplify HR Compliance
Managing HR compliance can feel overwhelming—especially for small and growing businesses juggling multiple priorities. Fortunately, modern HR technology offers reliable solutions to help ensure compliance, help with workplace safety, automate routine tasks, and centralize employee data.
One standout option is TalentHR, an all-around HR software solution designed with small businesses in mind. TalentHR simplifies core HR functions such as recruiting, onboarding, benefits management, and time-off tracking, all while helping you stay compliant with current regulations. Its affordable pricing—with a free tier for up to 10 users—and mobile-friendly interface make it an excellent choice for startups and scaling companies.
A particularly valuable feature from TalentHR is Safe voice, its anonymous reporting tool designed to promote transparency and accountability within organizations. Safe Voice allows employees to confidentially report unethical behavior or compliance violations without fear of retaliation, supporting a culture of integrity. This tool aligns with legal frameworks like the EU Whistleblowing Directive and helps organizations prevent costly ethical breaches. Additionally, TalentHR offers an HR Policy Generator that helps businesses easily generate HR policies with AI according to their company size and team needs, which simplifies the process of staying compliant and up to date.
Besides TalentHR, other HRIS platforms such as Gusto, Workable, and TriBNet come with some compliance and HR management features that can work for some companies and budgets.
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Compliance FAQs
Q: What should be included in an HR compliance checklist?
A: Key areas like hiring practices, onboarding, workplace policies, wage laws, benefits, payroll, termination procedures, and data privacy.
Q: How often should HR policies be reviewed?
A: At least once a year or whenever there are significant legal or organizational changes.
Q: How should an HR policy be reviewed?
A: To make sure it's correct and useful, by checking it against current laws, company policy, and employee feedback.
Q: Why do companies need regular compliance audits?
A: Regular compliance audits help find problems early. This greatly decreases the risk of legal trouble from mistakes with important employment laws or HR regulations.
Q: What role do compliance professionals play?
A: Compliance professionals lead compliance efforts. They track changing regulations, help deal with federal laws, and help steer away from legal trouble.
Q: How do federal laws like overtime pay rules affect the compliance checklist?
A: Federal laws about areas like overtime pay and Equal Employment Opportunity Commission rules are key parts of most compliance checklists.
Q: What is the main goal of compliance efforts?
A: The main goal of compliance efforts is to make sure that all HR regulations actually fit federal laws or any other legal framework. The final objective is to steer clear of any activities that might expose the business to a lawsuit or any other penalty.
