HR Compliance Checklist: Essential Steps for Employers

Managing people is at the heart of every successful business—but with labor laws and regulations constantly changing, staying compliant can feel like navigating a maze. That’s where a solid HR compliance checklist comes in. It helps you stay on the correct side of the law, build a stronger workplace, and avoid potentially costly mistakes before they happen.

Whether you’re setting up your HR processes for the first time or just want to make sure you’re covering all your bases, this HR compliance checklist walks you through the key areas every employer should have on their radar.

(For a printable version, check out our HR Compliance Checklist PDF!)

Recruitment and Hiring

• Create detailed and accurate job descriptions that outline the roles, responsibilities, and qualifications required.
• Avoid discrimination based on race, gender, age, religion, disability, or other protected characteristics.
• Obtain consent from candidates and ensure privacy for any background checks.
• Provide clear and legally compliant offer letters or employment contracts, including terms of employment and conditions.
• Disclose salary ranges where required by local and state regulations (e.g., California, Colorado, New York).

Employee Classification

• Correctly classify employees as exempt (salaried) or non-exempt (hourly).
• Comply with IRS guidelines for classifying workers as 1099 independent contractors rather than employees.

Payroll and Benefits Compliance

• Adhere to federal, state, and local minimum wage and overtime laws.
• Accurately calculate and withhold payroll taxes, including Social Security, Medicare, and unemployment taxes.
• Ensure timely distribution of tax forms like W2s and ACA forms 1094-C and 1095-C.
• Offer legally required benefits such as health insurance, workers’ compensation, and family medical leave.

Workplace Policies

• Distribute an employee handbook outlining workplace policies, expectations, and legal rights.
• Implement and enforce policies to prevent harassment, bullying, and discrimination in the workplace.
• Adhere to laws surrounding family leave, sick leave, and vacation policies as required by federal and local regulations.
• Comply with Occupational Safety and Health Administration (OSHA) guidelines to maintain a safe workplace.
• Provide clear, accessible channels for employees to report compliance concerns or violations.
• Establish clear guidelines for remote/hybrid work, including expectations, data security, and reimbursement of business expenses.
• Address drug use (especially marijuana) as state laws evolve.

Training and Development

• Offer regular training on workplace ethics, anti-harassment and discrimination laws, and diversity and inclusion.
• Provide training that complies with specific industry regulations or certifications.
• Offer training on unconscious bias and inclusive leadership, especially to management.
• Maintain clear records of what trainings employees have completed and when.

Health and Safety

• Clearly post emergency action and evacuation plans. (Review these with employees regularly.)
• Clearly outline procedures for reporting injuries on the jobsite and illnesses that could affect employee attendance and performance.
• Offer regular safety drills and training as required by OSHA and any local laws.
• Set regular schedules for “Toolbox Talks” or similar recurring safety practices by industry

Recordkeeping Requirements

• Keep records of hiring documents, performance evaluations, disciplinary actions, and termination details.
• Retain payroll records for a minimum period as required by law (e.g., three years under the FLSA).
• Ensure all employees complete Form I9 to verify eligibility to work in the United States.

Termination Procedures

• Maintain detailed documentation of performance issues or behavior that leads to termination.
• Adhere to any contractual or legal requirements for providing notice of termination.
• Ensure timely delivery of the final paycheck, including unused vacation pay where applicable.
• Conduct exit interviews to gather feedback and address any concerns raised by departing employees.

Equal Opportunity and Diversity Initiatives

• File required reports, such as the EEO-1 form, to demonstrate compliance with equal employment opportunity laws.
• Develop initiatives to enhance workplace diversity and inclusion (e.g., Affirmative Action plans).
• Regularly review pay equity and promotion practices.

Data Privacy and Security

• Safeguard personal and sensitive employee data using secure systems and protocols.
• Establish clear policies on data access, sharing, and breaches.
• Provide ongoing cybersecurity training for employees about how to prevent cyberattacks, phishing, etc. and how to protect sensitive company and client data.

Regular Audits and Updates

• Review HR policies, practices, and records periodically to identify areas for improvement.
• Monitor changes in local, state, and federal labor laws to ensure ongoing compliance.
• Consult legal experts or HR compliance professionals for complex issues or updates.

General

• Post workplace notices conspicuously in common areas.
• Create a compliance calendar to track recurring deadlines (e.g., OSHA, ACA, and COBRA notices).
• If applicable, ensure compliance with the National Labor Relations Act, including employee rights around unionization and concerted activity.
• Though not critical for compliance, it’s good practice to consider employee engagement to ensure retention of quality employees. (Pro Tip: Check out some employee retention strategies in our recent article!)

Conclusion

Compliance isn’t just about checking boxes. It’s about building a workplaces where people feel respected, protected, and empowered to do their best work. By using this HR compliance checklist and regularly reviewing your practices, you can stay ahead of legal changes, reduce risk, and create a culture that supports your people—and your business goals.

When in doubt, don’t hesitate to consult with a legal or HR expert like Green Payroll. It’s better to ask your questions now than face issues later. Contact us today to let us know how we can help!

HR Compliance Checklist Download

Ensure a comprehensive, engaging onboarding by following this checklist! Download this content as a printable PDF for a quick reference guide to bring on your new hires with efficiency!

Checklists and Resources

For more helpful checklists and resources, check out these articles:

• Year-End Payroll Checklist: Stay Compliant and Prepared
• How to Read a W2 Form: What Do Those Boxes Mean?
• Payroll Compliance Checklist
• New Hire Onboarding Checklist