Navigating Regulatory Compliance in Human Resources: A Guide for HR Leaders

In the ever-evolving field of human resources, regulatory compliance is more than a box to check — it’s a fundamental part of protecting organizations and ensuring fair treatment of employees. At its core, regulatory compliance refers to the legal and ethical standards that organizations must follow to remain in good standing with local, state and federal laws. 

For HR professionals, compliance touches nearly every aspect of their role — from recruitment and hiring to compensation, benefits, employee safety and termination. Staying informed about these regulations isn’t just beneficial -- it’s essential. 

Keep reading for an overview of key areas where regulatory compliance plays a central role in HR operations. 

Key Areas of Regulatory Compliance in Human Resources

HR professionals must navigate a wide range of employment laws and regulations that impact every stage of the employee lifecycle. Below are some of the most important compliance considerations every HR leader should understand. 

1. Hiring Practices: Ensuring Fair and Legal Recruitment

Human resources managers must design hiring practices that comply with Equal Employment Opportunity (EEO) laws. The Equal Employment Opportunity Commission (EEOC) enforces these protections to prevent discrimination based on characteristics such as: 

• Race 
• Sex 
• Age (40+) 
• Religion 
• Disability 
• Genetic information 
• National origin 

For example, it is illegal to reject a job applicant due to pregnancy or to ask discriminatory questions during interviews. Additional legislation like the Uniformed Services Employment and Reemployment Rights Act (USERRA) protects service members, while the Migrant and Seasonal Agricultural Worker Protection Act (MSPA) ensures fair treatment and working conditions for agricultural workers. 

2. Health Benefits and Employee Privacy

HR professionals must also ensure compliance with regulations surrounding employee benefits and medical privacy: 

• The Affordable Care Act (ACA) mandates that employers with 50 or more full-time employees offer health insurance or face penalties. 

• The Employee Retirement Income Security Act (ERISA), enforced by the Employee Benefits Security Administration (EBSA), governs retirement and health benefit plans. 

• The Health Insurance Portability and Accountability Act (HIPAA) protects employees’ personal health information from being disclosed without consent. 

3. Creating a Safe and Inclusive Work Environment

HR professionals are responsible for fostering an equitable workplace. Anti-discrimination laws prohibit policies or practices that disproportionately impact protected groups. In addition, employers must: 

• Ensure accessibility and reasonable accommodations under the Americans with Disabilities Act (ADA). 

• Enforce anti-harassment policies. 

• Stay current on evolving diversity, equity, and inclusion (DEI) standards. 

4. Wages, Hours, and Leave Policies

Compensation is another key area of compliance that HR professionals must be aware of: 

• The Fair Labor Standards Act (FLSA) sets the federal minimum wage, rules for overtime pay, and regulations for employing minors. 

• Non-exempt employees working more than 40 hours per week must be paid time-and-a-half for overtime. 

• The Family and Medical Leave Act (FMLA) entitles eligible employees to up to 12 weeks of unpaid, job-protected leave for qualifying family or medical reasons. 

Failing to comply with wage and leave regulations can result in costly lawsuits and penalties. 

5. Workplace Safety and Workers' Compensation

Employee health and safety are enforced primarily through the Occupational Safety and Health Administration (OSHA). Employers must: 

• Follow OSHA guidelines to minimize hazards in the workplace. 

• Allow for safety inspections. 

• Provide protective equipment and safety training. 

In the event of an injury, Workers’ Compensation Insurance typically covers wage replacement, medical treatment and rehabilitation. 

6. Recruitment and Retention

Beyond legal compliance, HR managers must remain competitive by creating appealing, compliant recruitment and retention strategies. These often include: 

• Structured onboarding programs 

• Career development opportunities 

• Employee engagement initiatives 

Companies depend on HR professionals to nurture a culture of growth while staying aligned with legal obligations. 

7. Employee Discipline and Termination

Handling disciplinary action and terminations requires careful adherence to legal standards to avoid wrongful termination claims. For instance: 

• OSHA’s whistleblower protections prevent retaliation against employees who report unsafe conditions or illegal activity. 

• The Worker Adjustment and Retraining Notification (WARN) Act mandates at least 60 days’ notice before large-scale layoffs or plant closures. 

Documenting performance issues and following consistent procedures are essential in any termination process. 

Advancing Your HR Career with a Master’s Degree

As organizations face increasing regulatory scrutiny and a complex employment landscape, the demand for skilled HR professionals who understand compliance has never been greater. Earning a Master of Science in Human Resources Management can equip you with the legal knowledge and leadership skills needed to thrive. 

The online MS in Human Resources Management program at The University of Scranton emphasizes real-world applications of employment law, organizational ethics, and strategic HR practices. The curriculum is designed for working professionals and offers the flexibility to advance your career while managing your current responsibilities. 

Explore how The University of Scranton can help you become a more informed and effective HR leader.

Learn more about the online master’s in human resources management today!