HR Compliance Year in Review and Look Ahead

As 2025 came to a close, employers once again reflected on a year marked by rapid regulatory movement and shifting enforcement priorities across multiple jurisdictions. Organizations of every size have had to navigate evolving compliance expectations, divergent state-level initiatives, and a workforce landscape transformed by innovation and heightened public scrutiny.  Taking inspiration from the pace of compliance in 2025, many employers had to also plan ahead for 2026 and, in some cases, beyond, as they factored compliance into operating and driving their businesses and employee experiences.

At Vensure, we know how critical it is for employers to stay ahead of these changes— from careful planning, compliance auditing, and practice management, all to stay in front of HR Compliance and employment law mandates. Our published resources for federal and state highlight many important laws for our employers to consider. In case you missed us throughout the year, we’ve developed a year‑end review HR Compliance updates guide that highlights significant legal developments of 2025 and previews the key laws and trends set to shape 2026. Included are numerous tools and resources to assist employers with compliance.

As employers prepare for the evolving regulatory landscape in 2026, conducting a structured compliance audit is an essential step to stay ahead of new requirements and mitigate risk. Organizations benefit greatly from proactively evaluating their policies, processes, and documentation. A thoughtful audit not only identifies gaps before they become liabilities—it positions employers to enter the new year confident, compliant, and prepared for what’s ahead. With that said, we are providing you with a structured approach to support your compliance efforts.

Compliance Audit

To set up an employment law compliance audit, define your scope (e.g., hiring, pay, safety), identify all applicable federal, state, and local laws, gather and review all HR documentation (policies, employee files, records), assess current HR processes against legal requirements, document findings, and create a corrective action plan for any identified gaps, focusing on high-risk areas like onboarding, compensation, and classification. 

 1. Preparation & Planning

• Define Scope & Objectives: Determine what to audit (e.g., FMLA, ADA, wage/hour, safety) and why (e.g., annual review, new regulations).
• Assign Responsibility: Designate a team or individual with HR law knowledge to lead the audit.
• Identify Applicable Laws: List all relevant federal, state, and local employment laws, including industry-specific rules.
• Gather Documentation: Collect employee handbooks, policies, job descriptions, payroll records, training logs, performance reviews, and I-9s.
• Secure Buy-In: Get management support and brief your HR team on the process. 

2. Data Collection & Review

• Review Policies: Check for consistency and alignment with current laws.
• Assess Key Processes: Focus on high-risk areas like:
  • Hiring & Onboarding
  • Employee Classification (Exempt/Non-Exempt)
  • Wage & Hour (Overtime, Breaks)
  • Performance Management & Discipline
  • Benefits & Leave Administration
  • Workplace Safety (OSHA)
• Conduct Interviews: Speak with HR staff and managers to understand policy application. 

3. Analysis & Reporting

• Document Findings: Create a spreadsheet tracking compliance status (compliant, non-compliant, needs review) against specific laws, noting evidence.
• Identify Gaps: Pinpoint inconsistencies or violations.
• Prioritize Risks: Address high-risk issues first. 

4. Action & Follow-Up

• Develop Action Plan: Create a detailed plan with owners, timelines, and resources to fix gaps.
• Implement Changes: Update policies, provide training, and revise processes.
• Monitor & Track: Regularly review progress and maintain a cycle of continuous compliance. 

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.